GCG Principles Help SOEs Sustain Performance

Jakarta, CNBC Indonesia – The positive performance of state-owned enterprises (SOEs) is a source of national pride, as they are established to manage strategic sectors for the prosperity of the Indonesian people. The presence of Danantara, the investment management agency, further maximises SOE assets through investment, with the aim of boosting their contribution to the national economy. Under Danantara’s oversight, SOEs recorded positive performance throughout 2025, with profits reaching Rp332 trillion – a sharp increase from Rp89 trillion in 2024, as stated by President Prabowo Subianto earlier this year. Last year’s profits were driven by the banking and energy sectors, including PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), which reported a net profit of Rp57.13 trillion. The growth in performance underscores improvements in SOE corporate governance under Danantara’s supervision, though further refinements remain necessary. “Corporate governance relates to transparency, accountability, integrity, and fairness. This means all SOEs, whether listed or not, are required to uphold these principles,” stated Toto Pranoto, Managing Partner of the BUMN Research Group at the Faculty of Economics and Business, University of Indonesia (FEB UI), to CNBC Indonesia on Sunday (31 May 2026). “Danantara prioritises strict enforcement of GCG across all state-owned corporations, whether listed or not,” he added. Danantara’s oversight is expected to sustain and improve SOEs’ performance and governance in the long term. Similarly, Piter Abdullah, Policy and Program Director at Prasasti Center for Policy Studies, highlighted that SOE governance improvements must be continuous and uninterrupted. “Improving SOE governance is a long-term process. Results may not be immediately visible, but that doesn’t mean failure – major reforms take time,” he concluded.