Governance Reset for State-Owned Enterprises Begins as Danantara Scrutinises Balance Sheets and Financial Statements

The Danantara Asset Management, the operating holding entity, has begun a comprehensive evaluation of state-owned enterprises (BUMN). This step is described as a governance reset, a reorganisation of governance and strengthening of the fundamentals of state-owned enterprises. The evaluation is conducted through the operating holding entity, Danantara Asset Management. The process includes reviewing accounting policies, asset quality and recording, and the risk management system. The initial step has already been applied to the Karya group of companies. The programme has now been expanded to other sectors within the BUMN portfolio. Additionally, enhancements are directed at earnings quality and operating cash flows. Management targets sustainable growth in EBITDA, or earnings before interest, taxes, depreciation and amortisation. Capital expenditure discipline and the capital structure are also areas of focus. The optimisation of return on assets, improvements in operating margins, and the ability to meet debt obligations are also part of the evaluation agenda. Liquidity will be managed conservatively. “As the new management and mandate holder for state asset management, Danantara Indonesia is obliged to conduct a comprehensive review of asset quality, accounting policies, and governance discipline across the portfolio. This governance reset is a step to strengthen the foundation so that the company’s balance sheet reflects current, prudent, and credible conditions,” said Rohan on Wednesday (5/3/2026). He emphasised that future performance would not be measured solely by the magnitude of balance sheet figures. “Going forward, the measure of success will not be based solely on the size of balance sheet figures, but on earnings quality, cash flow strength, and the company’s ability to create real economic value. Our focus is on building a foundation that generates real money and sustainable dividends for the country. Healthy growth must be rooted in productivity and operational performance, so its contribution to state revenue is truly measurable and sustainable,” he asserted. Rohan believes that a stronger financial footing will push BUMN to focus on efficiency and improving operating margins. The restructuring process is said to be advancing in phases while maintaining operational stability and business continuity across the portfolio.