INDEF Economist: Danantara Begins to Drive Efficiency in State-Owned Enterprises

Economist Eko Listyanto from the Institute for Development of Economics and Finance (INDEF) has assessed that the presence of Danantara is starting to have a positive impact on the efficiency and restructuring of state-owned enterprises (SOEs). He noted that the initial steps have seen rapid internal institutional changes.

“In my opinion, at least in this initial step, the positive aspect is that the internal institutional changes are being carried out quickly,” Eko said when met after the 2026 Annual Session of the MPR and the Joint Session of the DPR-DPD in Jakarta on Friday.

This efficiency drive has been made possible by the structural changes following Danantara’s formation, allowing for more directed high-level strategic decisions. Eko cited the government’s closure of 290 unproductive SOEs as part of the corporate restructuring, with a target to shut down more than 750 by the end of 2026. “Out of over a thousand SOEs, they have been cut, and the target is to cut even more. This directly creates an efficiency impact,” he explained.

He further estimated that the efficiency measures could generate additional funds to be reinvested into SOE operations, potentially contributing to increased profits. “This is a large figure, which is then put back into the operations of Danantara and the respective SOEs. That is what can capitalise on the profit increase,” he said.

However, Eko cautioned that this is still an early stage, and Danantara’s success will be measured by the ability of more SOEs to generate profits in the future. In his address, President Prabowo Subianto stated that improvements in SOE governance and performance have begun to show significant results, with dividend payments reaching Rp142.3 trillion in 2025, a 67 percent increase from 2024. The President noted this increase followed a correction of profit reports for several SOEs, with 2024 profits recorded at Rp186 trillion and dividends of Rp85.5 trillion.