INDEF: SOE Performance Continues to Improve Under Danantara Indonesia Management
Efforts to restore the performance of PT Krakatau Steel (Persero) Tbk and PT Kimia Farma Tbk have begun to show results after both came under the management of Danantara Indonesia. Through strengthening of working capital, restructuring, and disciplined portfolio management, the two strategic state-owned enterprises have started to move from a phase of pressure towards a healthier performance recovery.
At Krakatau Steel, Danantara’s support has been one of the important factors in maintaining operational sustainability and strengthening the company’s fundamentals. After receiving funding support and restructuring, Krakatau Steel began to record improvements, with its financial position reversing from a loss of approximately Rp1.74 trillion to a profit of around Rp150–185 billion.
This improvement is important because Krakatau Steel holds a strategic position in the national steel supply chain. With a more controlled financial structure and strengthened operations, the company has greater room to support steel demand for the national infrastructure, construction, and manufacturing sectors.
Recovery signals are also visible at Kimia Farma, which has begun to show a performance turnaround by posting a profit of Rp54.07 billion, reversing from a loss of Rp135.61 billion. For Kimia Farma, this improvement is an important first step towards strengthening its role in the national pharmaceutical industry and healthcare services.
The executive director of the Institute for Development of Economics and Finance (INDEF), Esther Sri Astuti, also appreciated Danantara Indonesia’s steps. “In my view, we should appreciate it if many SOEs increase their profits and successfully recover from losses thanks to transformation, streamlining and cutting management layers, and large-scale operational cost efficiency,” said Esther in her statement on Friday, 14 August 2026.
The recovery of Krakatau Steel and Kimia Farma also serves as an early example of how more active portfolio management can help SOEs get through periods of pressure and return to improved performance. If this trend can be maintained, a similar model could potentially be applied to other SOEs that need fundamental strengthening, whether in terms of finance, operations, or governance.