Performance in the Spotlight: Subsidiary Transformation Must Add Value for State-Owned Companies

State-owned companies are being encouraged to optimise their subsidiaries’ performance through fundamental business improvements, operational efficiency and market expansion.

One example is PT Perkebunan Nusantara I (PTPN I), which is strengthening its oversight of its subsidiary PT Dasaplast Nusantara in Jepara, Central Java.

Dasaplast produces woven bags, inner liners, netting and flexible packaging. Its customers include companies within the PTPN Group, other state-owned enterprises and private-sector businesses.

“These oversight measures are intended to ensure that every entity in the group can grow in a healthier and more competitive way, while adding value to the corporation,” PTPN I President Director Abdul Rivai Ras said in a statement on Sunday (11 October 2026).

Rivai said the efforts had yielded results. Through September 2026, Dasaplast Nusantara recorded revenue of Rp122.8 billion and net profit of Rp7.1 billion. The results provide a basis for strengthening growth while maintaining business sustainability.

He stressed that subsidiary optimisation must be comprehensive, balancing revenue growth with improvements to the fundamentals of the business.

“Subsidiaries must be able to grow on increasingly sound foundations. Optimisation is not only about increasing revenue, but also about efficiency, strengthening markets, financial management, governance and the ability to create added value,” he said.

To further boost the subsidiary’s performance, Rivai visited Dasaplast Nusantara with the President’s Special Envoy, Glenny Kairupan. They reviewed its operations and spoke with the management team about business conditions, challenges and development opportunities.

Rivai said direct oversight on the ground was important to PTPN I to ensure that its transformation strategy was put into practice rather than remaining merely a plan.

“The focus includes strengthening markets, improving cost efficiency and financial performance, raising productivity, and developing products that meet market needs,” Rivai said.

He said Dasaplast still had opportunities to develop through market expansion, reactivating former customers, improving operational excellence, controlling production waste, digitalisation, and research and development into raw materials and products.