Prabowo Appreciates Danantara's Performance, Promises Leadership with Honours

President Prabowo Subianto has given special recognition to the leadership and entire team of Danantara for their work and contribution in reforming and transforming State-Owned Enterprises (SOEs). Prabowo assessed that the various reforms have had an impact on improving the performance of a number of SOEs. He also appreciated Danantara’s steps, which were deemed capable of driving efficiency and increasing the profits of state companies. “So, ladies and gentlemen, I give special appreciation to the leadership of Danantara and its entire team, its entire network,” said Prabowo during the Annual Session of the MPR RI and the Joint Session of the DPR-DPD RI in 2026 at the MPR/DPR RI Building, Jakarta, Friday. He cited reforms in the tin mining sector as an example. At the end of 2025, the government shut down around 1,000 illegal tin mines in Bangka Belitung. Prabowo then requested the Commander of the Indonesian National Armed Forces and the Chief of the Indonesian National Police to investigate the existence of these illegal mining activities. According to Prabowo, the crackdown on illegal mining has also impacted the performance of PT Timah. In the first six months of 2026, PT Timah’s net profit reportedly increased by 804.7 percent compared to the same period the previous year. Meanwhile, PT Timah’s valuation in August 2026 increased by 280 percent compared to August 2025. Prabowo stated that the reform of SOEs is being carried out on a massive scale. In the first six months of 2026, the net profit of PT Semen Indonesia increased by 408.9 percent, PT Pupuk Indonesia by 252.8 percent, Pertamina by 86 percent, Pegadaian by 84.4 percent, Pelindo by 60.4 percent, and PTPN by 54.4 percent. In the aviation sector, Garuda Indonesia has also reactivated previously grounded aircraft. As of June 2026, a total of 20 aircraft had been reactivated, bringing the total number of operational aircraft to 104 units. Furthermore, SOE profits in 2024 were corrected to Rp186 trillion, with dividends paid amounting to Rp85.5 trillion. In 2025, SOE profits rose to Rp326 trillion, an increase of 75.3 percent, while dividends paid reached Rp142.3 trillion, an increase of 67 percent. He noted that after accounting for state capital injections provided through the state budget, net SOE dividends increased from Rp53 trillion in 2024 to Rp138 trillion in 2025, a rise of 160 percent. For 2026, SOE dividends are projected to increase further to Rp200 trillion without any state capital injection. Thus, on a net basis, SOE dividend contributions will have increased almost fourfold compared to 2024. Prabowo said these SOE profits are now being directed towards accelerating downstream processing. Together with Danantara, the government has broken ground on 13 downstreaming projects on 6 February 2026 and another 13 projects on 29 April 2026. These projects include the processing of coal into dimethyl ether, the downstreaming of copper and gold, industrial salt processing, and the construction of an alumina smelter into aluminium. These various projects have the potential to create tens of thousands of new jobs. In addition to downstreaming, the government is also promoting an upstreaming strategy by utilising SOE profits to acquire the world’s best companies. This step is aimed at acquiring technology, management, and market access that can strengthen Indonesia’s position in the global supply chain.