Indonesian Political, Business & Finance News

Prabowo Demands Danantara ROA Target of 10 Percent, Says Goals Still Far Off

| Source: TEMPO_ID Translated from Indonesian | Finance

President Prabowo Subianto has requested that the return on assets (ROA) of the Danantara Investment Management Agency reach 10 percent. The request was made by Prabowo at Danantara’s first anniversary event.

According to Prabowo, a well-managed company should ideally have a minimum ROA of 10 percent. “If it’s good, it’s 12 percent; if it’s excellent, it’s 15 percent. We must have a good target, which is 10 percent,” Prabowo said at Wisma Danantara, Jakarta, on Wednesday afternoon, 11 March 2026.

Nevertheless, he acknowledged that the target cannot be achieved in the short term. Prabowo therefore requested that Danantara’s rate of return on assets be at least 5 percent. Based on his calculation, a 5 percent rate of return on total assets valued at US$1 trillion managed by Danantara can contribute approximately US$50 billion to state revenue annually.

“If the return on assets is only 5 percent, that means Danantara must return US$50 billion to the state each year, and US$50 billion means Rp800 trillion. So the leadership of Danantara, your targets are still quite far off,” Prabowo said.

He then added, “But that’s fine, I am confident and believe that the key to good management is in the heart and soul. That is why in the first year I express my thanks and congratulate you all on your achievements, but I remind you that the targets are still quite far away.”

Prabowo did not disclose what the actual rate of return on assets for Danantara was in 2025. He only claimed to have received a report that Danantara was able to increase the ROA of state-owned enterprises to 300 percent in 2025.

In February 2026, Prabowo had demanded that the rate of return on assets of Danantara Investment Management could reach 8 percent. The statement was made by the Head of State during the Indonesia Economic Outlook 2026 agenda.

He claimed that Danantara, within less than a year, had achieved efficiency and reform results four times higher compared to the previous year. Prabowo also targeted a rate of return on assets above 8 percent. “You set 7 percent, I set 8 percent. Now I’m increasing it. It must be more than 8 percent. Ministers, can you do it?” Prabowo said at Wisma Danantara, Jakarta on Friday, 13 February 2026.

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