Prabowo Sets Danantara Annual Revenue Target at Rp800 Trillion
President Prabowo Subianto has set a target for Danantara Indonesia to provide a minimum contribution of USD 50 billion or Rp800 trillion to the state annually.
In his address marking Danantara’s first anniversary at Wisma Danantara in Jakarta on Wednesday, Prabowo stated that the target derives from a calculated minimum return on assets (ROA) of 5% from the total assets managed by Danantara.
He noted that well-performing companies typically achieve a minimum ROA of 10% annually. However, for Danantara, only a 5% annual target has been set, as it is only one year into its mandate to manage state assets.
“We understand that this may not be achievable in the initial years. If we achieve only 5% ROA, it means Danantara must return USD 50 billion to the state annually, Rp800 trillion,” Prabowo said.
The President emphasised that Danantara must have long-term targets for state asset management. Going forward, Danantara is expected to achieve 10% to 15% ROA annually.
Nonetheless, the President expressed appreciation for Danantara’s performance in its first year. He also reminded the organisation that it will face many challenges ahead.
“I remind you that the target remains quite distant. You must be able to return a minimum of 5% to the state. A minimum of USD 50 billion,” he added.
Earlier, Prabowo noted that Danantara has demonstrated very strong performance over the past year, achieving an ROA of over 300%. The President said this achievement demonstrates the significant potential of managing state-owned enterprise (SOE) assets when handled in an integrated and professional manner.
The formation of Danantara is regarded as a strategic step to consolidate various state assets in order to provide greater added value to the national economy.
President Prabowo also warned his staff against submitting false reports or reports that do not reflect actual conditions. He emphasised that there should be no report manipulation.
President Prabowo Subianto cautioned the management of Danantara Indonesia not to become complacent with performance achievements in the organisation’s first year of operation.