Prabowo Sets Danantara Target of Rp800 Trillion Annual Contribution

Jakarta – President Prabowo Subianto has set a target for state holding company Danantara Indonesia to provide a minimum contribution of USD 50 billion (Rp800 trillion) to the country annually.

In a speech marking Danantara’s first anniversary at Wisma Danantara in Jakarta on Wednesday, Prabowo stated that this target was based on a calculation of a minimum return on assets (ROA) of 5 per cent from the total assets managed by Danantara.

He noted that well-managed companies typically achieve a minimum ROA of 10 per cent annually. However, Danantara’s target has been set at 5 per cent per year because the organisation has only been managing state assets for one year.

“We understand that this may not be achievable in the first years. If Danantara achieves only 5 per cent ROA, it means Danantara must return to the state USD 50 billion annually, equivalent to Rp800 trillion,” Prabowo stated.

The President emphasised that Danantara must have long-term targets for managing state assets. Going forward, Danantara is expected to achieve a 10 to 15 per cent ROA annually.

Nevertheless, the President expressed appreciation for Danantara’s performance in its first year of operations. He also cautioned that Danantara would face significant challenges ahead.

“I remind you that the target is still quite far off. You must be able to provide a minimum 5 per cent return to the state. A minimum of USD 50 billion,” he added.

Previously, Prabowo noted that Danantara had demonstrated very strong performance over the past year, achieving a return on assets (ROA) exceeding 300 per cent.

The President said this achievement demonstrated the significant potential of managing state-owned enterprises (SOEs) assets when handled in an integrated and professional manner.

The establishment of Danantara is regarded as a strategic step to consolidate various state assets so as to provide greater added value to the national economy.