President Prabowo Applauds Danantara Transformation as State-Owned Enterprise Profits Soar

President Prabowo Subianto has commended the performance of Danantara Indonesia in driving improvements across state-owned enterprises (SOEs). During his annual address at the Parliament Building in Senayan, Jakarta, on Friday (14/8/2026), Prabowo detailed significant profit growth recorded by several SOEs. Data presented by the President showed PT Timah’s profit grew by 804.7 percent, Pupuk Indonesia by 253 percent, Semen Indonesia by 196.5 percent, Pegadaian by 84.6 percent, Pertamina by 80 percent, Pelindo by 60.4 percent, BTN by 40.8 percent, and Bank Mandiri by 24.3 percent. In addition to profit growth, several SOEs demonstrated successful turnarounds. Krakatau Steel and Kimia Farma, which had previously recorded losses, are now posting profits. Although the reporting periods vary, the trajectory for both companies indicates a positive trend. The President’s appreciation reflects the progress of SOE transformation under Danantara’s management. Since its establishment, the Danantara Investment Management Agency had faced questions regarding its ability to manage state assets more productively. A number of performance indicators are now showing positive developments, ranging from increased profitability to corporate turnarounds. Deputy Chairman of Commission VI of the House of Representatives (DPR) from the Gerindra Party faction, Andre Rosiade, praised Danantara’s positive performance in reforming SOEs. ‘This shows that the partnership between Commission VI of the DPR and Danantara Asset Management has been successful. Successful in how we partner and support each other to fix the existing SOEs,’ Andre said in Jakarta on Friday (14/8/2026). According to Andre, the partnership includes the streamlining process being undertaken by Danantara to reduce the number of SOEs for more effective and efficient management. ‘The third aspect is improving performance. The basis for this is the amendment to the SOE Law, which established Danantara, and the second amendment to further perfect its performance. I am very pleased that the President appreciates Danantara’s performance in partnership with us in Commission VI of the DPR,’ Andre stated. Danantara’s presence is also seen as encouraging SOEs to focus more on their core businesses and reduce non-value-adding activities. Through streamlining, corporate structures, processes, and costs are being reorganised for greater efficiency. Furthermore, asset optimisation and strengthened synergy among SOEs are expected to unlock economies of scale and scope, ensuring state assets are not merely owned but managed productively. Communication analyst Hendri Satrio noted that Danantara’s role extends beyond improving SOE performance to influencing public optimism regarding the management of state-owned companies. ‘It is now clear that Danantara plays a very important and primary role in Indonesia’s future development, at least during the first term of President Prabowo’s administration, and it is very likely to continue given the important and strategic role Danantara is currently undertaking,’ said the analyst, known as Hensat, on Friday (14/8/2026). Golkar Party legislator Bambang Soesatyo assessed that SOE reform is crucial to ensure state companies become more productive and contribute more significantly to the economy. ‘SOE reform is a bold and necessary step because too many unproductive state companies can burden the state’s finances. SOEs must consist of healthy, professional, productive companies capable of creating added value. However, restructuring must also be carried out transparently, accountably, and professionally so that the ultimate goal is to increase the contribution of SOEs to the economy and state revenue,’ Bambang said on Friday (14/8/2026). The improvement in SOE performance is linked to changes in the management of state companies, including a focus on core business, organisational efficiency, operational discipline, asset optimisation, and strengthened governance. This direction aligns with Prabowo’s message during the Annual Session of the People’s Consultative Assembly (MPR) and the Joint Session of the House of Representatives (DPR) and the Regional Representative Council (DPD) in commemoration of the 81st Anniversary of Indonesian Independence. In his speech, Prabowo stressed that the nation’s wealth must be used for the greatest possible prosperity of the people. ‘Eighty-one years ago, the founding fathers established an ideal: a sovereign, just, and prosperous Indonesia. An Indonesia whose wealth must be used for the greatest prosperity of the people and must not be enjoyed by only a handful of individuals,’ he said during the session at the Nusantara Building, Parliament Complex, Senayan, Central Jakarta, on Friday (14/8/2026).