Said Iqbal Asks Danantara to Help Capitalise Struggling Private Companies

Presidential Special Adviser for Employment and Labour Welfare, Said Iqbal, has requested that the Danantara Investment Authority assist in providing capital to private companies experiencing financial difficulties. The targeted corporations are those with healthy management but eroded working capital. “There may also be companies that are no longer able to continue, which could be taken over by Danantara,” Iqbal said when met at Wisma Danantara in Jakarta on Wednesday, 1 July 2026. Iqbal claimed this was agreed upon with Danantara following a meeting with PT Danantara Asset Management CEO Dony Oskaria the previous afternoon. One of the companies he suggested was PT Pakerin, which operates in the paper industry. Through state-owned banks, Danantara is expected to facilitate a loan of Rp 400 billion to the company, secured against assets worth Rp 600 billion. The initial step will be to verify the financial health of PT Pakerin. “Around 2,700 employees could be rehired by PT Pakerin,” Iqbal stated. He said Danantara would provide facilities as long as PT Pakerin can resume normal operations, ensuring its products are marketable. The state-owned banks being considered to provide the loan include BRI, Bank Mandiri, BTN, and BNI. The loan will be disbursed to the company after it is deemed creditworthy. Previously, Iqbal had reported that 2,500 workers at PT Pakerin in Mojokerto, East Java, were at risk of layoffs. Following a visit to the site, he noted that operations were running at only 20 percent capacity. The closure of the factory would impact the local economy.