SOE profits to fund industrial downstreaming acceleration: Prabowo

Delivering his annual state address before the People’s Consultative Assembly (MPR) at the Parliament Complex in Jakarta, Prabowo emphasized that state corporate revenues are pivotal to financing the nation’s key industrial ambitions.

“SOE profits are now being used to accelerate our downstreaming efforts,” Prabowo said.

Indonesian SOEs recorded a net profit of Rp360 trillion ($22 billion) in 2025, up 75.3 percent from Rp186 trillion ($10.43 billion) in 2024.

Consequently, SOE dividend payouts to the state treasury rose 67 percent year-on-year to Rp142.3 trillion ($7.98 billion).

Prabowo detailed that sovereign wealth manager Danantara broke ground on 13 downstream projects in February 2026, with an additional 13 projects slated for launch in April.

These projects encompass coal-to-dimethyl ether (DME) processing, copper and gold smelting, industrial salt production, alumina refining, and waste-to-energy facilities—initiatives expected to generate tens of thousands of local jobs.

Beyond domestic raw-material processing, the president outlined an aggressive “upstreaming strategy” executed via Danantara to acquire leading foreign companies.

“We are acquiring the world’s best companies to secure their technology, management expertise, and market access,” Prabowo affirmed, adding that the strategy aims to transition Indonesia from a raw material exporter into an advanced, technology-driven industrial powerhouse.

Translator: Maria Cicilia Galuh Prayudhia, Yashinta Difa