State-Owned Enterprises Contribute Up to Rp700 Trillion Annually to State Coffers

State-Owned Enterprises (SOEs) remain a key pillar of the national economy, contributing between Rp600 trillion and Rp700 trillion to state revenue each year, according to the Head of the SOE Regulatory Body (BP BUMN), Dony Oskaria. “The contribution of SOEs to state revenue, outside of profits and taxes, is roughly around Rp600 trillion to Rp700 trillion annually. So our SOEs are large,” Dony stated in Jakarta on Thursday. Dony, who also serves as Chief Operating Officer of Danantara, dismissed the narrative that SOEs are collectively loss-making as factually incorrect. He noted that on a consolidated basis, SOEs recorded very substantial profits. “SOEs are profitable. In 2025, the profit was Rp335 trillion. So it is false to say that SOEs are consolidated as loss-making. That is a lie. The loss-making entities only account for Rp20 trillion,” Dony said. This profit could increase if the rehabilitation and efficiency process for state companies continues. “If we close the loss-making ones, our profit becomes Rp355 trillion. So we can tell the public we are not making a loss, but the profits are not yet maximised,” he added. Dony mentioned that President Prabowo Subianto targets Danantara to become an instrument to strengthen the economic capacity and value of SOEs, enabling a greater contribution to national development. “That is why the President hopes that with Danantara, it will become even larger,” he said. To achieve higher contribution targets, including figures up to Rp800 trillion per year, Dony acknowledged the significant challenges but expressed optimism that the target can be met through comprehensive transformation within the SOE environment. He outlined several strategic steps underway, including corporate consolidation, streamlining the number of business entities, and developing a more focused new roadmap. “We are reducing the number of our companies first. We are consolidating within our companies. We are building a new roadmap. We are building competitive advantages for our companies,” he said. Beyond strengthening business structures, Danantara also places great emphasis on human capital development. According to Dony, improving talent quality is a key factor for SOEs to compete globally. “We are developing our human capital. Including now, we are standardising the qualifications for individuals serving as SOE Directors,” said Dony. Furthermore, Dony stated that the current SOE transformation is the most fundamental effort ever undertaken by the government to strengthen governance, enhance efficiency, and increase the contribution of state companies to national development. “I am very optimistic that we can do this. And with full confidence, we will make our SOEs even better. There is no other choice,” he affirmed.