State-Owned Enterprises’ Profits Rise as Danantara Accelerates Restructuring

Performance improvements are the result of a comprehensive overhaul and evaluation of the BUMN business model.

26 Okt 2026 18:15 WIB · Ekonomi & Bisnis

Kompas/Nina Susilo

JAKARTA, KOMPAS — The combined net profit of state-owned enterprises (BUMN) rose by 18.4 percent to Rp 214.9 trillion during January to August 2026. Amid this performance improvement, the Danantara Investment Management Agency is accelerating the restructuring of state-owned companies while preparing over 40 strategic projects to bolster the national industry and technology.

Danantara Indonesia Chief Operating Officer Dony Oskaria stated that the combined net profit of state-owned enterprises (SOEs) in January–August 2026 rose by Rp 33.4 trillion compared to the same period last year, from Rp 181.5 trillion to Rp 214.9 trillion. The annualized combined return on equity (ROE) of SOEs also increased by 0.6 percentage points, from 7.4 percent to 8 percent.

“Therefore, the transformation we have implemented has yielded results,” said Dony, who also serves as the Head of the State-Owned Enterprises Regulatory Agency (BP BUMN), during a C-Suite session at the Danantara Technology Innovation Investment Forum (DTIIF) 2026 in Jakarta on Monday (26/10/2026).

Dony explained that the improvement in performance is the result of a comprehensive overhaul and evaluation of the state-owned enterprise’s business model. The transformation includes restructuring revenue sources and composition, tightening cost structures, and optimizing profits by adhering to global industry best practices.

Several state-owned enterprises (BUMN) reported significant growth in net profits. PT Semen Indonesia (Persero) Tbk, or SIG, led the way with a remarkable 427 percent year-on-year increase. PT Pupuk Indonesia (Persero) recorded a growth of 233 percent, PT Danareksa (Persero) saw an increase of 110 percent, and PT Perkebunan Nusantara III (PTPN III) reported a 55 percent rise.

PT Pertamina (Persero) reported a profit increase of 48 percent, while PT Pelabuhan Indonesia (Persero), also known as Pelindo, saw a 45 percent rise. PT Bank Tabungan Negara (Persero) Tbk, or BTN, recorded a 35 percent increase, and PT Bank Mandiri (Persero) Tbk reported a 16 percent growth.

Improving the profitability of state-owned enterprises is crucial for Danantara because the investment management institution relies on dividends from state-owned enterprises as a source of funding for its investments. Unlike some sovereign wealth funds (SWFs) in other countries, which are funded by state revenues, Danantara is funded by SOE dividends.

As many as 52 percent of the 1,074 companies reported losses. Two billion US dollars in lost efficiencies due to layered transactions are a fact. Not to mention the accumulation of unmanaged debt.

In his presentation, Dony explained the differences between Danantara and sovereign wealth funds (SWFs) in other countries. While SWFs elsewhere receive investment funds from national fiscal resources, Indonesia’s Danantara obtains its funding from dividends of state-owned enterprises.

The problem, Dony said, is that there are 1,074 state-owned enterprises (SOEs) in Indonesia, most of which operate in the same business. Furthermore, most act as layering companies, thus profiting from affiliated companies.

As a result, Dony continued, building Telkomsel’s fiber optic network required a partnership with four companies. This not only took a long time, but also made the price uncompetitive.

The large number of overlay companies also doesn’t contribute to good governance. “As many as 52 percent of the 1,074 companies lost money. Two billion US dollars in lost efficiency due to layering transactions, that’s a fact. Not to mention the accumulation of unmanaged debt,” he said.

As Danantara is based on the management of state-owned enterprises, improving the governance of these entities is essential for its sustainability. To this end, a roadmap has been established, starting with restructuring and consolidation in 2026, followed by human development and corporate culture enhancement in 2027, and innovation through technology in 2028. By 2029, it is expected that value creation will be established, leading to the formation of a world-class corporation by 2030.

The assessment categorizes companies into four groups. First, there are 200 companies ready for consolidation. Dony cited examples, noting that five asset management firms will be merged into one, while 60 hospitals will also be consolidated into a single entity. Similarly, 120 hotels will be combined into one company. All of this is set to be completed by the end of the year.

Secondly, around 15 companies will undergo financial restructuring, including Krakatau Steel, Kimia Farma, and Garuda Indonesia. Thirdly, 213 companies will be liquidated or closed. Lastly, 208 companies will be divested.

“So, we will only have less than 200 companies under Danantara Indonesia,” said Dony.

By October 2026, according to Dony, 364 companies had simplified and streamlined their governance through restructuring, mergers, divestments, and liquidations. “We’ve impaired Rp 135 trillion due to incorrect bookkeeping,” he added.

By the end of this year, at least 750 companies will be closed through consolidation, mergers, divestments, and liquidations.

Dony added that the transformation is not yet complete. By the end of this year, at least 750 companies will be closed through consolidation, mergers, divestitures, and liquidations.

Contacted separately, Prasasti Center Senior Economist Piter Abdullah assessed that streamlining of state-owned enterprises (SOEs) is necessary to improve efficiency, professionalism, and competitiveness. Currently, SOEs have been overly broad in their scope, even leading to the creation of subsidiaries and subsidiary companies operating in areas far removed from their parent company’s core business.

According to Piter, this situation not only limits opportunities for the private sector but also makes state-owned enterprises less accustomed to facing open competition.

He emphasized that consolidation must be accompanied by improvements in professionalism, particularly in the appointment of directors and commissioners. He emphasized that filling positions should be based on capacity and competence to avoid becoming a means of political favors or opening up opportunities for moral hazard.

“Streamline must be accompanied by increased professionalism. It must be professional, not people who are simply being placed in BUMNs for the sake of returning favors, even though they actually have no capacity at all, whether as commissioners or directors,” Piter said.

In addition to the restructuring of state-owned enterprises, Danantara is preparing over 40 strategic projects across six priority industrial clusters. These projects encompass the energy sector; food, health, and agriculture; defense, maritime, and aerospace; advanced materials; telecommunications and mobility; as well as other sectors.

Danantara Chief Technology Officer Sigit Puji Santosa stated that one of the development focuses is increasing the added value of the data center industry in Indonesia. Currently, the industry is considered to be heavily reliant on land rentals and basic infrastructure provision.

“Danantara has more than 40 projects spread across six industries,” said Sigit.

“In the future, through Danantara, we will not only have the infrastructure and equipment, but we will also bring the manufacturing of that equipment domestically,” he said.

Danantara is also targeting the development of the semiconductor industry to support the domestic data center and high-tech ecosystem. According to Sigit, six semiconductor sectors are currently being developed, including controllers and data center-specific chips.

These efforts are strengthened through a strategic partnership with Arm, a global chip design company, announced in May 2026. The collaboration focuses on the development of artificial intelligence (AI) chips and the training of 15,000 Indonesian digital talents to design chips based on the Arm ecosystem.

“We have six semiconductor sectors that we will develop in Indonesia with Danantara. One of them includes controllers and chips for data centers,” said Sigit.

In the telecommunications and mobility cluster, priority projects include the construction of a 1 gigawatt (GW) data center, the development of national AI sovereignty, national e-commerce, sovereign cloud, national blockchain, the Garuda Command Center, national cars and motorcycles, and a traceability and trust system.

The cluster is also projected to develop future technologies, such as next-generation batteries, charging equipment, scanning systems, e-motor traction, and 5G industrial private networks.

Other clusters include computing devices, electric heavy machinery, optical sensors and instruments, and industrial robots.

The development of these projects complements Danantara’s agenda in the sectors of energy, food, health, agriculture, defense, maritime, aerospace, and advanced materials. By restructuring the company and advancing technology industries, Danantara aims to enhance the profitability of state-owned enterprises while simultaneously strengthening the capacity of the national industry.

Writer:

Dimas Waraditya Nugraha, Nina SusiloEditor:

Budi Suwarna