State-Owned Giant Said to Boost Economic Growth
The transformation of state-owned enterprises (BUMNs) is considered one of the key factors supporting Indonesia’s economic growth of 5.61% in the first quarter of 2026. BUMN observer Toto Pranoto stated that this contribution primarily comes from groups of large-capitalisation BUMNs or blue chips that still dominate national economic activities.
“I believe most contributors to economic growth are still dominated by blue-chip BUMNs such as Himbara, which drive economic transactions to grow,” said Toto in Jakarta on Tuesday (12/5/2026).
The Managing Partner of the BUMN Research Group at LM FEB Universitas Indonesia (UI) explained that Himbara banks play a role in maintaining liquidity and national economic financing, which is a crucial driver of consumption and investment growth.
Toto continued that most contributions to economic growth still come from several large BUMNs with strategic roles in the energy, telecommunications, and mining sectors.
“MIND ID’s contributions to exports and high foreign exchange receipts, as well as fostering downstream business,” Toto added.
According to Toto, export contributions and foreign exchange earnings from the mining sector through Mind ID further strengthen Indonesia’s economic resilience amid global dynamics. In addition, Toto assessed the roles of PT Pertamina and PT Telkom Indonesia as highly significant in maintaining national economic activities.
In his view, these two red-plate companies are able to create multiplier effects through strengthening the energy sector and digital connectivity, which form the foundation of modern economic growth. Nevertheless, Toto assessed that the overall contribution of BUMNs is still not optimal because growth still relies on the group of large companies alone.
“This illustrates that the roles of other BUMNs outside the blue-chip group are not optimal,” Toto continued.
He added that BUMNs’ contributions to national economic growth should be greater if investments in high value-added downstream sectors are accelerated. One example is the development of the electric vehicle battery industry through the Indonesia Battery Corporation (IBC) consortium.
“BUMN contributions could be higher if they invest more in downstream areas with higher added value. For instance, accelerating the construction of EV battery factories by the IBC consortium dominated by BUMNs would make the state companies’ contributions larger,” said Toto.
Toto added that currently, the Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara) is still focused on internal improvements and restructuring several BUMNs. According to him, this condition means that the prominent BUMN companies still come from the old flagship sectors.