Jakarta, Indonesia Sentinel – Indonesia plan to incorporate all State-Owned Enterprises (BUMN) into Daya Anagata Nusantara (BPI Danantara), including loss-making ones, by the end of March 2025.
The initiative was confirmed by the Chief Operating Officer (COO) of Danantara, Dony Oskaria. He stated that the process of transferring share ownership from the Ministry of BUMN to Danantara is currently underway.
“We expect everything to be finalized by the end of March. Once the transfer process is complete, all BUMN will be integrated into Danantara,” Dony said at the Presidential Palace in Jakarta on Friday (March 7), as reported by CNN Indonesia.
He also claimed that BUMN would become stronger under Danantara’s management, as dividends that were previously submitted to the Ministry of Finance (MoF) will now be reinvested for business expansion and corporate improvements.
“It will certainly be easier with Danantara. Previously, each company operated independently, but now, with consolidation, it will be more efficient to restructure and enhance the performance of companies that have not yet turned a profit,” he said.
Regarding the current financial conditions of State-owned enterprises, Dony asserted that the number of loss-making BUMN is relatively small. Additionally, for state-owned construction firms, Danantara plans to carry out consolidation measures to improve their financial condition.
Furthermore, he stated that dividends managed by Danantara would be invested in more strategic sectors to maximize economic benefits.
“We had around Rp 320 trillion ($20 billion) in profits, with approximately Rp150 trillion ($9.4 billion) in dividends going to the state budget. Now, these funds will be invested to strengthen our economy and accelerate national development, ensuring they are allocated to priority sectors,” he explained.
All BUMN to Join Danantara
Currently, Indonesia has 65 SOEs operating across various sectors, including energy, oil and gas, healthcare, manufacturing, minerals and coal, plantations and forestry, telecommunications, and media.
As an initial step, the government has integrated seven major SOEs into Danantara. The BUMN including MIND ID, Bank Mandiri, BRI, BNI, PLN, Pertamina, and Telkom Indonesia.
Launched by President-elect Prabowo Subianto, Danantara will manage approximately $900 billion in state assets. The amount was larger than Singapore’s Temasek or Malaysia’s Khazanah.
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“This fund will now be allocated to Danantara Indonesia, to be invested in 20 or more national projects as part of our industrialization and downstream processing efforts,” Prabowo said during the launch event.
Danantara’s investment portfolio will cover strategic national projects, including downstream processing of nickel, bauxite, and copper, as well as the development of data centers, artificial intelligence, oil refineries, and petrochemical plants.
Additionally, funds under Danantara’s management will be directed toward food and protein production, aquaculture, and new and renewable energy projects.
With Danantara’s establishment, the Indonesian government aims to enhance the efficiency and global competitiveness of state-owned enterprises, driving economic growth and long-term national development.
(Raidi/Agung)
