By: Abdul Syukur
The establishment of Danantara Indonesia as an Investment Management Agency marks a significant milestone in the transformation of state assets and state-owned enterprises (SOEs) management. Through a measured and professional approach, Danantara is expected to improve the SOE management structure, which has long been considered inefficient and suboptimal.
Currently, there are nearly 900 SOEs and affiliated entities, ranging from parent companies to subsidiaries and sub-subsidiaries. This vast number not only complicates administrative processes but also leads to business model duplication and resource inefficiency. It is within this context that Danantara emerges with a major mission: to simplify, strengthen, and consolidate all SOE assets to deliver real benefits to the national economy.
Danantara’s Chief Operating Officer, Dony Oskaria, explained that the institution adopts a four-stage process in transforming SOEs, beginning with a fundamental review of business operations. This review involves mapping industry developments, analyzing competitiveness among companies, and evaluating each entity’s internal capabilities. All findings are compiled into a comprehensive industry map to assist decision-making.
The results reveal significant overlaps. In the logistics sector, for example, there are nearly 20 SOEs operating in similar fields but lacking competitiveness due to small scale. Similar conditions exist in insurance and tourism sectors, where no fewer than 16 insurance entities operate under state control, alongside around 130 SOE-owned hotels scattered without integrated management.
The second stage now underway is consolidation — merging companies with similar business models into stronger, more focused entities. For example, the logistics sector will be integrated into a single large player capable of competing nationally and globally. Likewise, the insurance sector will be streamlined into three core companies specializing in life insurance, general insurance, and credit insurance. A similar approach will be applied in the hotel industry, which will be managed under one professional holding with the potential to become Indonesia’s second-largest operator.
According to Dony, this transformation is only possible because Danantara has direct authority over the assets and dividends of all SOEs. This means mergers and acquisitions can proceed more flexibly, without complex bureaucratic procedures between state companies. This is Danantara’s key advantage in rapidly and strategically restructuring the SOE ecosystem.
The year 2025 marks a crucial milestone as Danantara begins consolidating four to five key sectors, including state-owned construction companies that have so far operated in various lines from property to power plants. Moving forward, each entity will be directed to focus on one core business to become more efficient and highly competitive.
Following consolidation, the next stage involves restructuring business models and revenue sources. A new roadmap will be crafted to ensure each SOE has a clear and sustainable growth direction. Lastly, Danantara will assess the potential for value creation from each asset, determining whether it is better managed by the state, transferred to private partners, or even openly privatized to ensure transparency and efficiency.
Danantara’s bold initiative has drawn attention and appreciation from parliament. Member of Commission VI of the Indonesian House of Representatives (DPR), Firnando Ganinduto, views Danantara as a concrete demonstration of the government’s commitment to improving state investment governance. He considers the institution a vital breakthrough in creating a more adaptive SOE structure capable of competing in global markets.
Firnando also emphasized that capital allocation to SOEs must be based on feasibility studies and managed with high transparency. The DPR, especially Commission VI, will continue to exercise oversight to ensure that all investments made through Danantara yield positive impacts on the national economy.
Furthermore, synergy between Danantara, the Ministry of SOEs, and industry players is deemed crucial to building a healthy investment ecosystem. With a data-driven, efficient, and integrated approach, Danantara’s new model is expected to avoid past bureaucratic pitfalls and produce a much healthier and more strategic SOE portfolio.
What Danantara is doing essentially represents the long-awaited structural reform. Amid increasingly complex and competitive global challenges, Indonesia needs a state asset management institution that is not only responsive but also visionary. Danantara exists to meet that need, with a strong foundation and institutional design that enables quick yet accountable decision-making.
If implemented consistently and carefully overseen, Danantara has the potential to become the main catalyst for national economic growth through more productive state asset management. This institution can prove that public sector transformation is not a dream if carried out seriously, with precise mapping, disciplined execution, and a collaborative spirit across institutions.
Danantara’s presence is a new hope — not only for SOE efficiency but also for the Indonesian people, who deserve to reap optimal benefits from every rupiah invested by the state. Now is the time to give full trust and support so that Danantara can work optimally for a better future of state investment.
