By: Bara Winatha*)
The government continues to demonstrate its commitment to strengthening the governance of State-Owned Enterprises (SOEs) in order to realize higher efficiency, transparency, and accountability. This step is part of a grand strategy to encourage SOEs to not only excel in business, but also be able to carry out their social role optimally as an extension of the state in serving the community.
Danantara Indonesia CEO Rosan Roeslani said that his party has issued a directive to all SOEs not to make changes to management in the Annual General Meeting of Shareholders (AGM) until a comprehensive evaluation is completed. This step is intended to maintain continuity in the ongoing business transformation and governance process of SOEs. He emphasized that the directive is based on the Limited Liability Company Law and other relevant laws and regulations.
Danantara Indonesia is currently targeting a comprehensive consolidation of the BUMN structure, which currently consists of 888 companies. The target will be directed towards a leaner structure, with the number of companies under 200 entities, which have a large scale and global competitiveness. This process is not only aimed at administrative efficiency, but also to strengthen the strategic position of BUMN in facing national and international competitive challenges.
Danantara Indonesia Chief Operating Officer Dony Oskaria said that the consolidation process was carried out in two main stages. The first stage is a comprehensive review of the BUMN business foundation, which is expected to be completed in the fourth quarter of 2025. The second stage is business consolidation through mergers and acquisitions that will include more than 350 corporate actions in the next one to two years. The end result of this process is the formation of a BUMN that is more focused, competitive, and able to provide greater economic added value to the country and society.
In the process, Danantara not only acts as a policy director, but also becomes a catalyst for changes in organizational structure and culture in the BUMN environment. The evaluation is carried out comprehensively, not only from the financial performance side, but also from the perspective of process efficiency, internal governance, and compliance with transparency principles.
The government’s strategic steps have received support from various parties, including analysts and business observers. One of them is the strategic research and communication institution The Iconomics which consistently monitors the dynamics of BUMN performance in various aspects. Through studies conducted by its team, The Iconomics assesses that the role of BUMN in national development is very strategic, especially in encouraging economic stability and equal distribution of welfare.
Founder and CEO of The Iconomics, Bram S. Putro, said that strengthening BUMN governance is very important to maintain the reputation and credibility of state institutions in the eyes of the public. He considered that the four dimensions of BUMN reputation—namely brand popularity, commercial reputation, human resource reputation, and social reputation—must be improved simultaneously to create competitive institutions that have a direct impact on society. He also said that with the presence of Danantara, BUMN is expected to be able to increase efficiency, attract global investment, and create prosperity widely.
Strengthening BUMN governance will also be a major focus in the 7th BUMN Award 2025 agenda organized by The Iconomics. This event presents an open discussion forum entitled BUMN Forum. In the forum, BUMN leaders, investors, regulators, and academics will discuss the new direction of leadership and investment policies in the BUMN environment. Bram said that changes in leadership, both at the national level and in the BUMN structure, will affect how BUMNs operate, innovate, and make long-term contributions.
Furthermore, the BUMN reform agenda also covers strategic sectors such as insurance, energy, transportation, and technology. The government is finalizing a plan to streamline 16 state-owned insurance companies into three large entities. The Financial Services Authority (OJK) together with the IFG insurance holding company are finalizing technical steps for the implementation of the consolidation. Consolidation in this sector is considered important to create a more efficient, resilient industrial structure that is able to meet the protection needs of the wider community.
The government continues to encourage SOEs to carry out social functions optimally. Through their role as public service providers, SOEs are required to remain adaptive to the needs of the community without ignoring healthy business principles. Therefore, every efficiency policy implemented must remain based on the principles of inclusiveness and social sustainability.
The transformation of SOE governance that is currently underway is part of the government’s long-term efforts to reorganize the foundation of the national economy. With a leaner, more transparent, and more competitive SOE structure, it is hoped that SOEs will be able to become the main drivers of economic growth, job creators, and guardians of national stability.
Danantara Indonesia’s technocratic work system, as well as support from various stakeholders, are a strong foundation for the creation of a healthy and modern BUMN ecosystem. The Indonesian people can also hope that BUMN in the future will not only be a nominal state asset, but also an institution that answers the needs of the people and becomes an example of governance at the regional and global levels.
*)The author is a social and community observer
