Danantara Pushes SOEs Restructuring to Boost Investor Confidence

JAKARTA - Danantara Indonesia emphasized that the aggressive step of restructuring SOEs will be one of the focuses in 2026. Through the Economic Outlook 2026 report, the Danantara research team assessed that the restructuring of the state-owned enterprises is a key strategy to restore market perceptions as well as attract global investors.

For example, as was done at PT Krakatau Steel (Persero) Tbk; PT Garuda Indonesia (Persero) Tbk; PT Telkom Indonesia (Persero) Tbk; and a number of state-owned enterprises in the work sector.

"Recovery in difficult cases, such as airlines, steel, and construction, is where credibility is at stake. If restructuring succeeds in improving operational rhythm and balance sheet resilience, the impact on investor perceptions of SOEs broadly will be significant," wrote the Danantara report, quoted Tuesday, January 13.

Danantara said that state intervention is currently running on an unprecedented scale. The value of state-owned enterprises' assets managed by Danantara was recorded at over Rp1,000 trillion, or more than half of Indonesia's gross domestic product (GDP).

"Total state-owned assets collectively account for more than half of Indonesia's nominal GDP, which means that operational improvements will have broad implications for the country's growth prospects," the report said.

The restructuring was not only carried out through capital participation, but also strict requirements that must be met by issuers, including asset streamlining, increased efficiency, and management accountability.

"Improving operational capacity within SOEs not only increases efficiency, but also encourages healthier competition, which ultimately serves as a lubricant for broader economic growth," wrote Danantara.

Danantara emphasized that all restructuring steps were preceded by in-depth studies, to ensure the long-term impact and sustainability of the business. The role of the state is also considered more measurable.

"In the context of the market, the question is no longer 'will the state remain involved? of course it will. The focus now shifts to whether this involvement becomes more predictable and based on meritocracy, with commercial decisions driven by long-term business continuity rather than short-term interests," he said.

Danantara sees this approach as the foundation for SOEs to be able to compete not only at the national level, but also in the global arena. Indications of recovery are beginning to be seen in the capital market. A number of strategic SOEs shares have recorded strengthening throughout 2025.

PT Krakatau Steel (KRAS) shares were up 243 percent, PT Timah (TINS) up 221 percent, while PT Garuda Indonesia (GIAA) increased 187 percent and Telkom Indonesia (TLKM) strengthened 30 percent.

Danantara also included other positive performance of SOEs such as PT Aneka Tambang (ANTM) which soared 194 percent, and PT PP (PTPP) which increased 189 percent.

"The initial price signals from PT Krakatau Steel, PT Garuda Indonesia, PT Timah, and PT Telkom show that investors are optimistic about the recovery efforts," wrote the Danantara report.