Danantara To Consolidate 18 Logistics SOEs To Become One Company

COO Danantara Indonesia Dony Oskaria. (Photo: ANTARA)

JAKARTA - Danantara Indonesia is preparing big steps to reorganize the state-owned logistics sector. Through the plan to consolidate 18 logistics State-Owned Enterprises (BUMN) into one company.

COO Danantara Indonesia Dony Oskaria revealed, this step is part of the massive transformation of SOEs under the management of Danantara Asset Management (DAM).

"There are 18 companies engaged in logistics. But they are still small and all are losing money. We will see the business model, then we will analyze it one by one. Then we will do a consolidation business from 18 to one," he said at an event in Jakarta, written Friday, November 10.

According to Dony, this consolidation process is not just unifying assets, but redesigning business models so that they have a large economic scale and are highly competitive.

Dony said, this consolidation will later give birth to logistics companies that have a larger business scale, integrated operational networks, and stronger bargaining power against the domestic and global markets.

Then we redesign the business model, revenue stream, revenue parameters, organization structure, we check one by one. What is the financial need, where is the game, from first mile to last mile now, or whether they want to play at middle mile, or what," he said.

Furthermore, Dony said, this logistics SOE unification plan is also part of Danantara's strategy to reduce the number of SOEs as a whole.

"We are redesigning so that later from 1,063 state-owned companies, it will become around 200 companies that are solid and have a large scale. This will be the engine of growth in the future," said Dony.