Danantara Sets Target for SOEs to Achieve Rp350 Trillion in 2026

Danantara Building. (Wikimedia Commons)

JAKARTA - Danantara Indonesia targets the net profit of State-Owned Enterprises (BUMN) to reach around IDR 350 trillion in 2026. This target is significantly increased compared to the realization of the previous year's profit which was in the range of IDR 285 trillion.

Danantara Indonesia Chief Operating Officer (COO), Dony Oskaria, said the increase in the profit target was supported by the results of comprehensive transformation and restructuring that had been carried out in the past year.

"In 2026, we include a work plan of approximately Rp. 350 trillion in profit. However, I certainly expect more. So, actually SOEs make a good contribution," said Dony in Jakarta, Wednesday, January 28.

Dony said that the normalisation of SOEs' profit performance in 2025 had actually reached around IDR 332 trillion. However, after adjustments in the form of a decrease in asset value or impairment of around IDR 55 trillion, net profit was recorded as falling to the range of IDR 280 trillion to IDR 285 trillion.

"Actually, SOEs make a good contribution, that's just profit, not to mention taxes, and so on," he said.

According to Dony, these achievements and projections are the result of the comprehensive consolidation being carried out by Danantara through a fundamental evaluation of all BUMN business lines. The evaluation includes an analysis of revenue sources, EBITDA margins, and cost structure efficiency.

Dony said one of the strategic steps taken was to simplify the number of SOEs. From around 1,000 entities, Danantara targets the number of companies to be cut to around 300 entities to create a larger, efficient, and competitive business scale.

In addition, said Dony, financial restructuring is also carried out selectively. Capital injections will only be given to SOEs that have a clear business model and are able to record a positive margin contribution.

"If we provide equity injection when the company has not reached the point of contributing a positive margin, it is the same as plowing the sea," said Dony.

According to Dony, to achieve the profit target of IDR 350 trillion in 2026, Danantara relies on the completion of the consolidation process and the reduction of operational inefficiencies that have burdened SOEs' performance.

Dony added that improved performance was also expected to come from strategic sectors such as industry, logistics, energy, and financial services, which have been the main contributors to state profits.

"We hope that it will continue to grow as expected by the President, that the return on assets continues to increase, of course, the consolidation process is ultimately how much it costs. This is what we answer to the Indonesian people," said Dony.

"ReJO will continue to stand together with the agenda of strengthening the rule of law, constitutional supremacy, and strong national leadership for a stable, just, and sovereign Indonesia," concluded Rahmad.