Jakarta (VNA) - Sovereign wealth fund Danantara Indonesia aims to increase its assets by overhauling and consolidating hundreds of state-owned enterprises (SOEs), a senior executive has said at the World Economic Forum in Davos.
Danantara Managing Director for Global Relations and Governance Mohamad Al-Arief was quoted by local media as saying that Danantara’s current assets stand at about 900 billion USD, equivalent to roughly 15.29 quadrillion Rp at an exchange rate of 16,985 per dollar.
To achieve the target, Danantara plans to merge 1,068 SOEs into about 221 entities within the next three to four years. At present, those companies are managed under roughly 50 holding firms.
He said the consolidation is designed to boost efficiency, professionalism and competitiveness, in line with Indonesia’s goal of becoming a high-income country by 2045.
The restructuring will begin with fundamental reviews of each business line, followed by mergers and streamlining, and ultimately by measures aimed at increasing long-term value, he said.
The Indonesian Government has increasingly relied on Danantara to drive reform across its sprawling state sector, which has long been criticised for inefficiency and overlapping mandates.
Two firms in Danantara’s portfolio — state oil and gas giant Pertamina and power utility PLN — are already listed in the Fortune Global 500./.
VNA
