Jakarta (VNA) – State asset fund Danantara Indonesia has announced its plan to implement major reforms in state-owned enterprises (SOEs) beginning in 2026, aiming to strengthen the national economy and improve business efficiency.
According to Danantara, large state-owned banks, including Bank Rakyat Indonesia (BRI), Bank Mandiri (BMRI) and Bank Negara Indonesia (BNI), are well positioned to improve revenue thanks to lower funding costs and stronger loan growth. Telecommunications firm Telkom Indonesia (TLKM) is also expected to enhance shareholder value through better utilisation of its scale and existing assets.
Positive signs have emerged from restructuring efforts at several large SOEs, including national airline Garuda Indonesia, Krakatau Steel (KRAS) and Timah Tbk (TINS), helping improve their performance and market standing, Danantara said.
It noted that SOEs’ total assets currently account for more than 50% of Indonesia’s gross domestic product (GDP). Improving operational efficiency in this sector is therefore expected to generate a strong ripple effect across the economy. SOEs also play a central role in daily economic life, providing electricity, fuel, air transport and banking services through key state-run enterprises such as the national electricity company, Pertamina, Garuda Indonesia and the Himbara banking group.
President Prabowo Subianto has set a target to reduce the number of SOEs from more than 1,000 to around 200 as part of a long-term reform programme, rather than a short-term, one-year action plan.
Danantara said that streamlining the number of legal entities would help reduce conflicts of interest, improve consistency in business decision-making, and enhance profitability and dividend payouts, contributing to greater confidence in the stock market.
Looking ahead to 2026, the fund aims to develop SOEs into financially robust entities capable of withstanding macroeconomic cycles, commodity price volatility and rising instability in global financial markets. According to the Danantara Economic Outlook 2026, the positive market response, reflected in rising share prices of several SOEs, indicates growing investor confidence in the reform agenda./.
