Indonesia’s Danantara Super-Holdco Accelerates Massive State-Owned Enterprise Overhaul

JAKARTA, Investortrust.id — President Prabowo Subianto is tightening his grip on Indonesia’s vast state-owned enterprise (SOE) portfolio, signaling a aggressive push to modernize the nation’s economic backbone. In a high-level meeting at his private residence in Kertanegara on Sunday, the President directed Danantara—the newly empowered state investment and holding body—to ramp up the consolidation of the country’s 1,077 state-linked entities.

For global investors tracking Indonesia, this is the most significant structural reform to the state sector in a decade. By moving away from a bloated, siloed system toward a leaner, performance-driven super-holding model, the government aims to unlock massive trapped value within its SOE portfolio. The goal is simple but ambitious: slash operational inefficiencies, eliminate redundant bureaucratic layers, and transform state assets into competitive, profit-generating machines that can attract serious foreign capital.

Minister of Investment and CEO of Danantara, Rosan Roeslani, confirmed that the firm has already consolidated 258 entities. This is just the opening salvo in a broader campaign to rationalize an empire that has historically suffered from overlapping mandates and diluted accountability. A further 300 entities are slated for merger or restructuring in the immediate term.

"From a total of 1,077 BUMN entities, 258 have been successfully consolidated, and about 300 others will soon follow," Rosan said during the briefing held Sunday evening. He noted that the primary objective of this massive integration is to bolster competitiveness and enforce stricter corporate governance across the entire state portfolio.

The New Economic Growth Engine

Beyond mere cost-cutting, Prabowo and his economic team are pivoting toward what they define as "new growth engines." Danantara is tasked with diversifying the state’s economic footprint, shifting away from traditional sectors toward high-margin industries that promise faster job creation.

The focus is now sharpening on the experience economy. This includes an integrated push into international-standard tourism, large-scale sporting event management, and the creative industry. The administration envisions a future where these sectors serve as force multipliers for investment and national prosperity.

Secretary of the Cabinet Teddy Indra Wijaya emphasized that the President wants state assets to generate maximum utility for the public. "We are discussing new economic growth opportunities that can be driven by Danantara, including the strengthening of the tourism sector through organizing sports events, music concerts, and the creative industry that can create jobs and increase national economic turnover," Teddy explained.

A Leaner Future for State Assets

The structural shift under Danantara represents a core pillar of Prabowo’s broader national agenda. By professionalizing the management of state assets, the administration expects to reduce the fiscal drain caused by underperforming SOEs.

The transformation is designed to turn these entities into viable competitors on the global stage. As the consolidation continues throughout the remainder of 2026, market watchers will be scrutinizing the next phase of mergers—particularly in the insurance and financial services sector, where Danantara is already pushing to streamline operations under the IFG (Indonesia Financial Group) umbrella.