Jakarta. Sovereign wealth fund Danantara said state-owned postal operator Pos Indonesia requires a comprehensive overhaul after a three-month due diligence review uncovered longstanding financial and governance problems, including suspected accounting irregularities.

The findings come as Pos Indonesia Chief Executive Daud Joseph resigned, paving the way for new leadership to oversee the company's restructuring, according to statements from Danantara and the company.

Danantara's spokesman Rohan Hafas said Daud had been tasked with leading a broad assessment of Pos Indonesia's financial condition, operations, governance, and organizational structure over the past three months.

The review concluded that the state-owned logistics company faces deep-rooted challenges that require fundamental restructuring.

"According to him, the complexity of the issues facing the company and the restructuring agenda ahead require more specialized expertise to lead the next phase of transformation," Rohan said in a statement on Friday.

Danantara said the due diligence identified financial and governance issues that had accumulated over many years. The agency also reported indications of irregularities, including suspected financial statement manipulation, which are now being examined through audits and investigations in accordance with applicable regulations.

Rohan said Danantara would address the company's longstanding problems in stages and would not tolerate practices that undermine corporate governance. He added that all findings would be handled professionally, transparently, and in accordance with legal procedures.

"Our priority is to ensure Pos Indonesia returns to being a healthy, professional, accountable, and integrity-driven company that can carry out its public service mandate effectively," he said.

The review comes as Pos Indonesia's audited financial statements for the 2025 fiscal year remain under review and have not yet been released pending further audit and investigation.

Based on the company's preliminary financial data, Pos Indonesia posted first-half 2025 revenue of Rp 1.8 trillion ($100 million), down about 34% from Rp 2.74 trillion a year earlier. Net profit fell 53% to Rp 117.8 billion from Rp 248.5 billion over the same period.

Separately, Pos Indonesia said operations continue as normal despite the leadership transition.

Corporate Secretary Iwan Gunawan said Daud formally submitted his resignation on Thursday for personal reasons. He added that public services and business operations remain unaffected while the company continues its restructuring process.

The Pos Indonesia review is taking place as Danantara, which oversees hundreds of Indonesia's state-owned enterprises through its investment holdings, prepares to publish its first consolidated financial statements. Rohan said the agency will release its 2025 consolidated accounts after all state-owned companies complete their financial reporting for the year by June 30, with the report subject to the required audit process before publication.

The consolidated accounts are expected to provide investors with the clearest picture yet of the financial health of Indonesia's sprawling state-owned sector since Danantara was established to manage government assets and improve corporate governance.

Dipo Satria Ramli, an economist at the Center of Reform on Economics (CORE) Indonesia, welcomed the planned disclosure, saying consolidated financial statements could help Danantara establish more integrated management standards aligned with global sovereign wealth fund practices.

"We certainly appreciate Danantara's decision to finally release its financial statements. But when it comes to a commitment to transparency and good governance, publishing the report alone is not enough," Dipo said.

The Pos Indonesia review is taking place as Danantara, which oversees hundreds of Indonesia's state-owned enterprises through its investment holdings, prepares to publish its first consolidated financial statements. Rohan said the agency will release its 2025 consolidated accounts after all state-owned companies complete their financial reporting for the year by June 30, with the report subject to the required audit process before publication.

The consolidated accounts are expected to provide investors with the clearest picture yet of the financial health of Indonesia's sprawling state-owned sector since Danantara was established in February 2025 to manage government assets and improve corporate governance.

Dipo Satria Ramli, an economist at the Center of Reform on Economics (CORE) Indonesia, welcomed the planned disclosure, saying consolidated financial statements could help Danantara establish more integrated management standards aligned with global sovereign wealth fund practices.

"We certainly appreciate Danantara's decision to finally release its financial statements. But when it comes to a commitment to transparency and good governance, publishing the report alone is not enough," Dipo said.