Jakarta. Sovereign Wealth Fund Danantara is setting bold targets for its 2026 performance, including a push to lift Bank Mandiri’s market capitalization toward $110 billion, positioning the lender as a regional heavyweight rather than a purely domestic champion.

Chief Investment Officer Pandu Sjahrir said the fund has challenged Mandiri to stop benchmarking itself against Indonesian peers and instead compete with global names.

“We asked Mandiri to no longer compare itself with local banks, but with DBS, HSBC, and JP Morgan,” Pandu said at the Antara Investment Forum in Jakarta on Wednesday. “If you aim for the moon and fall short, at least you land among the stars.”

Pandu argued that Indonesia, as Asia’s largest country by population, deserves to have a bank that ranks among the region’s biggest. He pointed to DBS’s roughly $110 billion market cap, questioning why Mandiri should remain a fraction of that scale. Mandiri’s current valuation stands at Rp 452.66 trillion ($27.06 billion), trailing BRI at Rp 606.23 trillion and BCA at Rp 1,044.75 trillion, according to Stockbit Sekuritas.

Danantara wants Mandiri to aim for at least $100 billion within four years, roughly double its current valuation, even if the $110 billion target proves difficult.

Incentives and Management Alignment
To match the ambition, Danantara plans to offer performance-based incentives, including stock compensation and a tantiem tied to shareholder value.

Pandu said alignment between management and shareholders is essential, adding that Danantara will support Mandiri’s leadership with clear guidance and flexibility.

Pandu also signaled openness to bringing foreign executives into Mandiri’s top ranks if local or diaspora talent is insufficient. “As long as the expat can create value for Indonesia, it shouldn’t be an issue,” he said, noting that Indonesians are highly adaptable, making knowledge transfer possible within five years.

Eight Priority Sectors for 2026
Looking ahead to the 2026 financial year, Danantara will continue to focus on eight priority sectors: minerals, renewable energy, infrastructure, healthcare, financial services, utilities, industrial zones, food, and agriculture.

The fund aims to build state-owned enterprises that are competitive at both national and regional levels. Part of that strategy includes consolidating loss-making SOEs where turnaround potential still exists.

Pandu revealed plans to merge eight asset management entities into one large national platform capable of competing regionally. Danantara also intends to consolidate state-owned hospital assets to lift healthcare EBITDA margins from 8 percent to at least 20 percent, with the longer-term goal of approaching the industry average of 40 percent.

“With the right people building an international-standard hospital network, healthcare EBITDA margins can rise to at least 20 percent in the first year, then reach 40 percent the year after,” Pandu said. “That could raise asset value by five to six times.”

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