Jakarta. Sovereign wealth fund Danantara expects to complete its first consolidated financial statements within the next one to two months as it works to combine the accounts of more than 1,000 state-owned companies.

Danantara Chief Operating Officer Dony Oskaria said Wednesday that the consolidation process was taking time because of the scale of the state-owned enterprise (SOE) portfolio and the need to eliminate transactions between companies.

“This is the first year, so naturally it takes time. Roughly another one to two months,” Dony told reporters at the Finance Ministry in Jakarta.

Danantara is currently preparing the accounts for a pre-audit process and has hired financial consultants to develop a standardized chart of accounts for the consolidated statements.

Dony said the final financial statements would be audited by Indonesia’s Supreme Audit Agency (BPK) before publication.

The consolidation involves more than 1,000 companies, he said, requiring the elimination of overlapping financial records and transactions among SOEs.

Dony said the process should become significantly faster in subsequent years once Danantara establishes a standardized system for consolidating the companies.

“Once we have established the pattern, the elimination process across all the companies will be much easier in subsequent years,” he said.

Danantara plans to publish its 2025 consolidated financial statements, which will offer the first comprehensive view of the financial position of the state-owned sector under the new asset-management structure.

The preparation has also been complicated by financial and governance problems at state-owned postal operator Pos Indonesia.

Danantara said its due diligence review identified financial and governance issues that had accumulated over several years, including indications of irregularities and suspected manipulation of financial statements. The findings are now being examined through audits and investigations in accordance with applicable regulations.

The consolidated report, however, is expected to give investors a broader picture of the financial health of Indonesia’s sprawling state-owned sector and Danantara’s approach to managing the assets.

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 in line with international 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.

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