Jakarta. Sovereign wealth fund Danantara plans to slash the number of state-owned enterprises (SOEs) under government control from more than 1,000 to just around 230–340 within the next five years, in order to improve efficiency and competitiveness.

Rosan Roeslani, Chief Executive Officer of Danantara, said on Monday that the country’s SOE ecosystem --which currently spans 12 sectors and includes parent, subsidiary, and sub-subsidiary companies-- has become too fragmented. The consolidation, he said, is essential to strengthen oversight and optimize business performance.

“In reality, there are nearly 1,044 companies across 12 sectors, from construction to aviation and ports. What’s most important now is consolidation,” Rosan said during the HIPMI–Danantara Indonesia Business Forum in Jakarta.

Indonesia currently has around 65 parent SOEs directly under the former State-Owned Enterprises (SOE) Ministry, but including their subsidiaries and affiliates, the total reaches over a thousand entities. The government plans to streamline the structure, bringing the total to roughly 230–340 companies through mergers and divestments.

The government recently divided the SOE Ministry into two entities: Danantara, which manages SOE assets, and the State-Owned Enterprises Regulatory Agency (BPBUMN). The agency will function as a regulator and hold the state’s golden share --a 1 percent Class A stake-- in each enterprise, while the remaining 99 percent of government-held shares will be transferred to Danantara, which will operate the assets.

Rosan added that Danantara is now among the world’s five largest sovereign wealth funds by assets under management, totaling around $1 trillion since its establishment in February. He said the fund’s expanded capacity will enable a faster and more coordinated restructuring of SOEs.

“As we consolidate, we want to make this system effective and efficient. From over a thousand companies, we have reviewed and projected the structure to only around 230 to 340 SOEs in the next five years,” Rosan said.

One of the early moves under review involves integrating Pelita Air, a subsidiary of state oil giant Pertamina, into the Garuda Indonesia Group, the country’s national airline ecosystem. The merger aims to strengthen Indonesia’s aviation sector through operational and financial synergies.