Jakarta. Indonesia’s sovereign wealth fund, Daya Anagata Nusantara (Danantara), will assume management of all 47 state-owned enterprises (SOEs) by the end of March, marking a sweeping consolidation effort aimed at optimizing national assets and strengthening corporate governance.

The transition, initially planned for seven major SOEs, will now extend across the entire state-owned portfolio, Danantara Chief Operating Officer (COO) Dony Oskaria said Thursday at the BNI Investor Daily Roundtable in Jakarta.

“Danantara will function as both an operational and investment entity,” Dony said. Pandu Patria Sjahrir, a former TBS Energi Utama executive, will lead the fund’s investment strategy.

In its initial investment phase, Danantara will consolidate seven key state-owned enterprises: Bank Mandiri, BNI, BRI, PLN, Pertamina, Telkom, and mining holding MIND ID. The fund will manage $20 billion (Rp 325.8 trillion), directing capital toward mineral processing, AI, data centers, petrochemicals, aquaculture, and renewable energy. The $20 billion investment is backed by budget efficiency measures implemented under President Prabowo’s administration.

With $900 billion (Rp 14,724 trillion) in assets under management, Danantara is poised to become one of the world's largest sovereign wealth funds.

The State-Owned Enterprises (SOEs) Ministry reported that the total consolidated assets of SOEs reached Rp 10,950 trillion in 2024, a 5.3 percent increase from Rp 10,402 trillion in 2023. Meanwhile, the Finance Ministry recorded dividend contributions from SOEs reached Rp 86.38 trillion as of December 2024.

Governance Overhaul to Strengthen SOEs

Danantara is spearheading a corporate governance overhaul to improve efficiency and financial sustainability across SOEs, Dony said.

“SOEs often struggle not because of their employees, but due to flawed executive decisions and policies,” he said.

He cited cases where employees went unpaid for years due to poor management, adding that weak governance and misguided business strategies were key drivers of financial distress.

“Bad business engineering is often the root cause. That’s why strong corporate governance is essential to prevent deeper crises,” Dony said.

To address these challenges, Danantara is rolling out a large-scale reclustering and consolidation program aimed at eliminating inefficiencies and reducing fraud risks. The restructuring will group SOEs into more efficient operational clusters, improving resource management and oversight.

“By streamlining operations and consolidating inefficient SOEs, we can build a healthier, more competitive ecosystem,” Dony said. “This will also reduce fraud and mismanagement.”

While some SOEs still struggle with governance failures, Dony expressed confidence that most will benefit from Danantara’s intervention. The ultimate goal is to position SOEs as economic growth drivers rather than financial liabilities.

“With these strategies in place, we are confident that SOEs will be able to tackle greater challenges and play a stronger role in Indonesia’s economic development,” Dony said.