Jakarta. For the first time in history, Indonesian state-owned enterprises (SOEs) will stop channeling their dividends to the state budget and instead redirect them to Danantara, the country’s newly established sovereign wealth fund. This fundamental shift is among the key transformations brought by Danantara, as revealed during the BNI Investor Daily Roundtable in Jakarta on Thursday.

At the event, Danantara Chief Operating Officer Dony Oskaria and Chief Investment Officer Pandu Patria Sjahrir addressed growing public curiosity about the fund’s role and objectives. The discussion was hosted by B-Universe Media Holdings Executive Chairman Enggartiasto Lukita at the Ritz Carlton Hotel in Jakarta.

Danantara represents a bold shift in Indonesia’s economic strategy, consolidating SOE assets under a sovereign wealth fund that seeks to drive national growth while ensuring strong governance and strategic investments. 

Its executives claim that with robust oversight mechanisms and a commitment to collaboration with the private sector, Danantara aims to position itself as a major global investment player while strengthening Indonesia’s long-term economic foundation.

Agent of Economic Growth
Pandu said Danantara is designed not only to optimize shareholder value but also to serve as an agent of economic growth. He acknowledged investor concerns about returns but reassured them that the fund will operate within a framework that balances profitability with its broader economic mission.

"Danantara must generate returns above the cost of capital, but at the same time, it has a responsibility to stimulate national economic growth," Pandu explained.

In its early operational phase, Danantara will assess various investment opportunities across public and private markets, including equity investments both domestically and internationally. The fund aims to play a pivotal role in financing key sectors, ensuring that capital flows into high-growth industries that align with Indonesia’s long-term development strategy.

Managing All State-Owned Enterprises
Dony revealed that by the end of March, Danantara will take charge of all 47 SOEs, marking an unprecedented consolidation of state assets. Initially planned for seven major SOEs, this transition has now been expanded to cover the entire state-owned portfolio.

In its first phase, Danantara will consolidate seven key SOEs -- Bank Mandiri, BNI, BRI, PLN, Pertamina, Telkom, and mining holding MIND ID -- and manage $20 billion in startup funding. Investments will focus on mineral processing, artificial intelligence, data centers, petrochemicals, aquaculture, and renewable energy, leveraging budget efficiency measures implemented under President Prabowo Subianto’s administration.

With projected assets under management of $900 billion, Danantara is poised to become one of the world’s largest sovereign wealth funds. Government data indicates that total consolidated SOE assets reached Rp 10,950 trillion in 2024, reflecting a 5.3 percent increase from Rp 10,402 trillion in 2023. Meanwhile, SOE dividend contributions stood at Rp 86.38 trillion as of December 2024.

Strengthening Operational and Investment Base
Danantara’s management is divided into two core functions: operational and investment, Dony explained. In its first phase, the fund will implement measures to prevent “accumulated risks” from SOEs under its oversight.

"We need to differentiate investment strategies based on risk profiles to prevent overlaps and ensure effective risk management," he said.

Danantara will restructure SOEs into distinct business groups, streamlining operations to eliminate inefficiencies. Many SOEs operate in similar sectors at a smaller scale, leading to fragmentation and reduced competitiveness.

"For instance, several SOEs have overlapping businesses in construction, logistics, and insurance, which limits their ability to compete effectively," Dony noted.

Developing Financial Roadmap for SOEs
Dony and Pandu expressed confidence that SOEs will continue playing a crucial role in economic growth while contributing more significantly to national development. However, certain SOEs remain a financial burden due to outdated business models and an inability to adapt to market changes.

To address this, Danantara will introduce a financial roadmap to identify struggling SOEs and provide solutions for their revitalization.

"The combined profit of SOEs reaches Rp 347 trillion ($20.9 billion) per year. Their dividends and tax contributions make up around a quarter of the state budget," Dony said.

SOE dividends will be reinvested in productive sectors, Dony said, dismissing public concerns that Danantara will deplete state money and SOE assets in its investment campaign.

"A fundamental business review will determine whether SOE businesses remain relevant in today’s market. If a state company can no longer compete, it will be restructured or shut down," he explained.

Dony also stressed that job preservation is a priority. President Prabowo has instructed that Danantara should not cut jobs but rather create new employment opportunities within the SOE sector.

State Funding and Collaboration with Private Sector
Dony pointed out that many SOEs have engaged in non-profitable infrastructure projects, leading to financial strain. The amended SOE law now mandates that government-commissioned projects must be fully state-funded to prevent financial imbalances within SOEs.

“Many SOEs were previously involved in infrastructure projects that had little to no commercial benefit, which led to financial strain. The revised law ensures that future state assignments will be fully funded by the government, preventing such inefficiencies," he explained.

Pandu assured private sector players that Danantara is a reliable business partner for both domestic and multinational corporations. He emphasized that all Danantara executives, including CEO Rosan Roeslani, come from strong private-sector backgrounds, making them well-versed in corporate governance and market dynamics.

“We understand the private sector's concerns. Good governance is our cardinal rule and we are committed to earning market trust. Our mission is to create a thriving private sector because we must succeed together,” Pandu said.

Clarifying Legal Immunity Claims
During the discussion, Dony addressed misconceptions about Danantara’s legal immunity, emphasizing that the fund is not above the law.

Some members of the public misinterpreted the amended SOE law, assuming it granted Danantara full legal exemption. Dony clarified that while commissioners and directors cannot be prosecuted for financial losses, this exemption does not apply to fraud or corruption cases.

"It’s important to clarify this issue because Danantara has been widely perceived as untouchable, which is simply not true," Dony said.

He explained that Danantara’s leadership must demonstrate that decisions were made without conflicts of interest to qualify for legal protection.

To ensure transparency, professionalism, and accountability, Danantara is subject to multiple layers of oversight, including law enforcement agencies and public auditors. The fund will also have an independent oversight committee, auditors, and an ethics council.