Jakarta. The Indonesian government has begun to experience a sharp decline in dividend revenue from state-owned enterprises (SOEs), with the Finance Ministry confirming on Thursday that tens of trillions of rupiah in expected payouts are now being redirected to the newly established sovereign wealth fund, Danantara.

According to Deputy Finance Minister Suahasil Nazara, the most recent dividend payment received by the state budget was Rp 10.8 trillion ($665 million), transferred by Bank Rakyat Indonesia (BRI) in January. Since then, dividend inflows have effectively ceased.

“Compared to the first quarter of 2024, this year’s dividend revenue has fallen 74.6 percent,” Suahasil told lawmakers during a parliamentary hearing. He explained that the revised SOE Law, which became the legal foundation for Danantara, took effect in February. Since then, all subsequent SOE dividends have bypassed the state budget.

“For instance, in March 2024, the government collected Rp 36.1 trillion ($2.2 billion) in dividends, primarily from state-owned banks,” he added, noting that dividend payment was zero since February 2025. 

The original 2025 state budget projected Rp 90 trillion ($5.5 billion) in SOE dividend receipts, which now appears unlikely to materialize. To address the gap, the Finance Ministry is exploring alternative non-tax revenue sources.

These may include expanded mining royalties across more commodities, a revised coal royalty scheme, and service surcharges from public offices such as the Immigration Office, the Transportation Ministry, and the National Police.

Suahasil also announced plans for a new joint initiative between the Taxation Directorate and the Customs and Excise Directorate to broaden the taxpayer base and improve compliance.

As of March, non-tax revenue totaled Rp 115.9 trillion ($7 billion), or 22.6 percent of the full-year target, he noted.

In a separate update, Finance Minister Sri Mulyani Indrawati reported in late April that the state budget posted a Rp 104 trillion ($6.3 billion) deficit in Q1, equivalent to 0.43 percent of GDP.

Government revenue reached Rp 516.1 trillion ($31.3 billion), or 17.2 percent of the annual target, while spending hit Rp 620.3 trillion ($37.6 billion) during the same period.

Sri Mulyani reaffirmed that the 2025 budget has been deliberately designed to run a deficit of Rp 616 trillion ($37.4 billion) -- about 2.5 percent of GDP -- to help finance President Prabowo Subianto’s development programs and support the national target of 8 percent economic growth over the next five years.