Jakarta. Indonesia has appointed Deputy Minister Donny Oskaria as acting head of the State-Owned Enterprises (SOE) Ministry following the departure of Erick Thohir, who has taken over as youth and sports minister in President Prabowo Subianto’s cabinet. The move comes as the government considers whether to fold the SOE Ministry into the state sovereign wealth fund, Danantara.

The appointment, confirmed in a presidential letter dated Sept. 19, ensures continuity at the ministry that oversees more than 100 state companies, including energy giant Pertamina, utility PLN, and flag carrier Garuda Indonesia. “With this appointment, we hope the reform of SOEs will move faster,” State Secretary Prasetyo Hadi said Friday.

Erick Thohir, who served as SOE minister since 2019, bid farewell at a ceremony in Jakarta on Friday, reflecting on his six-year tenure that reshaped Indonesia’s state firms. He highlighted the ministry’s transformation as a legacy that should be carried forward. “We built a culture of humanity and integrity. This ministry is more than an institution, it is a family that serves the nation,” Erick said.

Under Erick’s leadership, Indonesia’s SOEs posted stronger financial performance, reflected in rising dividend payouts to the state. In fiscal year 2023, SOEs contributed Rp 82.1 trillion ($5.2 billion) in dividends, which increased to Rp 86.4 trillion in 2024, slightly above the government’s Rp 85 trillion target. The dividend target for 2025 has been set at Rp 90 trillion.

Erick also pursued an aggressive restructuring of the SOE portfolio. He shut down loss-making and unproductive enterprises, reducing the number of SOEs from 142 in 2019 to just 47 by 2024. Among those liquidated were Iglas, Industri Sandang Nusantara, Istaka Karya, Kertas Leces, Merpati Nusantara Airlines, and Kertas Kraft Aceh.

Meanwhile, major consolidations produced stronger and more competitive entities. These included the creation of Bank Syariah Indonesia (BSI) through the merger of state-owned Islamic banking units, the integration of port operators into Pelabuhan Indonesia (Pelindo), and the merger of airport operators into Angkasa Pura Indonesia (API). Erick also pushed the establishment of multiple sectoral holdings, such as InJourney (aviation and tourism), Ultra Mikro (microfinance), ID Food (food), Bio Farma Group (pharmaceuticals), IFG (insurance), Defend ID (defense), and Danareksa (SOE transformation).

Donny, who is also the chief operating officer of Danantara, praised Erick as a “legend” whose reforms laid the groundwork for stronger, more competitive state companies. “The ongoing transformation is his dream. I am only continuing it,” Donny said. He added that the ministry’s current focus is on consolidating holding structures, streamlining management, and preparing SOEs for global competition.

Speculation has swirled that Prabowo may eventually merge the SOE Ministry into Danantara, which already manages strategic state assets and investments. Officials say discussions are ongoing but no decision has been made. “There is a possibility, but it is still under review,” Prasetyo said, urging the public to wait for the president’s directive.

The prospect of a merger reflects the government’s broader push to centralize management of state assets and reduce overlap between institutions. Danantara has already made sweeping changes, including eliminating commissioner bonuses and advancing plans to merge Garuda Indonesia with Pelita Air, a Pertamina subsidiary.

For now, Donny is tasked with maintaining stability while the future of the ministry remains uncertain. “The big dream must be realized together,” he said. “If successful, that will be Erick Thohir’s legacy.”