Danantara Sets Ambitious Plan to Restructure 889 SOEs and Boost Indonesia’s Economic Growth

Danantara plans to unify 889 Indonesian SOEs to boost efficiency and support the nation’s 8% growth target, backed by major global investments.

Pandu Sjahrir, CIO Indonesia's sovereign wealth fund Danantara, aims to bring all 889 state-owned enterprises (SOEs) across the country under a single leadership structure managed by Danantara Indonesia. He stated at the Digital Economy and Finance Forum in Jakarta on Friday that Danantara is currently concentrating on unifying all 889 SOEs under a single command, shifting away from an individual-interested approach and instead concentrating on how they can work together.

The Indonesian Fintech Association hosted the forum. The single command, according to Sjahrir, is meant to facilitate SOE consolidation and improve their collaboration in order to help the country reach the 8 percent annual economic growth goal set by President Prabowo Subianto.

The president hopes that they will all work together to accomplish this important objective of sustainable economic growth of 8%. He asserted that the moment has come to consider Indonesia as whole rather than just individual responsibilities. Danantara aims to cut the current 889 SOEs down to fewer than 200 companies.

Since its founding, Danantara has participated in a number of foreign investment partnerships, including business initiatives like lending funds to state-owned enterprises. As part of these efforts, a memorandum of understanding was signed with Saudi Arabia’s ACWA Power to provide project funding of up to US$10 billion. Additionally, Danantara and the Qatar Investment Authority have partnered to administer a US$4 billion investment fund that will promote Indonesian economic development initiatives.