Danantara Cuts 652 SOEs in Major Transformation

A bold and strategic move has just been announced by the Chief Operating Officer of Danantara, Dony Oskaria, in an effort to reorganize and optimize the performance of State-Owned Enterprises (SOEs) in Indonesia. This massive transformation marks a new era of efficiency for state corporations, where hundreds of inefficient entities will be shut down to create a healthier and globally competitive business ecosystem.

Massive Transformation: Cutting 652 SOE Entities

In its latest report, the SOE Management Agency stated that 274 state enterprises have already been reorganized. However, this move is only the beginning. Dony Oskaria emphasized that Danantara is taking decisive action by liquidating 652 SOE entities, including their subsidiaries and sub-subsidiaries. This decision was not made without careful consideration. The massive pruning aims to eliminate overlapping functions, reduce the financial burden on the state budget, and focus resources on companies with high growth potential and strategic value to the national economy.

For years, the bloated number of SOEs and their subsidiaries has been in the spotlight for slowing down decision-making and burdening liquidity. Under the capable hands of Dony Oskaria, this rationalization step is expected to strengthen financial postures and increase SOE dividend contributions to the state budget.

Telkom to Become a Strategic Holding by 2027

In addition to the massive downsizing, the main focus of this transformation is the restructuring of the telecommunications and technology sector. Danantara targets PT Telkom Indonesia (Persero) Tbk to fully transform into a strategic holding company by 2027. In the process of achieving this ambitious target, Telkom will slash approximately 34 of its entities or subsidiaries.

Changing Telkom's position to a strategic holding will allow the company to focus more on strategic planning, capital allocation, and portfolio management, while day-to-day business operations will be run by consolidated subsidiaries. This is a tactical move to face the challenges of global digitalization, where agility and operational efficiency are the main keys to maintaining market dominance.

Economic Impact and Future Expectations

The restructuring policy led by Dony Oskaria has received a positive response from various economic observers. This massive consolidation is believed to give birth to SOE entities that are much stronger, more agile, and able to compete not only in the domestic market but also internationally.

Reducing bureaucracy and simplifying corporate structures are expected to attract more investment interest, both domestically and foreign. Moving forward, Danantara will continue to closely monitor this transition process to ensure there are no disruptions to crucial public services, while guaranteeing the liquidation process runs in accordance with the principles of Good Corporate Governance.

The courage to execute this large-scale restructuring underscores the government's commitment to creating a transparent and accountable business climate. By minimizing entities that merely burden the consolidated balance sheet, state-owned enterprises are believed to be more resilient in responding to global economic volatility. Ultimately, the broader public will feel the benefits of healthy SOEs through improved service quality, the creation of more productive jobs, and a more massive contribution to state revenues.