SOE Performance Improved After Consolidation Under Danantara Indonesia

RRI.CO.ID, Jakarta - The performance of several state‑owned enterprises (SOEs) improved in the first half of 2026, marking early signs of the effectiveness of transformation and consolidation efforts under Danantara Indonesia.

Managing Partner of the SOE Research Group at the University of Indonesia’s Management Institute, Toto Pranoto, said the positive trend is likely to continue as the number of SOEs is streamlined.

“I expect the SOE streamlining process to be accelerated so that performance improvements can be implemented more quickly,” Toto said in Jakarta on Wednesday, August 12, 2026, as quoted by Antara.

He noted that the solid performance of SOEs in the first six months of the year has become one of the most highlighted achievements under President Prabowo Subianto’s administration.

Consolidation and transformation measures carried out by Danantara Indonesia since its establishment have begun to produce measurable improvements across strategic sectors.

“In my view, solid performance continues to be demonstrated by blue‑chip SOEs, which have long served as the driving force behind total SOE revenue and profit. For example, the performance of Himbara banks in the banking sector, the minerals and mining sector, the telecommunications sector, and Pertamina,” Toto said.

State‑owned tin mining company PT Timah recorded the most dramatic profit increase, booking a net profit of IDR 2.71 trillion in the first half of 2026 -- an 804.7 percent surge from IDR 300 billion in the same period last year.

State-owned fertilizer producer PT Pupuk Indonesia posted a net profit of IDR 8.51 trillion, up 253 percent from IDR 2.41 trillion. State-owned cement producer PT Semen Indonesia’s profit rose 196.5 percent to IDR 193.46 billion from IDR 65.24 billion. State-owned palm oil producer PT Agrinas Palma Nusantara recorded a 150 percent increase to IDR 890 billion.

In the financial services and logistics sector, State-owned pawnshop company PT Pegadaian’s profit grew 84.6 percent to IDR 6.59 trillion, while State-owned seaport operator PT Pelindo posted 60.4 percent growth to IDR 2.57 trillion.

State-owned plantation firm PTPN IV PalmCo recorded a 54 percent increase to IDR 3.23 trillion. State-owned bank BTN grew 40.8 percent to IDR 2.40 trillion, and Bank Mandiri posted 24.3 percent growth with profits reaching IDR 30.41 trillion.

Growth was also recorded in the clean energy sector. PT Pertamina Geothermal Energy, a subsidiary of state-owned oil and gas company PT Pertamina, reported a profit of USD 79.61 million, up 15.5 percent.

Several SOEs that previously reported losses managed to reverse their performance. State-owned steelmaker PT Krakatau Steel shifted from a loss of around IDR 1.74 trillion to a profit of approximately IDR 150–185 billion. State-owned pharmaceutical companyww PT Kimia Farma also turned around from a loss of IDR 135.61 billion to a profit of IDR 54.07 billion.

Toto said these improvements show that transformation efforts are beginning to affect SOEs of various scales and business models. The series of achievements also provides strong economic capital for the government as it enters the second year of President Prabowo’s administration.

He believes that consolidating SOEs under Danantara Indonesia, strengthening governance, and improving operational discipline have begun to yield measurable results. Accelerating the streamlining process, he said, is crucial to ensuring that the benefits of structural reforms are realized more quickly. ***