SOE Restructuring Seen Saving IDR 50 Trillion a Year

RRI.CO.ID, Jakarta - The Indonesian government, through Danantara Indonesia, is restructuring state-owned enterprises (SOEs) to improve management efficiency. Danantara Indonesia Chief Operating Officer (COO) Dony Oskaria confirmed that the company is streamlining SOEs from 1,077 entities to about 200–300 companies.

He said the streamlining could generate direct savings of up to IDR 50 trillion (approximately USD 2.8 billion) per year. “So far, we have become used to layered transactions between parent companies, subsidiaries, and even grand-subsidiaries, which causes inefficiencies. The inefficiency amounts to roughly IDR 30 trillion,” Dony said in a statement on Friday, June 12, 2026.

Dony cited the merger of PT Pertamina Patra Niaga, Kilang Pertamina Internasional, and Pertamina International Shipping (PIS) as an example. He explained that the merger was carried out because the three companies are part of an interconnected business chain.

As a result, Danantara Indonesia has successfully reduced internal transaction costs and potential accounting losses that had long burdened the company. “From this first merger alone, we’ve already saved approximately USD 600–700 million,” he said.

Similar inefficiencies were also found within the Telkom Group. In several fiber-optic network construction projects, work had to pass through multiple layers of companies before being executed, incurring unnecessary additional costs.

According to Dony, once the streamlining process is complete, the number of companies will be reduced to around 254. Consequently, Danantara will achieve direct savings of about IDR 50 trillion without waiting for an increase in consolidated profitability.

“We have immediate savings without needing to improve management quality or profitability resulting from the merger,” Dony said. (Gusti Panji)