Indonesia's SOE Transformation Accelerates in 2026: Danantara Slashes 274 Entities for Enhanced Efficiency

JAKARTA — In early 2026, Indonesia's State-Owned Enterprise (SOE) Transformation Agency, Danantara, announced a significant achievement in its reform agenda for the state-owned sector. Dony Oskaria, Head of the SOE Transformation Agency (BP BUMN), revealed that 274 SOE entities have been successfully streamlined through the Danantara program. This marks a crucial milestone in the government's efforts to create a leaner, more efficient, and highly competitive SOE ecosystem.

This streamlining is not merely a reduction in numbers but the result of a comprehensive strategy designed to address inefficiencies, overlapping functions, and a lack of focus on core businesses that often hampered SOE performance in the past. “This transformation is key to ensuring that SOEs can become agile economic drivers, delivering maximum value for the state and the community,” Oskaria stated in a recent press release.

Danantara's Vision: Towards Competitive SOEs

Danantara, established as a specialized arm of BP BUMN, was formed to execute this restructuring mission. Its mandate includes identifying, evaluating, and executing corporate actions such as mergers, liquidations, or divestitures for SOEs deemed non-strategic or underperforming. This process has been intensively ongoing for some time, culminating in the successful streamlining of 274 entities.

According to internal BP BUMN reports, many of the streamlined entities were subsidiaries or sub-subsidiaries with limited operations, or those operating in non-core sectors that burdened operational costs without significant contributions. Consolidation is expected to free up resources for allocation to more strategic and high-growth potential investments.

Impact and Economic Outlook for 2026

Professor Dr. Budi Santoso, an economist from Gadjah Mada University, lauded this initiative. “The streamlining of 274 SOEs is a bold step that demonstrates the government’s commitment to improving SOE governance and profitability. This is not just a reduction in numbers, but a fundamental restructuring that directs SOEs to become agile and profitable economic locomotives,” explained Prof. Santoso.

With a focus on enhanced efficiency and better governance, the remaining SOEs are expected to operate at world-class standards, capable of competing in global markets, and contributing larger dividends to the state. Furthermore, this optimization is projected to improve the quality of public services, foster innovation, and unlock new investment opportunities from the private sector, which now views the SOE ecosystem as more transparent and efficient.

BP BUMN affirmed that this transformation process will continue in the coming years, focusing on strengthening core capabilities and adapting to the evolving global economic landscape. The 2026 agenda serves as a strong foundation for a brighter and more sustainable future for SOEs.