Prabowo Wants Danantara Leaders to Receive State Honors Amid Surging SOE Profits
President Prabowo Subianto has proposed state honors for the leadership of Daya Anagata Nusantara (Danantara) following a dramatic turnaround in Indonesia’s state-owned enterprises. Speaking during the 2026 Annual Session of the People’s Consultative Assembly (MPR) and joint session of the House of Representatives, Prabowo credited the oversight body for delivering sharp profit gains and higher state dividends.
Rewarding Restructuring and State Dividends
According to reporting by Antara News, total state-owned enterprise (SOE) profits climbed significantly to Rp326 trillion ($18.3 billion) in 2024, up from Rp186 trillion ($10.4 billion) previously. Dividends paid to the government similarly expanded, jumping from Rp85.5 trillion ($4.8 billion) to Rp142.3 trillion ($8.0 billion).
Net SOE dividends—factoring in state capital injections—rose further from Rp53 trillion ($3.0 billion) in 2024 to Rp138 trillion ($7.8 billion) in 2025. President Prabowo projected that net dividends will hit Rp200 trillion ($11.2 billion) this year without requiring any additional capital injections, nearly quadrupling the 2024 baseline.
Targeted Reforms Across Key State-Run Industries
The financial upswing is mirrored by striking performance metrics across individual commercial sectors. State tin miner PT Timah posted a net profit surge of 804.7 percent during the first half of 2026 compared to the previous year. Company valuations also climbed 280 percent by August 2026, heavily aided by the government’s closure of approximately 1,000 illegal tin mines operating across Bangka Belitung.
Other major enterprises similarly reported gains. Semen Indonesia profits rose 408.9 percent, Pupuk Indonesia climbed 252.8 percent, Pertamina advanced 86 percent, and Pegadaian grew 84.4 percent. Infrastructure and agricultural firms also secured strong footing, with Pelindo jumping 60.4 percent and PTPN increasing by 54.4 percent. Meanwhile, national carrier Garuda Indonesia successfully brought 20 grounded aircraft back into active service by June 2026, expanding its operating fleet to 104 planes.
Funding Downstream Industrialization and Global Ambitions
The capital generated by these institutional reforms is not sitting idle. The administration is channeling the proceeds directly into domestic downstream processing projects designed to convert raw commodities into higher-value export goods.
Danantara provided backing for 13 strategic projects launched on February 6, followed by another 13 projects introduced on April 29. These initiatives encompass diverse industrial sectors, including coal-based dimethyl ether, copper, gold, industrial salt, and aluminum processing. Government planners anticipate these efforts will generate tens of thousands of new jobs.
Furthermore, President Prabowo indicated that the accumulated profits of revitalized SOEs will provide the financial leverage needed to acquire major global corporations. This strategy aims to secure advanced foreign technology, management expertise, and broader market access, ultimately elevating Indonesia’s competitive standing within complex international supply chains.
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