Indonesia’s state investment body Danantara will not distribute state-owned enterprise dividends to the national budget for 2026 and 2027, according to Finance Minister Suahasil Nazara, contradicting an earlier fiscal plan proposed by his predecessor.
The decision clarifies a high-profile fiscal debate surrounding Badan Pengelola Investasi Daya Anagata Nusantara and puts to rest a previous projection that would have drawn massive revenues directly into state coffers. Financial authorities have formally decoupled the sovereign wealth fund from immediate non-tax state revenue contributions for the current and upcoming fiscal years.
Suahasil Nazara Rules Out Dividend Allocations in 2026 and 2027 Budgets
The Finance Minister confirmed that state-owned enterprise dividends managed by Danantara are entirely absent from current budget calculations. Speaking in Jakarta at the Hotel Indonesia Kempinski on Thursday, October 8, 2026, during a forum organized by Metro TV titled Two Years of the Prabowo-Gibran Administration: Real Work in Continuing Asta Cita,
Suahasil emphasized that his administration is currently focused on closing out the existing fiscal period while drafting the subsequent spending plan without counting on those funds. In an exclusive interview with Bloomberg Television alongside journalist Haslinda Amin broadcast on Friday, October 2, 2026, he elaborated further on the administration’s stance.
Right now I am working with the 2026 state budget, which has no Danantara dividends. Right now I am also working to prepare the 2027 state budget, which has no Danantara dividends in it, it is not recorded. Suahasil
While the finance ministry works to maintain a strict fiscal deficit below three percent of the gross domestic product, Suahasil described the sovereign fund as a “twin brother” to the national budget rather than a revenue source for routine public spending. He noted that while public funds cover basic infrastructure and social programs, the investment body is designed to drive broader economic growth by collaborating with the private sector and deploying capital effectively. In a statement delivered in Jakarta on Thursday, October 8, 2026, Suahasil remarked on the synchronization of fiscal tools, noting that the fund is structured to help resolve societal issues, absorb labor, boost production, and connect with private investment under the leadership of Chief Operating Officer Donny Oskaria.
Dony Oskaria Rejects Earlier Revenue Projections and Outlines Reinvestment Strategy
Chief Operating Officer Dony Oskaria pushed back sharply against initial expectations that the fund would transfer substantial capital to the state treasury. Addressing reporters at the Hotel Indonesia Kempinski on Thursday, October 8, 2026, Dony maintained that the prior proposal to siphon funds into the national budget was fundamentally incorrect.
Yes, well, it has already been corrected by the new Minister of Finance. There shouldn't have been any such plan, really. Dony
Instead of dispatching profits to the government’s general account, earnings generated by state enterprises under Danantara’s umbrella are systematically plowed back into productive investments.
Well, Danantara's dividends are indeed invested. That is indeed how it is, which is why there is DAM (Danantara Asset Management), there is DIM (Danantara Investment Management). Those dividends are invested by Pak Pandu. Dony
The clarified fiscal stance resolves a public discussion initiated under the previous administration. In late August, former Finance Minister Purbaya Yudhi Sadewa announced plans to pull approximately Rp120 triliun from Danantara’s earnings to serve as a fiscal buffer and non-tax state revenue.
Purbaya Yudhi Sadewa said via Aktual, Around Rp120 trillion.
Purbaya argued that the influx, decided by President Prabowo Subianto, could help absorb unexpected financial shocks and keep fiscal space secure, noting on August 28, 2026, at the Ministry of Finance in Jakarta that the funds would originate from profits rather than dividends. Previously, before asset management shifted to the newly established sovereign vehicle, state-owned enterprise dividends routinely flowed into separate non-tax accounts under Kekayaan Negara Dipisahkan
(KND). With Suahasil stepping into the finance portfolio and Rosan Roeslani serving as minister of investment and downstreaming, those proposed transfers have been formally set aside in favor of direct capital reinvestment.
