Danantara Indonesia Undertakes Governance Reset and Strengthens SOE Fundamentals
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Jakarta, 4 March 2026 – Daya Anagata Nusantara Investment Management Agency (Danantara Indonesia), in its capacity as the newly mandated body managing Indonesia's State-Owned Enterprises (SOEs) portfolio, has initiated a comprehensive governance reset and fundamental strengthening across the SOE ecosystem.
As part of the management transition and consolidation process, Danantara Indonesia, through its Operational Holding entity, Danantara Asset Management, is conducting a structured and comprehensive review of SOEs within its portfolio. This process includes an evaluation of accounting policies, asset quality and recording standards, strengthening governance systems, as well as integrated risk management frameworks to ensure management standards that are increasingly robust and aligned with recognized best practices.
These strengthening measures were first implemented within the State-Owned Construction Companies cluster and are now being progressively extended to other sectors across the SOE portfolio. The primary objective of this initiative is to normalize and enhance asset quality, align financial reporting to ensure greater accuracy, fairness, and timeliness in accordance with prevailing accounting standards and widely recognized financial reporting practices, while reinforcing transparent and prudent management practices.
Danantara Indonesia is also placing strong emphasis on strengthening financial fundamentals anchored in high earnings quality and resilient operating cash flow, sustainable EBITDA growth, disciplined capital expenditure, and a sound and well-maintained capital structure. Particular focus is directed towards optimizing return on assets (ROA), improving operating margins, strengthening debt-servicing capacity, and maintaining conservative and well-calibrated liquidity management.
This approach ensures that corporate performance is not measured solely by nominal growth, but by the ability to generate consistent cash flows, preserve solvency, enhance return on equity (ROE), and strengthen the capacity to deliver sustainable dividend contributions to the State as shareholder.
Managing Director Stakeholder Management at Danantara Indonesia, Rohan Hafas, stated that this governance reset reflects the new management's commitment to ensuring that SOEs are managed with a clear orientation toward real economic value creation and long-term sustainability. "As the mandated manager of state assets, Danantara Indonesia has the responsibility to conduct a comprehensive review of asset quality, accounting policies, and governance discipline across the portfolio. This governance reset is a foundational strengthening effort to ensure that corporate balance sheets accurately reflect current conditions in a prudent and credible manner," Rohan stated.
He further underscored that future measures of success will extend beyond balance sheet size alone, taking into account actual performance quality. "Going forward, success will not be defined merely by the magnitude of figures on the balance sheet, but by the quality of earnings, cash flow strength, and the company's ability to create tangible economic value. Our focus is to build fundamentals that generate real cash returns and sustainable dividends for the State. Healthy growth must be rooted in productivity and operational performance, ensuring that its contribution to state revenues is both measurable and enduring," he affirmed.
According to Rohan, stronger financial foundations and disciplined management practices will enable companies to sharpen their focus on efficiency, margin enhancement, and the creation of genuine shareholder value, namely for the State. Danantara Indonesia reiterates that this process is being carried out systematically and in phases, while safeguarding operational stability and business continuity across the portfolio, as part of a long-term institutional transformation to strengthen the foundations of Indonesia's national economy.
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About Danantara Indonesia
Danantara Indonesia, officially known as Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), is a strategic investment management institution established under Law No. 1 of 2025. As an independent entity under the President, Danantara Indonesia's mandate is to manage and optimize government investments and assets from State-Owned Enterprises (SOEs) in order to support the achievement of the Asta Cita vision, strategic national plans, as well as government programs to accelerate industrialization and economic growth. With a professional, transparent, and accountable approach, Danantara Indonesia aims to strengthen the governance of state assets, create added value for the economy, while increasing Indonesia's competitiveness in the global market.
More on Danantara Indonesia: https://www.danantaraindonesia.co.id
For more information, please contact:
Communications Team
Danantara Indonesia
media@danantaraindonesia.com