President Prabowo Subianto has renewed his commitment on the Indonesian people’s livelihood, citing that the establishment of the state investment management agency BPI Danantara’s will help create millions of jobs.
“I believe Danantara will create millions of jobs,” Prabowo said while opening the 6th National Congress of the Prosperous Justice Party (PKS) in Jakarta on Monday, September 29, 2025.
Prabowo reiterated his earlier remarks that Danantara would generate employment opportunities, particularly in the downstream sector.
Danantara was established on February 24, 2025. Its CEO, Rosan P. Roeslani, said during a town hall meeting that 844 state-owned enterprises (SOEs), along with their subsidiaries and affiliates, have been consolidated into the sovereign wealth fund (SWF).
At the PKS congress, Prabowo revealed that Danantara currently manages total assets worth US$1.06 trillion (Rp17.672 trillion). “It’s surprising. Many of us, including myself, did not expect that if we gather all state assets, their value exceeds US$1 trillion,” he said.
He further criticized bureaucrats for hiding assets, which prevented them from being used optimally for the benefit of the state. “Many of our bureaucrats are clever − clever at hiding assets,” Prabowo remarked.
The president also expressed frustration over state-owned companies that continue to distribute bonuses to their boards of directors and commissioners despite posting losses.
“Sometimes SOE directors and commissioners act recklessly. Entrusted by the state, they treat it as if it were their ancestral company. When the company suffers losses, they still reward themselves with bonuses. It’s outrageous,” he stressed.
Prabowo said he intends to instruct law enforcement agencies, including the Attorney General’s Office and the Corruption Eradication Commission (KPK), to help resolve problems within SOEs. However, he emphasized giving Danantara two to four years to conduct an internal clean-up first.
He also called on Danantara to focus on managing SOE assets more effectively. According to Prabowo, well-managed businesses should be able to generate a 10 percent return on assets.
“With US$1 trillion in assets, the state should be receiving US$100 billion annually,” he cited.
Acknowledging that a 10 percent return is difficult to achieve, Prabowo said even a 5 percent return would bring in around Rp800 trillion (US$48 billion) for the state. “Our state budget would not be in deficit,” he added.
Currently, however, SOEs are underperforming, with returns on assets (RoA) still below expectations. Prabowo noted that not even 3 percent RoA has been reached. Despite this, he expressed optimism that the target could be achieved with time and reform, giving Danantara three years to deliver results.
Last year, SOEs reported consolidated profits of Rp304 trillion − still far below the figures Prabowo envisions. Among 26 publicly listed SOEs and their subsidiaries, only one − PT Aneka Tambang (Antam) − recorded a RoA above 10 percent in the past 12 months, boosted by global gold prices and nickel mining expansion.
Four others posted RoA between 5 percent and 10 percent, namely PT Timah (TINS), Bukit Asam (PTBA), Telkom Indonesia (TLKM), and Elnusa (ELSA). Meanwhile, three SOEs − PGAS, PGEO, and SMBR − booked RoAs between 3 percent and 5 percent. Ten others delivered positive but low RoAs of 1 percent to 3 percent. Alarmingly, eight state-owned issuers posted negative RoAs, meaning they booked losses and failed to utilize their assets effectively.
According to Investopedia, an RoA above 5 percent is generally considered good, while above 20 percent is excellent. However, comparisons must be made within the same sector, as capital intensity varies between industries.
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