Danantara Cuts Back on BUMN Children and Grandchildren Plans
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Indonesia Plans to Reduce State-Owned Enterprises (BUMN) to 250
The Anagata Nusantara Power Investment Management Agency (BPI Danantara) has announced plans to significantly reduce the number of State-Owned Enterprises (BUMN) and their subsidiaries. The current total of 1,067 companies will be streamlined to around 250.
Bhimo aryanto, Senior Director of Business Performance & Assets Optimization at Danantara, stated that approximately 52% of all BUMNs and their subsidiaries are currently operating at a loss. This highlights the need for improved operational efficiency and sustainability across the sector.
“Of the 1,067 BUMNs, exactly 52% exhibit negative value creation. Their bottom line is negative, and their net income is negative.This indicates substantial work remains to ensure the long-term sustainability of these businesses, especially from a profitability perspective,” Bhimo explained at the Public & Business Leader Forum at the Sari Pacific Hotel Jakarta, Autograph Collection, Central Jakarta, on Saturday, December 13, 2025.
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Reasons for Reducing the Number of BUMN
Improving governance and optimizing the role of BUMN is crucial for supporting the realization of economic growth exceeding 8%. Danantara’s plan to reduce the number of BUMN aligns with this objective.
“We aim to squeeze down from 1,067 to around 250 efficient entities. Importantly