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View all search resultsPrabowo banks on Danantara to balance budget
President Prabowo Subianto has suggested that Daya Anagata Nusantara (Danantara) will play a big role in his short-term plan to balance the budget, but critics say that runs counter to the state asset fund’s design.
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President Prabowo Subianto delivers his annual State of the Nation address during the People's Consultative Assembly (MPR) plenary meeting at the Senayan legislative complex in Jakarta on Aug. 15, ahead of the country's 80th Independence Day. (Reuters/Pool/Ajeng Dinar Ulfiana)
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resident Prabowo Subianto has suggested that Daya Anagata Nusantara (Danantara) play a big role in his short-term plan to balance the budget, but critics say that runs counter to the state asset fund’s design.
In his annual state budget address before the People’s Consultative Assembly (MPR) on Aug. 15, Prabowo promised to keep refining fiscal planning through to the end of his term to reach the narrowest deficit possible.
“My hope is, my dream is, that someday, maybe in 2027 or 2028, I want to stand before this assembly, on this podium, to deliver that we managed to get a state budget with no deficit at all,” said the President.
The concrete scenario laid out by the President to reach that goal includes US$50 billion in expected revenue generated from state-owned enterprises (SOEs), which Prabowo said will lead to a surplus in the state budget.
“The SOEs are supposed to be contributing at least $50 billion for us,” he said.
The number was based on what he suggested was a modest “return on assets” (ROA), noting that 12 percent ROA was deemed good in business and 10 percent was “conservative”.
Assuming that, “say, for the Indonesian people, 5 percent is enough”, the former general continued, then the aggregated $1 trillion in assets of the SOEs, all managed by Danantara, would yield $50 billion.
