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View all search resultsGovt to reroute Danantara dividends back to state budget
The government’s debt had reached a record high of Rp 10.3 quadrillion, or 41.26 percent of gross domestic product, as of June 30, up Rp 1.8 quadrillion since Prabowo took office in October 2024.
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A woman walks past the Wisma Danantara Indonesia building on Aug. 11, 2026, on Jl. Jend. Gatot Subroto in South Jakarta. (JP/Iqro Rinaldi)
P
resident Prabowo Subianto has instructed state asset fund Danantara to redirect a sum of the dividends from state-owned enterprises (SOEs) back to the state budget to help alleviate the burden of state debt.
Finance Minister Purbaya Yudhi Sadewa told reporters on Wednesday that the President had “an idea to place a sum of Danantara profits for government reserves, which can help reduce our debt”.
He said the policy would come into effect this year but specified neither when nor how much dividend was involved; “We’ll await the President’s direction”.
Before Danantara was established last year, SOEs remitted a portion of their dividends to the state in proportion to the government’s shares in respective companies, which in 2024 reached a total of Rp 86.4 trillion (US$4.83 billion).
The arrangement changed with Danantara’s establishment last year, the dividends go directly into the fund who in turn manages the money for expansion and reinvestment.
Before the change, the dividends were logged as nontax revenue and asked whether that would be the case again now, Purbaya said it was still being discussed. It was unclear whether it would become a permanent setup.
“We want to increase the efficiency of our revenue, and we want our budget to be more sustainable moving forward. We’ll make use of every avenue, including income from Danantara,” said Purbaya, who went on to say that this would help the government in pressing down the fiscal deficit.
