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View all search resultsAnalysis: SOE Ministry’s uncertain future after leadership shakeup
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SOEs Minister Erick Thohir talks to journalists at the Presidential Palace complex in Jakarta. (JP/Seto Wardhana) (JP/Seto Wardhana)
T
he latest cabinet reshuffle under the Prabowo Subianto administration has left the future of the State-Owned Enterprises (SOEs) Ministry uncertain. Erick Thohir, who previously led the ministry, has been reassigned to head the Youth and Sports Ministry, with no replacement or acting official named so far. Speculation over his successor is growing, while questions remain over the division of authority between the SOEs Ministry and the Daya Anagata Nusantara Investment Management Agency (Danantara).
This third reshuffle of the Red and White Cabinet saw Thohir succeed Dito Aritedjo at the Youth and Sports Ministry. State Secretariat Minister Prasetyo Hadi has suggested that an acting SOEs minister could be chosen from one of the three current deputy ministers. Deputy Minister I, Kartika Wirjoatmodjo, is a seasoned banker and former executive at state lender Bank Mandiri. Deputy Minister II, Dony Oskaria, brings private-sector experience and serves as ex-officio Chief Operating Officer (COO) of Danantara. Deputy Minister III, Aminuddin Ma’ruf, is a Nahdlatul Ulama member and former special staff to President Joko “Jokowi” Widodo.
During his tenure, Thohir moved away from the “super-holding” plan of his predecessor, Rini Soemarno, instead consolidating SOEs into 12 sectoral clusters overseen by the deputy ministers. Between 2019 and 2024, the number of SOEs fell from 114 to 47, though the broader ecosystem still encompassed 844 affiliated companies. Danantara, under CEO Rosan Perkasa Roeslani—who also serves as Investment and Downstream Minister—has continued this rationalization, aiming to reduce the ecosystem to 200 firms through around 350 corporate actions.
The balance of power, however, has shifted further toward Danantara. Under Law No. 1/2025 on SOEs, the sovereign wealth fund controls dividend distribution, mergers, acquisitions, divestitures, and the creation of holding companies. The SOEs Ministry retains its role as holder of the government’s Series A Dwiwarna shares, but its influence has eroded. Danantara has been accused of delaying annual general meetings and interfering in SOE leadership appointments, while many of Prabowo’s allies have secured top positions in state firms.
These developments have fueled speculation that the SOEs Ministry could eventually be merged with Danantara—or even dissolved. While Minister Prasetyo has denied that such a move is currently planned, he signaled that the government may consider it if deemed necessary. A merger would require regulatory changes, as the SOEs Minister is a statutory member of Danantara’s Supervisory Board under Government Regulation No. 10/2025.
If the two remain separate, strengthening the SOEs Ministry’s supervisory powers over Danantara would be critical, with operational control of for-profit SOEs handed to the fund. Conversely, combining the two bodies could create conflicts of interest between regulatory and commercial functions. Should the ministry be dissolved entirely, Danantara would operate under a framework that subjects SOEs to the same regulations as private corporations, backed by governance safeguards modeled on global sovereign wealth funds such as Singapore’s Temasek Holdings.
