In the World Economic Forum (WEF) Discussion Panel in Davos, Switzerland, Tuesday, Danantara Indonesia's Managing Director of Global Relations and Governance, Mohamad Al-Arief, revealed that Danantara's total assets currently reached US$900 billion (Rp. 15.29 quadrillion, exchange rate = Rp. 16,985 on Tuesday morning).
"In the next five years, we must increase (assets) through value creation and so on, and gradually achieve our goal of tripling that number by 2030," he said, as broadcast on the Ministry of Investment and Downstreaming's YouTube channel from Jakarta on Tuesday.
To realize this target, he said his party plans to consolidate 1,068 state-owned enterprises into 221 business entities in the next 3-4 years.
Al-Arief stated that currently, thousands of state-owned companies in Danantara's portfolio are managed by around 50 holding companies in various sectors.
"Perhaps in 3-4 years, the 1,068 will transform into more than 200 professionally managed state-owned enterprises to be more competitive in the long term," he said.
He stated that the consolidation process was part of his party's efforts to bring efficiency, professionalism, and global competitiveness to Indonesian SOEs.
Al-Arief said that currently two state-owned enterprises in Danantara's portfolio, namely Pertamina and PLN, have entered the Fortune 500 list.
He also hopes that this transformation will encourage more Indonesian SOEs to enter this prestigious list.
He said that currently the consolidation process has begun in the fundamental business review stage for each business line.
"Later, there will be a phase where they will streamline their operations through mergers and consolidations. And then, ultimately, (the consolidated SOEs) will be able to create more added value," said Mohamad Al-Arief.
