Published on October 20, 2025, by The Jakarta Post
By Maudey Khalisha
Danantara CEO Rosan Roeslani’s consolidation drive to reduce the number of SOEs from more than 1,000 to just over 200 will only succeed if accompanied by transparent governance, political will and an overdue reset in the business culture at state firms, economists say.
Danantara CEO Rosan Roeslani has outlined a five-year plan to consolidate and strengthen Indonesia’s state-owned enterprises (SOEs), but economists warn the move could crowd out private sector activity unless it is guided by clear legal and strategic mandates.
Institute for Development of Economics and Finance (INDEF) deputy director Eko Listyanto said the success of the SOE consolidation would depend on governance and transparency.
“The first thing that must be done in the road map ahead is to make sure the so-called priority and strategic sectors are truly those mandated by law […]. In other words, they should really be the core sectors of the economy. If that’s the case, then it won’t lead to what we call ‘crowding out’,” he told The Jakarta Post on Thursday.
He went on to stress the importance of a level playing field.
“The process must follow a ‘market mechanism’, meaning, even if SOEs compete with private firms, they shouldn’t be given too many privileges. If Danantara keeps getting direct [project] appointments, it will only repeat old inefficiencies,” he warned.
Eko further warned that the success of the massive reorganization would depend heavily on governance and political execution, noting that SOE consolidation had been attempted under previous ministers, like Erick Thohir and Rini Soemarno.