Finance Minister: Rp 120 Trillion of Danantara's Profit to Enter State Budget This Year
Translated from Indonesian and summarized by DistantNews. Read the original for the full story.
At a glance
- Indonesia's State Budget will receive approximately Rp 120 trillion from Danantara's profits this year.
- Finance Minister Purbaya Yudhi Sadewa confirmed the decision was made by President Prabowo Subianto and will be recorded as non-tax state revenue.
- The funds will bolster the 2026 state budget and potentially cover unexpected expenses, while also supporting the target deficit of 2.85% of GDP.
Indonesia's State Budget is set to receive a significant boost of around Rp 120 trillion from the profits of Danantara, a state-owned entity. Finance Minister Purbaya Yudhi Sadewa announced that this decision was finalized by President Prabowo Subianto, with the funds slated to enter the state coffers this year. The exact timing of the transfer is still under consideration.
It has been confirmed (to return to the state budget). We just need to determine when he wants to send it. (The portion) is around Rp 120 trillion this year, that's what the president decided.
"It has been confirmed (to return to the state budget). We just need to determine when he wants to send it. (The portion) is around Rp 120 trillion this year, that's what the president decided," Purbaya stated at the Ministry of Finance in Jakarta on Friday. He further explained that these funds would be classified as other Non-Tax State Revenue (PNBP). The government intends to utilize this influx as a reserve to strengthen the state budget, ensuring greater financial resilience.
"For reserves first, so our budget becomes stronger," Purbaya elaborated. This additional revenue is expected to play a crucial role in managing the 2026 state budget deficit, which is targeted at 2.85% of the Gross Domestic Product (GDP). Beyond deficit management, the funds offer a crucial buffer for unforeseen expenditures, providing the government with financial flexibility to address unexpected needs.
For reserves first, so our budget becomes stronger.
Purbaya remained uncertain about whether a portion of Danantara's profits would be channeled to the state budget in 2027, indicating that such a policy would depend on the President's future directives. "There haven't been discussions for next year yet, it depends on the President's policy. But what's clear is that it's good that Danantara's profits are increasing, and fiscal health indirectly benefits," he remarked.
There haven't been discussions for next year yet, it depends on the President's policy. But what's clear is that it's good that Danantara's profits are increasing, and fiscal health indirectly benefits.
Comparing the current anticipated inflow to previous years, Purbaya highlighted the substantial increase. "In previous years, I only received Rp 90 trillion from dividends. If Rp 120 trillion is given, it's good that it increased. I don't lose, the government doesn't lose, revenue doesn't lose, it even increases," he concluded, emphasizing the positive fiscal impact of Danantara's enhanced profitability.
In previous years, I only received Rp 90 trillion from dividends. If Rp 120 trillion is given, it's good that it increased. I don't lose, the government doesn't lose, revenue doesn't lose, it even increases.
Originally published by Republika in Indonesian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.