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🇮🇩 Indonesia /Economy & Trade

State-Owned Enterprise Profits Grow Significantly, Transformation Yields Results

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

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  • State-owned enterprises (BUMN) in Indonesia have shown significant profit growth between April 2025 and April 2026.
  • Companies like Pupuk Indonesia and Pertamina saw substantial increases in consolidated profits, indicating a broader positive trend across various sectors.
  • This growth is attributed to the ongoing transformation and improved governance within BUMN, with several previously struggling companies now reporting profits.

Indonesia's state-owned enterprises (BUMN) are demonstrating robust financial performance, with significant profit growth reported between April 2025 and April 2026. CEO of Danantara Indonesia and Minister of Investment Rosan Roeslani highlighted this trend, emphasizing that the strength of BUMN extends beyond mere assets or profits to their contribution to national development.

Key state-owned entities have reported impressive gains. PT Pupuk Indonesia's consolidated profit surged from Rp 1.59 trillion to Rp 4.82 trillion, while PT Pertamina (Persero) saw its profit climb from Rp 13.9 trillion to Rp 24.97 trillion. These improvements are not isolated incidents, as growth is evident across various sectors including banking, logistics, and manufacturing, suggesting a systemic recovery rather than a partial one.

Himbara banks are worth around Rp 1.100 trillion, reflecting 10 percent of the total capital market value or the entire value of Indonesian companies. Banking is not just about chasing profits, but its presence must be felt by the community by providing equal opportunities for all levels, from MSMEs, commercial, to corporations.

— Rosan RoeslaniDescribing the market value and societal role of state-owned banks.

Roeslani attributed this widespread improvement to the ongoing transformation in BUMN governance and management. He pointed to companies that were previously under financial pressure but have now turned profitable. PT Krakatau Steel, for example, reversed a loss of Rp 981 billion to a profit of Rp 635 billion, alongside a reduction in debt from $1.7 billion to $1.1 billion. Similarly, PT Danareksa moved from a loss of Rp 72 billion to a profit of Rp 43 billion.

Further examples of successful turnarounds include PT Kimia Farma, which shifted from a loss of Rp 160 billion to a profit of Rp 108 billion; PT Len Industri, from a loss of Rp 228 billion to a profit of Rp 314 billion; and PT Semen Indonesia, which moved from a loss of Rp 66 billion to a profit of Rp 106 billion. These results underscore the effectiveness of the BUMN transformation initiatives.

The pattern of growth spread across various sectors indicates that performance improvement is not partial or dependent on a single policy.

— Rosan RoeslaniExplaining the systemic nature of the BUMN performance improvements.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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