State-Owned Enterprise Profits Soar, Some Up 804% in Six Months

Indonesian state-owned enterprises (BUMN) have reported substantial profit growth in the first half of 2026, signaling a positive turnaround for some companies that previously faced performance challenges. This achievement highlights improvements in various BUMN sectors and serves as an initial test of the consolidation and transformation strategies implemented under Danantara.

Toto Pranoto, Managing Partner of BUMN Research Group LM FEB UI, noted that top-tier BUMNs, which have historically driven state revenue and profit, continue to demonstrate solid performance. He specifically mentioned the banking sector (Himbara), mineral and mining sectors, telecommunications, and Pertamina as key contributors. Pranoto believes that further strengthening these positive results is possible through better BUMN restructuring and consolidation, urging for an accelerated streamlining process to enhance efficiency and optimize performance.

PT Timah recorded the most significant profit jump among the listed BUMNs, with its net profit reaching Rp2.71 trillion. This represents an impressive 804.7% increase compared to Rp300 billion in the first half of 2025. PT Pupuk Indonesia also saw a substantial rise, with net profit climbing 253% to Rp8.51 trillion from Rp2.41 trillion in the same period last year.

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I think solid performance is still shown by blue-chip BUMNs that have always been the main drivers of state revenue and profit.

In the cement sector, PT Semen Indonesia's net profit grew by 196.5% to Rp193.46 billion, up from Rp65.24 billion. PT Agrinas Palma Nusantara reported a profit of Rp890 billion, a 150% increase. The financial services and logistics sectors also showed positive trends, with PT Pegadaian's profit rising 84.6% to Rp6.59 trillion and PT Pelindo's growth at 60.4% to Rp2.57 trillion. PTPN IV PalmCo achieved a profit of Rp3.23 trillion, a 54% increase, while Bank Tabungan Negara (BTN) posted Rp2.40 trillion, up 40.8%. Bank Mandiri's profit grew 24.3% to Rp30.41 trillion, and in the energy sector, PT Pertamina Geothermal Energy's profit increased by 15.5% to US$79.61 million.

Beyond profit increases, several BUMNs have also reversed losses into gains. PT Krakatau Steel, for instance, shifted from a loss of approximately Rp1.74 trillion to a profit of Rp150 billion to Rp185 billion. PT Kimia Farma also moved from a loss of Rp135.61 billion to a profit of Rp54.07 billion. According to Toto, these developments indicate that there is still significant room for improvement within BUMN performance.

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I hope that the BUMN streamlining process can be accelerated so that the improvement of state company performance can be carried out more optimally.