Finance Minister Purbaya Yudhi Sadewa reveals President Prabowo’s proposal to direct a portion of Danantara’s profits into the government’s fiscal reserves, aiming to strengthen the economy and potentially ease Indonesia’s debt burden amid ongoing scrutiny of state-linked funds and reinvestment strategies.
Finance Minister Purbaya Yudhi Sadewa said President Prabowo Subianto has floated the idea of directing part of Danantara’s profits into the government’s fiscal reserves, in a move that could provide the budget with an additional buffer and, potentially, help ease debt pressure. According to Purbaya, the plan is still under discussion and would be phased in, with implementation expected to begin this year. Reuters-style reporting from the same Jakarta remarks noted that the minister did not say which budget line would receive the money or whether the arrangement would restore the old dividend flow into non-tax state revenue.
The proposal matters because state-owned enterprise dividends no longer go straight into the state budget. After changes to the State-Owned Enterprises Law in 2025, those proceeds were transferred to Danantara, the sovereign investment platform now handling the returns. Purbaya said the government and Danantara are still working through the mechanics, suggesting that any re-routing of profits would be gradual rather than immediate.
The discussion comes as Purbaya has stepped up scrutiny of how Danantara uses state-linked funds. In recent comments reported by Kumparan, he criticised the agency’s practice of placing large amounts of dividends into government bonds, arguing that the money could be put to more productive use elsewhere. Liputan6 also reported that he has been pressing for clearer alignment between Danantara’s projects and Prabowo’s economic priorities, including faster execution on existing plans.
Purbaya said any extra revenue from the arrangement could also be used to reduce government debt, which stood at Rp10,293.69 trillion, or 41.26% of gross domestic product, as of June 30, 2026, according to the Finance Ministry’s debt office. That would keep the issue tied closely to the broader debate over how much of the state’s corporate earnings should be saved, reinvested or used to support the budget.
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