Govt to reroute Danantara dividends back to state budget
The government’s debt had reached a record high of Rp 10.3 quadrillion, or 41.26 percent of gross domestic product, as of June 30, up Rp 1.8 quadrillion since Prabowo took office in October 2024.
The Indonesian government plans to redirect a portion of Danantara's profits, which are gathered from state-owned enterprises' dividends, back into the state budget. As of June 30, the government's debt had soared to a record high of Rp 10.3 quadrillion, or 41.26 percent of the country's GDP, marking a rise of Rp 1.8 quadrillion since Prabowo Subianto took office in October 2024.
Finance Minister Purbaya Yudhi Sadewa has hinted at this move, stating that the President has "an idea to place a sum of Danantara profits for government reserves, which can help reduce our debt". This policy is set to be implemented this year, though specific details regarding the amount of dividends involved have not been disclosed; "We'll await the President's direction".
Danantara, which was established last year, previously received a share of SOEs' dividends proportional to the government's stake in these companies. In 2024, these dividends amounted to Rp 86.4 trillion. However, with the establishment of Danantara, these dividends now directly enter the fund, which manages the money for expansion and reinvestment.
Before this change, the dividends were classified as non-tax revenue. Purbaya has emphasized the need to enhance revenue efficiency and make the budget more sustainable, hinting that this step will assist in reducing the fiscal deficit.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
