SOE dividend grab tests Danantara’s mandate
Despite objections from Danantara, the finance minister insists the dividends be transferred this year in line with President Prabowo’s instruction.
The state-owned enterprises (SOE) dividend grab has sparked debate over finance minister Purbaya Yudhi Sadewa's mandate to transfer Rp 120 trillion (US$6.8 billion) in profits to the state budget this year. Despite Danantara's concerns, the ministry insists on the transfer, citing growing fiscal pressure. "Purbaya's panic mode may stem from the government's tightening fiscal space," Herry Gunawan, executive director of think tank NEXT, commented.
Indonesia's government debt hit a record high of Rp 10.3 quadrillion in June, representing 41.26 percent of GDP, up from 41.1 percent at the end of 2021. The finance minister argues that Danantara must account for investment risks and capital accumulation before divvying up profits, but Herry contends that the government cannot simply demand a specific amount, even if it cites the president's directive.
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.
