Finance Ministry: Danantara to boost Indonesia’s 2026 growth

Indonesia’s government expects Danantara, a new state-owned enterprise holding, to drive national investment and economic growth from 2026.

Danantara will coordinate state-owned companies and align their investments with the national budget.

Febrio Nathan Kacaribu, finance ministry official, said the holding will focus on accelerating investment and high-value infrastructure projects.

State-owned enterprise capital expenditure is projected to rise from IDR 380 trillion rupiah (US$23 billion) in 2025 to 720 trillion rupiah (US$43.3 billion) in 2026 after Danantara’s launch.

Investment will target sectors including natural resources, agriculture, mining, and manufacturing, supporting overall national capital expenditure growth.

🔗 Source: Kontan

🧠 Food for thought

Implications, context, and why it matters.

Danantara’s IDR 720 trillion capex hinges on legal clarity and funding sources under debate

Danantara plans to lift SOE capital spending from IDR 380 trillion to IDR 720 trillion. It says SOE ownership and management moved via inbreng (a legal transfer of state assets into company equity), including 52 SOEs through an operational holding 1. Funding plans remain vague, which clouds the target.
The Danantara Bill sits in the 2026 National Legislation Program without a finished legal framework 2. The split between Danantara and state finances creates a legal gray zone that hinders oversight 3. The Ministry of State-Owned Enterprises is being cut to an implementing body as operations shift to Danantara 4, while lawmakers debate whether the ministry should exist 2.
The IDR 720 trillion capex goal looks soft without a legal base, a governance model, or proof it can run like Singapore’s Temasek Holdings (a state-owned investment company that manages 382 billion Singapore dollars (SGD) in assets) 3.

Tech vendors and investors can move early for Indonesia’s 2026 PPP pipeline

SOE capex rising to IDR 720 trillion pairs with state budget (APBN) capex at IDR 530 trillion, which points to a larger procurement and Public-Private Partnership (PPP) pipeline in 2026. Indonesia’s PPP Book lists 30 projects Under Preparation and 8 Ready to Offer 5.
B2B vendors that sell to government or SOEs should map which SOEs sit under Danantara. Track APBN capex for regional links to spot tenders 12 to 18 months early.
Private equity with infrastructure investors can find co-investments by tracking capital flows into agriculture tech, mineral processing, and manufacturing automation. The government aims to lower the Incremental Capital Output Ratio (ICOR) and lift investment efficiency.