Indonesia to raise extra $2.5b after dividend transfer to Danantara

Indonesia’s Ministry of Finance aims to secure an additional 40 trillion rupiah (US$2.5 billion) in revenue through Non-Tax State Revenue (PNBP).

Finance Minister Sri Mulyani Indrawati announced this during a meeting with the House of Representatives Commission XI.

This initiative is designed to address a potential IDR 80 trillion (US$4.94 billion) revenue loss due to the transfer of state-owned enterprise (BUMN) dividends to the Danantara Investment Management Agency.

“The PNBP will seek new revenue sources of IDR 40 trillion to prevent the full impact of the 80 trillion rupiah (US$4.94 billion) loss,” Sri Mulyani said on Sunday, July 6, 2025.

Director of State Budget Formulation at the Ministry of Finance Rofyanto Kurniawan noted that additional revenue will be pursued through optimization in several areas.

These areas include non-oil and gas natural resources, ministerial/institutional PNBP, and public service agencies (BLU).

“With other PNBP revenues, we can at least reduce the gap caused by the absence of dividends,” Rofyanto added.

🔗 Source: Bloomberg Technoz

🧠 Food for thought

1️⃣ Indonesia’s sovereign wealth fund creation follows global economic development patterns

The establishment of BPI Danantara in February 2025 represents Indonesia’s entry into the sovereign wealth fund arena, following a global trend among developing economies seeking to better manage state assets.

This structural shift diverted Rp150 trillion (US$9.14 billion) in SOE dividends to Danantara in 2025, nearly doubling from Rp85.5 trillion the previous year 1.

Indonesia’s approach mirrors successful models in countries like Singapore (Temasek) and Malaysia (Khazanah), which have used sovereign wealth funds to professionalize management of state assets and enhance returns.

The transfer of majority SOE shares to Danantara through Government Regulation No. 16/2025 2 shows Indonesia’s commitment to modernizing governance structures for its approximately 100 state enterprises.

By consolidating SOE oversight under professional management, Indonesia aims to address long-standing inefficiencies in the public sector while creating a more sustainable funding mechanism for development projects.