Danantaraโ Points to Lack โคof Focus,โ Diversification as Root โof BUMN underperformance
Jakarta, indonesia โข- Danantara โAsset Managementโ (DAM) has identified a lack of strategic focus and excessiveโ diversification as key factors hindering the performance of Indonesian State-Owned Enterprises (BUMN), according to recent statements. The company plans aโค sweeping portfolio streamlining effort aimed at refocusing BUMN on core, profitable businesses.
Speaking โrecently, Febriany, a representative of Danantara,โ stated, “There are so many children, all kinds of diversification here and there.” โฃThis observationโ underscores โคtheโ company’s assessment that BUMN have spread themselves too thin,โ diluting resources and hindering profitability.
To address this,DAMโ will lead a portfolio streamliningโ initiative,prioritizing coreโฃ businesses and โevaluating the viability of others.โข “Later, โthere will also โคbe a special team at DAM that โwill streamline it so that it focuses on what needs to be focused on,” febriany explained. “For thoseโค who are not part of theโ ecosystem that is needed, maybeโข we โขshould ask, is there a loss if they lose, they don’t needโค to be there,โ rather than being a burden.โ But ifโ they make a โprofit, share it like โคthat.”
This โฃstrategy aligns with priorities outlined in a recent working meeting with Commission VI DPR RI on July 23rd. Danantara Chiefโข Operating Officer (COO) Dony Oskaria detailed a thorough list of consolidation and streamlining programs for 2024, including:
* Consolidation ofโ the โconstruction sector
* โฃConsolidation and streamlining โคof the โfertilizer business
* โ โขConsolidation โof the hospitalโ business
*โ consolidation of the hotel business
* Consolidation of โtheโ sugar business
* Consolidationโ and downstreaming of the oil business
* Consolidation ofโค the insuranceโ business
* โค Asset management โbusiness consolidation
* Industrial area business consolidation
Beyond consolidation, DAM isโฃ also pursuing business progress in several key โsectors, including cooperatives,โ food, the โbattery industry, cement, โขsharia banking, telecommunications, and shipbuilding, with a goal of completion within the next five months.
To support these initiatives, Danantara is finalizingโ internal governance and policies related โto capital, โfinance, risk management, law, and human resources.โข “To support these 21 programs, we โขwill also complete โฃtheโ business support governance in the Danantara Asset Management organization through the human capital procedure policyโฆ Then โwe willโ also complete procedures in the financial sector,โ in the โคfield โฃof risk โขmanagement and legal to support โDanantara assetโค managementโ operations,” Oskaria stated.
The move signals a criticallyโฃ important shift inโ strategy for Indonesian BUMN, aiming to improve efficiency and profitability by concentratingโข on core competenciesโข and shedding underperforming or non-strategic assets.
(acd/acd)
