Holding Danareksa, the First Transformation Specialist BUMN in Indonesia

JAKARTA, July 20, 2022 – SOE Minister Erick Thohir has reorganized the State-Owned Enterprises environment. Now, Danareksa has been inaugurated as a Holding which oversees several cross-sectoral companies to strengthen business and optimize company resources. Danareksa is the first transformation specialist holding owned by a state-owned enterprise with an international standard and scale.

 

During the launch of Holding Danareksa in Jakarta, today (20/7), Minister Erick said the transformation carried out by SOEs, including Danareksa, had recorded extraordinary results. With efficiency and consolidation as well as with good Good Corporate Governance, these transformations have proven to result in an increase in government revenues from SOEs of up to Rp60 trillion during the last pandemic crisis.

 

Erick said that the purpose of forming this holding was to create a business model synergy among state-owned companies that were not included in the 12 clusters. “There are state-owned companies or investments that I think need thinking, continuous assistance. Even though the potential is extraordinary,” said Erick. He emphasized that the mandate to manage the transformation of the subsidiaries is a big task that must be completed and not run out of 'stamina' in the middle of the road.

 

"I hope that what we are doing together will continue to grow and continue to contribute to the state, partners, regional governments and of course the private sector. Of course, it will also continue to encourage transformation rather than the business under it because this is part of a healthy corporation and good public service. And in this era of change, I hope that Danareksa will continue to make breakthroughs," he said.

 

On that occasion, Erick expressed his appreciation to the Directors and Board of Commissioners of 10 SOEs who are now members of Holding Danareksa. "I would like to thank the directors and commissioners of the holding subsidiaries who continue to be humble, open up that we must work together to become a force that does not stand alone from one another," he continued.

 

President Director of PT Danareksa, Arisudono Soerono said Holding Danareksa is a unique holding. While other BUMN holdings generally operate in one industrial sector, the Danareksa holding actually covers various industrial sectors. "Therefore, the effort to formulate it is quite complex, with various stakeholders, and the need for 5 Government Regulations, which thanks to the support of the Minister and the audience, were completed at the beginning of this year through PP Number 7 of 2022 dated January 24, 2022," said Ari .

 

In accordance with Government Regulation Number 7 of 2022 there are 10 state-owned companies that have joined as members of the Holding, namely PT Asset Management Company, PT Medan Industrial Estate, PT Wijayakusuma Industrial Estate, PT Makassar Industrial Estate, PT Kawasan Berikat Nusantara, PT Surabaya Industrial Estate Rungkut, PT Jakarta Industrial Estate Pulogadung, PT Nindya Karya, PT Balai Pustaka, and PT Clearing Futures Indonesia. These 10 state-owned companies engaged in Financial Services, Construction, Industrial Estates and Technology have added to the portfolio of Danareksa's subsidiaries and associates, which initially consisted of 5 companies, now to a total of 15 companies.

 

"Furthermore, according to the roadmap of the Ministry of SOEs, there are still 6 more SOEs that will be involved as phase 2 of the Danareksa holding, which we plan to do this year," said Ari.

 

As the holding holding company, the company which has been established since 1976 is committed to increasing the scale of the entity it manages and providing benefits to stakeholders through 25 strategic initiatives in the fields of Governance, Human Resources, Information Technology, Finance, and Risk Management, as well as the establishment of PMOPMO. for synergy and added value creation.

 

Ari explained that Danareksa Holding consists of small and medium-scale state-owned companies with an average asset of Rp. 3.5 trillion, which when combined under the holding gives new strength. "When combined into a holding, the total assets of the phase 1 holding will be IDR 49.1 trillion, with a net profit in 2020 of IDR 468.6 billion of pro forma consolidation of phase 1 and IDR 796 billion of net profit in 2021," he added.

 

The value of consolidated assets and profits compared to the SOEs as members of the holding alone illustrates the benefits of establishing this holding. With a stronger balance sheet, efforts to create added value through business model innovation, HR competency improvement and process improvements can be carried out properly. Ari emphasized that the increase in performance was also influenced by the increase in HR competence which was the main concern of Danareksa Holding.

 

It should be noted that Holding Danareksa is based on three pillars of objectives, namely sustainable transformation through increasing the scale of entities, creating value through business model innovation, synergies in operational excellence and cost leadership, as well as strengthening the capability and capacity of human resources to compete on a global scale. This holding has a number of strategies to transform the business of its subsidiaries, including preparing Industrial Estate Sub-cluster companies to become an area management group with a range of locations and complete support services for investors; prepare an Asset Management Company to become a leading turnaround company in Indonesia in the areas of restructuring, NPL management, and investment; transforming Nindya Karya into a construction company based on Green Environmental Development (ESG); transforming Balai Pustaka into an IP Licensing Company; make Indonesian Futures Clearing House a digital clearing licensed company by taking advantage of development opportunities and mastery of technology.