Prabowo Says Danantara to Rationalize 1,044 State-Owned Enterprises to Boost Efficiency

Davos: President Prabowo Subianto underscored the importance of peace, political stability, and sound economic governance as the foundations of Indonesia’s development during his address at the 2026 World Economic Forum (WEF) in Davos, Switzerland, on Thursday, January 22, 2026.

Speaking before world leaders and global business figures, Prabowo said history has consistently shown that prosperity cannot exist without peace and stability, which he described as essential prerequisites for sustainable economic growth.

“Peace and stability are our most valuable assets. There can be no prosperity without peace,” Prabowo said.

The President noted that Indonesia’s economic performance has gained international recognition. Citing the International Monetary Fund (IMF), he said Indonesia has been described as a “global bright spot” amid global economic turbulence marked by tighter financial conditions, trade tensions, and political uncertainty.

Despite these challenges, Indonesia has recorded economic growth of more than 5 percent annually over the past decade. Prabowo expressed confidence that growth this year would exceed previous levels.

He also highlighted Indonesia’s strong macroeconomic fundamentals, with inflation remaining around 2 percent and the state budget deficit kept below 3 percent of gross domestic product (GDP).

“This recognition is not based on unfounded optimism, but on evidence. Indonesia’s economy has proven resilient, and our policies are carefully calibrated,” Prabowo said.

Prabowo further emphasized Indonesia’s fiscal credibility, noting that the country has never defaulted on its debt obligations. Each administration, he said, has consistently honored commitments made by its predecessors.

“A president always honors the debts of the previous government. Lost credibility is extremely costly to regain,” he said.

To support long-term growth, Prabowo pointed to the establishment of Danantara Indonesia, the country’s sovereign wealth fund, in February 2025. Danantara—meaning energy to drive Indonesia’s future—now manages assets valued at approximately USD 1 trillion.

With Danantara in place, Prabowo said Indonesia is now positioned as an equal partner in global investment, transforming its image from merely a peaceful and stable nation into a country of opportunity.

“With Danantara, Indonesia is ready to invest together and grow together with global partners,” he said.

Danantara is designed to finance future-oriented industries as part of the government’s push to accelerate industrialization. Currently, the fund oversees 1,044 state-owned enterprises (SOEs), which will be rationalized into around 300 companies to improve efficiency, governance, and overall performance.

Prabowo added that the government is committed to implementing international standards of management and transparency. Danantara has been granted the authority to recruit top global talent, including foreign professionals, to lead strategically important companies.

“We want the best minds in the world to ensure that our future industries are managed professionally, transparently, and responsibly,” the President concluded.