State-Owned Enterprises' Dividend Concentration Raises Concerns

Limited Contribution to State Revenue

The majority of Indonesia's state-owned enterprises (BUMN) are failing to contribute significantly to the country's revenue through dividends. According to Pandu Sjahrir, Chief Investment Officer of Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), 95% of total BUMN dividends come from just 8 companies ¹

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https://finance.detik.com/berita-ekonomi-bisnis/d-8218241/bos-danantara-sebut-95-dividen-bumn-cuma-dari-8-perusahaan

. This stark concentration highlights the heavy reliance on a handful of high-performing enterprises.

Widespread Losses Among BUMN Subsidiaries

The financial performance of BUMN subsidiaries under Danantara's management paints a concerning picture. Out of 1,060 total entities, more than 52% are reporting losses ¹

. This indicates significant operational challenges across the majority of state-owned businesses. The contrast between the profitable few and the loss-making majority underscores the need for comprehensive restructuring efforts.

Challenges in Improving BUMN Performance

Aminuddin Ma'ruf, Deputy Chair of the State-Owned Enterprises Governance Body (BP BUMN), characterized many underperforming BUMN as 'not quality, consuming many costs' ¹

. This assessment emphasizes the dual challenge of poor financial performance and operational inefficiency. The governance body faces the task of transforming these enterprises to become viable contributors to state revenue.

Strategic Implications for State Revenue

The current dividend distribution pattern raises important questions about the long-term sustainability of state revenue streams. With such heavy concentration in just eight companies, any adverse developments affecting these key contributors could significantly impact government finances. This vulnerability underscores the urgent need for Danantara and BP BUMN to implement effective turnaround strategies for underperforming state enterprises.