Danantara to Implement Portfolio Streamlining for BUMN

Addressing Underperformance Issues

Danantara has identified the root causes of BUMN's underperformance, citing excessive diversification and numerous subsidiaries as major factors. Managing Director Febriany Eddy stated that many BUMN entities have expanded into various unrelated businesses, resulting in inefficiencies and reduced overall performance. To address this, Danantara plans to implement a comprehensive restructuring program through Danantara Asset Management (DAM).

Strategic Restructuring Plan

The restructuring will focus on: 1. Identifying core businesses that are profitable and strategically important 2. Eliminating non-core subsidiaries that are unprofitable or outside the core competency 3. Optimizing remaining assets through a special task force established by DAM 4. Enhancing synergy within the BUMN ecosystem

Implementation and Expected Outcomes

The streamlining process will be led by DAM, which will conduct thorough portfolio reviews to determine which businesses to maintain, divest, or restructure. Febriany Eddy emphasized that the goal is to make BUMN more focused and profitable by eliminating businesses that are not core to their operations or are financially draining. This strategic restructuring is expected to improve the overall financial health and competitiveness of BUMN entities in the market.