JAKARTA (Aug 12): The Indonesian government will take back a share of the dividends earned by state companies starting from this year and use it to create a backup fund for the state budget, Finance Minister Purbaya Yudhi Sadewa told reporters on Wednesday.

Purbaya said President Prabowo Subianto decided that sovereign wealth fund Danantara, which runs the state firms, could use some of its profits to help the state budget.

The minister said the plan was aimed at reducing government financing needs. "We want to make our state budget more sustainable going forward, so we are utilising every possible means, including revenues from Danantara," he added.

Investor materials seen by Reuters showed Danantara had 123 trillion (RM28.15 billion) rupiah in cash and cash equivalents as of April 30, supported by funding sources that include the 70 trillion rupiah of dividends from state firms.

Since the creation of Danantara in 2025, it has directly managed the dividends from state companies, removing them as a source of income for the state budget.

Danantara was mandated to manage about US$900 billion of state assets across 1,000 companies, and use the dividends to maximise investment returns.

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