Danantara is shifting its focus from bailing out BUMNs to creating added value to boost the national economy this year. The government is also taking firm action to eradicate illegal imports and address flood impacts to protect the welfare of millions of local farmers. This policy synergy is expected to curb layoff numbers and strengthen the competitiveness of domestic industries in the global market.
Danantara is shifting its priority from rescue capital injections to a value creation phase in 2026. This new strategy includes industrial downstreaming and business expansion to strengthen the long-term fundamentals of state-owned enterprises. Furthermore, the government plans to trim the number of BUMNs to around 200 entities through merger and liquidation schemes for optimal efficiency.
This internal BUMN transformation runs parallel with the government's rigorous efforts to maintain national food sovereignty from external threats.
The Minister of Agriculture seized 133.5 tons of illegally imported onions that entered the country without official documents or quarantine. This smuggling practice is considered highly dangerous as it could potentially spread plant diseases and damage market prices for local farmers. Strict law enforcement against illegal importers is the key to protecting Indonesia's vast agricultural ecosystem.
In addition to the threat of smuggling, another major challenge arises from natural phenomena testing the resilience of agricultural land in the Sumatra region.
Massive floods hit Aceh, North Sumatra, and West Sumatra, damaging 107,324 hectares of productive rice fields. The government recorded about 44.6 thousand hectares of rice and corn fields experiencing crop failure due to these hydrometeorological disasters. Swift steps, including the distribution of agricultural machinery and land normalization, are being implemented to ensure planting activities return to normal.
The recovery of this upstream sector is expected to maintain supply stability so that pressure on the manufacturing industry does not worsen.
The number of layoffs in Indonesia surged to 88,519 people throughout 2025 due to pressure on labor-intensive industries. The textile and garment sectors faced great difficulties because they could not compete with cheaper and more varied imported products. However, policies restricting textile imports and incentives for industrial machinery rejuvenation offer new hope for the revival of the national business world.
Danantara's strategic shift and the strengthening of domestic market protection provide certainty for investors and business actors to continue expanding. Securing the food sector from disasters and illegal imports will maintain public purchasing power, which is crucial for national economic growth.
The success of this economic transformation requires government consistency in implementing downstreaming policies and strict trade supervision. Stakeholders should immediately adopt modern technology to increase production efficiency so that local products can dominate their own market competitively.
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