Author: Mohamad Ikhsan, Lovina Aisha Malika Putri, I Gede Sthitaprajna Virananda3 and Adhi Nugroho Saputro
Executive Summary
Contrary to popular perception, the role of state-owned enterprises (SOEs) in Indonesia’s economy is relatively limited. Between 2010 and 2022, SOEs contributed only 6–8% to nominal GDP annually, with considerable variation across sectors. By 2022, the ten largest SOEs accounted for 85% of total SOE assets, while the remaining 51 firms comprised just 15%. Over the past decade, the number of SOEs has declined due to consolidations and institutional transitions into government agencies.
In 2022, SOEs contributed 6.1% to nominal GDP—the highest since 2013—driven primarily by the mining, financial ser- vices, and electricity sectors. Nevertheless, their overall contribution to economic growth remained modest, typically adding only 0.5 to 1 percentage point annually.
This study employs a comparative analysis of GDP measurement methodologies to estimate the value-added of SOEs, drawing from firm-level financial statements. Among the approaches examined, the income method generated the smallest deviation from official national accounts data, suggesting its superior accuracy. The paper also presents sectoral time series data on SOE
value-added, offering a valuable empirical base for future research and policymaking.
These findings highlight the need for improved measurement tools to capture the full economic contribution of SOEs and suggest that, on average, SOE productivity lags behind that of comparable private-sector firms.
