Jakarta, July 2 -- The positive performance of state-owned enterprises (BUMN)-particularly within the banking sector-serves as a crucial foundation for strengthening the national economy, according to Indonesia's investment management agency Danantara.

"State-backed banks play a strategic role in driving domestic economic growth," COO of Danantara Indonesia Dony Oskaria noted in his statement on Thursday.

Dony, who also serves as Head of the SOE Regulatory Agency, emphasized that financial support must continue to be directed toward productive sectors capable of creating employment, increasing competitiveness and delivering a tangible impact on society.

According to him, financing for the manufacturing sector, natural resource downstre...