Prabowo Cites Progress In Indonesia's SOE Restructuring Drive

By Nik Nurfaqih Nik Wil

JAKARTA, June 23 (Bernama) -- An ongoing restructuring exercise involving Indonesia’s state-owned enterprises (SOEs) has resulted in the closure of more than 200 loss-making entities.

The exercise is part of broader efforts by the government to improve efficiency, strengthen governance, and maximise returns from state assets.

President Prabowo Subianto said he was surprised to learn, upon taking office, that Indonesia had more than 1,000 SOEs – far exceeding his earlier estimate of around 300.

In February 2025, the president established sovereign wealth fund Danantara Indonesia and tasked it with managing and restructuring more than 1,000 SOEs.

"We have already closed about 240. They were not making any profit, only losses," he said in a speech at the 2026 National Conference of Islamic Scholars of Nahdlatul Ulama in Bangkalan, East Java, on Tuesday, which was broadcast live on YouTube.

According to Prabowo, the closures have generated savings worth trillions of rupiah by eliminating unnecessary management and operational costs.

He said many of the entities maintained boards of directors and commissioners, with some executives continuing to receive high salaries and bonuses, even as their companies remained unprofitable.

On Monday, Cabinet Secretary Teddy Indra Wijaya said Indonesia had consolidated 258 SOE entities under an ongoing transformation programme, with around 300 more targeted for consolidation in the near future.

Indonesia currently has about 1,077 SOE entities, according to data presented during a meeting between Prabowo and Danantara Chief Executive Officer Rosan Roeslani earlier this week.

-- NNN-BERNAMA