President Prabowo Subianto has taken decisive action to close 700 to\n800 state-owned enterprises (SOEs) that continue to record losses. The\ntarget is for this mass reduction to be completed by the end of this\nyear. To date, the government claims it has already cut 240 SOEs deemed\nto be underperforming. \u201cIf I\u2019m not mistaken, we will end up closing\napproximately 800 state companies, at least 700,\u201d Prabowo asserted\nduring a speech at the closing of the NU 2026 National Conference of\nReligious Scholars and Grand Conference in Bangkalan on Tuesday (23\/6).\nThe former Defence Minister admitted he was shocked upon first taking\noffice as President to find the number of companies under the SOE\numbrella had ballooned to 1,000 entities. Unfortunately, instead of\nproviding dividends to the state, the majority of these subsidiaries and\nsub-subsidiaries were \u2018sick\u2019 and loss-making. \u201cNow we have closed\napproximately how many, Minister of State Secretary? We have closed\nroughly 240. None of them are profitable, they keep losing money,\u201d he\nstated.<\/p>\n
Prabowo also detailed the mathematical calculations regarding the\nscale of the budgetary waste that has occurred. This waste primarily\nstems from maintaining management structures, such as the salaries and\nfacilities of unproductive directors and commissioners. He gave an\nexample: if one company has a minimum of four directors and four\ncommissioners, with a minimum assumed salary of Rp 50 million per month,\nthe state must fork out up to Rp 400 million per month for just one\ncompany. This figure does not yet include annual incentives or bonuses.\nThrough this liquidation measure, Prabowo claims the state treasury can\nsave up to trillions of rupiah. Furthermore, he signalled that the\nexistence of these unhealthy SOE subsidiaries is often used as a shield\nfor corrupt practices. \u201cWe are saving trillions just from closing\ncompanies that are not right, and that is the way those directors cover\nup their corruption,\u201d he added bluntly.<\/p>\n
Previously, signals of this SOE clean-up had strengthened following a\nlimited meeting in Kertanegara between Prabowo and the Minister of\nInvestment and Downstreaming, who is also the Head of the Danantara\nInvestment Management Agency (BPI), Rosan Roeslani, on Sunday (21\/6). In\nthat report, out of a total of 1,077 existing SOE entities, 258 entities\nwere cut through a consolidation process. The immediate target is for\nthe government to comb through again to narrow the SOE defence to just\naround 300 entities. This step is considered key to boosting efficiency,\nstrengthening good corporate governance, and cutting the chain of\nhigh-cost bureaucracy that burdens the state budget. The transformation\nof SOEs and the optimisation of state assets is part of the Prabowo\nadministration\u2019s grand agenda to turn the nation\u2019s wealth into a\nsustainable economic growth engine, enhance Indonesia\u2019s competitiveness\non the global stage, and ensure every state asset provides maximum added\nvalue for the people\u2019s prosperity.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/prabowo-reveals-reason-for-closing-800-state-firms-says-country-can-save-trillions-1782532232", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }