250 State-Owned Enterprises Slashed, Prabowo Says State Saves Rp50 Trillion in Routine Costs
President Prabowo Subianto has stated that the government has succeeded in saving up to Rp50 trillion of the state budget after closing, merging and consolidating 250 state-owned enterprises (SOEs) as of 31 July 2026. The President delivered this during his address at a Full Cabinet Session at the State Palace in Jakarta on Monday (20 July).
Prabowo explained that the savings came from cuts to recurring (overhead) costs. Through this slimming-down, the state is no longer burdened with the salaries of directors and commissioners, building rents, electricity and other operational costs of those hundreds of red-plate companies.
“When I became President, I was given a report that there were 1,077 SOEs. There were SOEs that created subsidiaries, grandchildren and even great-grandchildren. I am proud that the leadership of Danantara, within the first 18 months, has succeeded in reducing that number,” President Prabowo said.
The President detailed that of the total 1,077 SOEs that previously existed, 250 entities have been cut through various consolidation schemes. He targets the streamlining to continue until the end of 2026, with a maximum target of leaving only 350 SOEs.
If the target of reducing to 350 SOEs is achieved, the Head of State is optimistic that the total amount of state money saved could reach Rp70 trillion to Rp80 trillion. Danantara (Daya Anagata Nusantara), as the sovereign wealth fund manager, is said to have committed to this target.
Prabowo emphasised that the establishment of Danantara is one of the historic achievements of his administration. Danantara functions as a sovereign wealth fund that unifies and manages state assets in an orderly manner as reserves for Indonesia’s future.
“Danantara is a sovereign wealth fund, where the savings and wealth of state assets are unified, consolidated and managed properly. This becomes the energy for Indonesia’s future, for our children, grandchildren and great-grandchildren,” he concluded.