250 State-Owned Enterprises Slashed, Prabowo Says State Saves Rp50 Trillion in Routine Costs

President Prabowo Subianto stated that the government has managed to save up to Rp50 trillion in state budget funds after closing, merging, and consolidating 250 State-Owned Enterprises (BUMN) by 31 July 2026. The President made this statement during a briefing at a Plenary Cabinet Session at the State Palace in Jakarta on Monday (20/7). Prabowo explained that the savings came from cutting routine costs (overhead costs). With this streamlining, the state is no longer burdened by the salary costs of directors, commissioners, building rent, electricity, and other operational expenses from hundreds of these state-owned companies. “When I became President, I was given a report that the number of BUMN was 1,077. There are BUMN that created subsidiaries, grandchildren, and even great-grandchildren companies. I am proud that the leadership of Danantara, in the first 18 months, has succeeded in reducing that number,” said President Prabowo. The President detailed that out of the previous total of 1,077 BUMN, 250 entities have been cut through various consolidation schemes. He is targeting the streamlining to continue until the end of 2026 with a maximum target of leaving only 350 BUMN. If the target of streamlining to 350 BUMN is achieved, the Head of State is optimistic that the total state funds saved could reach Rp70 trillion to Rp80 trillion. Danantara (Daya Anagata Nusantara), as the sovereign wealth fund manager, has reportedly agreed to this target. Prabowo emphasised that the establishment of Danantara is one of his administration’s historic achievements. Danantara functions as a sovereign wealth fund that consolidates and manages state assets neatly for Indonesia’s future reserves.