Danantara Chief Reveals SOE Streamlining, 652 Companies to Be Eliminated

BP BUMN and BPI Danantara are intensifying the transformation programme for state-owned enterprises (SOEs). This is being realised through the acceleration of company streamlining as an effort to build a leaner, more effective, and efficient structure. Head of BP BUMN and COO of Danantara, Dony Oskaria, stated that 652 state-owned companies will be cut. As a result, only 250 SOEs will remain. “In total, we will finalise the elimination of around 652 companies. So, we will only have 250 companies left,” Dony said in an official statement. To date, 274 entities have already been restructured as part of the SOE management transformation. “We previously reported on how we are conducting the streamlining. Now, the result is that we have already streamlined 274 companies,” he explained. Furthermore, Dony has held a meeting with the President’s Special Envoy to discuss the progress of the SOE transformation. The meeting highlighted several positive impacts of the transformation that are already being felt in a number of SOEs. For instance, PT Telkom Indonesia (Persero) Tbk will cut 34 of its subsidiaries. Meanwhile, the insurance, guarantee, and investment holding company Indonesia Financial Group (IFG) will consolidate its ecosystem into just 12 business entities. In addition, PT Pupuk Indonesia (Persero) will also reduce its business entities from 42 to only 15 companies.