Danantara Supervisory Board Speaks Out on Prabowo's Demand to Drastically Reduce Number of SOEs

JAKARTA, KOMPAS.com - Vice Chairman of the Supervisory Board (Dewas) of Danantara Indonesia, Muliaman Hadad, has spoken candidly about President Prabowo Subianto’s request to drastically reduce the number of state-owned enterprises (BUMN).

He revealed that Prabowo desires a major rationalisation of the current over 1,000 SOE entities to just 300 entities.

“The President wants a drastic rationalisation, from the thousands to perhaps around 300, it is hoped,” he stated during a discussion event by the SOE Research Group (BRG) of the Faculty of Economics and Business Management Institution at the Borobudur Hotel, Jakarta, on Thursday (30/4/2026).

For this reason, consolidation is considered an important step so that SOEs can focus on their core businesses, making them more efficient and productive.

This is because many SOEs currently have business lines that are not aligned with their main business.

In fact, many SOEs own hotels even though they are not in the hospitality sector, or manage hospitals despite not originating from the health sector.

“In SOEs, there are 150 hospitals, as well as a number of hotels and much more. So the main point is that we must make SOEs truly more productive,” he said.

He emphasised that the key to SOE transformation lies in the effectiveness of consolidation.

Through this step, SOEs are expected to be able to increase productivity while generating greater revenue and dividends.

Nevertheless, he acknowledged that the consolidation process is not easy due to the high complexity within SOEs.

“This is not something simple. We know the complexity is high; it’s not easy to carry out consolidation, but it is something that must be done to improve good and sustainable productivity,” said Muliaman.

With more effective consolidation, Danantara hopes that SOEs can become a stronger source of economic growth in the future.

Previously, the Head of the SOE Regulatory Agency (BP) and Chief Operating Officer (COO) of Danantara Indonesia, Dony Oskaria, revealed that 167 SOEs have been closed or liquidated.

This step was taken in the last year as the SOE arrangement and simplification (streamlining) programme is implemented by Danantara Indonesia.