FSP BUMN Bersatu Supports Danantara Streamlining, Appreciates Commitment to Mitigate Layoffs

The streamlining or restructuring programme for state-owned enterprises (SOEs) being carried out by the Danantara Indonesia Investment Management Agency (BPI Danantara) has received support from the Federation of State-Owned Enterprise Workers Unions (FSP BUMN Bersatu). The consolidation measures are considered important for creating a leaner, healthier, more productive and collaborative SOE structure capable of competing at the global level.

FSP BUMN Bersatu Daily Chairman Djusman H Umar assessed that the streamlining programme is an important part of improving the governance and structure of state corporations. The simplification of the number of SOE entities along with their subsidiaries and sub-subsidiaries must be directed at eliminating overlapping businesses while strengthening the business focus of each company within its industrial ecosystem.

“FSP BUMN Bersatu strongly supports the streamlining programme launched by BPI Danantara. Existing SOEs must be encouraged to become more productive and collaborative within their respective industrial ecosystems,” said Djusman, who is familiarly known as Ale, to the media on Friday, 28 August 2026.

The streamlining programme targets a reduction in the number of SOE entities, which have been considered too bloated. From around 1,077 entities, the number of companies is targeted to be reduced to around 250 operational entities. The restructuring is being carried out through a number of schemes, including mergers, liquidations, divestments, vertical consolidation, and the merging of companies with overlapping business activities. So far, between 274 and 290 entities are said to have entered the restructuring or closure process.

Overall, the programme is targeted to eliminate around 652 companies. In addition to simplifying the organisational structure, the streamlining is expected to produce fiscal efficiency with potential state budget savings of up to around Rp 50 trillion per year.

For FSP BUMN Bersatu, this efficiency should not be viewed solely as a cost-saving measure. The programme must be part of the transformation of state corporations so that the capital and resources owned by SOEs can be used more optimally.

Amid the restructuring process, labour issues are a primary concern. FSP BUMN Bersatu appreciates the commitment of BPI Danantara Indonesia Chief Operating Officer Dony Oskaria, who has assured that the transformation and streamlining process is not directed at layoffs or reducing the number of employees.

Dony Oskaria, who also serves as Head of BP BUMN, previously emphasised that the SOE transformation must provide benefits for workers. According to him, companies that are healthier, stronger and growing will provide greater benefits to employees.

“I can certainly convey this to all our employees that this transformation, for me, is ultimately for the employees. If the company is healthy, strong and growing, the benefits will certainly be received by the employees. So there is no need to worry too much, no need to worry,” said Dony, as quoted from CNBC Indonesia on Thursday, 27 August 2026.

The statement received appreciation from FSP BUMN Bersatu. Djusman assessed that the commitment to mitigate layoffs is an important element so that the SOE transformation not only produces a more efficient corporate structure, but also provides certainty and protection for workers.

According to him, the success of the streamlining programme cannot be measured solely by the reduction in the number of companies or the size of budget efficiency. The transformation must also create healthier companies so that job continuity and employee welfare are maintained.

“The commitment of BPI Danantara COO Dony Oskaria regarding mitigation and the absence of layoffs in this streamlining programme deserves high appreciation. For us, corporate efficiency must go hand in hand with the protection and continuity of workers,” said Djusman.

Djusman added that streamlining practices in state-owned corporations are not new. A number of countries have carried out consolidation and restructuring of state companies to increase productivity, strengthen business focus and improve company valuations.

Indonesia, according to him, needs to view SOE streamlining as a long-term transformation agenda, not merely a policy to reduce the number of entities. “Historically, streamlining programmes by state corporations have been carried out in several countries as a way to boost productivity, strengthen business focus and increase business valuations in their respective industries,” said Djusman.

He assessed that merging companies with similar businesses can create greater economies of scale. Meanwhile, companies that no longer have strategic relevance can be restructured through mechanisms in accordance with legal provisions and good corporate governance principles.

Companies that are retained must also have a clear business mandate, measurable performance indicators, and the ability to build collaboration with other SOEs within a single industrial ecosystem.

FSP BUMN Bersatu holds the view that the ultimate goal of streamlining is not merely to reduce the number of SOEs. The restructuring must also produce state companies that are more productive, competitive and capable of making a greater contribution to the national economy.

Therefore, the assessment process by BPI Danantara and BP BUMN needs to be carried out in depth, taking into account business conditions, industry potential, assets, human resources and the prospects of each entity.

Djusman emphasised that workers must be positioned as an important part of the transformation process because a company’s success is highly dependent on the quality and productivity of its human resources. “Streamlining must not be interpreted merely as a reduction in the number of entities. What is far more important is…”