Massive Efficiency Drive: Pertamina Cuts 124 Subsidiaries, Telkom Reduces 68 to 18
The Investment Management Agency (BPI) Danantara is continuing operational efficiency through the consolidation of subsidiaries and mergers of several state-owned enterprises (BUMN).
Chief Operating Officer (COO) of Danantara and Head of the BUMN Regulatory Agency (BP BUMN) Donny Oskaria expressed appreciation for the BUMN CEOs who are directly involved in the transformation and consolidation process.
“More consolidation, we also need to convey this to the public. The reduction in the number of our companies is truly extraordinary and I appreciate it, I am truly grateful to all BUMN CEOs involved in this process,” said Donny on CNBC Indonesia’s Squawk Box on Monday (24/8/2026).
He cited Pertamina as an example, which has reduced 124 companies through the consolidation process. Meanwhile, PT Telkom Indonesia (Persero) Tbk has streamlined its number of companies from 68 to 18 entities, a reduction of 50 companies.
In addition to Pertamina and Telkom, Pupuk Indonesia has also streamlined the number of companies within its group. According to Donny, Pupuk Indonesia has reduced more than 40 companies as part of the consolidation process.
Donny said the streamlining process received appreciation from President Prabowo Subianto. According to him, all BUMN CEOs are now united in carrying out the process of corporate improvement and transformation.
He emphasised that Danantara plays a role in leading the transformation process, formulating the vision, and ensuring execution proceeds according to the established direction. Meanwhile, the implementation of consolidation and improvement in each company remains the responsibility of the BUMN CEOs who lead their respective companies.
Previously, at the Annual Session of the MPR and the Joint Session of the DPR and DPD on 14 August 2026, Prabowo emphasised that the restructuring has the potential to become one of the largest corporate restructuring processes in the world. However, streamlining does not mean that all companies will be closed.
According to Prabowo, 290 companies have been closed or have entered the restructuring process. In total, more than 750 companies will be closed, merged, divested, or consolidated to achieve a maximum target of 300 entities.
The streamlining is claimed to have resulted in operational cost savings of approximately Rp50 trillion per year. The government is targeting the savings value to increase to approximately Rp70 trillion by 31 December 2026.
Funds previously used to finance unproductive companies and multi-layered management structures will be redirected to investment, industrialisation, improvement of public services, as well as the construction of clinics, schools, and public housing.