Prabowo Aims to Close 700 State-Owned Enterprises by December 2026

Jakarta (ANTARA) – President Prabowo Subianto is targeting the closure of 700 state-owned enterprises (SOEs) by December 2026 as part of efforts to improve efficiency and consolidate state-owned companies.

He said the government was continuing to reorganise SOEs, particularly companies that were persistently loss-making or inefficient, or were suspected of manipulating financial statements.

“Of the 1,074 SOEs, we have consolidated, closed or streamlined them, and we are now down to around 360—364 as of last night. By December, our target is to close 700,” Prabowo said at the National Coordination Meeting of the Regional Financial Access Acceleration Teams (TPAKD) in Jakarta on Thursday.

The President said the SOE consolidation had been carried out over the two years since his administration took office.

He said the reorganisation was intended to focus management on companies capable of generating profits and delivering benefits to the public.

“We are closing those that are inefficient, loss-making, and have been producing false financial statements. We are concentrating on SOEs that generate returns for the people,” he said.

Prabowo said the restructuring was beginning to show results. Some SOEs that had previously failed to turn a profit had now recorded earnings, with profits rising by as much as hundreds of per cent.

“Some have made a 900 per cent profit, some 200 per cent, some 300 per cent. We are now determined to improve efficiency,” he said.

He stressed that SOE consolidation and efficiency measures were part of the government’s efforts to improve the management of the national economy. State-owned companies, he said, needed to be run more effectively so they could contribute optimally to the state and the public.

The President also said the government would continue working to improve the economy amid the various challenges facing Indonesia.