Prabowo Aims to Close 750 SOEs, Potentially Saving the State Rp100 Trillion

President Prabowo Subianto is targeting the closure of at least 750 State-Owned Enterprises (SOEs) by the end of 2026. This move is part of a larger restructuring of state companies aimed at improving corporate governance and curbing wasteful spending.

Prabowo shared this during a dialogue with senior journalists and experts at Padepokan Garuda Yaksa, Hambalang, Bogor Regency, West Java, on Sunday (6/9/2026).

He stated that 328 companies have already been closed. Prabowo emphasised that the downsizing is being applied to companies deemed poorly managed, while strong and profitable companies will be maintained.

Prabowo also highlighted the massive operational costs of SOEs, ranging from the salaries of directors and commissioners to building rentals, car leases, and working meetings. He noted that the closure of 32able 328 companies so far has saved Rp50 trillion in overhead costs.

“This means I hope we can save an additional Rp50 trillion. If 300 companies can save Rp50 trillion, then around 700 companies could potentially save Rp100 trillion!” said Prabowo.

Prabowo admitted to being surprised when he discovered that the number of SOEs, which he initially estimated to be around 300, actually reached 1,074 companies, including subsidiaries. He believes that governance issues are reflected in financial reports that are inflated to secure bonuses.

He further confirmed that these 1,074 companies had effectively turned into political entities, being used to extract profits for certain groups.

“It frustrates me; this is the people’s money, yet they deceive us incredibly. They prepare financial reports where profits are exaggerated just so they can receive bonuses, it’s unbelievable!” said Prabowo.

Prabowo emphasised that governance issues must be rectified. He provided an example that when a building or bridge is constructed by a private company, it is calculated meticulously.

However, when undertaken by state-owned enterprises, budgets often balloon. “They think, ‘this is the state, they can steal or mark up.’ The tendency is also that SOEs—forgive me, I am speaking plainly—have become sources of funding for those in power,” said Prabowo.