Prabowo Aims to Close Another 700 SOEs This Year, Saving the State Rp 100 Trillion
President Prabowo Subianto aims to close at least 700 State-Owned Enterprises (SOEs) by the end of December 2026. This move is part of a restructuring and downsizing initiative for SOEs, which is projected to produce budget efficiencies of up to Rp 100 trillion.
The target was discussed when Prabowo received the Minister of Investment and CEO of Danantara, Rosan Roeslani, the Minister of Energy and Mineral Resources, Bahlil Lahadalia, and officials from Danantara at his residence in Hambalang, West Java, on Friday (4/9/2026).
“To date, 290 SOEs have been closed, and this step is claimed to have saved the state budget by up to Rp 50 trillion,” as quoted from a statement on the Cabinet Secretariat’s Instagram, Saturday (5/9/2026).
The government targets the closure of at least 700 other SOEs by the end of December 2026. Through this restructuring and consolidation, budget efficiency is projected to reach Rp 100 trillion.
“The government targets the closure of at least 700 other SOEs by the end of December 2026 as part of the process of downsizing and consolidating SOEs,” the statement added.
Prabowo emphasised the importance of conducting the SOE restructuring in a measured and comprehensive manner. The restructuring is directed towards creating a state-owned company structure that is more efficient, healthy, professional, and capable of providing an optimal contribution to the national economy.
During the meeting, the government also discussed the acceleration of downstreaming as a strategic step to increase the added value of natural resources domestically. This policy is also aimed at strengthening investment and creating greater economic benefits for Indonesia.
In addition to the SOE and downstreaming agendas, Prabowo received the Forest Area Order Task Force (Satgas PKH) led by Attorney General ST Burhanuddin. The Task Force reported on the progress of regulating various violations in forest area utilisation, including illegal mining activities.
The Satgas PKH also reported on the progress of enforcement results and administrative fines, which will be announced in the second week of September 2026. Prabowo emphasised that the law enforcement process must be carried out firmly and professionally.
“The entire series of executions and forest area regulation must be conducted transparently and accountably,” as quoted from the Cabinet Secretariat statement. This directive is part of the government’s efforts to protect forest areas and ensure their utilisation complies with applicable regulations.