Prabowo: Danantara restructuring closes 250 SOEs, saves Rp50 trillion

Chairing a plenary cabinet meeting at the State Palace in Jakarta on Monday, the president lauded Danantara leaders for consolidating and merging 250 of the 1,077 companies and subsidiaries, noting the achievement as unique to Indonesia.

“There is no other country in the world capable of shutting down 250 state-owned enterprises in a year,” Prabowo affirmed.

He went on to stress that the major reduction of SOEs is only the beginning of a broader restructuring drive.

Danantara, he said, has set a target of restructuring more SOEs to cap the number of entities at 350.

“In other words, we will have closed, merged, or consolidated around 700 SOEs by the end of 2026. The total will fall from 1,077 to a maximum of 350,” he said.

The head of state explained that the reform aims not only to simplify the SOE network but also to pursue significant budget efficiency.

He pointed out that the closure of 250 SOEs had enabled the state to save Rp50 trillion (over US$2.7 billion) in overhead costs, including spending on directors’ and commissioners’ remuneration, office rents, electricity, transportation, and meetings.

Prabowo voiced confidence that the savings would reach up to Rp80 trillion (around US$4.4 billion) once the restructuring target is achieved by the end of the year.

Earlier, Danantara Chief Operating Officer Dony Oskaria assured the public that employees affected by the restructuring would be protected from layoffs.

“Mr. President certainly does not want to see any layoffs,” he said in late June 2026.

Oskaria emphasized that the restructuring is necessary to curb Rp20 trillion (around US$1.1 billion) in annual losses generated by 52 percent of SOEs.

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Translator: Maria Cicilia, Tegar Nurfitra