Prabowo Has Closed 250 State-Owned Enterprises by July 2026, 700 More by Year-End

President Prabowo Subianto has revealed that the state-owned enterprise (SOE) consolidation programme managed by Danantara Indonesia has cut 250 state-owned entities by the end of July 2026. The figure is targeted to increase significantly to around 700 SOEs by the end of this year.

Speaking during a briefing at a plenary cabinet session at the State Palace in Central Jakarta on Monday (20/7/2026), Prabowo admitted he was surprised when he first received a report on the number of SOEs after his inauguration. During his time as a member of the cabinet under President Joko Widodo, he had estimated the number to be between 300 and 350 companies.

“When I was a member of President Joko Widodo’s cabinet, I followed things but hadn’t mastered the figures. I thought the number of SOEs was around 300 to 350. I was shocked when I became president and was given a report that there were 1,077 SOEs,” Prabowo said.

According to Prabowo, the bloated number occurred because many SOEs had formed subsidiaries, sub-subsidiaries, and even further layers of companies. This condition made the corporate structure inefficient and difficult to monitor.

Prabowo expressed his appreciation to the leadership of Danantara, which, within its first 18 months, managed to reduce the number of SOEs through closures, consolidation, and mergers. “I am proud that the leadership of Danantara, in its first year, its first 18 months, has succeeded in reducing that number. From the original 1,077, by the end of this month Danantara has closed, consolidated, and merged, thus reducing the number of SOEs by 250,” he said.

He even described the achievement as rare globally, directing his remarks to the Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan. “Perhaps DEN Chairman Mr Luhut, where else in the world does a country close 250 state-owned enterprises in a year,” he stated.

Prabowo said the Danantara leadership has committed to completing the programme by the end of 2026. In the final stage, the number of SOEs is targeted to shrink from 1,077 to a maximum of 350 entities. “That means by the end of 2026, perhaps 700 SOEs will have been closed, merged, or consolidated. Reduced from 1,077 to a maximum of 350,” Prabowo said.

This consolidation programme is part of the SOE transformation carried out by Danantara since its formation in February 2025. Danantara manages state assets with a value that, according to Prabowo, has now surpassed US$1 trillion.