Prabowo Has Closed 290 Loss-Making State-Owned Enterprises, 700 More to Follow by End of 2026

President Prabowo Subianto will close a further 700 loss-making state-owned enterprises (BUMN) by the end of the year. To date, 290 state-owned companies have already been shut down.

Prabowo made the announcement at the closing of the 35th Nahdlatul Ulama Congress at Bahrul Ulum Islamic Boarding School in Tambakberas, Jombang, East Java, on Monday (31/8/2026).

Prabowo explained that his administration has closed 290 unprofitable BUMN, resulting in state savings of Rp50 trillion from overhead costs such as directors’ and commissioners’ salaries.

“In less than two years of the government I lead, we have closed 290 BUMN that were not profitable, that did not perform well, that were loss-making — we closed 290 BUMN,” he said.

According to him, the closure of BUMN will continue until the end of the year. The target is for at least 700 more state-owned companies to be closed by 31 December.

“The government I lead, by 31 December 2026, we will close at least 700 more,” he said.

The head of state explained that ultimately only 200–250 BUMN will remain. He expressed hope that the closure of these BUMN will add savings of Rp100 trillion to state funds from overhead costs, routine expenses, directors’ salaries and commissioners’ salaries.

Prabowo said his administration will also continue to make savings in various other areas. The savings made by the state each year have reached Rp200–300 trillion annually.

According to him, these savings will be used for programmes that directly benefit the people. He stressed that his administration no longer wishes to take on large amounts of borrowing from any source.

“We are trying not to borrow too much money from anywhere. Investment is welcome. Ladies and gentlemen, if we do borrow money, we want to borrow money with the lowest possible interest rate,” Prabowo said.