Prabowo Praises Danantara for Cutting 250 State-Owned Enterprises in 18 Months

Jakarta (ANTARA) - President Prabowo Subianto has praised the performance of Danantara Indonesia, which has succeeded in reducing the number of state-owned enterprises (SOEs) through consolidation and mergers, cutting 250 SOEs in the first 18 months of his administration.

In his remarks at a Full Cabinet Session at the State Palace in Jakarta on Monday, Prabowo said the achievement was a feat rarely seen anywhere in the world.

“I am proud that Danantara’s leadership, in the first year, the first 18 months, has succeeded in reducing the number from 1,077. By the end of this month, by 31 July, they have closed, consolidated and merged companies, so that from 1,077 the number has fallen by 250 SOEs. Reduced by 250. Where else in the world has a country closed 250 state-owned enterprises in a single year?” President Prabowo said.

According to the President, the number of SOEs already consolidated marks the first step towards a larger target by the end of 2026.

President Prabowo said Danantara’s leadership reported that by 31 December 2026, the number of SOEs is targeted to fall from 1,077 to a maximum of 350 companies through closures, mergers and consolidation.

“From 1,077 it will become a maximum of 350. That means by the end of 2026, roughly 700 SOEs will have been closed, merged or consolidated. Reduced from 1,077 to a maximum of 350,” he said.

President Prabowo stated that the consolidation effort not only simplifies the SOE structure but has also produced significant budgetary efficiencies.

Based on reports he received, the closure and merger of 250 SOEs has saved around Rp50 trillion in routine or overhead costs.

Those savings, Prabowo said, stem from reduced operational expenses such as the salaries of directors and commissioners, office rents, electricity bills, transport, and the cost of holding working meetings.

President Prabowo believes the value of the savings could still increase by the end of the year.

“By 31 December, I think the savings figure could rise, perhaps approaching Rp70 trillion to Rp80 trillion,” President Prabowo said.