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

President Prabowo Subianto has praised the performance of Danantara Indonesia for successfully 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 speech at the Plenary Cabinet Session at the State Palace in Jakarta on Monday, Prabowo stated that this achievement was a rare feat globally. “I am proud of the leadership of Danantara, which in the first year, the first 18 months, has managed to reduce the number from 1,077. By the end of this month, by the end of 31 July, they have already closed, consolidated, and merged, so that from 1,077, 250 SOEs have been reduced. It has already been reduced by 250. Where in the world is there a country that closes 250 state-owned enterprises in one year,” said President Prabowo. According to the President, the number of SOEs that have been consolidated is an initial step towards a larger target by the end of 2026. President Prabowo said that Danantara’s leadership reported that by 31 December 2026, the number of SOEs is targeted to be reduced from 1,077 to a maximum of 350 companies through closures, mergers, and consolidation. “From 1,077, it will be a maximum of 350. That means by the end of 2026, perhaps 700 SOEs will be closed, merged, or consolidated. Reduced from 1,077 to a maximum of 350,” he said. President Prabowo stated that the consolidation steps not only simplify the structure of SOEs but also result in significant budget efficiency. Based on the report he received, the closure and merger of 250 SOEs have saved routine costs or overhead of approximately Rp50 trillion. The savings, Prabowo said, come from reduced operational costs, such as salaries for directors and commissioners, building rent, electricity costs, transportation, and work meetings. President Prabowo believes that the value of these savings could still increase by the end of the year. “By 31 December, I think this savings figure could rise, perhaps approaching Rp70 trillion to Rp80 trillion,” said President Prabowo.