Prabowo pushes for accelerated downstreaming and restructuring of State-Owned Enterprises
President Prabowo Subianto has urged the acceleration of downstreaming and the restructuring of State-Owned Enterprises (SOEs) during a meeting with the Minister of Investment and Downstreaming, who also serves as the CEO of Danantara, Rosan Roeslani, the Minister of Energy and Mineral Resources, Bahlil Lahadalia, and officials from Danantara.
The meeting took place in Hambalang, West Java, on Friday.
Cabinet Secretary Teddy Indra Wijaya confirmed on Saturday that accelerating downstreaming was one of the primary agendas discussed. He noted that downstreaming is a strategic step to increase the added value of natural resources domestically, strengthen investment, and create greater economic benefits for Indonesia.
In addition to downstreaming, the President received progress reports regarding his instructions on the restructuring and downsizing of SOEs. To date, 290 SOEs have been closed, a move reported to have saved the state budget up to Rp50 trillion.
This consolidation process will continue, with a target to close at least another 700 SOEs by the end of December 2026 as part of an effort to simplify the structure of state-owned companies. Through this SOE restructuring, budget efficiencies are projected to reach up to Rp100 trillion.
Prabowo emphasised that the restructuring of SOEs must be carried out in a measured and comprehensive manner. The initiative is aimed at ensuring state companies possess a more efficient, healthy, and professional structure, capable of providing an optimal contribution to the national economy.
“The President emphasised the importance of conducting SOE restructuring in a measured and thorough manner to create a state company structure that is more efficient, healthy, professional, and able to provide an optimal contribution to the national economy,” said the Cabinet Secretary.
The meeting was also attended by the Chief Operating Officer (COO) of Danantara, Dony Oskaria, State Secretary Prasetyo Hadi, and Cabinet Secretary Teddy Indra Wijaya.