Prabowo Puzzled by Regulation Allowing State Audits of State-Owned Enterprises but Not Their Subsidiaries

President Prabowo Subianto expressed puzzlement regarding regulations governing state-owned enterprises (SOEs). According to Prabowo, there is a regulation allowing SOE operations to be audited by the state, but this does not apply to company subsidiaries.

Prabowo made these remarks during the first anniversary celebration of Danantara Indonesia at Wisma Danantara in South Jakarta on Wednesday, 11 March 2026.

“It is strange. If SOEs can be audited by the state, then why can’t company subsidiaries be audited? Where does such a regulation come from?” Prabowo said.

Prabowo contended that this regulation demonstrates the necessity for SOEs to be managed under a single, competent management structure adhering to international standards, through Danantara.

“Therefore, our premise has proven correct. Consolidation under one management with rational principles and world-class standards yields a return on assets exceeding 300 per cent. This still falls short of our targets,” Prabowo stated.

He added that it would be impossible for SOEs to operate independently without a dedicated management structure maintaining high standards.

“We cannot manage 250 companies separately. In fact, I recently discovered it is not 250, but over 1,000 companies. There is no management science anywhere in the world where one management can handle 1,000 entities,” Prabowo remarked.