Prabowo Questions Regulation Exempting State-Owned Enterprise Subsidiaries from Audit

JAKARTA – President Prabowo Subianto has expressed bewilderment at the existence of regulations prohibiting state audit of subsidiaries and sub-subsidiaries of state-owned enterprises (SOEs). According to him, such regulations appear inconsistent, particularly given that parent SOEs themselves are subject to mandatory state audits.

“It is peculiar that there are regulations which are even stranger still. If SOEs can be audited by the state, then according to these regulations, sub-subsidiaries cannot be audited. Where does this regulation come from?” Prabowo said whilst addressing the first anniversary commemoration of Danantara Indonesia in Central Jakarta on Wednesday, 11 March 2026.

He assessed that such regulations potentially create loopholes for irregularities, particularly given that a single SOE can now possess hundreds of subsidiary companies. Prabowo stated he was surprised to learn that Pertamina has approximately 200 subsidiary and sub-subsidiary companies.

“I was astonished to discover that Pertamina has 200 subsidiary and sub-subsidiary companies,” he added.

For this reason, Prabowo expressed gratitude that Indonesia now possesses the Investment Management Agency (BPI) Danantara, which is tasked with managing SOEs and state-owned companies according to international standards. This institution is said to be comparable to the sovereign wealth funds (SWF) held by various countries.