Prabowo: Rp50 Trillion Previously Spent Annually Just on SOE Directors' and Commissioners' Salaries

President Prabowo Subianto has said that too many state-owned enterprises (BUMN) are unproductive, citing excessive layers of directors and commissioners as an example.

When establishing Danantara, he said, his administration discovered there were 1,074 SOEs including their subsidiaries and sub-subsidiaries.

“Today I report to this honourable assembly that we have closed 290 SOEs. By the end of this year, we target to have at most 300 SOEs remaining. More than 750 SOEs will be closed. Only those that are productive, only those that create added value will be retained,” Prabowo said during the Annual Session of the People’s Consultative Assembly (MPR RI) and the Joint Session of the House of Representatives (DPR RI) and the Regional Representatives Council (DPD RI) on Friday (14/8).

According to him, this could be the largest corporate restructuring in the world. By streamlining the number of SOEs, he said, the government has now saved around Rp50 trillion in overhead costs.

“This means that every year Rp50 trillion is no longer spent on financing the salaries of directors and commissioners, and other unproductive matters. That money is now being used for investment, for industrialisation, for improving services, and for things that directly benefit the people,” he stated.

President Prabowo Subianto is scheduled to deliver two annual state addresses today, Friday (14/8), at the DPR/MPR Building.

The first address is scheduled for 09.30 in the context of the Presentation of the Performance Report of State Institutions and the State Address of the President of the Republic of Indonesia in commemoration of the 81st Anniversary of the Independence of the Republic of Indonesia.

Then, at the Plenary Session of the DPR RI in the context of the Presentation of the Draft State Budget (RUU APBN) for 2026, the President will deliver his state address at 15.00.