Prabowo Says Indonesia's 290 SOE Closures Saved Rp50 Trillion

Prabowo Says Indonesia’s 290 SOE Closures Saved Rp50 Trillion

Reporter

August 31, 2026 | 05:47 pm

TEMPO.CO, Jakarta - President Prabowo Subianto said Monday that his administration had shut down 290 state-owned enterprises (SOEs) that he described as unprofitable or underperforming, claiming the move had saved the government Rp50 trillion (US$2.9 billion) in operating costs.

“Within less than two years under my administration, we have shut down 290 SOEs that were unprofitable, underperforming and losing money,” Prabowo said in a speech at the closing of the 35th Nahdlatul Ulama (NU) Congress in Jombang, East Java, on Monday, August 31, 2026.

Prabowo said the government would continue its restructuring efforts, with at least 700 more SOEs expected to be shut down by the end of 2026.

“That means there may only be around 250 SOEs left, perhaps 200 to 250,” he said.

Prabowo said the move was part of the government’s efforts to improve the efficiency of state-owned companies and reduce their routine operating expenses.

Prabowo Targets Rp100 Trillion in Savings

Prabowo said the government expected further savings of up to Rp100 trillion from overhead and routine costs, including executive and commissioner salaries.

“So, hopefully, we can save Rp100 trillion from overhead costs, routine expenses, directors’ salaries and commissioners’ salaries,” he said.

He also claimed that the government had identified savings across various sectors totaling nearly Rp300 trillion annually.

Prabowo said the government planned to redirect the funds toward programs benefiting the public.

“This is the money that we are reallocating and channeling as much as possible to the people,” he said.

Read: Prabowo: Political Coalition Necessary to Lead Large Nation

Click here to get the latest news updates from Tempo on Google News