Prabowo slashes 1,000 state-owned enterprises to 250, aiming for efficiency and transparency

The final number will be 250. Imagine, we will close more than 750.

President Prabowo Subianto is targeting a reduction in the number of State-Owned Enterprises (SOEs) from more than 1,000 companies to around 250 to realise more efficient and transparent SOEs.

“We want to be rational and efficient now, and we will prove and implement this. I request that this must be completed within this year. Therefore, within two years, we will make SOEs more efficient, more transparent, and more hardworking for the people,” said Prabowo during the closing of the 2026 National Seminar on Science, Technology, and Indonesian Industry (KSTI) in Jakarta on Sunday.

Prabowo stated that the government is currently conducting a cleanup and streamlining of SOEs. From a total of approximately 1,000 SOEs, more than 200 companies have already been closed.

“How about, Mr Dony? How many SOEs will we end up with? In the end, we will have 250. Imagine, we will close more than 750,” said Prabowo, questioning Dony Oskaria, the Head of the SOE Agency, directly regarding the number of remaining SOEs.

Prabowo assessed that the excessive number of SOEs has caused a high organisational burden, ranging from directors to commissioners in each company, especially since many of these companies do not generate profits.

This condition is considered inconsistent with efforts to increase the efficiency of state company management.

“750 Presidents, 750 Directors, multiplied by 4 or 5; 750 Commissioners multiplied by 10. Imagine the overhead, imagine the salaries, brothers. This is all the people’s money. Companies that do not make a profit only pay for overhead,” Prabowo emphasised.

On the same occasion, Prabowo responded to proposals from academics for every SOE to allocate a portion of company profits to research and innovation.

Prabowo considered the proposal good but emphasised the importance of companies being in a position to generate profit.

“This is a good suggestion. The problem is, do these SOEs have profits? Now, they are starting to. Thank you, Danantara, thank you. Within this year, profits have begun to emerge,” he said.