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

President Prabowo Subianto is targeting a reduction in the number of state-owned enterprises (BUMN) from more than 1,000 companies to around 250, in a bid to create a more efficient and transparent BUMN sector. “We want to be rational and efficient now, and we are proving it, and we are doing it. I ask that this be completed within this year. So, within two years, we will make BUMNs more efficient, more transparent, and more working for the people,” Prabowo said at the closing of the 2026 National Insight Convention on Science, Technology, and Industry (KSTI) in Jakarta on Sunday. Prabowo stated that the government is currently cleaning up and regulating BUMNs. Out of a total of approximately 1,000 BUMNs, more than 200 companies have already been closed. “How is it, Mr Dony? Ultimately, how many BUMNs can we have? Ultimately, it will be 250. Imagine, we are closing more than 750,” Prabowo said while directly asking Head of the BUMN Supervisory Board Dony Oskaria about the number of remaining BUMNs. Prabowo assessed that the excessive number of BUMNs has led to high organisational overheads, from directors to commissioners in each company, especially since these companies were not generating profits. He argued this condition is not aligned with efforts to improve the efficiency of state company management. “750 CEOs, 750 boards of directors, times 4 or times 5, 750 boards of commissioners times 10. What kind of overhead is that, what kind of salaries are those, ladies and gentlemen? This is all the people’s money. The companies are not profitable, only paying overhead,” Prabowo emphasised. On the same occasion, Prabowo responded to a proposal from academics that every BUMN allocate a portion of its corporate profits to research and innovation. Prabowo considered the proposal good but stressed the importance of companies being in a condition to generate profits. “This is a good proposal. The problem is, do these BUMNs have profits or not? Now they are starting to. Thank you, Danantara, thank you. In this one year, profits have started to appear,” he said.