Prabowo Surprised Pertamina Has 200 Subsidiary and Sub-subsidiary Companies
President Prabowo Subianto expressed shock upon learning of the large number of subsidiary companies owned by state-owned enterprises (SOEs), particularly within Pertamina’s structure.
Prabowo initially recounted that SOEs were established by Indonesia’s founding fathers as state companies. However, after decades of operations, Indonesia had failed to develop textile and paper industries despite their necessity. Children required paper for schooling, yet the state had instead constructed the Patal Senayan complex rather than paper manufacturing facilities.
“For decades we have operated. We have no textile industry — the state built Patal Senayan. We have no paper industry — we need books and children need to study — the state built a paper factory,” Prabowo said during the one-year commemoration of Danantara on Wednesday, 11 March 2026.
Over time, according to Prabowo, the original mandate of SOE establishment underwent various distortions. He stated that he had only recently discovered the extensive web of subsidiary entities beneath Pertamina.
“It turns out the good intentions of the founding fathers ultimately produced child companies, grandchild companies, and great-grandchild companies. I was shocked to learn Pertamina has 200 child and grandchild companies,” he said.
He also questioned existing regulations regarding the oversight of these subsidiary enterprises, which he deemed illogical. According to Prabowo, regulations stipulate that SOEs may be audited by the state, but subsidiaries or sub-subsidiaries cannot be audited.
“If SOEs can be audited by the state, they say if grandchild companies cannot be audited. Where did this regulation come from?” Prabowo asked.
He characterised this situation as a key reason the government established Danantara to consolidate state enterprise management to improve effectiveness and transparency.
“So friends, our premise proved correct: consolidation, unified management with rationality, with world-class standards,” he added.
He expressed gratitude that Indonesia now possesses an entity comparable to sovereign wealth funds globally.
“We are grateful Indonesia now has a body that can be compared with sovereign wealth funds worldwide. Indonesia now has a sovereign wealth fund that is possibly the sixth or seventh largest in the world,” Prabowo explained.