Prabowo Targets Closure of 800 Loss-Making State-Owned Enterprises, Claims Trillions in Savings

President Prabowo Subianto has stated that the government plans to close approximately 700 to 800 state-owned enterprises (BUMN) deemed financially unhealthy and persistently loss-making. He made the remarks during the Nahdlatul Ulama National Alim Ulama Conference in Bangkalan Regency, East Java, on Tuesday, 23 June 2026. The President admitted he was quite surprised to learn that the number of BUMN entities exceeded one thousand. According to him, many of these companies do not generate profit and instead become a burden on state finances. “We have now closed roughly 240 of them. None were profitable; they were continuously losing money. These are companies owned by the people, around 200 of them. Ultimately, we will close about 800 state-owned companies, at least 700,” President Prabowo said. Prabowo explained that the closure of hundreds of BUMN has already resulted in significant budget savings. He noted that each company has a board of directors and commissioners that must be financed by the state, even when the company generates no profit. According to Prabowo, the closure of around 240 companies has successfully cut various operational costs and management remuneration that had previously burdened state finances. “We have closed them, and we have saved trillions. Just from shutting down companies that were not viable, and that was how the directors covered up their corruption,” he stated. On that occasion, Prabowo also emphasised that the restructuring of BUMN is being carried out to ensure state-owned companies are managed professionally and provide real benefits to the public. He assessed that poor governance practices in a number of state companies must be stopped so that state assets do not continue to suffer losses. It is known that the State-Owned Enterprise Supervisory Board (BP BUMN) is targeting a reduction in the number of BUMN and their subsidiaries, from 1,100 entities to 257 companies. The consolidation will merge BUMN in the logistics, asset management, securities, hospitality, cement, and insurance sectors, among others.