Prabowo targets closure of up to 800 troubled state-owned enterprises

President Prabowo Subianto has revealed that the government plans to close around 700 to 800 state-owned enterprises (BUMN) deemed unhealthy and persistently loss-making, in a bid to improve the efficiency of state asset management. Speaking at the 2026 Nahdlatul Ulama Alim Ulama National Conference in Bangkalan Regency, East Java, on Tuesday, President Prabowo said he was quite surprised to learn that the number of BUMN exceeded one thousand entities. According to him, many of these companies do not generate profits and instead become a burden on state finances. President Prabowo explained that the closure of hundreds of BUMN has resulted in significant budget savings. He cited the example that each company has a board of directors and commissioners who must be financed by the state, even though the company does not produce a profit. According to President Prabowo, the closure of around 240 state companies that has already been carried out has succeeded in cutting various operational costs and management remuneration that had been burdening state finances. “We have closed them, we are saving trillions. Just from closing companies that are not right, and that is the way the directors cover up their corruption,” he explained. 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 companies to 257 companies. The consolidation will merge BUMN in the logistics, asset management, securities, hospitality, cement, insurance, and other sectors.