Prabowo Targets Closure of Up to 800 Unhealthy State-Owned Enterprises

President Prabowo Subianto has revealed that the government plans to close up to 800 state-owned enterprises (BUMN) deemed unhealthy and a continuous drain on state finances. The policy is part of a broader effort to streamline the budget and eradicate corruption within state-owned companies.

“If I am not mistaken, we will eventually close around 800 state companies. At least 700. I imagine we have already closed 240,” Prabowo said during his speech at the closing of the National Alim Ulama Deliberation and the 2026 NU Grand Conference on Tuesday (23/6).

Prabowo admitted he was shocked to learn the actual number of BUMN after taking office, having previously assumed there were only around 300. In reality, the number exceeded a thousand entities.

According to him, many of these BUMN have continuously suffered losses and made no significant contribution to the state. Consequently, the government has begun restructuring by shutting down unproductive companies. To date, approximately 240 state companies have been closed, a move Prabowo claims has saved trillions of rupiah.

“I thought the number of BUMN was 300. When I became president, I found out the number was over a thousand. Now we have closed roughly 240. None were profitable; they kept losing money,” he stated.

Prabowo also highlighted the heavy cost burden borne by the state to finance the management structures of these BUMN, including boards of directors and commissioners who continue to receive high salaries despite the companies’ losses. He deemed the situation unhealthy if left unchecked, especially if hundreds of unproductive companies are maintained.

“Already losing money, yet they still ask for bonuses,” Prabowo remarked.

Furthermore, he suspects that some troubled BUMN have become avenues for corrupt practices. He has therefore instructed the relevant authorities to investigate all state companies deemed to be operating improperly.

“We have closed them, saving trillions. Just from shutting down companies that were not right. And the way those directors covered up their corruption… So I have ordered: investigate everything,” he asserted.

Prabowo stressed that the closure of hundreds of BUMN is part of a major agenda to reform state financial governance so that public assets can be managed more efficiently, transparently, and provide tangible benefits to the people.