Prabowo Targets Only 350 State-Owned Enterprises Remaining by End of 2026

President Prabowo Subianto has stated that 250 state-owned enterprises (SOEs) will be closed, consolidated, or merged by the end of July 2026. He made the remarks during a briefing at a plenary cabinet session held at the State Palace today. Prabowo admitted he was shocked upon learning that the number of SOEs had reached 1,077 entities. According to Prabowo, the government is currently focused on restructuring the state-owned companies. The Head of State noted that many SOEs have formed subsidiaries, sub-subsidiaries, and even further offshoots, necessitating a tightening of their governance. Prabowo also praised the performance of the Daya Anagata Nusantara Investment Management Agency (Danantara), which since its formation in February 2025 has successfully reduced the number of operating SOEs. “By the end of this month, 31 July, they will have closed, consolidated, or merged, reducing the number from 1,077 by 250 SOEs,” Prabowo told officials of the Red and White Cabinet at the Presidential Palace complex in Jakarta on Monday, 20 July 2026. Prabowo requested that the closure of these state-owned companies continue until the end of the year. He is targeting only 350 remaining SOEs by the end of 2026. Prabowo said his aides have agreed to this request. “This means by the end of 2026, perhaps 700 SOEs will be closed, merged, or consolidated. Reduced from 1,077 to a maximum of 350,” Prabowo stated. The Gerindra Party chairman said the reduction in the number of SOEs has saved tens of trillions of rupiah in overhead costs, or expenditures outside the production process. “Routine costs that can be saved amount to Rp 50 trillion. Directors’ salaries, commissioners’ salaries, office rent, electricity bills, transport costs, work meeting expenses—Rp 50 trillion,” Prabowo said. He estimated that the savings figure could still increase as the process of reorganising and consolidating SOEs continues. “By 31 December, I think this savings figure could rise, possibly approaching Rp 70-80 trillion,” said the former Minister of Defence under President Joko Widodo.