Prabowo to Accelerate Optimisation of State-Owned Enterprise Assets via Private Sector

President Prabowo Subianto has stated that the government will accelerate the optimisation of State-Owned Enterprise (SOE) assets that have not been fully utilised, through cooperation with the private sector. “We will also accelerate the optimisation of our State-Owned Enterprise assets. Our SOEs control very large assets. Some are working well, some have not yet generated benefits compared to their value,” Prabowo said during the government’s introductory statement on the 2027 State Budget Bill and its Financial Memorandum at the Parliament Complex in Jakarta on Friday. Prabowo noted that the government has already reduced the number of SOEs by closing 290 companies deemed unproductive and not providing added value to Indonesia. The government is targeting a maximum of 300 productive SOEs by the end of 2026. Beyond companies, SOEs hold assets such as land, buildings, networks, and areas that have not been managed optimally, with some assets remaining entirely unused. “The government will facilitate cooperation for the utilisation of SOE assets that have not been operated optimally. We will invite the private sector through an open, competitive, and accountable process while safeguarding the state’s strategic ownership,” he explained. The Head of State noted that government-private cooperation in asset utilisation has been implemented in several countries. He cited India’s National Monetisation Pipeline (NMP), which provides opportunities for the private sector to utilise state assets for a specific period while the government retains ownership. “The capital obtained is reinvested to build new infrastructure,” he said. Prabowo gave the example of an airport that is not operating optimally, which could be managed by the private sector while the state retains ownership. According to him, efficient and innovative management by the private sector can increase the benefits of these assets for the state and the public.