Prabowo to Shut Down 800 Loss-Making State-Owned Enterprises, Targeting Completion by Year-End

President Prabowo Subianto plans to close between 700 and 800 loss-making state-owned enterprises (BUMN) by the end of the year. To date, 240 have already been wound down. “If I am not mistaken, we will ultimately close approximately 800 state companies, at least 700,” Prabowo said during the closing of the NU 2026 National Alim Ulama Conference and Grand Conference in Bangkalan on Tuesday (23/6/2026). Prabowo expressed surprise that upon taking office, there were 1,000 BUMN companies in operation. However, many were loss-making, prompting the government to decide on closures. “We have now closed approximately, how many, State Secretary? Approximately 240 we have closed. None were profitable, they kept losing money,” he stated. On that occasion, Prabowo also calculated the substantial savings achieved by no longer having to pay the salaries of BUMN directors. He gave an example that if the salaries of directors and boards of commissioners of a BUMN amounted to Rp 50 million, the total salary to be paid would be Rp 400 million per month. This does not include bonuses paid in the form of performance incentives or tantiem paid to the board of directors. “If you calculate, for example, 4 directors and 4 commissioners, that is 8 multiplied by (the number of companies) if their salary is Rp 50 million each per month. And some have salaries above that. They were already losing money but still asked for bonuses,” he said. “Ladies and gentlemen, we have closed them, we are saving trillions just from closing these improper companies, and that was the way those directors covered up their corruption,” he added. Previously, during a limited meeting between President Prabowo and the Minister of Investment and Downstreaming/Head of the Danantara Investment Management Agency (BPI), Rosan Roeslani, it was mentioned that 258 BUMN entities had been successfully consolidated from 1,077 entities. The meeting took place at his private residence in Kertanegara, Jakarta, on Sunday (21/6/2026). The BUMN consolidation plan is set to continue with a target of 300 entities in the near future. This measure is considered to improve efficiency, strengthen governance, and reduce the cost burden borne by the state. It was also explained that the transformation of BUMNs and the optimisation of state assets are part of President Prabowo’s grand agenda to turn the nation’s wealth into an engine of sustainable economic growth, enhance Indonesia’s competitiveness, and ensure that every state asset provides maximum added value for the people’s prosperity.