Prabowo warns officials against falsifying reports
Jakarta — President Prabowo Subianto has warned his officials not to produce and submit falsified reports or manipulated results intended solely to please their superiors.
Speaking before state officials and executives of the Investment Management Agency (BPI) Danantara, Prabowo stated that he was issuing a stern warning against such fabricated reports.
“Don’t play games with me anymore with false reports, pleasing reports, reports aimed at manipulation. I am issuing this serious warning,” President Prabowo told his officials during Danantara’s first anniversary commemoration at Wisma Danantara in Jakarta on Wednesday.
After issuing this warning, President Prabowo announced that he had received reports showing that return on assets for SOEs under Danantara’s umbrella had increased by more than 300 percent over the past year.
“I received a report and I am quite pleased — the return on assets over one year in 2025, compared with previous years, has increased by more than 300 percent. This is quite good, and it proves our premise for establishing Danantara: that good management is impossible without unified control, single-handed management, and one management structure,” said President Prabowo.
Prabowo then highlighted the large number of subsidiaries and even sub-subsidiaries operating under a single SOE entity. The numbers, according to Prabowo, are substantial, as one SOE manages up to 200 subsidiaries and sub-subsidiaries.
This situation, according to the President, has led to numerous irregularities, despite the fact that when SOEs were originally established, they had good intentions and noble purposes.
“SOEs were established by our nation’s founders, previously called state enterprises. Over decades of operation, when we had no textile industry, the state established Patal Senayan; when we lacked a paper industry and children needed books for education, the state built paper factories. When we had no medicine at the time of independence, the state established pharmaceutical companies,” said the President.
“However, over time, these good intentions led to irregularities. When the state was newly independent, it established Pertamina as a state enterprise. It turns out these good intentions of our founders eventually resulted in subsidiaries, sub-subsidiaries, and even sub-sub-subsidiaries. I was shocked to learn that Pertamina has 200 subsidiaries and sub-subsidiaries,” Prabowo continued.
The President then highlighted the problem of regulations that prevent the state from auditing companies operating under SOE umbrellas.
“There is something even more peculiar — there are regulations stating that if an SOE as a parent company can be audited by the state, supposedly its sub-subsidiaries cannot be audited. Where did this regulation come from?” the President asked, expressing his astonishment.
For this reason, the President believes that consolidating state-owned companies into a single Danantara entity is the correct strategy for managing state assets more optimally and preventing asset leakage.
“Our premise has proven correct — consolidation under one management structure with rational standards and world-class benchmarks,” said President Prabowo.