President Prabowo Orders PLN and Pertamina to Immediately Cut Subsidiaries

President Prabowo Subianto has ordered his staff and state-owned enterprise (SOE) executives, particularly those at Pertamina and PLN, to immediately cut down on subsidiary and sub-subsidiary companies along with their business units to improve efficiency and productivity. The instruction was delivered directly by the President during a limited meeting at his private residence in Hambalang, Bogor Regency, West Java, on Sunday evening.

Cabinet Secretary Teddy Indra Wijaya, who attended the meeting, explained that reducing these corporate layers is also intended to speed up decision-making, especially during crucial times and on critical issues. “In the meeting, President Prabowo also ordered the reduction of layers and subsidiaries at Pertamina, PLN, and other SOEs. The cuts are aimed at enabling faster decision-making, increasing productivity, and maintaining the efficiency of all SOEs,” Teddy said, as quoted from an official Cabinet Secretariat release confirmed in Jakarta on Monday.

During the meeting in Hambalang, Pertamina CEO Simon Aloysius Mantiri also reported on the progress of the mandatory B50 biodiesel programme, particularly since its launch in July 2026. Simon further reported directly to the President on Pertamina’s infrastructure readiness to implement the government’s mandatory bio-ethanol programme.

Based on photos shared by the Cabinet Secretariat, the meeting was attended by State Secretary Minister Prasetyo Hadi, Defence Minister Sjafrie Sjamsoeddin, Cabinet Secretary Teddy, State Intelligence Agency Chief M. Herindra, and the President’s Personal Secretary Rizky Irmansyah.

Regarding efficiency within the SOE environment, Danantara CEO Rosan Perkasa Roeslani reported last week on the follow-up to the President’s instruction to reduce layers, including subsidiaries and sub-subsidiaries. “His directives also include reducing layers, especially in large SOEs like Pertamina, PLN, and others, so that decision-making becomes faster, productivity increases, efficiency is maintained, and of course this is followed by other SOEs,” Rosan said in response to reporters’ questions at the Presidential Palace in Jakarta last Thursday. Rosan added that streamlining had been carried out on 274 companies as of the end of July 2026.