State-Owned Enterprises Consolidation: 92 Subsidiaries Set to be Cut
A total of 92 subsidiary companies under three state-owned enterprises will be consolidated as part of a downsizing and transformation programme overseen by the State-owned Enterprises Management Agency (BP BUMN) and Danantara. BP BUMN Chief, also the COO of Danantara Indonesia, Dony Oskaria, revealed that to date around 180 companies under the BUMN umbrella have been aligned through various transformation schemes, ranging from consolidation and restructuring to divestment and dissolution.
‘Streamlining the state-owned enterprises must ensure that each company focuses on its core business, has robust governance, and can deliver tangible added value for the country and its people,’ Dony said in a statement on Thursday (21 May 2026).
One major transformation is underway within PT Pelabuhan Indonesia (Persero) or the Pelindo Group. The number of Pelindo’s business entities is planned to be cut from 41 to 24 entities in 2026 through 17 strategic corporate actions.
The transformation is being carried out through steps such as mergers, divestments, liquidations, and vertical consolidations among business entities. Pelindo is also said to be strengthening its focus on its core business to create a more efficient corporate structure and to improve the competitiveness of the national logistics and maritime sectors.
BP BUMN and Pelindo management have conducted extensive discussions on implementing these corporate actions. Pelindo confirms that all transformation processes will be conducted in accordance with the principles of Good Corporate Governance (GCG), maintain operational continuity, and be fully supported by all company personnel during the transformation period.
Beyond Pelindo, a major transformation is also taking place at PT Perkebunan Nusantara. The number of PTPN’s business entities is being reduced from 65 to just 18 as part of a consolidation of the national plantation industry.
According to Dony, the move is intended to create more effective governance, more efficient operations, and to enhance the competitiveness of the plantation sector amid dynamics in the global industry.
In the transformation process, PTPN is said to be strengthening focus on its core business, optimising assets, boosting productivity, and consolidating the research and development functions of plantation businesses.
Meanwhile, PT Semen Indonesia (Persero) Tbk is also pursuing substantial streamlining, reducing its business entities from 40 to 12 core entities.
The SIG transformation programme has entered the execution phase in the second quarter of 2026. Steps taken include mergers of distribution and building materials entities, consolidation of the logistics sector, integration of industrial estates into the Danantara ecosystem, and the divestment and liquidation of non-strategic entities.
Dony regards these transformations as essential to creating a more agile and competitive business structure amid challenges in Indonesia’s construction and cement sectors.
In addition to an emphasis on efficiency, SIG also ensures that the transformation process is conducted prudently with involvement of independent advisors, auditors from a Public Accounting Firm (KAP), and due diligence to maintain transparency and accountability.