Prabowo Targets 700 State-Owned Enterprises Closure, Aims for Rp 100 Trillion Budget Efficiency

President Prabowo Subianto of Indonesia has set a target to close an additional 700 State-Owned Enterprises (BUMN) by the end of 2026, aiming to enhance national budget efficiency and streamline the structure of state-owned companies. This initiative is projected to achieve a total budget efficiency of Rp 100 trillion. On Friday night, September 5th, President Prabowo held a meeting at Hambalang with Minister of Investment and Downstreaming and CEO of Danantara, Rosan Roeslani, and Minister of Energy and Mineral Resources, Bahlil Lahadalia. Also present were Chief Operating Officer (COO) of Danantara, Dony Oskaria, Minister of State Secretary, Prasetyo Hadi, and Cabinet Secretary, Teddy Indra Wijaya. According to Minister Teddy, President Prabowo instructed the acceleration of "Hilirisasi" (downstreaming), a strategic move to increase the added value of natural resources domestically, strengthen investment, and create greater economic benefits for Indonesia. During the meeting, a report was also received regarding the restructuring and streamlining of BUMNs. To date, the government has closed 290 BUMNs, resulting in Rp 50 trillion in budget savings. The closure and consolidation of state companies are part of the government's efforts to simplify the BUMN structure for greater efficiency. President Prabowo emphasized that the restructuring process must be carried out meticulously and comprehensively, taking into account the condition of each state-owned enterprise. With a simpler structure, BUMNs are expected to achieve healthier and more professional performance. This measure is also directed at increasing the contribution of state-owned companies to the national economy. President Prabowo reiterated that the restructuring of BUMNs is part of the effort to build state-owned enterprises that are more efficient and can provide greater benefits to the national economy.