Prabowo Targets 700 SOEs Closure by Year-End

President Prabowo Subianto is accelerating the restructuring of State-Owned Enterprises (SOEs), setting a target to close an additional 700 SOEs by the end of 2026. This initiative aims to enhance efficiency and reduce state budget expenditures. On Friday (4/9), President Prabowo met with Minister of Investment and Downstreaming concurrently CEO of Danantara, Rosan Roeslani, Minister of Energy and Mineral Resources, Bahlil Lahadalia, and other Danantara officials at his residence in Hambalang, Bogor Regency, West Java. The meeting focused on the progress of implementing his directives regarding the consolidation and streamlining of SOEs. According to Cabinet Secretary Teddy Indra Wijaya, 290 SOEs have been closed to date, resulting in state budget savings of approximately Rp 50 trillion. The consolidation process will continue, with the goal of closing at least 700 more SOEs by the end of December 2026, as part of efforts to simplify the structure of state companies. This restructuring is projected to achieve budget efficiency of up to Rp 100 trillion. President Prabowo emphasized that the arrangement of SOEs must be conducted in a measurable and comprehensive manner. The directive aims to create a more efficient, healthy, and professional structure for state companies, enabling them to make optimal contributions to the national economy. Also present at the meeting, which included Chief Operating Officer of Danantara, Dony Oskaria, and Minister Secretary of State, Prasetyo Hadi, was a discussion on accelerating downstreaming. "The acceleration of downstreaming is a strategic step to increase the added value of domestic natural resources, strengthen investment, and create greater economic benefits for Indonesia," he stated. While SOEs are a crucial pillar of the Indonesian economy, many have faced issues of inefficiency, overstaffing, and losses. Previous efforts to consolidate and streamline SOEs have been undertaken, but the Prabowo administration appears set to expedite this process in terms of pace and scale. This reform is expected to contribute to fiscal health, though its impact on employment and its relationship with privatization will be closely watched.