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View all search resultsPrabowo vows to crack down on bad SOE governance, directors
President Prabowo Subianto plans to eliminate more than 750 state-owned enterprises and open legal
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Indonesian President Prabowo Subianto (left) delivers his annual state of the nation address in front of members of the legislature as Vice President Gibran Rakabuming Raka sits next to him, ahead of the country's 81st Independence Day anniversary, in Jakarta on Aug. 14, 2026. (Reuters/Stringer)
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resident Prabowo Subianto plans to eliminate more than 750 state-owned enterprises and open legal probes into current and former directors dating back 30 years, in a sweeping overhaul aimed at rooting out unproductive companies and chronic losses.
The government has so far closed 290 of 1,074 SOEs, including subsidiaries and sub-subsidiaries, and aims to reduce the number to no more than 300 by the end of the year, retaining only companies deemed productive and capable of creating value.
The restructuring is expected to save the state Rp 50 trillion (US$2.8 billion) in overhead costs including directors’ and commissioners’ salaries, office and vehicle rentals and official travel, with another Rp 70 trillion in savings targeted, Prabowo said.
“Sometimes these SOEs operate as they please and are not accountable to the nation and state. The government is not taken seriously. I do not understand how this can happen,” Prabowo said in his state address to the House of Representatives on Friday.
“Too many SOEs are unproductive and continue to make losses while reporting profits. They simply make up the figures. We have run into problems because many foreign companies work with our SOEs. We have to put an end to these games,” the President added.
