President Prabowo Subianto is targeting a reduction in the number of state-owned enterprises (SOEs) from more than one thousand to around 250, stating that he wants to create a more efficient and transparent sector.
“We want to be rational and efficient now. I am asking it to be completed this year. Within two years, we plan to make SOEs more efficient, transparent, and be better serve the people,” he emphasised at the closing of the 2026 Indonesian Science, Technology, and Industry Convention (KSTI) National Workshop in Jakarta on Sunday.
According to him, the government is currently conducting a cleanup and restructuring of SOEs. Of the approximately 1,000 SOEs, more than 200 have been dissolved.
The President said the number of SOEs will continue to be reduced to around 250, meaning more than 750 state-owned enterprises will be shut down as part of the restructuring process.
Prabowo believes that the excessive number of SOEs has resulted in a high organisational burden, from directors to commissioners in each company, making many of them unprofitable.
He addressed this situation to be inconsistent with efforts to improve the efficiency of state-owned enterprise management.
“750 Directors, multiple four or five, and 750 Commissioners times 10. What will the overhead be like, what will their salaries be like, gentlemen? This is all the people’s money. Companies do not make a profit, they just pay overhead,” Prabowo stated.
He called for the SOE restructuring process to be completed swiftly, with the aim of making state-owned enterprises more efficient, transparent, and better aligned with the interests of the people within the next two years.
On the same occasion, the head of state responded to academics’ suggestion that every state-owned enterprise allocate a portion of its profits to research and innovation.
Prabowo considered the proposal sound but emphasized the importance of ensuring the company’s ability to generate profits.
“This is a good suggestion. However, do they make profits? Now they are starting to (make profit). With Danantara, we have started to make a profit this year,” he said.
