Prabowo says SOE restructuring saves Rp70 Trillion

Jakarta (ANTARA) - Indonesian President Prabowo Subianto said his administration has shut down 240 underperforming state-owned enterprises (SOEs) as part of a sweeping restructuring program to improve efficiency, saving the state around Rp70 trillion so far.

Speaking at the Meninting Dam in West Lombok, West Nusa Tenggara, on Friday (July 6), Prabowo said the closures were aimed exclusively at SOEs that have failed to generate revenue or operate efficiently.

"As of today, we have closed 240 inefficient SOEs. By the end of this July, that number will reach 250," the President said.

"By December 31, 2026, we will shut down a total of 800 inefficient SOEs that have never turned a profit and continue to incur losses," he added.

Prabowo said the restructuring has already saved the state nearly Rp70 trillion, mainly because the government no longer needs to cover directors' salaries and operating costs at the closed companies.

The President said he was surprised by the sheer number of SOEs after taking office, noting that he had previously estimated there were only 300 to 400 state companies.

"I never knew we had so many SOEs. My estimate had always been 300, or 400 at most. It was only after my inauguration as President that I was informed we have 1,077 SOEs," he said.

He added that the actual number is likely much higher because many SOEs operate as holding companies with numerous subsidiaries, sub-subsidiaries, and other affiliated entities.

Prabowo criticized the complex corporate structure, saying it had long been used to obscure the management of state assets and public funds, prompting the government to undertake a broad restructuring program.

"There might be even more subsidiaries, sub-subsidiaries, and further offshoots. That is their way of hiding state money, concealing the people's money. Now, we are putting this in order," he said.

Despite the large-scale closures, Prabowo said several state-owned companies that had posted losses for decades are beginning to recover financially.

He noted that Danantara Indonesia, the country's newly established sovereign investment management agency, has played a key role in improving the performance of state-owned enterprises.

"Now it is proven, we are slowly fixing things. Garuda Indonesia was initially going to be sold, but I forbade it. Now it is starting to recover. Next month, it will start making a profit after decades of losses," Prabowo said.

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Translator: Fathur Rochman, Uyu Liman

Editor: Primayanti

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