Prabowo Says 800 Loss-Making SOEs Will Be Closed by December 2026

President Prabowo Subianto said the government had begun closing hundreds of state-owned enterprises or SOEs that were inefficient and continued to lose money. By the end of July, the number of SOEs that had been closed was targeted at 250 companies.

Prabowo conveyed this when inaugurating a dam in Lombok, West Nusa Tenggara, Friday, July 10. He said that the improvement of SOEs was part of a major agenda to close the leakage of state funds.

According to Prabowo, he only learned that the number of SOEs was very large after being inaugurated as president. Initially, he estimated the number to be around 300 to 400 companies.

"As soon as I was inaugurated, 1,077. Even if there are more subsidiaries, grandchildren of companies, there are more grandchildren of companies," said Prabowo.

He assessed that the structure of the company was too much to open up room for inefficiency. Therefore, the government began to discipline SOEs that were considered wrong.

"Until the end of July, 240 SOEs that are not in order have been closed. We have closed it. Later at the end of July, 250 SOEs will be closed," he said.

Prabowo said the closure would continue. Until December 2026, the government targets 800 inefficient SOEs and continues to lose money.

"December 2026 will close the number of 800 inefficient SOEs, which continue to lose," he said.

Prabowo said the cost burden of the company's directors and operations was very large. He said the figure was close to Rp70 trillion.

"From the directors' salaries alone, the overhead is close to Rp70 trillion. We have saved," he said.

Even though he closed down the troubled SOEs, Prabowo said the government did not want to sell strategic companies to foreign parties. He said a number of defense industry companies would actually be resurrected.

"The defense industry was originally going to be sold. PT PAL, PT Pindad, PT Dirgantara Indonesia want to be sold. We are reviving these companies now," said Prabowo.

He said PT PAL is now able to make warships, while PT Pindad is said to have received trust from abroad.

Prabowo also touched on the formation of the Danantara Sovereign Wealth Fund as a fund for the strength of the Indonesian economy. According to the President, the government will continue to improve state-owned enterprises gradually.

"Slowly we will fix all the shortcomings," he said.