Prabowo asks for BUMN to be cut to 300 companies, Danantara boss: We must admit that it is not easy

JAKARTA - President Prabowo Subianto targets the number of State-Owned Enterprises (BUMN) to be cut to a maximum of 300 companies by the end of 2026. This step is part of the streamlining program to increase the efficiency and productivity of state-owned enterprises.

In response to this, Danantara Indonesia Chief Executive Officer (CEO) Rosan Roeslani said that the current process of streamlining SOEs continues to be carried out through a number of schemes, ranging from divestments, mergers, liquidations, to vertical consolidation.

Of the total 1,074 SOEs, around 290 companies have been reduced. This step continues until there are only 300 companies left by the end of 2026. However, Rosan admitted that the process was not easy because every corporate action must consider various aspects.

"Indeed, we must admit that this is not an easy process and is very, very difficult because this must be seen from all aspects," said Rosan at a press conference on the 2027 Budget and Financial Statements at the Directorate General of Taxes, Ministry of Finance, Jakarta, Friday, August 14.

However, Rosan emphasized that Danantara would continue the streamlining program until the number of SOEs reached the target set by the government at the end of this year.

According to Rosan, the streamlining was carried out to create efficiency, increase productivity, and optimize the assets owned by SOEs.

"But yes, this is indeed our target for streamlining so that we can create efficiency, increase productivity and optimize our existing assets, this is what we are doing," he said.

Previously, President Prabowo Subianto targeted the number of State-Owned Enterprises (BUMN) to be cut to a maximum of 300 companies by the end of 2026. With this target, more than 750 SOEs will be closed or downsized from the previous number of 1,074 entities.

Prabowo said that the arrangement of SOEs was carried out after the government found the number of red plate companies was much more than expected. In fact, a number of SOEs have children, grandchildren, and even great-grandchildren of companies.

"When we formed Danantara, that is our sovereign fund, the Sovereign Wealth Fund. We found that there are 1,074 SOEs. And SOEs have subsidiaries, and some have grandchildren. There are even those who have grandchildren. This is extraordinary," said Prabowo in the Annual Meeting of the Indonesian People's Consultative Assembly and joint session of the Indonesian House of Representatives and the Indonesian DPD in 2026, Friday, August 14.

Prabowo admitted that he had previously estimated the number of SOEs to be only around 300 to 400 companies. However, after the arrangement was made, the government found that the number reached more than a thousand entities.

"I thought that SOEs were 300 or 400. 1,074. And these SOEs sometimes work as they please. They are not responsible to the nation, to the country. The government is not considered. I don't understand how this can happen," he said.

Prabowo assessed that there were still many SOEs that were unproductive and continued to suffer losses. Therefore, the government will retain companies that are able to create added value for the country and the community.

"Brothers, there are too many unproductive SOEs. It keeps losing, it reports profits. It's a shame that it's a profit," he said.

Prabowo then revealed that the government had closed 290 SOEs as part of the restructuring process. The number will continue to increase until the end of the year.

"But I am proud today that I want to report to the honorable Assembly, today we have closed 290 SOEs. On December 31, 2026, we target to have at most 300 SOEs. We will close more than 750 SOEs. Only productive ones, only those who create added value for the people will we maintain," explained Prabowo.