JAKARTA - President Prabowo Subianto said that Danantara had closed and consolidated 250 state-owned enterprises in the first 18 months of the government. This step is claimed to save routine costs of up to Rp50 trillion.
Prabowo said the number of state-owned enterprises and their children, grandchildren, and great-grandchildren reached 1,077 when he took office as president.
"When I was president, the number of SOEs was 1,077," said Prabowo in the Plenary Cabinet Meeting at the State Palace, Jakarta, Monday (20/7/2026).
According to Prabowo, the state-owned enterprise structure has swollen because many SOEs have established subsidiaries, then re-formed the company's grandchildren and great-grandchildren. This condition makes supervision difficult and operating costs continue to increase.
Until the end of July 2026, Danantara is said to have reduced 250 entities through closures, mergers, and consolidations.
Prabowo said the Rp50 trillion savings came from cutting the salaries of directors and commissioners, building rent, electricity, official travel, transportation, and working meetings.
"The routine costs that can be saved are Rp50 trillion," he said.
The government targets the number of SOEs to decrease from 1,077 to a maximum of 350 entities. With this target, around 700 companies will be closed, merged, or merged by the end of 2026.
Prabowo estimated that the savings could increase to Rp70 trillion to Rp80 trillion by the end of the year.
However, he did not specify the list of 250 entities that had been closed or the business sectors that had been most affected by consolidation.
Danantara was formed as a state wealth fund that manages and consolidates government assets. Prabowo said the value of the institution's assets had exceeded US$1 trillion.
He asked that the consolidation continue so that state-owned enterprises are more efficient and easy to monitor.
"We must not be satisfied quickly. Our efficiency is still lacking," he said.
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