State-Owned Enterprises (BUMN) downsizing continues, Dony Oskaria: 652 companies will disappear

Head of BP BUMN and Chief Operating Officer (COO) Danantara Dony Oskaria (Photo: VOI doc)

JAKARTA - The State-Owned Enterprise Management Agency (BP) continues to accelerate the streamlining program of state-owned enterprises. Overall, the government targets 652 companies will disappear through the consolidation process so that the number of SOEs will later be left with around 250 entities.

Head of BP BUMN and Chief Operating Officer (COO) Danantara Dony Oskaria said the streamlining process was running according to target and was part of the overall transformation of SOEs to have a leaner, more effective, and efficient structure.

"Later, the total we will finish will be 652 companies that will disappear. And so later we will only have 250 companies," said Dony in an official statement, Friday, August 7.

Furthermore, Dony revealed that the current consolidation process is targeting 274 red plate companies.

"We reported earlier how we carried out streamlining. Well, the result is now 274 companies that we have streamlined," he said.

The statement was made by Dony after holding a meeting with the President's Special Envoy to discuss the development of SOEs transformation. He said that through the ongoing transformation, BP BUMN and Danantara are encouraging state-owned enterprises to become healthier, adaptive, and competitive.

For information, several state-owned enterprises names mentioned in the consolidation process are PT Telkom Indonesia (Persero) Tbk (TLKM) which will cut 34 subsidiaries. Then, the state-owned holding of Insurance, Guarantee, and Investment Indonesia Financial Group (IFG) will be 12 business entities in its ecosystem.

Including also, PT Pupuk Indonesia (Persero) which will cut 42 business entities. So, from 57 companies, only 15 companies will remain.