Jakarta. President Prabowo Subianto on Friday unveiled an ambitious plan to reduce Indonesia's more than 1,000 state-owned companies and their subsidiaries to no more than 300 by the end of this year, describing the overhaul as potentially the world's largest corporate restructuring.

Addressing lawmakers at the annual session of the People's Consultative Assembly (MPR), Prabowo said the restructuring was intended to ensure state-owned enterprises benefit the public rather than burden state finances through losses, excessive management structures and generous executive perks.

"State-owned enterprises belong to all Indonesian people -- not to directors, not to commissioners, and certainly not as a source of funds for those in power," Prabowo said in a speech streamed live by BTV.

He said Indonesia had 1,074 state-owned enterprises and their subsidiaries and lower-tier subsidiaries, arguing that many were unproductive and burdened by excessive layers of directors and commissioners.

"Today, I report to this honorable Assembly that we have closed 290 state-owned companies. By the end of this year, we aim to have no more than 300," Prabowo said.

He added that more than 750 entities would ultimately be closed under the restructuring, with only productive businesses that generate added value being retained.

"This may be the largest corporate restructuring in the world," he said.

Prabowo said the streamlining had generated around Rp 50 trillion ($2.8 billion) in savings by reducing spending on directors, commissioners and other expenses he characterized as unproductive.

"The money is now being used for investment, industrialization, improved services and things that directly benefit the people," he said.

The president also highlighted a number of state-owned companies that he said had delivered strong performance and profits for the state, including tin miner Timah, cement producer Semen Indonesia, fertilizer holding company Pupuk Indonesia, energy giant Pertamina, pawnshop operator Pegadaian, port operator Pelindo and plantation holding company PTPN.

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