Jakarta. Indonesia expects to save about Rp 50 trillion ($2.8 billion) a year in operating costs after closing, merging, and consolidating 250 state-owned entities under a sweeping restructuring led by sovereign wealth fund Danantara Indonesia, President Prabowo Subianto said on Monday.

Prabowo said the restructuring had reduced the number of state-owned entities -- including subsidiaries and affiliated companies -- from 1,077 by 250 as of July 31, part of a broader effort to streamline the state sector and improve governance.

“By July 31, they had closed, consolidated and merged 250 entities,” Prabowo said during a cabinet meeting.

He said the restructuring would eliminate about Rp 50 trillion in annual overhead costs, including salaries for directors and commissioners, office rent, utilities, transportation and meeting expenses.

The government aims to reduce the number of state-owned entities further to around 350 by the end of 2026, with the restructuring expected to improve corporate governance while generating substantial budget savings.

The overhaul is part of the government's broader effort to consolidate state assets under Danantara Indonesia, which Prabowo said was established to manage state-owned assets more efficiently and transparently over the long term.

“Danantara is a sovereign wealth fund where the nation's assets are brought together, consolidated and professionally managed. It will become a reserve for Indonesia's future,” he said.

Prabowo said Danantara is Indonesia's first sovereign wealth fund and oversees state assets valued at more than $1 trillion, enabling the government to better identify, monitor and manage public assets.

“For the first time in our history, we have a sovereign wealth fund with assets worth more than $1 trillion. Previously, many of these assets were difficult to monitor, and we did not fully understand the extent of our national wealth,” he said.