Bangkalan, East Java. President Prabowo Subianto said on Tuesday that his administration has shut down 240 state-owned enterprises (SOEs) that consistently generated losses and plans to continue the restructuring effort by closing hundreds more.

Speaking at the closing ceremony of the Nahdlatul Ulama National Congress at Syaichona Mohammad Cholil Islamic Institute in Bangkalan, East Java, Prabowo said the government is carrying out a broad review of state-owned companies to eliminate entities that no longer contribute economic value.

“We have already closed 240 state-owned enterprises because none of them were profitable. They kept losing money,” Prabowo said.

According to the president, the government ultimately expects to close between 700 and 800 state-owned companies as part of a wider effort to improve efficiency and reduce the burden on public finances.

“If I’m not mistaken, in the end we will close around 800 state-owned companies -- at least 700,” he said.

Prabowo said he was surprised to learn after taking office in October 2024 that Indonesia had roughly 1,000 state-owned entities.

He argued that many of those companies failed to generate profits and instead relied on government support while continuing to incur losses.

The president said the situation contributed to unnecessary government spending, including salaries and bonuses for directors and commissioners at underperforming enterprises.

According to Prabowo, directors and commissioners at state-owned companies receive a minimum monthly salary of Rp 50 million (about $2,800), excluding bonuses and other incentives.

“Some earn even more than that. The companies are losing money, yet they still ask for bonuses,” he said.

Prabowo claimed the closure of loss-making firms has already saved the government trillions of rupiah, although he did not provide a specific figure. He said the initiative is part of a broader effort to improve governance within Indonesia’s state-owned enterprise sector and reduce opportunities for waste and misuse of public funds.