Prabowo Says Gov't Has Closed 240 SOEs, Hundreds More to Follow
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.
Read More:
Danantara to Cut SOEs to Just 300 Firms
as a preferred
Related Articles
Dino Patti Djalal Says Indonesia’s Government Remains Reactive, Not Preventive
Dino P. Djalal says Indonesia’s government remains reactive rather than preventive, citing gaps in risk management and crisis preparedness.
Prabowo-Gibran Government Wins 63.1% Public Trust in Voxpol Survey
Voxpol’s survey finds 63.1% of Indonesians trust Prabowo-Gibran, while 61.1% believe the government can solve the country’s problems.
Prabowo Threatens to Revoke Mining Permits Inactive for Two Years
Prabowo vows to revoke mining permits inactive for over two years, citing nearly $300 billion in proven reserves across five concessions.
Prabowo Launches Council to Improve Financial Welfare of Indonesian Families
Prabowo launches a new council to shift Indonesia's financial inclusion agenda toward improving household welfare and resilience.
Prabowo Vows Action Against Foreign Companies Linked to Forest Fires
Prabowo vows tougher action against foreign firms implicated in forest fires, warning that repeat offenders could lose their permits.
Jakarta Stocks Jump 1.12% as Investors Assess Prabowo’s MSCI Remarks
Indonesian stocks rose 1.12% as investors assessed Prabowo’s MSCI remarks and Bank Indonesia’s decision to hold its benchmark rate.
Indonesia Must Fix Market Transparency, Not Fight MSCI, Analyst Says
Indonesia should address market transparency concerns raised by MSCI instead of treating the global index provider as an adversary.
Prabowo Rejects Criticism of Oversized Cabinet
Prabowo defends his 53-member cabinet, saying a broad political coalition is vital to governing Indonesia and improving public welfare.
Only 12% of Red and White Village Cooperatives Operational After Two Years
Fewer than 12% of Indonesia’s 83,000 legally established Red and White Village Cooperatives have operational businesses, an expert says.
Prabowo Summons Economic Team Amid Market Volatility
Prabowo meets senior economic officials as the JCI rebounds 4.16% and the rupiah strengthens to Rp 17,992 per dollar.The Latest
Ye Concert, Other Events to Draw 130,000 to GBK, Here’s What to Know
Around 130,000 visitors are expected at Jakarta’s GBK on Saturday as Ye’s concert and several major events take place.
Indonesia Allocates Rp 722 Billion for Year-End Flight Ticket Tax Relief
Indonesia allocates Rp 722 billion to cover domestic flight ticket VAT during the 2026/2027 Christmas and New Year holidays.
Greece Floats Shipbuilding Partnership with Indonesia
Greece says that it possesses “extensive expertise” as it woos Indonesia in shipbuilding partnership.
Indonesian Stocks Rally 4.9%, but Foreign Investors Keep Selling
Indonesia’s JCI rose 4.9% last week, but foreign selling and MSCI downgrade risks continue to cloud the market outlook.
Ye Concert in Jakarta to Deploy 2,000 Security Personnel
More than 2,000 personnel will secure Ye’s Jakarta concert on Saturday, as organizers urge fans to use public transport.Most Popular
