Why Is Prabowo Targeting a Cut in State-Owned Firms to 300?

August 14, 2026 | 12:12 pm

TEMPO.CO, Jakarta – President Prabowo Subianto is targeting a reduction in the number of state-owned enterprises (SOEs) to no more than 300 by the end of 2026 as part of a government restructuring drive aimed at retaining companies considered productive and capable of generating value for the public.

Prabowo said the government had identified 1,074 SOEs after Danantara began restructuring the state-owned sector. The figure includes parent companies as well as their subsidiaries and further layers of corporate entities.

“I thought there were 300 to 400 SOEs, but it turned out there were 1,074,” Prabowo said during his state address at the Annual Session of the People's Consultative Assembly (MPR) in Jakarta on Friday, August 14, 2026.

He said the government found that many SOEs were unproductive and continued to post losses. The restructuring therefore includes streamlining the state-owned sector and shutting down companies considered to be making little or no contribution.

Prabowo said the government had so far closed 290 SOEs, leaving it with a target of no more than 300 companies by December 31, 2026.

“By December 31, 2026, we aim to have no more than 300 SOEs. We will shut down more than 750 SOEs. Only those that are productive and create added value for the people will be retained,” he said.

Rp50 Trillion in Savings

Prabowo said the restructuring had also reduced operating costs, claiming that the government had saved around Rp50 trillion so far.

The savings came from cuts to directors' and commissioners' salaries, office rentals, vehicles and official travel, he said.

Prabowo said the funds could instead be directed toward public needs, including renovating community health centers and schools and building housing.

“Our target is to save more than Rp70 trillion by December,” he said.

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