The government of Indonesia, the world’s fourth most populous nation and among the top 20 economies globally, has announced plans to close more than 750 state-owned enterprises by the end of the year. President Prabowo Subianto made this declaration on Friday, suggesting the establishment of a special tribunal to investigate “non-productive” boards of directors, according to reports from AFP and Agerpres.
In his annual state of the nation address delivered in the Indonesian parliament, Subianto stated, “There are too many non-productive public companies that are always on the verge of announcing losses while claiming to be profitable. These profits are simply fabricated.”
With the establishment of the Indonesian sovereign fund Danantara set for 2025 to manage state assets, the president revealed that there are actually 1,074 public companies, a number much higher than the previously estimated 300 to 400. He noted that these entities often operate without accountability to the nation or the state.
Indonesian Government has Already Closed Nearly 300 State Companies
So far, 290 of these companies have been shut down, and by December 31, the number is expected to be reduced to no more than 300. “We will close over 750 companies, retaining only those that are productive and create added value for the population,” emphasized the Indonesian president, describing this initiative as potentially the most extensive restructuring of companies worldwide.
Prabowo highlighted that this campaign has already helped reduce costs by approximately 50 trillion Indonesian rupiah (over €2.4 billion), primarily from the salaries of directors, building rental expenses, and automobile costs. The goal for this year is to achieve savings of 70 trillion Indonesian rupiah (around €3.36 billion).
