TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto has expressed his intention to trim down 750 state-owned enterprises (SOEs) by the end of this year. He has raised concerns about the high salaries of the board of directors in these public companies, which could be reduced through this policy.
Prabowo stated that the initial number of state-owned enterprises, which exceeded a thousand, will be decreased to approximately 250 companies. "We want to be rational and efficient, and we will prove this through action," he said while attending the Science, Technology, and Industry Convention at the Jakarta Convention Center on Sunday, June 28, 2026.
The Chair of the Gerindra Party conveyed that the reduction in the number of state-owned enterprises will automatically cut down on overhead costs. Overhead costs refer to business expenditures not directly related to the production process of goods or services, including the salaries of the board of directors and commissioners.
For Prabowo, streamlining the number of state-owned enterprises is also a cost-saving measure. "Imagine, if we close down over 750 state-owned enterprises. 750 chief executives, 750 directors multiplied by 4 or 5 (people), 750 commissioners multiplied by 10 (people). What will the overhead be like, and what will their salaries be like," he stated.
Prabowo pointed out that there are companies that do not generate profits but still have to pay their executives' salaries. However, he emphasized that the money used to pay them comes from the people's funds.
This former defense minister has set a target for the streamlining process of state-owned enterprises to be completed promptly. "I demand that it must be completed within this year," Prabowo stated.
The Science, Technology, and Industry Convention (KSTI) attended by Prabowo took place from Friday to Sunday, June 26-28, 2026. The President attended the opening and closing ceremonies, which invited 2,600 lecturers, including professors, deans, and rectors.
Last Friday, at the opening of the 2026 KSTI, Prabowo delivered a nearly five-hour presentation to the academics. Today, Sunday, he spoke for almost four hours in front of the attending lecturers.
The forum titled "National Discussion" attended by Prabowo was part of the Indonesian Science, Technology, and Industry Convention. This event was organized by the Ministry of Higher Education, Science, and Technology. The KSTI is an initiative of President Prabowo and was first held at the Bandung Institute of Technology in August 2025.
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