TEMPO.CO, Jakarta - President Prabowo Subianto praised Danantara Indonesia's performance in reducing the number of state-owned enterprises (SOEs) through consolidation and mergers, thus cutting 250 SOEs in the first 18 months of his administration.
In his speech at the Full Cabinet Meeting at the State Palace in Jakarta on Monday, Prabowo said that this achievement was a rare feat in the world.
"I'm proud that Danantara's leadership has successfully reduced the number of SOEs from 1,077 in the first 18 months. By the end of this month, on July 31, they had closed, consolidated, and merged, reducing the total to 250 SOEs. That's a reduction of 250. No other country in the world can close 250 SOEs in one year," said Prabowo, as quoted by ANTARA.
The President says that reducing the number of SOEs is the first step toward achieving a larger goal by the end of 2026.
President Prabowo said Danantara's leadership reported that by December 31, 2026, the number of SOEs is targeted to be reduced from 1,077 to a maximum of 350 companies through closures, mergers, and consolidations.
"From 1,077, the maximum will be 350. This means that by the end of 2026, we will close, merge, or consolidate 700 SOEs. This will reduce the number from 1,077 to a maximum of 350," he said.
Prabowo stated that the consolidation step not only simplifies the structure of SOEs but also results in significant budget efficiencies. Based on the reports he received, the closure and merger of 250 SOEs has saved overhead costs of around Rp50 trillion.
The savings, Prabowo said, came from reduced operational costs, such as salaries for directors and commissioners, building rent, electricity costs, transportation, and holding work meetings. He believes these savings could increase in value by the end of the year.
"I think the savings figure could increase by December 31, approaching Rp70 trillion to Rp80 trillion," said President Prabowo.
Read: Prabowo's Cabinet Meeting: Who's Attending?
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