Jakarta, IO – President Prabowo Subianto reaffirmed the government’s commitment to restructuring state-owned enterprises (SOEs) through efficiency measures, consolidation, and the closure of unproductive companies. The initiative aims to ensure the effective management of state assets and guarantee that SOE operations deliver tangible benefits to the public.
“Out of 1,000—or 1,074, to be exact—SOEs, we have consolidated, closed, and streamlined them. As of last night, we are down to around 360 or 364. By next December, our target is to close 700 entities. Those that are inefficient, loss-making, or have been fabricating financial reports will be shut down. We will focus on SOEs that produce results for the people,” Prabowo said during his opening remarks at the National Coordinating Meeting (Rakornas) of the Regional Financial Access Acceleration Team (TPAKD) at JIExpo Kemayoran on Thursday.
He noted that the overhaul is part of government efforts to realign national economic management with the mandate of the 1945 Constitution. While improving economic governance requires time and consistency, Prabowo emphasized that results are beginning to show through steps taken over the past two years.
“For decades, our wealth has leaked on a massive scale. But now we are taking decisive action. We are shifting back to Articles 33 and 34 of the 1945 Constitution. This transition and improvement cannot happen overnight,” he added.
Prabowo also explained that the government has taken firm measures against persistently loss-making SOEs while pushing previously unprofitable companies to turn their performance around. He cited examples of SOEs achieving profit increases of 200, 300, and even 900 percent, illustrating the potential for turnaround when enterprises are managed efficiently.
“In our two years of work, we have proven it. Unprofitable SOEs that consistently suffered losses have been closed. Those that previously couldn’t generate a profit are now turning a profit—some up by 900 percent, others by 200 or 300 percent. We are now determined to drive efficiency,” he said.
Beyond SOE reform, Prabowo underscored the importance of strict government enforcement against concession-holding companies that violate regulations, particularly regarding wildfires. Pointing to evidence of repeated violations by several firms, the head of state urged authorities not to hesitate in revoking licenses where offenses are proven.
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“Indications show that many foreign companies share responsibility. They were granted concessions, yet some have violated rules three, four, or even up to 19 times over the past dozen years. In my view, if a company violates regulations twice, its permit should simply be revoked,” he emphatically said.
Prabowo added that the government can prepare Indonesian human resources to manage plantations and other enterprises currently operated by concession holders. He encouraged regional governments and universities to identify and train capable young talents to take on active roles in managing the nation’s natural resources.
“Regional leaders and university faculties should seek out talented young people. There is no reason Indonesians cannot manage these plantations. We may well manage them better because we love our homeland. Education is key. Governors and regents must focus on education—we must empower our people,” he said. (des)
