Danantara Reports 258 State-Owned Enterprises Consolidated to President Prabowo

Indonesian President Prabowo Subianto met with Minister of Investment and Downstreaming Rosan Roeslani to discuss the ongoing consolidation of state-owned enterprises (BUMN). The meeting, held at the President's residence in Jakarta, focused on the progress and strategy behind streamlining the country's vast network of state-owned companies.

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The process of consolidating and transforming BUMN is ongoing. Out of a total of around 1,077 BUMN entities, 258 have been successfully consolidated.

According to Cabinet Secretary Teddy Indra Wijaya, Rosan Roeslani reported that the consolidation process is actively progressing. To date, 258 BUMN entities have been successfully merged or streamlined out of an initial total of approximately 1,077. The immediate goal is to further reduce this number to around 300 entities in the near future.

This initiative is deemed crucial for improving the operational efficiency and governance of state-owned enterprises. The government anticipates that reducing the number of BUMNs will lead to significant cost savings for the state and enhance overall performance. Prabowo has previously expressed his vision to rationalize the number of BUMNs to a more manageable range of 200 to 240 entities.

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With a target of around 300 entities in the near future.

Prabowo has instructed that post-consolidation, these companies should operate according to international standards. He believes this rationalization will boost returns by 1 to 2 percent and has directed Danantara, the investment ministry's entity, to identify top talent for leadership roles. To facilitate this, the government is also adapting regulations to allow foreign professionals to lead BUMNs, aiming to bring in global expertise and best practices.

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I have already given instructions to the leadership of Danantara to rationalize everything, to cut from 1,000 BUMNs to a more rational number. Perhaps 200, or 230, 240.