Indonesian State-Owned Firms Target 250 Entities After Streamlining

Indonesia's state-owned enterprises (BUMN) are actively pursuing a transformation program focused on accelerating streamlining to create a more agile, effective, and efficient corporate structure. Dony Oskaria, Head of BP BUMN and COO of Danantara, stated that this initiative is a primary focus for BUMN.

To date, 274 state-owned entities have been consolidated as part of the ongoing BUMN management transformation. Oskaria confirmed that the streamlining program is progressing according to schedule, with a target to reduce the total number of companies significantly. "Approximately 652 companies will disappear, leaving us with only 250 companies," Oskaria announced.

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Approximately 652 companies will disappear, leaving us with only 250 companies.

The transformation efforts are yielding tangible benefits. Oskaria highlighted the positive strategic business changes at Pupuk Indonesia, which recorded a profit of Rp 6.1 trillion in the first six months of the year. This transformation has also boosted production capacity and expanded export markets for the national fertilizer industry. "We have now built and improved eight of our fertilizer plants, and we have started exporting our fertilizer; our first export was to Australia last month. So, we are now a fertilizer exporter," Oskaria added.

Through continuous transformation, BP BUMN and Danantara aim to foster healthier, more adaptive, and competitive state-owned enterprises. Simplifying corporate structures, strengthening business strategies, and enhancing operational performance are expected to generate greater value for the national economy.

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We have now built and improved eight of our fertilizer plants, and we have started exporting our fertilizer; our first export was to Australia last month. So, we are now a fertilizer exporter.