Prabowo calls for faster resource processing and state-company restructuring

President Prabowo Subianto is pushing Indonesia to process more of its raw natural resources at home while simplifying the sprawling structure of state-owned companies.

He raised both priorities during a limited meeting in Hambalang, Bogor, with Investment and Downstreaming Minister Rosan Roeslani, Energy and Mineral Resources Minister Bahlil Lahadalia and Danantara leaders. Cabinet Secretary Teddy Indra Wijaya said faster downstreaming, which means processing raw resources domestically, ranked among the meeting’s main agenda items.

“Accelerating downstreaming is a strategic step to boost the value addition of domestic natural resources, strengthen investment, and generate greater economic benefits for Indonesia,” Wijaya said.

Officials also briefed Prabowo on his directive to restructure and streamline state-owned enterprises. So far, 290 companies have been closed, a move reported to have saved up to 50 trillion rupiah, or about $2.83 billion. The process is set to continue, with a target of shutting at least 700 more state-owned enterprises by the end of December 2026.

The restructuring is projected to produce budget efficiencies of up to 100 trillion rupiah, or approximately $5.67 billion. Prabowo has said the process must be measured and comprehensive, creating a more efficient, sound and professional structure for state companies. In his August 14 State of the Nation Address, he said their profits would be redirected toward national downstreaming programs and strengthening Indonesia’s position in global supply chains.

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Accelerating downstreaming is a strategic step to boost the value addition of domestic natural resources, strengthen investment, and generate greater economic benefits for Indonesia.