Prabowo Halts Sale of Strategic SOEs to Foreign Parties

President Prabowo Subianto revealed that his administration has halted the sale of several strategic state-owned enterprises (SOEs) to foreign entities, asserting Indonesia's need to retain control over its national assets. Speaking at the inauguration of five dams in West Nusa Tenggara, Prabowo expressed surprise at discovering plans to sell off companies upon taking office in 2024.

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There were many companies that appeared to be heading toward being sold to foreign parties. I prohibited it.

"There were many companies that appeared to be heading toward being sold to foreign parties. I prohibited it," Prabowo stated, as broadcast by the Presidential Secretariat. He identified key companies such as state-owned shipbuilder PT PAL Indonesia, defense manufacturer PT Pindad, aerospace firm PT Dirgantara Indonesia, and national carrier PT Garuda Indonesia as examples.

Instead of selling, Prabowo's government intends to revitalize these companies. He highlighted PT PAL's current capacity to produce advanced warships and submarines, projecting further advancements in naval vessel construction. This move aligns with a broader government strategy to reform the state-owned sector by consolidating underperforming firms while safeguarding those deemed crucial for national interests.

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PT PAL can now produce high-quality warships and submarines. PT PAL will build increasingly sophisticated naval vessels.

Prabowo also addressed the significant number of SOEs in Indonesia, exceeding 1,000 including subsidiaries. He noted that many are inefficient and unprofitable, leading to plans for substantial reduction. "We will streamline them," he said, suggesting the number could eventually be reduced to around 250 companies.

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We will streamline them.