Prabowo to slash 750 state firms, citing bloated executive pay

President Prabowo Subianto intends to significantly streamline Indonesia's state-owned enterprises (BUMN), aiming to cut the number of companies from over 750 to approximately 250. This ambitious plan, announced at the Science, Technology, and Industry Convention in Jakarta, focuses on enhancing efficiency and reducing what Prabowo described as excessive overhead costs.

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We want to be rational, efficient, and we will prove it, and we will do it.

"We want to be rational, efficient, and we will prove it, and we will do it," Prabowo stated during the event, which ran from June 26-28, 2026. He highlighted the substantial salaries paid to directors and commissioners in these state-owned entities as a prime area for savings. The president illustrated the potential savings by pointing out the cumulative cost of maintaining leadership positions across hundreds of companies.

Prabowo expressed concern that some BUMNs operate without generating profit yet continue to pay high salaries to their management. He emphasized that these funds are ultimately derived from public money. The former defense minister has set a firm deadline for the restructuring, demanding its completion within the current year.

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Imagine, more than 750 SOEs we close. 750 CEOs, 750 directors times 4 or 5 (people), 750 commissioners times 10 (people). What are the overheads like, what are the salaries like?

The convention itself, organized by the Ministry of Higher Education, Science, and Technology, served as a platform for Prabowo to engage with academics. He delivered lengthy addresses on both the opening and closing days of the event, which brought together 2,600 university faculty members. The KSTI initiative, first held in August 2025, reflects Prabowo's focus on leveraging science and technology.

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I ask that this must be completed within this year.