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🇮🇩 Indonesia /Elections & Politics

President Orders PLN, Pertamina to Cut Subsidiaries for Efficiency

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • President Prabowo Subianto ordered state-owned enterprises, particularly Pertamina and PLN, to streamline their subsidiaries to boost efficiency and productivity.
  • The directive aims to accelerate decision-making processes by reducing layers of management within these companies.
  • This move is part of a broader effort to enhance the overall efficiency and productivity of state-owned enterprises in Indonesia.

President Prabowo Subianto has directed his administration and the leadership of state-owned enterprises (BUMN), specifically Pertamina and PLN, to immediately reduce their subsidiary companies and business units. This directive, issued during a limited meeting at the President's private residence in Hambalang, Bogor, aims to increase efficiency and productivity.

According to Cabinet Secretary Teddy Indra Wijaya, the reduction of these "layers" is intended to speed up decision-making, especially during critical times. "The President also ordered a reduction of layers and subsidiary companies in Pertamina, PLN, and other BUMNs. The streamlining is aimed at making decision-making faster, increasing productivity, and better maintaining the efficiency of all BUMNs," Teddy stated.

The President also ordered a reduction of layers and subsidiary companies in Pertamina, PLN, and other BUMNs. The streamlining is aimed at making decision-making faster, increasing productivity, and better maintaining the efficiency of all BUMNs.

— Teddy Indra WijayaCabinet Secretary Teddy Indra Wijaya explaining the President's directive to reduce subsidiary companies within state-owned enterprises.

During the meeting, Pertamina's CEO, Simon Aloysius Mantiri, reported on the progress of the 50% Biodiesel (B50) mandatory program and Pertamina's readiness for the government's bio-ethanol program. The meeting was attended by several key ministers and officials, including the Minister of State Secretary, Minister of Defense, Head of the State Intelligence Agency, and the Head of the Presidential Private Secretary.

This initiative aligns with previous reports, such as one from CEO Danantara Rosan Perkasa Roeslani, who noted that streamlining efforts had already been implemented in 274 companies by the end of July 2026. The goal is to create a more agile and efficient BUMN sector.

His directives (the President's) are also for the reduction of layers, especially in large BUMNs (like) Pertamina, PLN, and others so that decision-making becomes faster, productivity also increases, efficiency is also maintained, and of course (this will be followed) in other BUMNs.

— Rosan Perkasa RoeslaniCEO Danantara Rosan Perkasa Roeslani discussing the President's instructions on streamlining BUMNs.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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