President Targets State-Owned Firm Reduction from 1,000 to 250 Companies

Indonesian President Prabowo Subianto has set an ambitious target to drastically cut the number of state-owned enterprises (BUMN), aiming to consolidate over 1,000 companies down to approximately 250. This move is part of a broader strategy to enhance the efficiency and transparency of these entities, ensuring they better serve the public.

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We want to be rational, efficient, and we will prove this, and we will do it. I ask that this must be completed within this year. So in two years, we will make the BUMNs more efficient, more transparent, and work more for the people.

"We want to be rational, efficient, and we will prove this, and we will do it. I ask that this must be completed within this year. So in two years, we will make the BUMNs more efficient, more transparent, and work more for the people," Prabowo stated during the closing of the National Deliberation of the Indonesian Science, Technology, and Industry Convention (KSTI) in Jakarta.

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How about Mr. Dony? How many BUMNs can we end up with? Eventually 250. Imagine, more than 750 we will close.

The government has already begun a cleanup process, closing more than 200 BUMNs out of the current total. The president emphasized the significant organizational burden caused by the large number of state-owned companies, highlighting the high overhead costs associated with numerous director and commissioner positions. He pointed out that many of these companies were not profitable, making the extensive overhead unsustainable.

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What about the overhead, the salaries, brothers and sisters. This is all people's money. Companies are not making a profit, only paying overhead.

Prabowo stressed that this restructuring, which involves closing over 750 BUMNs, is crucial for improving the management of state assets. He also addressed proposals for BUMNs to allocate profits to research and innovation, deeming the idea sound but contingent on the companies' ability to generate profits. The president expressed optimism, noting that some BUMNs have started showing profits within the current year, indicating a positive shift towards the targeted efficiency and transparency.

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This is a good proposal. The problem is, do these BUMNs have profits? They are starting to have them now. Thank you, Danantara, thank you. Profits have started to appear this year.