September 5, 2026 | 01:45 pm
TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto pushed for accelerated downstreaming and restructuring of state-owned enterprises (SOEs) during a meeting with Investment and Downstreaming Minister Rosan Roeslani, Energy and Mineral Resources Minister Bahlil Lahadalia, and Danantara leadership.
The meeting took place in Hambalang, Bogor District, West Java, on Friday, September 4.
Cabinet Secretary Teddy Indra Wijaya confirmed on Saturday that accelerating downstreaming, the domestic processing of raw natural resources, was one of the main agenda items discussed during the meeting.
"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.
In addition to downstreaming, the president received an update on the execution of his directive to restructure and streamline SOEs. So far, 290 SOEs have been closed, a move reported to have saved up to Rp50 trillion (around US$2.83 billion) in state funds.
The process will continue, with a target to shutter at least 700 more SOEs by the end of December 2026 to simplify the state corporate structure.
The SOE restructuring is projected to generate budget efficiencies of up to Rp100 trillion (approximately US$5.67 billion).
Prabowo has emphasized SOE restructuring must be carried out in a measured and comprehensive manner. The move is aimed at building a more efficient, sound, and professional structure for state companies, enabling them to contribute optimally to the national economy.
Earlier, in his State of the Nation Address on August 14, 2026, President Prabowo highlighted that SOE profits will be redirected to accelerate national downstreaming programs and strengthen Indonesia's position in global supply chains.
Read: Putin Offers Fishing Vessel to Prabowo During Russia Meeting
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