October 16, 2025 | 07:44 am
Indonesian President Prabowo Subianto has asked the Sovereign Wealth Fund of Nusantara Investment Authority (BPI Danantara) to downsize the state-owned enterprises (SOEs) from 1,000 to 200 - 240 companies.
"I have instructed the Danantara leadership to rationalize everything, to reduce the number of SOEs from 1,000 to a more rational figure. Perhaps, 200, 230, 240," Prabowo said in a dialogue with the Chairman of Forbes Media, Steve Forbes, at the Forbes Global CEO Conference 2025 at St. Regis on Wednesday, October 15, 2025.
After the downsizing, Prabowo wants the state-owned enterprises to be managed with international standards. He believes that the reduction will increase the output by 1 to 2 percent.
Prabowo has also instructed Danantara to seek the best talents. The government has even changed regulations to open opportunities for foreign professionals to lead state-owned enterprises. "I have changed the regulations. Now, expatriates, non-Indonesians, can lead our SOEs," he said.
During the event, Prabowo also emphasized the need for political leaders to understand economics and business in order to make rational and data-based policies. "Sometimes there is a disconnection between economic actors and political actors, the political leaders. Many political leaders, I think, do not want to do their homework. Many political leaders may be afraid of numbers or afraid of business," said Prabowo.
Meanwhile, the House of Representatives has passed a revision of Law Number 19 of 2003 concerning State-Owned Enterprises (BUMN Law). This revision regulates the change of the Ministry of SOEs status to the SOE Regulatory Body.
This revision prohibits ministers or deputy ministers from holding positions in the boards of directors, commissioners, and supervisory boards of SOEs. Then, the dividend of two-color series A shares is directly managed by the SOE Regulatory Body with the president's approval.
This revision also removes the provision that members of the board of directors, the board of commissioners, and the supervisory board are not state administrators. Furthermore, the team also regulates the authority of the State Audit Agency to examine SOEs.
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