President Prabowo Subianto has set a target to complete a major restructuring of Indonesia’s state-owned enterprises (SOEs) within this year. The initiative is intended to improve operational efficiency while reducing the fiscal burden that these companies have placed on the government.

Prabowo explained that the government aims to reduce the number of operating SOEs to approximately 250 companies. So far, around 200 state-owned entities have already been shut down from a previous total of more than 1,000 organizations.

According to him, maintaining an excessive number of SOEs has resulted in high administrative and operational costs, while many of these companies have failed to generate profits for the state.

"Our final target is around 250 companies. Just imagine, more than 750 entities will be closed. That means eliminating 750 chief executives, each with four or five directors, along with 750 boards of commissioners consisting of about ten members each. Consider the enormous overhead and salary expenses involved. All of that comes from public funds. Companies that fail to make profits only continue to consume resources through administrative costs," Prabowo said.

For that reason, he instructed that the restructuring process be completed within this year.

"We want a system that is more rational and efficient, and we are committed to making it happen. I want this entire process finalized this year. Within the next two years, our SOEs should become more efficient, more transparent, and more focused on serving the people," he stated.

Earlier in his remarks, Prabowo revealed that several academics had proposed allocating SOE profits to research and innovation programs. While he welcomed the proposal, he acknowledged that many state-owned companies have yet to consistently generate profits.

"The question is whether these SOEs are actually making profits. Fortunately, they are beginning to do so," Prabowo remarked.

"Over the past year, many of them have started to record profits. However, we all understand the challenges these SOEs have faced for years. We are currently cleaning up the system and reorganizing these companies to ensure they operate more effectively," he added.