Indonesia to Close More Than 750 State-Owned Companies

Indonesia's president has announced plans to shut down more than 750 companies owned by the government by the end of this year. President Prabowo made this announcement on August 14 in a speech to the country's parliament in Jakarta. He said many of these companies were not doing their jobs well and were even lying about how much money they made. His goal is to keep only the businesses that truly help the people of Indonesia.

Prabowo said he was surprised to learn just how many state-owned companies Indonesia actually had. When a new government fund called Danantara was set up in 2025 to manage state property, officials found there were 1,074 such companies. The president admitted he had expected only 300 or 400. He said many of these businesses acted 'as they please, with no sense of responsibility to the nation.'

So far, 290 companies have already been closed. Prabowo said that by December 31, no more than 300 should remain open. That means more than 750 will be shut down in total, which the president called possibly 'the largest corporate restructuring in the world.' Only companies that create real value for Indonesian people will be allowed to stay open.

The closures have already saved the government a lot of money. About 50 trillion rupiah — equal to roughly 3.6 billion Singapore dollars — has been saved on costs like salaries, office buildings, cars, and business travel. The government hopes to save more than 70 trillion rupiah in 2026. Officials also reported that profits from the remaining state-owned companies rose more than 75 percent between 2024 and 2025.

Prabowo also raised the idea of a special court to look into how these companies were run over the past 30 years. He wants investigators to find out if company leaders broke the law or lied about profits. At the same time, he suggested that some leaders who admit wrongdoing and are sorry might receive a kind of pardon. This shows the government is trying to balance punishment with a chance for people to make things right.

Corruption, which means dishonest behavior by people in power, has been a big problem in Indonesia for a long time. The country scored only 34 out of 100 on a global corruption index in 2025, which is considered a low score. Many citizens are already upset about rising prices for everyday goods. Some have held protests, and the government's expensive free school meals program has also drawn criticism for wasting money.

Prabowo said he still believes in the free school meals program but wants to run it better and more efficiently. He pointed out that one in four children in Indonesia suffers from stunting, which is when children don't grow properly because they don't get enough healthy food. He said the country must do more to protect its children. Making the program more efficient means spending money more wisely so more kids can be helped.

Despite worries about the world economy, Prabowo said he is confident Indonesia will reach 6 percent economic growth by the end of 2026. The economy grew at 5.3 percent in the second quarter of this year, after growing 5.6 percent in the first quarter. Some experts have questioned whether official growth numbers are fully accurate. Still, the president insisted Indonesia is secure in its food and energy supplies.

Prabowo ended his speech with a reminder of what really matters. He said that growth and investment are not the final goal for Indonesia. Instead, the goal is the well-being of the people, especially those who are poorest. He wants every dollar of investment to create jobs and improve lives.