Indonesia to Close 750 State-Owned Enterprises by Year-End

In a state of the nation address to parliament, Indonesian President Prabowo Subianto revealed plans to close more than 750 state-owned enterprises by December 31, 2023, due to their unproductive nature. He stated that many of these enterprises report losses while falsely claiming profits.

The establishment of the Danantara sovereign wealth fund last year revealed that Indonesia has 1,074 state-owned enterprises, significantly more than the previously estimated 300 to 400. As of now, 290 enterprises have already been closed, with a target to retain only those that are productive and add value to the nation.

This restructuring initiative has reportedly saved around 50 trillion rupiah (over $2.8 billion) in overhead costs. Prabowo also proposed the creation of a special ad hoc court to investigate the management of these enterprises over the past 30 years and suggested a potential amnesty for those who cooperate.