Indonesia pushes BUMN consolidation, merging logistics firms and trimming entities

State-owned enterprise (BUMN) reform in Indonesia is accelerating. Danantara, the agency overseeing the BUMN transformation, aims to reduce the number of BUMN entities from 1,077 to about 200‑300 by 2026. The consolidation targets firms that are loss‑making – about 52 % of the current entities, with cumulative losses of roughly Rp 20 trillion – to improve efficiency and competitiveness. Danantara's COO Dony Oskaria said President Prabowo Subianto has instructed that the streamlining must protect workers, assuring no mass layoffs.

In parallel, PT Pos Indonesia will merge nine logistics BUMNs into PT Multi Terminal Indonesia (MTI) starting 1 July. The nine firms, including PT Prima Indonesia Logistik and PT Pos Logistik Indonesia, will be integrated to expand service points from about 78 to 150‑160 and increase market share in a sector worth Rp 3 000 trillion, where the BUMNs currently hold less than 3 %. Ownership of MTI will shift fully to Pos Indonesia by 2027, aiming for a unified logistics platform under state control.