Indonesia’s Danantara Pushes to Trim BUMN Portfolio to About 200‑300 Entities

The Danantara initiative, backed by the Indonesian government, is set to streamline the country’s state‑owned enterprises (BUMN). It plans to reduce the current roughly 1,077 BUMN entities to a consolidated 200‑300 firms in order to cut inefficiencies that analysts estimate cost up to Rp50 trillion a year. The reform aims to create clearer corporate structures, eliminate overlapping subsidiaries, and improve competitiveness without resorting to mass layoffs. Labor costs are projected at only Rp2‑3 trillion annually, far lower than the anticipated savings.

Lawmakers such as DPR member Firnando Hadityo have voiced support, noting the process will focus on corporate re‑organisation rather than job cuts. Concrete consolidation steps have already begun, including the merger of several Pertamina subsidiaries and the simplification of Telkom’s fiber‑optic project chain. The effort aligns with President Prabowo Subianto’s directive to modernise state‑owned firms while safeguarding workers.