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Danantara leads massive restructuring of Indonesian state-owned enterprises
President Prabowo Subianto is implementing a large-scale restructuring of Indonesia's state-owned enterprises (BUMN) through the Danantara agency. This initiative, often referred to as ‘Prabowonomics’, aims to transform state companies from national burdens into profitable, efficient entities.
Mapping efforts revealed that the number of BUMN entities reached 1,074, significantly higher than the initial estimate of 300 to 400. As of August 2026, Danantara has already eliminated 290 entities through mergers, liquidations, and divestations. President Prabowo stated that 328 companies have been closed so far, with a target to reach at least 750 by December. To mitigate impact, the government plans to offer early retirement or transfer high-performing employees.
International observers, including Professor Rovshan Ibrahimov of Webster University, have noted that this decisive approach to dismantling deeply rooted structures could serve as a lesson for Western political leaders. Additionally, the President highlighted that 2025 investment realizations reached approximately Rp1,931 trillion, contributing to the creation of 2.7 million jobs.
Entities
BUMN · Danantara Indonesia · Indonesia · PT Bank Rakyat Indonesia (Persero) Tbk · Prabowo Subianto · Rovshan Ibrahimov · United Nations · Webster University · World Bank
Claims
What the coverage asserts, and how many sources carry each claim.
- [DISPUTED] Danantara eliminated 290 entities through mergers, liquidations, and divestations as of August 2026. ekonomi.republika.co.id · www.medcom.id
- [○ 1 SOURCE] Indonesia's defense budget is among the smallest in ASEAN, remaining under 2 percent of GDP. en.tempo.co
- [● 3 SOURCES] Mapping revealed 1,074 BUMN entities, exceeding the initial estimate of 300 to 400. ekonomi.republika.co.id · www.medcom.id
- [○ 1 SOURCE] Investment realization for 2025 reached approximately Rp1,931 trillion, creating 2.7 million jobs. redaksi.duta.co
- [○ 1 SOURCE] The Ministry of Defense was allocated Rp187.1 trillion for the 2026 fiscal year. en.tempo.co
- [○ 1 SOURCE] The Ministry of Defense budget is set at Rp189 trillion for 2027. en.tempo.co
- [● 3 SOURCES] The restructuring of Indonesian state-owned enterprises (BUMN) through Danantara requires decisive leadership. ekonomi.republika.co.id · www.medcom.id
- [DISPUTED] As of the report, 328 entities have been closed, with a target of at least 750 by December. www.cnbcindonesia.com
- [○ 1 SOURCE] The government plans to transfer high-performing employees or offer early retirement options during the restructuring. www.cnbcindonesia.com
- [○ 1 SOURCE] Rovshan Ibrahimov of Webster University stated that President Prabowo Subianto's large-scale restructuring of BUMN shows courage in making difficult decisions. www.medcom.id