Indonesia to close 750 state-owned enterprises

On August 14, 2026, Indonesian President Prabowo Subianto announced in his state of the nation address that the government will close more than 750 state-owned enterprises by the end of the year, reducing the total from 1,074 to around 300. He stated that many of these enterprises are unproductive, reporting losses while claiming made-up profits. The closure drive, described as possibly the largest corporate restructuring in the world, has already saved about 50 trillion rupiah (over $2.8 billion) in overhead costs, with a target of saving more than 70 trillion rupiah this year. Prabowo also floated the idea of a special ad hoc court to investigate the management and boards of state-owned enterprises going back 30 years, while proposing a special amnesty for those who repent. The announcement follows the establishment of the Danantara sovereign wealth fund to manage state assets, which revealed the true number of state-owned enterprises. The government reported that profits from state-owned enterprises rose more than 75% from 2024 to 326 trillion rupiah last year, attributed to improvements in management. The move is part of broader anti-corruption efforts, as Indonesia scored 34 out of 100 on Amnesty International's Corruption Perceptions Index for 2025.