Indonesia targets fewer than 200 state companies in restructuring push

Indonesia plans to shrink its network of state-owned enterprises and subsidiaries to fewer than 200 companies from 1,074, according to Danantara chief operating officer Dony Oskaria. The revised ambition would take the restructuring beyond its initial target of about 250 entities.

Dony, who also leads BP BUMN, outlined the target in comments posted by the official BUMN ID Instagram account on 28 October 2026. He said the quality of state-owned businesses was central to the sustainability of Danantara, which combines those enterprises with a sovereign wealth fund.

Danantara said its review found duplicated business activities and multiple layers of transactions between companies. Its data showed that 52% of state-owned enterprises and subsidiaries reported net losses for the 2024 financial year. It identified portfolio simplification, tighter financial discipline and stronger governance as priorities.

Decisions on corporate action have been made for about 636 entities, according to Danantara. These cover consolidation for 200, financial restructuring for about 15, liquidation for 213 and divestment for 208. About 364 entities had been streamlined by October 2026 through measures including mergers and closures.

Among completed consolidations, Danantara cited the transfer of 72 hotel assets from different state-owned enterprises into Injourney Hospitality. It also said LogisticsCo had been formed by bringing together seven freight-forwarding entities within one group.

The five-phase timetable places restructuring and consolidation in 2025–2026, followed by staff and corporate culture development in 2027. Digitalisation, automation and artificial intelligence are planned for 2028. The 2029 stage envisages wider access to regional and global financing through IPOs, bonds and fundraising, before institutional and governance targets set for 2030.