Indonesia targets closure of 700 loss-making state firms by December

President Prabowo Subianto said Indonesia aims to close 700 loss-making state-owned enterprises by December 2026 as the government continues restructuring companies with weak finances.

Speaking at a national coordination meeting on regional financial access at the JIEXPO Convention Centre on 22 October, he said approximately 364 state firms had already undergone consolidation, closure or streamlining.

Prabowo said inefficient enterprises and those recording persistent losses would be shut. He also said the government would close companies that had falsified their financial statements.

He described the restructuring as part of his administration’s work over two years, saying some previously unprofitable state companies were now making money. Not all state firms were performing poorly, he said, citing profit growth of up to 900 per cent at some companies.

Prabowo also said state enterprises should deliver benefits to the public. Referring to discussions about five mining business permits, he said dozens more permits were being pursued. The government also wants international studies to establish the size of Indonesia’s reserves, he added.