Prabowo Orders Major Overhaul of State-Owned Enterprises

JAKARTA – President Prabowo Subianto has ordered a simplification of the bureaucracy within several major Indonesian state-owned enterprises (SOEs), including PT Pertamina (Persero) and PT PLN (Persero), to accelerate decision-making, improve efficiency, and boost corporate productivity. The directive was delivered during a meeting with Minister of Investment and Downstream Industries as well as CEO of Danantara Indonesia, Rosan Perkasa Roeslani, at the Presidential Palace in Jakarta on Thursday (Aug. 6).
Rosan said the President instructed SOEs, particularly the country’s largest state-owned companies, to reduce organizational layers. According to him, a leaner organizational structure is expected to speed up business processes while improving operational efficiency.
“The President has instructed us to reduce organizational layers, especially in major state-owned enterprises such as Pertamina, PLN, and others, so that decision-making becomes faster, productivity increases, and efficiency is better maintained,” Rosan said after the meeting.
In addition to discussing bureaucratic reform within SOEs, Rosan also briefed the President on several strategic initiatives, including the development of the Indonesian Hajj Village project in Saudi Arabia. He said the architectural design selection process is still underway, while also reporting on his visits to Makkah, Madinah, and Jeddah to strengthen investment cooperation with the Saudi government.
During the meeting, President Prabowo also requested an update on the progress of the government’s downstream industrialization program. Reforming SOE governance and accelerating downstream industries are seen as key efforts to strengthen the competitiveness of Indonesia’s state-owned enterprises amid increasingly dynamic global economic conditions and competition.


