Indonesia to close over 750 state-owned enterprises
JAKARTA — The Indonesian government will close more than 750 state-owned enterprises by year's end, President Prabowo Subianto said Friday, mulling the possibility of a special court to investigate "unproductive" boards.
Indonesia plans to shut down over 750 state-owned enterprises by the end of the year, President Prabowo Subianto announced on Friday. The president, speaking in his state of the nation address to parliament, expressed concerns about the prevalence of unproductive enterprises that falsely claim profits. During his tenure, the Danantara sovereign wealth fund was established to manage state assets, revealing the existence of 1,074 such enterprises, far exceeding the president's earlier estimate of 300 to 400.
Many of these state-owned companies operate without regard for national or state responsibilities. So far, 290 enterprises have been closed, with the goal of having no more than 300 left by December 31. The government aims to eliminate unproductive enterprises and retain only those that create value for the people. This substantial corporate restructuring could be the largest of its kind globally, potentially saving 50 trillion rupiah (over US$2.8 billion) in overhead costs this year, with a target of 70 trillion rupiah for the entire year.
Prabowo also proposed the creation of a special ad hoc court to investigate management and boards dating back 30 years, and suggested a form of special amnesty for those who admit their mistakes.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
