Southeast Asia's biggest economy to close more than 750 state-owned enterprises

Indonesia's President Joko "Jokowi" Widodo announced plans to shut down over 750 state-owned enterprises in the Southeast Asian nation, which holds the title of the largest economy in the region. During his state of the nation address, Widodo revealed that there are actually 1,074 state-owned enterprises, far more than the 300-400 previously thought. The government has already closed 290 of these enterprises, with the goal of reducing the number to no more than 300 by the end of the year.

The president emphasized that the remaining state-owned enterprises will be productive ones that create value for the people. So far, the efforts to close these unproductive enterprises have saved about 50 trillion rupiah (over $2.8 billion) in overhead costs, including salaries, building rentals, and business travel. Prabowo's administration aims to save more than 70 trillion rupiah this year.

Widodo also mentioned the potential creation of a special ad hoc court to investigate the management and boards of state-owned enterprises dating back 30 years. Additionally, he proposed a special amnesty for those who repent. Despite Indonesia's low ranking of 34 out of 100 on Amnesty International's Corruption Perceptions Index for 2025, the president expressed confidence that economic growth will reach 6.0% by the end of 2026, following 5.3% growth in the second quarter of the year.