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Prabowo targets 800 underperforming SOEs for closure
ID🏛️ Politics3 days ago

Prabowo targets 800 underperforming SOEs for closure

Indonesian President Prabowo Subianto has announced plans to dissolve up to 800 underperforming state-owned enterprises (SOEs) as part of a broader effort to reduce government spending, combat corruption, and improve fiscal efficiency. During a speech at the closing ceremony of a Nahdlatul Ulama conference, Prabowo stated that the government has already closed approximately 240 unprofitable SOEs, which were described as 'owned by the people' but had been losing money. He emphasized that the closures would save significant funds previously spent on salaries and benefits for directors and commissioners. The move aligns with recent reforms that transferred oversight of SOEs to a new sovereign wealth fund and a dedicated regulatory agency, aiming to consolidate the number of state firms from over 1,100 to just 257.

The Indonesian government has taken a significant step toward modernizing its state-owned enterprise (SOE) sector by merging seven major logistics entities into a single, more efficient organization. This consolidation, led by PT Danantara Asset Management (DAM), marks a pivotal moment in the broader effort to streamline and enhance the performance of state-run businesses. The merger was formally announced on June 30, following the signing of the Shareholders Agreement (SHA) and the Deed of Merger in Jakarta. The initiative is part of a larger restructuring plan aimed at reducing the number of SOEs from over 1,000 to between 250 and 300 by 2026, as outlined by President Prabowo Subianto.

The seven logistics companies being merged include Pelindo Sinergi Lokaseva Multiterminal Indonesia, Pelindo Sinergi Lokaseva Prima Indonesia Logistik, Pos Logistics, Pelni Logistics, PT Kawasan Berikat Nusantara (KBN), PT Varia Usaha Dharma Segara (VUDS), and Krakatau Integrated Logistics. These entities operate across various sectors, including shipping, port services, land transport, and industrial zones. By integrating these organizations, the government hopes to create a unified logistics ecosystem that enhances regional competitiveness and reduces overall logistics costs, which currently remain higher than the Southeast Asian average.

Aurelius Altius Rosimin, DAM’s Senior Director of Corporate Strategy, highlighted that the merger is a strategic move to eliminate redundancy and improve operational efficiency. “This merger aims to reduce entity fragmentation, optimize business scale, and eliminate overlapping services which have been hampering the efficiency of state-owned logistics,” he stated. The initiative aligns with the National Long-Term Development Plan (RPJPN) 2025–2045 and the government’s Asta Cita development program, both of which emphasize economic growth and improved public services.

PT Pos Indonesia (Persero) President Director Daud Joseph emphasized the role of his company in supporting the integration process. Pos Indonesia, which operates a vast network of 5,597 service points and maintains a fleet of 8,032 units, plays a crucial role in the national logistics system. It provides services to over 2.2 million customers and handles more than 300,000 packages daily. Daud assured that the integration process will follow strict corporate governance and risk management protocols, ensuring minimal disruption to existing operations. “Our main commitment is maintaining continuity of service to all customers during the transformation process,” he said.

The restructuring of SOEs is not limited to logistics alone. President Prabowo has set an ambitious target of dissolving up to 800 underperforming SOEs, with the ultimate goal of reducing the total number to 250. This includes the recent liquidation of 240 SOEs that were consistently losing money. The government claims that these measures will save billions of rupiah annually, primarily by reducing the overhead costs associated with managing a large number of separate entities. Dony Oskaria, head of the SOE Regulatory Agency (BP BUMN), confirmed that the restructuring is expected to yield annual savings of around Rp50 trillion (nearly US$3 billion), far surpassing the estimated Rp2-3 trillion spent on employee salaries.

The restructuring also involves the creation of new institutions, such as the SOE Regulatory Agency (BP BUMN), which takes over regulatory functions from the former Ministry of State-Owned Enterprises. This shift reflects a broader trend toward centralizing control over state assets and improving transparency and accountability. Despite the scale of the changes, officials have repeatedly emphasized that no employees will be laid off. Instead, workers will be retained under the new consolidated entities, ensuring continued employment and stability during the transition period.

Looking ahead, the success of this restructuring will depend on how effectively the government manages the integration process and ensures that the new entities maintain high standards of service and efficiency. As the reforms progress, the focus will likely shift towards evaluating the long-term impact on economic growth, public satisfaction, and the overall health of Indonesia’s state-owned enterprise sector. The coming months will be critical in determining whether these sweeping changes will achieve their intended goals of boosting efficiency, reducing costs, and enhancing the effectiveness of state-led economic initiatives.

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8 reports

Antara News logoAntara NewsState / PublicCenterFactual 95Objective 907 days ago
Indonesia pledges no job cuts as SOEs shrink to 250

The Indonesian government has announced plans to reduce the number of state-owned enterprises (SOEs) from over 1,000 to between 250 and 300 entities as part of a broader restructuring effort. President Prabowo Subianto emphasized that this initiative aims to address inefficiencies and financial losses within the SOE sector, which currently incurs annual losses of around Rp20 trillion. Officials confirmed that no layoffs will occur despite the reduction in the number of SOEs, with employees being retained under consolidated entities. The restructuring is expected to save up to Rp50 trillion annually, primarily through cost reductions and operational efficiencies. The process is targeted for completion within two years.

Bias read (Center): The article presents the government's stated goals and commitments regarding SOE restructuring without overtly favoring one side. It includes direct quotes from President Prabowo and officials, providing balanced information on the objectives, methods, and assurances related to the reforms. There is

Why these scores (Factual 95 · Objective 90): Very factual with detailed information on the merger of logistics SOEs and alignment with national plans. Objectivity is maintained through neutral language and focus on economic efficiency.

The Jakarta Post logoThe Jakarta PostIndependentLeftFactual 90Objective 957 days ago
Komnas HAM urges end to military training in Prabowo cooperative project

The National Human Rights Commission (Komnas HAM) in Indonesia has called for an end to military training activities within a cooperative project led by former President Prabowo Subianto. The commission expressed concerns over the potential violation of human rights norms and the militarization of civilian spaces. This comes amid ongoing scrutiny of Prabowo’s political influence and his involvement in various economic initiatives. The call highlights tensions between state power and civil society institutions in Indonesia.

Bias read (Left): The article frames the issue as a human rights concern, emphasizing the role of Komnas HAM as a watchdog institution. It implies that Prabowo’s project represents a problematic intersection of politics and military activity, which aligns with left-leaning critiques of executive overreach and militar

Why these scores (Factual 90 · Objective 95): Provides specific details about the merger of seven logistics SOEs, aligning with broader restructuring goals. Neutral and factual without bias.

Antara News logoAntara NewsState / PublicCenterFactual 85Objective 903 days ago
Indonesia launches major restructuring of state construction firms

Indonesia's State-Owned Enterprises Regulatory Agency (BP BUMN) has initiated a restructuring plan for two major state construction firms, PT PP and PT Adhi Karya, with support from the Association of State-Run Banks (Himbara). The goal is to strengthen the companies' financial health, governance, and ability to undertake profitable projects that align with national development goals. BP BUMN head Dony Oskaria emphasized that this effort is part of a larger government initiative to consolidate over 1,000 state-owned enterprises and subsidiaries down to approximately 250, aiming to reduce losses, increase transparency, and focus state resources on public-oriented projects. The restructuring includes improving corporate administration, risk management, and long-term business sustainability for these firms.

Bias read (Center): The article presents a neutral overview of a government-led restructuring initiative involving state-owned enterprises. It quotes officials directly and outlines the stated objectives of the program without overtly favoring any particular political perspective. The framing focuses on economic reform

Why these scores (Factual 85 · Objective 90): Factuality is high as the article accurately reports the restructuring initiative by BP BUMN, citing direct quotes and details from official statements. Objectivity is strong as the article presents the information neutrally without apparent bias.

Tempo (English) logoTempo (English)IndependentCenterFactual 85Objective 906 days ago
Prabowo Mulls Research Funding From SOEs

The article reports that Prabowo Subianto, a prominent Indonesian politician and former military leader, is considering receiving research funding from state-owned enterprises (SOEs). The piece highlights discussions around potential collaboration between Prabowo's political initiatives and SOEs, though it does not specify the exact nature or terms of such funding. It suggests that this development could influence his political strategy and agenda. The article remains neutral in tone, presenting the information without overtly endorsing or criticizing the potential arrangement.

Bias read (Center): The article presents the information about Prabowo's consideration of research funding from SOEs without taking a clear ideological stance. It focuses on reporting the potential development rather than emphasizing any particular political angle or implication. There is no evident leaning toward left

Why these scores (Factual 85 · Objective 90): Accurate in stating the government's pledge to avoid job cuts. Maintains neutrality and provides clear, factual statements without emotional language.

Antara News logoAntara NewsState / PublicCenterFactual 85Objective 807 days ago
Prabowo to cut SOEs from 1,000 to 250 for efficiency, transparency

President Prabowo Subianto announced plans to reduce the number of state-owned enterprises (SOEs) in Indonesia from over 1,000 to approximately 250, aiming to increase efficiency and transparency. He highlighted that more than 200 SOEs have already been dissolved, with over 750 expected to be shut down as part of a broader restructuring effort. Prabowo argued that the current number of SOEs creates excessive administrative costs and inefficiencies, noting that many companies operate at a loss. He stressed the need for rapid implementation of reforms to align SOEs with public interest and improve profitability. Additionally, he acknowledged a suggestion by academics to allocate a portion of SOE profits to research and innovation, while emphasizing the importance of ensuring profitability.

Bias read (Center): The article presents President Prabowo's policy proposal without overtly endorsing or criticizing it. While the content focuses on his administration's agenda, there is no clear ideological slant in the framing, emphasis, or sourcing. The report remains neutral in tone, presenting facts and quotes,雖

Why these scores (Factual 85 · Objective 80): Factual based on Antara's reporting, but mentions 'more than 750' being shut down which conflicts with later reports stating 800. Objectivity is slightly compromised by emotive language about 'people's money' and 'overhead'.

Tempo (English) logoTempo (English)IndependentCenterFactual 80Objective 8511 days ago
Prabowo Plans to Dissolve 800 State-Owned Enterprises

Indonesian presidential candidate Prabowo Subianto has announced plans to dissolve approximately 800 state-owned enterprises (SOEs) as part of his economic reform agenda. The proposal aims to reduce government involvement in the economy, promote private sector growth, and improve efficiency by transferring operations to the private sector. This move has sparked debate among economists and policymakers, with some supporting the initiative as a step toward reducing bureaucracy and increasing competitiveness, while others warn of potential job losses and disruptions to essential services. The plan would require legislative approval and careful implementation to avoid negative impacts on public welfare.

Bias read (Center): The article presents Prabowo's proposal as a policy initiative within an election context, providing balanced perspectives from supporters and critics. It does not exhibit overtly biased language, one-sided sourcing, or editorializing that would indicate a clear ideological lean.

Why these scores (Factual 80 · Objective 85): Factually consistent with other reports citing 800 closures. Objectivity is strong as it presents the information neutrally without commentary.

Antara News logoAntara NewsState / PublicCenterFactual 75Objective 7012 days ago
Prabowo targets 800 underperforming SOEs for closure

Indonesian President Prabowo Subianto has announced plans to dissolve up to 800 underperforming state-owned enterprises (SOEs) as part of a broader effort to reduce government spending, combat corruption, and improve fiscal efficiency. During a speech at the closing ceremony of a Nahdlatul Ulama conference, Prabowo stated that the government has already closed approximately 240 unprofitable SOEs, which were described as 'owned by the people' but had been losing money. He emphasized that the closures would save significant funds previously spent on salaries and benefits for directors and commissioners. The move aligns with recent reforms that transferred oversight of SOEs to a new sovereign wealth fund and a dedicated regulatory agency, aiming to consolidate the number of state firms from over 1,100 to just 257.

Bias read (Center): The article presents Prabowo's announcement and rationale for dissolving SOEs without overtly favoring any political side. It includes direct quotes from Prabowo and mentions the government's actions, including closures and reforms, without apparent ideological framing or selective sourcing. The phr

Why these scores (Factual 75 · Objective 70): Less detailed and focused on research funding, which is tangential to the main SOE restructuring story. Limited objectivity due to lack of depth.

Tempo (English) logoTempo (English)IndependentLeftFactual 70Objective 653 days ago
Civil Coalition: Prabowo's Police Reform Vow Fails

The article titled 'Civil Coalition: Prabowo's Police Reform Vow Fails' by Tempo (English), critiques the police reform pledges made by Prabowo Subianto, a former general and presidential candidate in Indonesia. The piece suggests that despite his promises during the campaign, there has been little tangible progress in implementing meaningful reforms within the Indonesian police force. The focus appears to be on the perceived lack of action and accountability, particularly in addressing corruption and human rights abuses within the police department. The article highlights concerns among civil society groups and activists who feel that Prabowo’s commitments were more rhetorical than substantive. It underscores broader issues of governance and institutional integrity in the country.

Bias read (Left): The article frames Prabowo's police reform pledges as insincere and ineffective, implying a critique of his leadership and governance style. The emphasis on unfulfilled promises and the involvement of civil society groups aligns with a left-leaning perspective that often scrutinizes political elites

Why these scores (Factual 70 · Objective 65): Focuses on police reform criticism rather than SOE restructuring, so less relevant to the main topic. Objectivity is lower due to the critical tone towards Prabowo's reforms.

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