Danantara to Streamline Indonesian SOEs: 167 Entities Liquidated

Danantara Targets Massive Reduction of State-Owned Enterprises to 257 Entities

Danantara is spearheading a sweeping restructuring of Indonesia’s state-owned enterprise (SOE) sector, with the goal of streamlining the current landscape of 1,100 entities down to just 257. This aggressive consolidation effort reflects a broader strategic shift toward organizational efficiency within the state’s corporate holdings.

As part of this transformation, 167 state-owned enterprises have been officially liquidated. The decision to dissolve these entities underscores a rigorous approach to eliminating redundancies and optimizing the state’s industrial footprint.

The drive for a leaner SOE sector follows a direct mandate from President Prabowo, who has called for a drastic reduction in the total number of state-owned firms. According to the Danantara Board of Commissioners, this directive is the primary catalyst for the current wave of liquidations and the overarching target for entity reduction.

The scale of this reorganization has created immediate shifts in corporate governance. Reports indicate that several leadership positions within the state-owned sector currently remain vacant as the agency continues to reshape the administrative structure of the remaining firms.

This consolidation highlights a significant pivot in the government’s approach to managing state assets, prioritizing a smaller number of high-impact entities over a fragmented network of hundreds of smaller companies. The move is expected to centralize control and reduce the bureaucratic complexities associated with the previous scale of the SOE portfolio.