Prabowo Calls for Faster Downstreaming and SOE Restructuring
Jakarta, The Gulf Observer: Indonesian President Prabowo Subianto has called for the acceleration of the country’s downstreaming programme and the restructuring of state-owned enterprises (SOEs) as part of efforts to increase the value of domestic resources, strengthen investment and improve the efficiency of state companies.
Prabowo made the call during a meeting in Hambalang, Bogor District, West Java, on Friday with Investment and Downstreaming Minister Rosan Roeslani, Energy and Mineral Resources Minister Bahlil Lahadalia and representatives of Danantara.
Cabinet Secretary Teddy Indra Wijaya said on Saturday that accelerating downstreaming, particularly the domestic processing of raw natural resources, was among the key issues discussed during the meeting.
He said downstreaming was a strategic measure aimed at increasing the added value of Indonesia’s natural resources, strengthening investment and generating greater economic benefits for the country.
The President also received an update on efforts to restructure and streamline SOEs. According to the report, 290 SOEs have so far been closed, resulting in potential savings of up to Rp50 trillion, equivalent to approximately US$2.83 billion.
The restructuring programme is expected to continue, with the government targeting the closure of at least 700 additional SOEs by the end of December 2026 in an effort to simplify the state corporate structure.
The restructuring is projected to generate budget efficiencies of up to Rp100 trillion, or approximately US$5.67 billion.
Prabowo has stressed that the restructuring of state-owned enterprises should be undertaken in a measured and comprehensive manner. The initiative is intended to establish a more efficient, financially sound and professional SOE structure capable of making a stronger contribution to Indonesia’s national economy.
The President had earlier stated in his State of the Nation Address on August 14 that profits generated by state-owned enterprises would be redirected towards accelerating national downstreaming programmes and strengthening Indonesia’s position in global supply chains.
The government’s focus on downstream processing forms part of a broader economic strategy aimed at retaining greater value from Indonesia’s abundant natural resources within the country while attracting investment and enhancing its industrial competitiveness.
