Prabowo orders state firms to cut subsidiaries, boost efficiency

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3 hours ago

Jakarta (ANTARA) – President Prabowo Subianto ordered officials and state-owned company executives, particularly at Pertamina and PLN, to cut subsidiaries and business units to improve efficiency and productivity.

At a limited meeting at his private residence in Hambalang, Bogor, West Java, on Sunday night, Prabowo gave the order directly to several ministers and Pertamina Chief Executive Officer Simon Aloysius Mantiri.

Cabinet Secretary Teddy Indra Wijaya, who attended the meeting, said reducing subsidiaries and intermediate corporate layers would also speed decision-making, particularly during critical periods and on urgent issues.

“President Prabowo also ordered reductions in corporate layers and subsidiaries at Pertamina, PLN and other state-owned companies,” Teddy said, according to a Cabinet Secretariat statement confirmed here Monday.

The streamlining is intended to accelerate decisions, increase productivity and maintain efficiency across state-owned companies, Teddy said.

In Hambalang, Teddy said Pertamina’s Mantiri also reported progress on the mandatory B50 biodiesel program, particularly since its launch in July 2026.

Mantiri also briefed Prabowo directly on Pertamina’s infrastructure readiness to implement the government’s mandatory bioethanol program.

According to photographs released by the Cabinet Secretariat, the meeting was attended by State Secretary Prasetyo Hadi, Defense Minister Sjafrie Sjamsoeddin, Teddy, State Intelligence Agency Chief M. Herindra and presidential private secretary Rizky Irmansyah.

On state-owned company efficiency, Danantara Chief Executive Officer Rosan Perkasa Roeslani reported last week on follow-up measures to Prabowo’s order to reduce corporate layers, including subsidiaries.

“His instructions also call for reducing layers, particularly at large state-owned companies such as Pertamina and PLN, to accelerate decisions, raise productivity and improve efficiency,” Rosan told reporters at the presidential palace in Jakarta last Thursday.

Rosan said streamlining had been carried out at 274 companies as of the end of July 2026.