Prabowo Consolidates Indonesian State Assets Under New $1 Trillion Management Firm, Vows Crackdown on Corruption
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Indonesia’s President Prabowo Subianto is enacting sweeping reforms of the nation’s State-Owned Enterprises (BUMN), consolidating over 1,000 separate entities under a newly formed asset management firm, BPI Danantara. The move,announced Monday at the 2026 National Coordination Meeting for Regional Heads in West Java,aims to address longstanding inefficiencies and alleged corruption within the BUMN sector.
the President stated that BPI Danantara will manage a portfolio of state assets valued at approximately $1.04 trillion. “I have gathered all the state’s power into one management with a value of US$ 1 trillion,” Prabowo declared, signaling a dramatic shift in how Indonesia manages its vast economic holdings.
From Fragmentation to Centralization
Previously, the management of Indonesia’s BUMNs was highly fragmented, spread across 1,040 individual companies. Prabowo characterized this system as unsustainable and ripe for abuse. “Can you imagine? Who can manage 1,000 companies? This is a trick,” he asserted, explaining the rationale behind the creation of Danantara. The consolidation is intended to streamline operations, improve accountability, and unlock greater economic value.
A Promise of Accountability and Prosecution
The reforms are accompanied by a stern warning to past and present BUMN leaders engaged in illicit activities.Prabowo vowed to pursue legal action against those found to have defrauded the state, stating, “BUMN leaders who previously had to be responsible, don’t just take it easy. Get ready to be summoned by the Prosecutor’s Office.” He emphasized that his commitment to accountability is unwavering, declaring, “I’m just afraid of the Indonesian people and God is great.”
Eliminating Unjustified Bonuses
The President also took aim at the practice of awarding bonuses to BUMN executives despite meaningful financial losses. Describing the practice as “shameless” and “ndableg” – an indonesian term signifying something outrageous or unacceptable – Prabowo has tasked the Head of Danantara and relevant ministers with eliminating such bonuses. He even called on any directors or commissioners who disagree with this policy to resign, confident that qualified replacements are readily available.
“So far, many people in management positions, in critical positions, have lied to their superiors, deceived their superiors, deceived the President to seek personal gain. Now we have to stop doing that,” Prabowo stated during the inauguration of the Balikpapan RDMP on January 12, 2026.
The sweeping changes signal a determined effort by the Prabowo administration to overhaul Indonesia’s state-owned enterprise sector, prioritizing efficiency, openness, and accountability in the management of the nation’s considerable assets.
Why: President Prabowo Subianto initiated these reforms to address inefficiencies and alleged corruption within Indonesia’s State-Owned Enterprises (BUMN). The fragmented management of over 1,000 individual companies was deemed unsustainable and prone to abuse.
Who: The key players are President Prabowo Subianto, the newly formed asset management firm BPI Danantara (led by an unnamed head), past and present BUMN leaders, and the Indonesian Prosecutor’s Office.
What: The reforms involve consolidating over 1,000 BUMNs under BPI Danantara, which will manage a $1.04 trillion portfolio of state assets.Prabowo also vowed to prosecute corrupt BUMN leaders and eliminate unjustified bonuses.
How did it end?: The reforms were announced in January 2026 and are ongoing. Prabowo has already tasked Danantara’s head and relevant ministers with eliminating bonuses and warned BUMN leaders
