JAKARTA: The government has pledged to fast-track the restructuring of state-owned enterprises (SOEs), with the process expected to be completed this year.
“We hope everything can be finalised on time.
“Not just meeting the deadline, but completing the restructuring in a fundamental way,” said Dony Oskaria, head of the SOE Regulatory Agency (BP BUMN), after a limited meeting with President Prabowo Subianto on Tuesday.
Dony added that the merger of 15 logistics firms into a single SOE is the earliest move and is expected to be completed within a month.
Under the plan, state postal company PT Pos Indonesia is expected to serve as the anchor of the new logistics holding, overseeing subsidiaries across the ecosystem, including PT Semen Indonesia Logistik, PT Pupuk Indonesia Logistik and PT KAI Logistik.
The consolidation is part of a wider effort to transform SOEs into larger, more efficient and competitive entities, while maintaining their public service obligations.
The initiative reflects a growing policy emphasis on integration, as the government seeks to reduce duplication and improve coordination in key sectors such as logistics, where inefficiencies have historically driven up costs.
Beyond logistics, the government is also pushing reform in the transportation sector, particularly railways.
Electrification projects are being prepared along several strategic routes, including Jakarta-Rangkas, Jakarta-Cikampek and Jakarta-Sukabumi in a bid to improve service quality and expand capacity.
“Railways must become a healthy and sustainable business so they can provide better public services,” Dony said.
Another sector slated for consolidation is construction, with a restructuring plan first laid out in 2023.
The move aims to shore up the finances of state-owned builders, several of which are burdened by heavy debt.
The proposal calls for merging debt-ridden PT Wijaya Karya and PT Waskita Karya with healthier peers such as PT Hutama Karya and PT PP.
However, the plan has yet to materialise, despite being targeted for completion in December last year.
At the same time, authorities are finalising the restructuring of debt linked to the Jakarta-Bandung high-speed railway, known as Whoosh.
“I discussed this earlier with the finance minister, and we have reached an agreement. Everything has been finalised, including the necessary studies. What remains now is the formal process,” he said.
Despite global uncertainties, including tensions in the Middle East that have disrupted aviation routes, the government maintains that SOE performance remains relatively stable overall.
While some airlines have seen traffic declines due to route restrictions, the impact has not significantly affected the broader SOE portfolio, according to officials.
Prabowo has repeatedly stressed the urgency of SOE consolidation, pointing to the sheer scale and complexity of Indonesia’s state-run landscape as a key challenge.
In a recent address, he noted that the number of entities linked to SOEs had ballooned far beyond initial estimates, with layers of subsidiaries and affiliates complicating oversight and governance.
“It is impossible to manage hundreds, even more than a thousand entities under one system,” he said during Danantara’s first anniversary on March 11.
The president further pointed out that consolidation under a more integrated and professional management structure was essential to improving returns and accountability.
Prabowo claimed that the effectiveness of such restructuring had already been demonstrated through the establishment of the state asset fund Danantara last year. — The Jakarta Post/ANN
