Indonesia speeds up SOE overhaul to attract investment

Indonesia is pushing ahead with an overhaul of its state-owned enterprises, stepping up efforts to streamline operations and draw investor interest, a senior official said on Tuesday.

Prabowo Subianto. Foto: Instagra/presidenrepublikindonesia

JAKARTA — Dony Oskaria, who oversees state firms, said the plan gained momentum after a meeting with President Prabowo Subianto at the presidential palace, where officials agreed to press ahead with consolidation across several sectors.

“This year we must complete the entire restructuring of state-owned enterprises,” Dony told reporters. “The focus is on fixing the fundamentals, not just ticking boxes.”

The government has started folding a number of asset management firms into a single, larger entity. In logistics, it is preparing to combine 15 companies into one national operator.

“We will announce the merger of 15 companies into one national logistics company,” Dony said.

The push reaches into transport. Plans are in place to electrify rail lines linking Jakarta with Rangkas, Cikampek and Sukabumi, part of an effort to lift service standards and steady the sector’s finances.

“Railways must become financially sound,” he said.

Officials are also closing in on a plan to deal with debt tied to the Jakarta–Bandung high-speed railway, known as Whoosh, after talks with Finance Minister Purbaya Yudhi Sadewa.

“There is already an agreement. It’s done,” Dony said.

Global pressures have yet to knock the sector off course, he added. Passenger traffic in aviation has eased on some routes, but the dip has not spread widely.