The government has so far closed 290 of 1,074 SOEs, including subsidiaries and sub-subsidiaries, and aims to reduce the number to no more than 300 by the end of the year, retaining only companies deemed productive and capable of creating value.

The restructuring is already saving the state around Rp 50 trillion (US$2.8 billion) in overhead costs, including directors’ and commissioners’ salaries, office and vehicle rentals, and official travel, according to Prabowo, with savings targeted to reach Rp 70 trillion by year-end.

“Sometimes these SOEs operate as they please and are not accountable to the nation and state. The government is not taken seriously. I do not understand how this can happen,” Prabowo said during his State of the Nation address on Friday.

“Too many SOEs are unproductive and continue to make losses while reporting profits. They simply make up the figures. We have run into problems because many foreign companies work with our SOEs. We have to put an end to these games,” the President added.

In order to solve the problem, Prabowo floated an idea to establish ad hoc court to investigate SOE directors over the past three decades, saying unproductive, loss-making state companies had disguised their financial woes by reporting profits.

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At the same time, he also asked lawmakers to consider a “special” amnesty for executives who would acknowledge wrongdoing and repent.

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