Danantara targets reducing BUMN from 1,000 to 200 entities
The House said the layered BUMN structure could create about Rp50 trillion in annual inefficiency, with no layoff plan.
Danantara is targeting a simplification of the BUMN structure from more than 1,000 entities, including subsidiaries and sub-subsidiaries, to around 200 more integrated companies. House of Representatives Commission VI member Firnando Hadityo Ganinduto supported the move, saying it could help reorganize state corporations to be more focused, efficient and have clearer business functions. According to a briefing received by Commission VI, the overly layered structure creates operational inefficiency with potential losses of around Rp50 trillion per year. Firnando said the streamlining is intended to strengthen governance and business synergy, not to reduce employment. Danantara also told the House that the consolidation would be carried out without layoffs.