President Prabowo Subianto has proposed investigating directors of Indonesian state-owned enterprises (BUMN) dating back 30 years, according to CNBC Indonesia. He also suggested creating a special ad hoc court to handle BUMN-related legal cases, a proposal that has drawn a response from lawmakers.
The move is part of a broader push to improve governance and efficiency in the state sector. CNBC Indonesia reports that Prabowo wants to scrutinize the management of these firms over the past three decades, signaling a tougher stance on accountability. His ad hoc court idea was addressed by Habiburokhman, a politician who noted that existing corruption courts already operate on an ad hoc basis, as reported by Kompas.com.
The efficiency drive appears to be yielding results. DetikFinance reports that Prabowo has highlighted sharp profit increases at several state firms, including an 804% jump at tin producer Timah and a 408% rise at Semen Indonesia. These figures were cited by the president as evidence that reforms are working.
Prabowo has also set a target for BUMN efficiency savings to reach Rp 70 trillion by the end of 2026, according to JPNN.com. The president is reportedly studying India's approach to optimizing state assets, as reported by CNN Indonesia, suggesting he is looking abroad for models to apply at home.
The combination of retroactive audits, potential new court structures, and efficiency targets points to a significant overhaul of how Indonesia manages its state enterprises. The coming months will show whether the investigation proposal gains political traction and how the ad hoc court suggestion is received in parliament.
