President Prabowo Subianto has allowed foreign nationals to lead State-Owned Enterprises (SOEs) and has officially transformed the Ministry of SOEs into the SOE Regulatory Body (BP BUMN). This revolutionary policy was announced while speaking at the Forbes Global CEO Conference 2025 in Jakarta, Wednesday (15/10/2025), coinciding with the implementation of the latest SOE Law which he had signed on October 6, 2025.
"I have changed the regulations. Now expatriates, non-Indonesians, can lead our SOEs. So I am very enthusiastic about this," Prabowo said in a dialogue with Forbes Chairman Steve Forbes. This change enables the application of international business standards in the management of state-owned companies, with the aim of improving performance, which so far has only achieved a return rate of 1-2 percent.
Institutional Transformation and Streamlining of State-Owned Enterprises
Through Law Number 16 of 2025, Prabowo officially transformed the Ministry of State-Owned Enterprises (BUMN) into the State-Owned Enterprises Agency (BP BUMN), which reports directly to the President. Dony Oskaria was inaugurated as Head of BP BUMN on October 8, 2025, with Aminuddin Ma'ruf and Tedi Bharata as deputies. Dony also holds the concurrent position of Chief Operating Officer at BPI Danantara, an investment management agency with a minimum capital of Rp 1,000 trillion.
The President also ordered a drastic reduction in the number of state-owned enterprises from around 1,000 entities to only 200–240 companies. "I have instructed the CEO of Danantara to rationalize all of this. Reduce the number of SOEs from around 1,000 to a more rational figure, maybe around 200, 230, or 240," Prabowo revealed.
Direct Implementation: Garuda Indonesia Appoints Foreign Director
This new policy was implemented immediately on the same day. PT Garuda Indonesia, in an Extraordinary General Meeting of Shareholders (RUPSLB), appointed two foreign-national directors: Balagopal Kunduvara as Director of Finance and Risk Management, and Neil Raymond Mills as Director of Transformation. Kunduvara is a former executive of Singapore Airlines with 25 years of experience in the aviation industry.
CEO Danantara Rosan Roeslani explained this step as a serious effort to restore the health of the national airline. "Garuda has tried to recover many times before, its capital has already been injected, but the results have not been optimal. Now we don’t want to do things halfway because it is most important from the management side to have good goals and plans," said Rosan.
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