Prabowo Accuses State Firms of Faking Profits Despite Losses

TheIndonesia.co - President Prabowo Subianto has sharply criticised the performance of several state-owned enterprises (BUMN), accusing some of them of being unproductive and continuing to make losses despite reporting profits in their financial statements.

Prabowo made the remarks during the 2026 Annual Session of the People's Consultative Assembly (MPR) and a joint session of the MPR, House of Representatives (DPR) and Regional Representatives Council (DPD) at the Parliament Complex in Senayan, Jakarta, on Friday (14 August 2026).

The president said he was angered by the condition of several SOEs, which he claimed did not reflect their actual performance.

"If I reported everything, I'm afraid our people would get angry. Too many SOEs are unproductive, keep making losses, but report profits. They're just making up the reports," Prabowo said.

He said the situation reflected serious problems in the governance of state-owned companies. Some SOEs, he argued, were operating without sufficient accountability to the state.

"These SOEs sometimes operate as they please, without being accountable to the nation and the state. The government is not taken seriously. I don't understand why this is happening," he said.

Prabowo considers investigation into three decades of SOE management

Prabowo also raised the possibility of investigating the management of SOEs over the past three decades.

He said the government could consider establishing a special ad hoc court to investigate former officials and directors of state-owned companies suspected of wrongdoing.

"Perhaps we need to establish a special ad hoc court to investigate the boards and directors from the past 30 years," Prabowo said.

At the same time, he said those who acknowledged their mistakes could be given an opportunity to receive an amnesty.

Prabowo said the possibility of granting amnesty could be discussed with lawmakers.

"But I will also face the assembly, the DPR. If necessary, we can give an opportunity for amnesty to those who repent, realise [their mistakes] and admit them. I will leave this to the people's representatives to decide," he said.

Foreign partnerships also under scrutiny

Prabowo also highlighted partnerships between SOEs and foreign companies.

He said the government was working to reform such arrangements and eliminate practices that it considered unhealthy.

"We have a problem. Many foreign companies are partnering with our SOEs, so we have to eliminate these games," he said.

The president stressed that SOE reform was an important part of the government's efforts to improve the governance of state-owned companies.

He said state-owned firms should deliver greater benefits to the country and the public, rather than becoming a source of problems.

As part of the restructuring process, Prabowo said the government had already shut down hundreds of SOEs.

He described the move as an effort to streamline and reform state-owned companies that were no longer considered productive.

"Today, I am proud to report that we have closed down 290 SOEs," Prabowo said.