President Prabowo Subianto has ordered senior officials and state-owned enterprise leaders, particularly at Pertamina and PLN, to immediately reduce subsidiary layers and business units to increase efficiency and productivity, officials said.
The instruction was delivered directly by the president during a limited meeting at his residence in Hambalang, Bogor, West Java, on Sunday evening. Several ministers and Pertamina's Chief Executive Simon Aloysius Mantiri attended the meeting, according to Cabinet Secretary Teddy Indra Wijaya, who was present.
The elimination of management layers aims to accelerate decision-making during critical periods and issues, Wijaya said. "The streamlining is intended to make decision-making faster, increase productivity, and improve efficiency across state enterprises," Wijaya said in an official statement confirmed in Jakarta on Monday.
During the meeting, Pertamina's Mantiri reported progress on the government's mandatory biodiesel program launched in July 2026 and briefed the president on the company's infrastructure readiness to implement a mandatory bio-ethanol program.
Earlier, CEO Danantara Rosan Perkasa Roeslani reported that streamlining efforts had been applied to 274 companies by the end of July 2026. He said the reductions were particularly focused on large state enterprises including Pertamina and PLN to speed up decision-making and improve operational efficiency.