President Prabowo Subianto has announced a regulatory change that allows expatriates or foreign nationals to serve as leaders of Indonesia’s state-owned enterprises (SOEs).

“I have changed the rules so that expatriates or non-Indonesians can lead our SOEs. I am very enthusiastic about this reform,” Prabowo said during the ‘A Meeting of Minds’ dialogue with Steve Forbes at the Forbes Global CEO Conference 2025, held at the St. Regis Hotel, South Jakarta, on Wednesday, October 15, 2025.

The president emphasized that SOEs should be managed according to international business standards, including better governance, efficiency, and human resource quality. He has also instructed Danantara, Indonesia’s sovereign investment holding, to streamline the number of SOEs.

He directed the investment institution to reduce the number of companies from roughly 1,000 to between 200 and 240, ensuring that each operates under higher management standards.

“We must manage them with stronger governance and better efficiency,” he said.

Prabowo also highlighted that the return on investment from SOEs, currently averaging 1–2 percent, must be significantly increased to match the performance of global corporations.

Meanwhile, Rosan P. Roeslani, CEO of Danantara, said that the organization currently oversees 844 companies, including parent firms and subsidiaries of SOEs. He said the ongoing consolidation process of all SOEs under Danantara follows President Prabowo’s directive and aligns with the mandate of Article 33 of the 1945 Constitution.

“Danantara’s presence truly comes at a very timely moment,” Rosan said during the Danantara Indonesia Town Hall at the Jakarta Convention Center (JCC) on April 28, 2025.

This reform signals a new era of professionalism, transparency, and international collaboration as Indonesia opens its doors to the world's best leadership talent.