PT Perusahaan Listrik Negara has entered the execution phase of a corporate streamlining program that will reduce its group of business entities from 44 to 23 by 2028. The Indonesian state utility’s restructuring is part of a broader government push, led by state holding company Danantara, to simplify layers of subsidiaries across major state-owned enterprises.
Key Facts At A Glance
- PLN’s streamlining program officially launched May 12, 2026
- Execution phase began in the second and third quarters of 2026
- Target is to reduce PLN Group’s business entities from 44 to 23 by 2028
- First consolidation merges PLN Electricity Services with PLN Nusa Daya
- PLN Indonesia Power Services, PLN Nusantara Power Services, and PLN Suku Cadang are being combined into a single entity
- Program also includes divestment of non-strategic entities and liquidation of dormant companies
- Danantara has closed 274 state-owned enterprises and related entities as of end of July 2026, with a government-wide target of roughly 350 remaining companies by year-end
- President Prabowo Subianto has directed both PLN and Pertamina to reduce corporate layers
PT Perusahaan Listrik Negara has begun executing a plan to cut the number of entities within its corporate group nearly in half, as Indonesia’s government pushes major state-owned enterprises to simplify their structures. The program was officially launched on May 12, 2026, and entered its execution phase during the second and third quarters of the year, according to a company statement.
Under the plan, PLN intends to consolidate entities that operate in overlapping business areas. The first step merges PLN Electricity Services with PLN Nusa Daya. A second consolidation will combine PLN Indonesia Power Services, PLN Nusantara Power Services, and PLN Suku Cadang into a single entity. Beyond mergers, the utility will divest non-strategic entities and liquidate dormant companies as part of the broader streamlining effort.
Part Of A Wider State Enterprise Overhaul
The restructuring is one piece of a government-wide effort to reduce corporate complexity across Indonesia’s state-owned sector. Danantara Indonesia chief executive Rosan Roeslani said President Prabowo Subianto had directed major state enterprises, including PLN and PT Pertamina, to reduce their corporate layers, a message Roeslani delivered at the State Palace in Jakarta on August 6. Danantara had closed 274 state-owned enterprises and related entities by the end of July 2026, with the government aiming to bring the total number of remaining state companies to roughly 350 by year-end.
Earlier reporting from June 2026 indicated the reduction from 44 to 23 entities carries a completion target of 2028, and that the effort is being coordinated between Indonesia’s state enterprise management body and Danantara’s leadership alongside PLN’s board of directors. That reporting also noted the consolidation push has coincided with PLN’s efforts to strengthen transmission infrastructure and grid reliability, including projects tied to its 2025-2034 electricity supply business plan.
Publicly available reporting on the specific execution steps taken in August remains limited to the entities named in PLN’s own statement. Details on the financial cost of the restructuring, or a specific completion date beyond the 2028 target, have not been disclosed in available sources.