President Prabowo Subianto introduces a new policy allowing expatriates to lead Indonesia’s state-owned enterprises, aiming to raise competitiveness and align operations with international standards.
The President of the Republic of Indonesia, Prabowo Subianto, has announced that foreign nationals may now be allowed to lead state-owned enterprises (Badan Usaha Milik Negara or BUMN), following a regulatory change aimed at aligning Indonesia’s BUMN management with international business standards.
Subianto stated that he has amended the previous regulations, which required state-owned enterprises to be led exclusively by Indonesian citizens. The new policy, thus, allows expatriates to hold top leadership positions within these enterprises.
“I’ve changed the regulations. Now, expatriates, non-Indonesians, can lead our state-owned enterprises. So, I’m very enthusiastic,” Subianto said in a dialogue with Forbes Media Chairman Steve Forbes at the Forbes Global CEO Conference 2025 at the St. Regis, Jakarta, on Wednesday, the 15th of October.
Subianto also asked Danantara, as the recently established sovereign wealth fund of Indonesia, to seek the best talent to lead these BUMNs.
“And I told Danantara management to run it according to international business standards. You can find the best minds, the best talents,” he remarked.
The President also revealed that he has instructed a reduction in the number of BUMNs from around 1,000 to approximately 200, expressing hope that this consolidation will enhance their overall performance and profitability.
“I’m sure that [the consolidation] will [thus] increase [BUMNs’] revenue by 1-or-2% — it must increase,” he continued.
One example of a BUMN that has recently appointed foreign nationals to its board of directors is Garuda Indonesia. The airline has recently named Neil Raymond Mills and Balagopal Kunduvara to key leadership roles.
Mills has been appointed Director of Transformation at Garuda Indonesia. In 2018, Mills served as Chief Operating Officer (COO) of Air Italy. He then served as President and COO of Green Africa Airways from 2019 to 2021. He also served as Chief Procurement Officer and Head of Transformation at Scandinavian Airlines from 2019 to 2025.
Kunduvara, meanwhile, has been appointed Director of Finance and Risk Management at Garuda Indonesia. Before joining the BUMN, from 2021 until this year, Kunduvara served as Divisional Vice President of Financial Services for Singapore Airlines.
However, Danantara Indonesia’s Chief Investment Officer (CIO), Pandu Patria Sjahrir, emphasised that Indonesian citizens, both those residing domestically and those who happen to be diaspora, will nonetheless be prioritised for leadership positions in BUMN. He also noted that while foreign nationals are now eligible to lead BUMN, such appointments would only be considered after thorough efforts to firstly identify qualified Indonesian candidates.
“We are still focused on finding the best Indonesian citizens, especially the diaspora, before considering foreign nationals,” Sjahrir said on Wednesday as well.