Prabowo to Replace State Bank Directors Due to Economic Concerns: Defense Minister

The Minister of Defense, Sjafrie Sjamsoeddin, disclosed on Saturday (31/1/2026) that President Prabowo Subianto is planning to overhaul the boards of directors within the State-Owned Banks Association (Himbara). The primary reason for this decision is the government’s apprehension that state banks are showing preferential treatment towards providing credit to large corporations at the expense of small businesses. This bias is believed to impede the nation’s economic independence and diminish the state’s financial gains.

During a state defense gathering in Bogor, Minister Sjafrie emphasized the President’s intention to replace all Himbara directors due to their inclination towards granting credit predominantly to major entrepreneurs rather than smaller-scale ones. The Minister stressed the need for an exhaustive selection process that prioritizes intellectual acumen, practical experience, and patriotic values over an extended history within state-owned enterprises. The government’s objective is to enlist a younger generation of leaders who are both assertive and trustworthy to steer the country through its economic journey.

This decision follows President Prabowo’s prior warnings concerning the efficacy of managing Export Proceeds (DHE) and the profitability of state-owned enterprises in general. This overhaul of Himbara’s leadership structure signifies a critical “clean-up” of Indonesia’s state-owned financial institutions with the intention of revamping their operational efficiency and focus.

In the midst of these changes within Himbara, the government aims to rectify the existing imbalance in credit distribution between large corporations and small businesses. By appointing a new cadre of directors with a fresh perspective and unwavering commitment to national interests, the state hopes to reinvigorate the financial sector and propel economic growth. The selection process for these positions will be uncompromising, ensuring that only individuals with the necessary expertise and dedication to serve the nation’s best interests are chosen to lead these vital financial institutions.

The pressing need to address the current situation within Himbara reflects a broader commitment on the part of the government to prioritize economic sovereignty and equitable access to financial resources for all businesses, regardless of their size. By instating a more dynamic and forward-thinking leadership team, the state is setting the stage for a more robust and inclusive financial landscape that can support the growth and development of businesses across the spectrum.