Jakarta (ANTARA) – The Danantara Investment Management Agency (BPI) has confirmed that it will not lay off any employees during the ongoing streamlining of state-owned enterprises.Danantara Chief Operating Officer Dony Oskaria said in a statement on Thursday that all employees will be retained and will be part of the consolidated company.The state-owned enterprise (SOE) restructuring effort is being undertaken to improve efficiency and corporate performance.The government is currently streamlining the number of SOEs from 1,077 to around 200–300, with a target completion date of 2026.According to Oskaria, President Prabowo Subianto has directed that the SOE transformation must not harm workers.”Certainly, the President does not want any layoffs,” he said.He explained that the streamlining is being carried out to address the high number of inefficient and loss-making companies. Approximately 52 percent of the 1,077 entities are recording losses, with accumulated losses reaching Rp20 trillion (approximately US$1.12 billion).Danantara chose to retain all employees after calculating the financial impact of the consolidation process.According to Oskaria, the savings generated from the consolidation process far outweighed the costs of retaining the workforce.”So I thought, 'Well, I will just keep all the employees, I am still making savings,'” he said.Therefore, he emphasized that there would be no employee reductions during the restructuring process. All workers will be transferred to the merged companies.”We will not be laying off any employees,” Oskaria said. “They will become part of the consolidated companies. As we said, we do not want to mistreat employees. It is not their fault.”In addition to ensuring zero layoffs, Oskaria revealed that the streamlining program has the potential to generate direct savings of up to Rp50 trillion (US$2.79 billion) per year.According to him, layered transactions between parent companies, subsidiaries, and subordinate entities have historically led to significant inefficiencies.”We have been accustomed to layering transactions between parent companies and subsidiaries, grandchildren, and great-grandchildren,” Oskaria said. “This has caused inefficiencies of approximately Rp30 trillion (US$1.68 billion).”One immediate step taken is the merger of PT Pertamina Patra Niaga, Pertamina International Refinery, and Pertamina International Shipping, which operate within the same business chain.Through this merger, Danantara has successfully reduced various internal transaction costs and potential accounting losses.”For example, we are merging now, and we have already saved approximately US$600–700 million from this merger,” he said.A similar practice is also found within the Telkom Group, where several fiber optic network development projects must pass through several layers of companies before being executed. This process incurs additional costs.Oskaria stated that if the entire process is completed and the number of companies drops to around 254 entities, Danantara will achieve immediate savings of approximately Rp50 trillion (US$2.79 billion) without waiting for increased corporate profitability.