Is it possible to consolidate more than 1,000 state-owned enterprises and subsidiaries into more than 250 without layoffs and without compromising the main objective?
1,000 Entities to 250: Can It Be Done Without Turmoil?
The plan for a massive consolidation of state-owned enterprises in 2026 raises a big question: How can the structure be streamlined without sacrificing social stability (layoffs)?
In the latest analysis by BRG LM FEB UI, we found that the risks do not disappear, but rather migrate. When social risks are suppressed (without layoffs), governance risks and hidden inefficiencies (shadow duplication) actually increase in Quadrant 1.
To offset this complexity, legal protection for decision-makers is imperative. BRG offers a solution through the 7-Layer Business Judgment Rule (BJR) Framework. This framework transforms BJR from an abstract concept into an objective audit checklist—ensuring that directors dare to make difficult decisions for the sake of efficiency, without the shadow of criminalization.
Read the full details in the January 2026 edition of BRG Updates.
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