Banjarmasin, Feb. 20 -- Indonesia is preparing a sweeping overhaul of state and regional enterprises to tighten governance, shore up public finances and refocus companies on core public interests, a senior official said, underscoring President Prabowo Subianto's push to clean up mismanagement.

Deputy Home Affairs Minister Bima Arya Sugiarto said the president had flagged longstanding mismanagement at state-owned enterprises, or BUMN, including about 5,400 trillion rupiah (US$340 billion) in loans disbursed, much of it to corporations.

"The president has conveyed that there has been mismanagement in BUMN management," Bima said during a parliamentary working visit in Banjarmasin, South Kalimantan, on Friday.

He added that state finances ...