President Prabowo Subianto has spotlighted the urgent need to boost infrastructure development in Indonesia by increasing private sector involvement. Speaking at the 2025 Infrastructure Conference in Jakarta, Prabowo criticized state-owned enterprises (SOEs) for relying too heavily on government capital injections, which he believes slows progress.
He emphasized that private companies, both domestic and foreign, offer greater efficiency and modern technology essential for timely project completion. According to Prabowo, expanding private sector participation will drive Indonesia’s infrastructure forward with better results and cost savings.
State-Owned Enterprises Under Fire for Budget Inefficiency
Prabowo sharply criticized SOEs for their dependency on Penyertaan Modal Negara (PMN), or state capital injections. “We must admit, many SOEs often feel it’s fine to work slowly. If they’re wasteful, that’s okay, because the Minister of Finance will provide a capital injection. What is this PMN supposed to be?” He said, as reported by Metrotvnews.com.
This attitude, he argues, fosters complacency and inefficiency in managing infrastructure projects. Unlike Indonesia’s SOEs, state-owned companies abroad operate without such financial support from their governments. Prabowo’s comparison highlights the urgent need to reform domestic SOEs to become more accountable and competitive.
Private Sector Key to Infrastructure Development in Indonesia
Prabowo made it clear that the private sector must play a bigger role in infrastructure development in Indonesia. He pointed out that private companies often bring more advanced technology, which improves project efficiency. “I also know that in certain fields, especially physical construction, the private sector—including international firms—is often more modern, more efficient, and capable of delivering timely results while saving significant budget,” he said.
These qualities enable private firms to complete infrastructure projects on time and within budget, setting a strong example for public enterprises. Prabowo invited both local and foreign private companies to actively engage in national infrastructure initiatives.
Prabowo Pledges Better Investment Conditions
To encourage private sector participation, Prabowo promised that the government would create a more conducive investment climate. He highlighted efforts to simplify permits, facilitate project implementation, and maintain stability. “I welcome the centers or offices that facilitate all projects—assisting, securing, and safeguarding them—so that these grand development plans are not disrupted,” Prabowo said.
Additionally, he explained how the government’s early-year budget efficiency created sufficient fiscal space to support investments alongside private partners. This cooperative approach reassures investors that their projects will receive necessary backing and minimal bureaucratic hurdles.
Read More: President Prabowo Vows to Improve Business Climate for Investors
Collaborative Efforts for Infrastructure Growth
Prabowo stressed the importance of public-private partnerships in achieving infrastructure goals. He assured that the government will actively co-invest. “When we invite cooperation with private or foreign partners, we are confident. The government will participate with a real percentage, not by asking for free shares, but by contributing actual funds, real money,” he said as cited by Matatelinga.com
This commitment demonstrates a willingness to share both risks and rewards. By fostering collaboration between the state and private entities, Indonesia aims to accelerate infrastructure development, drive economic growth, and enhance its competitiveness on the global stage.
Read More: President Prabowo Invites Foreign Experts to Enhance Indonesia’s Healthcare
Toward a Modern and Efficient Infrastructure Future
Prabowo’s critique of SOEs and his call for increased private sector involvement signal a strategic shift in Indonesia’s infrastructure policy. This new approach promises to improve efficiency, reduce project delays, and optimize budget spending.
If successfully implemented, it could attract more foreign investment and strengthen Indonesia’s position as a regional economic leader. Ultimately, Prabowo envisions infrastructure development in Indonesia as a collaborative effort that benefits both the public and private sectors, paving the way for sustainable national progress.
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Source: tirto.id, metrotvnews.com, matatelinga.com
Image: ANTARA/Handout – Press Bureau of the Presidential Secretariat
