President Prabowo Subianto Emphasizes Private Sector Role in Infrastructure Development

Jakarta – President Prabowo Subianto has made a strong push to engage the private sector in Indonesia’s infrastructure development, countering claims that his administration is halting major projects.

Inviting Greater Private Sector Involvement

“I want to give a bigger role to the private sector,” President Prabowo stated during the National Conference of the Indonesian Chamber of Commerce and Industry (Kadin). “Some say that I stopped the infrastructure projects, but that is not true. I did not stop them.”

The President highlighted the intention to delegate more infrastructure projects, such as toll roads, ports, and airports, to private companies rather than assigning them to ministries or state-owned enterprises.

Focusing on Core Infrastructure Projects

Prabowo emphasized that the government will prioritize core infrastructure projects critical for public safety. “I have said many times that the government will focus on important and core issues, those that concern the protection of the people. But what the private sector can do, the private sector must develop; the private sector must do everything (to support the government),” he added.

Efficiency and Innovation of Private Sector

President Prabowo believes private companies bring efficiency, innovation, and experience to infrastructure development. “Private companies are more efficient, innovative, and experienced in building infrastructure,” he explained, “so they are expected to have a positive impact on economic growth in the regions.”

Infrastructure Budget Freeze and Reallocation

In November 2024, Finance Minister Sri Mulyani Indrawati followed President Prabowo’s directive to temporarily freeze all infrastructure budgets for government construction projects. This freeze affected major projects like dams and bridges.

Despite a Rp15-trillion (US$947.7 million) budget allocation for 2025, uncertainty surrounds the Nusantara capital city project.

New Priorities in Infrastructure Spending

The reallocated infrastructure budget will support food, energy, and water security—priority initiatives under President Prabowo’s administration.

In 2025, a planned Rp71 trillion (around US$4.35 billion) program will provide free nutritious meals to at least 15 million beneficiaries nationwide, aiming for food self-sufficiency within the next five years.

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Conclusion: Building a Stronger Future

President Prabowo Subianto’s strategy to involve the private sector in infrastructure projects aims to harness financial and technological capabilities to drive economic growth and public welfare. By focusing on key infrastructure for public protection and redirecting budgets to essential services, his government aims to build a resilient and self-sufficient nation.

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