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Government Seeks Greater Private Sector Role in Infrastructure Development

Celvin Moniaga Sipahutar
January 16, 2025 | 11:31 pm
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The light rapid transit (LRT) train passes by the Rasuna Said street in Jakarta on April 23, 2024. (Antara Photo/Indrianto Eko Suwarso)
The light rapid transit (LRT) train passes by the Rasuna Said street in Jakarta on April 23, 2024. (Antara Photo/Indrianto Eko Suwarso)

Jakarta. President Prabowo Subianto on Thursday called for increased private sector involvement in Indonesia’s infrastructure development, signaling a shift from the state-owned enterprises' dominance under the previous administration of President Joko Widodo.

Prabowo said his administration has no intention of slowing the pace of development but aims to expand the private sector's role in managing infrastructure projects.

“I want to give the private sector a bigger role. Some have said I’m halting infrastructure projects, but that’s not true. I’m simply adjusting the policy to allow the private sector to take the lead in most projects,” Prabowo said during a gathering with the Indonesian Chamber of Commerce and Industry (Kadin) in Jakarta.

He highlighted the private sector's ability to bring innovation and efficiency to large-scale projects, particularly those with strict timelines.

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“I’ve said many times that the government will focus only on vital projects directly related to public welfare and livelihoods. Everything else that can be managed by the private sector will be entrusted to them,” he added.

Under President Joko Widodo, Indonesia’s state budget allocated significant funds to infrastructure development, reaching a record Rp 423.4 trillion ($25.9 billion) in 2024.

For 2025, the infrastructure budget stands at Rp 400 trillion.

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