Increasing Private Participation in Infrastructure Projects: Prabowo’s Vision

January 16, 2025

Jakarta – President Prabowo Subianto is shaking up the infrastructure landscape in Indonesia, calling on the private sector to play a more significant role in development projects across the nation. Addressing concerns about his administration pausing infrastructure initiatives, President Prabowo set the record straight during the National Conference of the Indonesian Chamber of Commerce and Industry (Kadin) held on Thursday evening.

Prabowo affirmed his commitment to empowering private companies in spearheading the construction of key infrastructure projects, pivoting away from traditional reliance on ministries and state-owned enterprises. Emphasizing the government’s renewed focus on core initiatives centered on public welfare, he highlighted the pivotal role private entities must play in advancing the national development agenda.

Private Sector Empowerment: A New Frontier in Infrastructure Development

President Prabowo underscored the necessity of harnessing the efficiency, innovation, and expertise of private enterprises in the construction of vital infrastructure assets like toll roads, ports, and airports. By entrusting these projects to private firms, Prabowo envisions a boost in economic growth and regional development, driven by the agility and dynamism of the private sector.

Strategic Budget Reallocation: A Paradigm Shift in Government Priorities

In a bold move, Finance Minister Sri Mulyani Indrawati implemented a temporary freeze on all government infrastructure budgets for construction projects at President Prabowo’s directive in November 2024. This decision impacted major undertakings such as dams and bridges, signaling a strategic shift towards prioritizing programs aimed at enhancing food, energy, and water security.

Reimagining Indonesia’s Future: From Infrastructure to Welfare

Looking ahead, Prabowo’s administration is channeling infrastructure funds towards initiatives that directly impact the well-being of Indonesian citizens. With a substantial budget allocation of Rp71 trillion (around US$4.35 billion) dedicated to providing free nutritious meals for 15 million individuals nationwide, coupled with efforts to achieve food self-sufficiency within five years, the government is charting a new course towards holistic development.

In a time of uncertainty and transition, President Prabowo’s vision for Indonesia’s infrastructure sector heralds a paradigm shift towards a more inclusive, resilient, and welfare-centric approach to national development. By fostering collaboration between the public and private sectors, Indonesia is poised to embark on a transformative journey towards sustainable growth and prosperity for all.