President Prabowo Subianto Reaffirms Commitment to Infrastructure Growth, shifts Focus to Private Sector
President Prabowo Subianto has firmly dismissed rumors of halting infrastructure projects, clarifying that these initiatives will instead be handed over to private companies for execution. Speaking at the National Consolidation Meeting of the Indonesian Chamber of commerce and Industry (Kadin) at The Ritz-Carlton, Mega Kuningan, Jakarta, on Thursday, January 16, 2025, Prabowo emphasized the efficiency and innovation of the private sector in handling such projects.
“It is indeed not true; I am not stopping infrastructure projects.Most of the infrastructure will be handed over to private companies to develop,” Prabowo stated. He highlighted that toll roads, ports, and airports will be managed by private entities, leveraging their expertise and experience.
Infrastructure Projects Under Prabowo’s Administration
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A significant portion of the infrastructure projects under Prabowo’s administration are carryovers from the previous presidency. In May 2024, former President Joko Widodo handed over at least 14 National Strategic Projects (PSN) and two new programs to Prabowo. These include the development of Pantai Indah kapuk (PIK) Tropical Concept,the Wiraraja Industrial Area in Pulau Galang,and the North Hub Development Project in East Kalimantan offshore.
according to Susiwijono Moegiarso,Acting Deputy for Regional Development and Spatial Planning at the Coordinating Ministry for Economic Affairs,Prabowo’s administration is overseeing 218 infrastructure projects and 15 work programs. This includes 44 existing PSN, five under transaction, and 46 projects still in preparation stages.
| Key Infrastructure Projects | location |
|———————————-|————–|
| Pantai indah Kapuk (PIK) Tropical Concept | Jakarta |
| Wiraraja Industrial Area | Pulau Galang |
| North Hub Development Project | East Kalimantan |
| Neo Energy Parimo industrial Estate | Central Sulawesi |
| Patimban Industrial Estate | Subang |
Ongoing Projects and New Initiatives
Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that President Prabowo has directed the government to prioritize completing PSN projects scheduled for the 2024–2025 period. Of these, 18 projects are set to be completed in 2024, with 30 more expected to finish in 2025.Prabowo has also expressed interest in reviewing the Giant Sea Wall (GSW) project, a massive initiative planned to extend from Jakarta to Cirebon. The GSW aims to mitigate coastal flooding and is highly likely to be added to the PSN list.
Separately, Minister of Public Works Dody Hanggodo announced plans to propose additional infrastructure projects for inclusion in the PSN list. These proposals include toll roads, dams, sports stadiums, and hospitals.
“we will present several projects that we consider suitable for continuation under this administration. However, the final decision will rest with President Prabowo, who may have different priorities,” Dody said on Friday, january 10, 2025.
A Vision for Private Sector Involvement
Prabowo’s vision to involve the private sector more extensively marks a strategic shift in Indonesia’s infrastructure development approach. By leveraging private companies’ efficiency and innovation, the administration aims to accelerate project completion and ensure sustainable growth.
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President Prabowo’s commitment to infrastructure development, coupled with his focus on private sector collaboration, underscores a transformative approach to Indonesia’s economic and infrastructural growth.
President Prabowo’s Infrastructure Vision: A Shift to Private Sector Collaboration
In a recent declaration, President Prabowo Subianto reaffirmed his commitment to Indonesia’s infrastructure growth while emphasizing a strategic shift toward greater private sector involvement. This move aims to leverage the efficiency, innovation, and expertise of private companies to accelerate project completion and ensure sustainable economic development. To delve deeper into this transformative approach, we sat down with Dr.Arif Wijaya, an infrastructure development expert and senior economist at the Jakarta Institute of Economic Studies, to discuss the implications of this policy shift and its potential impact on Indonesia’s future.
Debunking rumors: Infrastructure Projects Continue Under Private Sector Leadership
Senior Editor: Dr. Wijaya, President Prabowo recently dismissed rumors of halting infrastructure projects, clarifying that these initiatives will instead be handed over to private companies. What are your thoughts on this approach?
Dr.Arif Wijaya: It’s a significant and strategic move. The private sector has long been recognized for its efficiency and innovation in handling large-scale projects. By shifting the responsibility to private entities, the government can focus on regulatory oversight while ensuring that projects are completed on time and within budget. This approach also aligns with global trends where public-private partnerships (PPPs) have proven triumphant in driving infrastructure development.
Senior Editor: prabowo specifically mentioned toll roads, ports, and airports as projects that will be managed by private companies. How do you see this impacting Indonesia’s infrastructure landscape?
Dr. Arif Wijaya: These are critical sectors that directly influence economic growth. Toll roads improve connectivity, ports enhance trade efficiency, and airports boost tourism and business travel. Private companies bring not only capital but also advanced technology and management practices, which can significantly improve the quality and sustainability of these projects. Though, it’s crucial to ensure that these partnerships are clear and that the public interest remains a priority.
Key Infrastructure Projects Under Prabowo’s Administration
Senior Editor: A significant portion of the current infrastructure projects are carryovers from the previous administration. Can you highlight some of the key projects and their potential impact?
Dr. Arif Wijaya: Certainly.Projects like the Pantai Indah Kapuk (PIK) tropical Concept in Jakarta and the North Hub Development Project in East Kalimantan are pivotal. The PIK project, as a notable example, is expected to transform Jakarta’s northern region into a sustainable urban hub, while the North Hub Development Project aims to bolster Indonesia’s energy and industrial sectors. These projects, along with others like the Wiraraja Industrial Area and the Neo Energy Parimo Industrial Estate, are designed to create jobs, attract investment, and stimulate regional growth.
Senior Editor: how do you see these projects contributing to Indonesia’s long-term economic goals?
Dr. Arif Wijaya: These projects are not just about physical infrastructure; they’re about building the foundation for a more resilient and competitive economy. By developing industrial estates and energy hubs, Indonesia can reduce its reliance on imports, increase exports, and create a more balanced economic structure. Additionally, these projects will help bridge the development gap between Java and other regions, promoting more equitable growth across the archipelago.
Ongoing Projects and New Initiatives
Senior Editor: President Prabowo has directed the government to prioritize completing National Strategic Projects (PSN) scheduled for 2024–2025. What are your thoughts on this directive?
Dr.Arif Wijaya: It’s a pragmatic approach. Completing these projects on time is essential to maintaining investor confidence and ensuring that the benefits of infrastructure development are realized sooner rather than later. The focus on projects like the Giant Sea Wall (GSW) is particularly noteworthy, as it addresses a critical issue—coastal flooding—while also creating opportunities for urban development and environmental sustainability.
Senior Editor: Minister of Public Works Dody Hanggodo has proposed additional projects for inclusion in the PSN list, including toll roads, dams, and hospitals. How do you see these additions shaping indonesia’s infrastructure priorities?
Dr. Arif Wijaya: These proposals reflect a holistic approach to infrastructure development.Toll roads and dams are essential for improving connectivity and water management, while hospitals address the urgent need for better healthcare infrastructure. By diversifying the PSN list, the government is ensuring that infrastructure development supports not just economic growth but also social well-being.
A vision for Private Sector Involvement
Senior Editor: Prabowo’s vision to involve the private sector more extensively marks a significant shift in Indonesia’s infrastructure development approach. What challenges do you foresee in implementing this strategy?
Dr. Arif Wijaya: While the potential benefits are immense, ther are challenges that need to be addressed. Ensuring fair competition,preventing monopolies,and maintaining transparency in project bidding and execution are critical. Additionally, the government must establish robust regulatory frameworks to protect public interests and ensure that private companies adhere to environmental and social standards.
Senior Editor: how do you see this shift impacting Indonesia’s economic growth in the coming years?
dr. Arif Wijaya: If implemented effectively, this strategy could be a game-changer for Indonesia. By leveraging private sector expertise and resources, the country can accelerate infrastructure development, attract more foreign investment, and create a more dynamic and resilient economy.Though, success will depend on the government’s ability to manage these partnerships effectively and ensure that the benefits of growth are shared equitably across society.
Senior editor: Thank you, Dr. Wijaya, for your insights. it’s clear that President Prabowo’s infrastructure vision has the potential to transform Indonesia’s economic landscape, and your expertise has shed valuable light on the opportunities and challenges ahead.
dr. Arif Wijaya: Thank you. It’s an exciting time for Indonesia, and I look forward to seeing how these initiatives unfold in the years to come.
