Prabowo Opens Opportunity for Private Sector to Manage Unproductive SOEs Assets

JAKARTA - The government wants to increase the utilization of assets owned by State-Owned Enterprises (BUMN) in the form of land, buildings, networks, areas, and various facilities that have not been productive. One way is to involve the private sector in its management.

President Prabowo Subianto said SOEs have very large assets, but some of them have not been able to provide benefits commensurate with their value.

"We will accelerate the optimization of SOEs, our SOEs have very large assets, some of which work well. Some have not produced benefits compared to their value," said Prabowo in a speech delivering the Government's introduction/explanation of the State Budget Bill for 2027 along with the Financial Note, Friday, August 14.

According to Prabowo, state-owned assets such as land, buildings, networks, areas, and various facilities should not be allowed to idle. Moreover, the community needs jobs and the national economy needs investment.

"In addition, assets in the form of land, buildings, networks, areas, and facilities that are not optimally managed by SOEs. It must not be allowed to sleep, while the people need jobs and the economy needs investment," he said.

Therefore, said Prabowo, the government will open up room for cooperation with the private sector to optimize state-owned assets that are not productive. This cooperation will be carried out through an open, competitive, and accountable process.

"The government will facilitate cooperation in the utilization of state-owned assets that are not optimally operated, we will invite the private sector through an open, competitive and accountable process and maintain the strategic ownership of the state. We will open unproductive assets that are worked on by state-owned enterprises, can be worked on by the private sector throughout Indonesia," said Prabowo.

Although management can involve the private sector, Prabowo ensures that ownership of strategic assets remains in the hands of the state. According to him, the scheme allows public assets to be managed more efficiently without eliminating state ownership.

"Ownership remains with the state, the capital obtained is recycled to build new infrastructure," he said.

Prabowo gave an example of the management of an airport that has not been operating at its maximum capacity. The government, he said, can give the opportunity to the private sector to operate the asset if it is able to provide better results.

"Airports that are not optimally operated, we can open opportunities for the private sector to operate it," said Prabowo.

According to Prabowo, private involvement can add value if state assets are managed more efficiently, creatively, and innovatively.

"If they can run more efficiently, more creatively, more innovatively, produce benefits, why not," he said.

In addition to individual asset management, Prabowo also sees the potential for integration between assets and business sectors to increase revenue. One of them is through integration between aviation, hotels, and airports.

"For example, there is now integration between flights, hotels, and airports. If this is operated integratively, it has a potential added value to increase our income. We will pilot it," concluded Prabowo.