Prabowo Hands Over Infrastructure Projects To The Private Sector, Minister Of Public Works: Help Us Disform Faster

Minister of Public Works (PU) Dody Hanggodo. (Photo: Doc. Antara)

JAKARTA - President Prabowo Subianto will hand over most infrastructure development projects to the private sector. This step was taken because of the private experience which was considered more capable.

Minister of Public Works (PU) Dody Hanggodo said he supported Prabowo's direction. According to Dody, similar steps have also been taken by PU from previous years in order to reduce the use of the State Revenue and Expenditure Budget (APBN).

"Actually, we have started, after all, from the years (previously) reducing (the use of the APBN for infrastructure development). Therefore, it is also good (P Prabowo's direction), helping us to transform faster," said Dody at the PU Ministry office, Jakarta, Monday, January 20.

When asked further which infrastructure projects will be submitted to the private sector, Dody hopes that all projects under his auspices can receive private support.

"If I want 100 percent of the private sector, if there are private parties who want it. But, right, not all jobs are calculated, the business economy fits well with investors. There are several things that are not interesting," he said.

Likewise with the sector, Dody does not set which sectors are most encouraged for private funding. The hope is that funding can be optimized in all sectors, starting from road and bridge infrastructure to water resources (SDA).

"If it's abroad, right, everywhere the dam belongs to the private sector, you know. I'm just reviewing it, if we hit a certain law or not. We, right, have the SDA Law, we don't crash government regulations. So, right, whatever governance we do, it must be right. Then it doesn't cause problems," he said.

According to Dody, this step is important for PU to improve itself in the future. In addition, Dody assessed that private involvement is also an effort to reduce the Incremental Capital Output Ratio (ICOR).

"Hopefully, if (it is worked on by the private sector) like that, right, there will be crosschecks between private parties who have money and those who work," he said.

Previously, Prabowo planned to transfer strategic project tenders to private companies. He considered that private companies have more experience and can also be efficient.

Initially, Prabowo said he wanted to give a bigger role to private companies in Indonesia. He also denied that he would stop infrastructure development in Indonesia.

"My brothers and sisters want to give the private sector a bigger role. Some say I am stopping infrastructure projects, not true. I am not stopping, I am changing," Prabowo said at the Indonesian Chamber of Commerce and Industry's Conference, at Ritz-Carlton, Jakarta, Thursday, January 16.

"I will leave most of the infrastructure to the private sector to build. The private sector is more efficient, the private sector is more innovative, the private sector has more experience, brothers and sisters," he continued.

For example, said Prabowo, private companies can enter to work on infrastructure projects such as toll roads, ports and airports. Meanwhile, the government will focus on development that directly touches the people.

"So later on toll roads, ports, airports, I will submit them. Please move all of them," he concluded.