Prabowo Hands Over Infrastructure Projects To The Private Sector, What Will Happen To BUMN Karya?

Minister of Public Works Dody Hanggodo (Photo: Theresia Agatha/VOI)

JAKARTA - Most infrastructure projects during the Presiden Prabowo Subianto administration will be handed over to the private sector.

Even so, the Minister of Public Works (PU) Dody Hanggodo guarantees that this does not make State-Owned Enterprises (BUMN) engaged in construction or what is commonly called BUMN Karya eroded.

"It's impossible," said Dody when met at the Jatigede Dam, Sumedang, West Java, quoted on Tuesday, January 21.

He emphasized that infrastructure projects are also very open to being worked on by BUMN Karya, as long as they are able to fund.

"If he (BUMN Karya) has money, just come along. Right, that's okay," he said.

According to Dody, the infrastructure projects that are prioritized to be offered to the private sector are toll roads and dams.

"The most important thing now is the toll road. In the future, I'm still thinking about dams, because abroad, right, the dam is (worked) private," he said.

Previously, the discourse on handing over most infrastructure projects to the private sector was conveyed by Prabowo at the National Conference (Munas) for the Consolidation of the Indonesian Chamber of Commerce and Industry in Jakarta, Thursday, January 16.

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," said Prabowo.

"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.