Jakarta – Indonesian President Prabowo Subianto has called out state-owned enterprises (BUMN) for their inefficiency and dependence on government capital injections via State Equity Participation (PMN), arguing that such practices hinder national infrastructure development.

“We have to admit—BUMN often believe that slow work is acceptable. If they waste funds, it’s no problem, because the Finance Minister will provide PMN,” Prabowo stated during the closing ceremony of the 2025 International Conference on Infrastructure (ICI) at Jakarta Convention Center (JCC), Senayan, on Thursday (June 12).

Prabowo stressed that it is time for the government to involve more private sector companies—both domestic and international—in building national infrastructure, citing their modern approach and efficiency.

“I know that in certain sectors, particularly physical construction, private companies—both domestic and foreign—tend to be more modern, more efficient, and capable of delivering results on time while significantly reducing costs,” he remarked.

“We now need efficient partners, partners with cutting-edge technology. I am directing that the private sector take on a bigger role in infrastructure, my friends,” he emphasized.

To attract private investment, Prabowo acknowledged the need for a welcoming and streamlined investment climate.

“For both domestic and foreign private firms to be interested, the government must make their work easier,” he stated.

As part of this initiative, the government has launched Danantara, Indonesia’s sovereign investment institution, to support strategic infrastructure projects.

Prabowo assured foreign investors that they should not hesitate to invest in Indonesia, as the government will actively participate in projects with real financial contributions—not just empty shares.

“If we invite collaboration with private or foreign investors, we must do so with confidence. The government will invest a certain percentage—not by simply asking for shares, but by contributing real, tangible funds. I believe this will provide reassurance to foreign partners,” he concluded.