Luthfi Threatens to Shut Down Loss-Making Central Java Regional-Owned Enterprise, PT PRPP Targeted

The Governor of Central Java, Ahmad Luthfi, has stated that he intends to close regional-owned enterprises (BUMD) belonging to the Central Java Provincial Government that continue to incur losses. One of the targeted BUMDs is PT Pusat Rekreasi dan Promosi Pembangunan (PRPP) Central Java.

Luthfi stated that the function of a BUMD should be to increase revenue for the local government. “I have threatened our loss-making BUMDs to shut down. Why? What is the point of maintaining a BUMD if it does not produce results,” he said during a plenary session at the Central Java Regional House of Representatives (DPRD) office on Thursday (2/7/2026).

He specifically highlighted the performance of PT PRPP. “Take PRPP, for example; it continues to lose money. What is the point of having a company if it loses money? Just close it and create another company,” he remarked.

Nevertheless, Luthfi acknowledged that closing a BUMD is not a simple task. “The obstacle is the difficult regulations. It is our duty to ensure that all financial, operational, administrative, and governance aspects of our BUMDs are healthy. For what purpose? To support the regional budget (APBD) of Central Java Province,” Luthfi said.

When interviewed after the plenary meeting, Luthfi stated that so far, only one BUMD owned by the Central Java Provincial Government has been experiencing continuous losses, namely PT PRPP. “It has been losing money since I took office,” he said when asked how long PT PRPP had been in deficit.

However, when asked whether PT PRPP would be closed, Luthfi mentioned that the Central Java Provincial Government is currently attempting to sustain the company. “We are making efforts to make it healthy again through better governance, organising events, and constructing a sports centre there,” he added.