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

Central Java Governor Ahmad Luthfi has announced plans to shut down regional-owned enterprises (BUMD) belonging to the Central Java Provincial Government that continue to suffer losses. One of the BUMDs in his sights is PT Pusat Rekreasi dan Promosi Pembangunan (PRPP) Jawa Tengah. Luthfi stated that the function of a BUMD should be to increase revenue for the regional government. “Our loss-making BUMDs have been threatened with closure. Because why? What is the point of maintaining a BUMD if it does not generate returns,” he said during a plenary session at the Central Java DPRD office on Thursday (2/7/2026). He then specifically highlighted the performance of PT PRPP. “For example, PRPP, it keeps losing money. What is the point of having a company that loses money? Just close it, create another company,” he remarked. Nevertheless, Luthfi admitted that closing a BUMD is not straightforward. “The obstacle is the difficult regulations. This is our obligation to ensure that all financial, operational, administrative, and governance aspects of our BUMDs are healthy. For what? To support the revenue of the Central Java Provincial Budget (APBD),” Luthfi said. When interviewed after the plenary session, Luthfi stated that so far only one BUMD owned by the Central Java Provincial Government has been consistently losing money, namely PT PRPP. “Since I came in (as Governor) it has been losing money,” he said when asked how long PT PRPP had been suffering losses. However, when asked whether PT PRPP would be closed, Luthfi mentioned that the provincial government is currently still trying to maintain the company. “We are currently making efforts to restore its health through governance, creating events, and then we will build a sports centre there,” he said.