Indonesian Political, Business & Finance News

Prabowo Opens Path for Private Sector to Manage State-Owned Airports

| Source: CNBC Translated from Indonesian | Infrastructure
Prabowo Opens Path for Private Sector to Manage State-Owned Airports
Image: CNBC

President Prabowo Subianto has opened up opportunities for the private sector to operate state-owned infrastructure assets, including airports deemed to have suboptimal management. Prabowo stated that the government needs to learn from other countries, one of which is India, which runs a public asset monetisation policy through the National Monetization Pipeline. He made the remarks during a speech on the Submission of the 2027 State Budget Bill and Financial Note at the Nusantara Building, DPR RI, Jakarta, on Friday (14/8/2026). “We must learn and dare to learn from other countries. India has undertaken what they call the National Monetization Pipeline. The private sector is given room to operate public assets that have been built,” said Prabowo. According to Prabowo, providing space for the private sector does not mean the state loses ownership of the assets. Ownership remains in the hands of the state, while the capital obtained from the private sector can be reused for new infrastructure development. “Ownership remains with the state. The capital obtained is rotated back to build new infrastructure,” he stated. Prabowo gave the example of airport assets that are operationally not yet optimal, where the government can open opportunities for the private sector to operate these airports with the hope that management becomes more efficient and productive. “For example, if there is an airport that is not being operated optimally, we can open up opportunities for the private sector to operate it,” said Prabowo. He stressed that airport ownership remains in the hands of the state. However, if the private sector can manage it more efficiently, creatively, and innovatively to provide greater benefits, such a step is deemed worthy of consideration. Prabowo also highlighted the potential for integration between airline companies, hotels, and airports. According to him, the integration of these various sectors can create added value while increasing revenue.

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