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Jokowi to infrastructure SOEs: Make space for private companies
According to Kadin, many small construction companies have had to close their business because they were not given more opportunities.
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President Joko “Jokowi” Widodo promises to build more infrastructure projects in Papua and West Papua during his visit to the provinces on Oct. 28. (Antara/Setpres-Kris)
P
resident Joko “Jokowi” Widodo has called on state-owned enterprises (SOEs) to involve private companies in the country’s massive infrastructure development initiative.
“I remind state-owned enterprises [SOEs] not to take them all; please leave space for private companies, including small businesses, to be involved in infrastructure projects,” Jokowi said in his opening speech for Indonesia Infrastructure Week in Jakarta International Expo, North Jakarta, on Wednesday.
The President’s remark received a rousing round of applause from the audience, which comprised company executives from the construction sector.
“Please give the private sector priority. If the private sector does not want to take a project, then let the SOEs do it, especially for projects with a lower internal rate of return [IRR]. However, if SOEs don’t want to do the project, the government would do it,” he said.
Jokowi said he had received many complaints from small contractors who felt they were being left out of the country's massive infrastructure development push, which is still dominated by SOEs.
“Many complaints came from local contractors in the provinces, regencies, and cities. They questioned why most of the infrastructure projects are being taken by SOEs,” the President said.
He warned that in the next five years, the private sector should play a bigger role in infrastructure development.
