The Prospect of State-Owned Hotel Privatization in the New Regime

Indonesian presidential candidate Prabowo Subianto advocates for rationalizing and privatizing state-owned enterprises (SOEs) lacking strategic significance. According to Prabowo, Indonesia no longer requires state-owned hotels, suggesting that the private sector should take the lead in this sector. "In the 1950s, the government had to play the role of a pioneer, but now, in my opinion, we should let the private sector become increasingly dominant if possible," he stated on Mar 5.

While still serving as the Defense Minister, Prabowo expressed openness to all parties interested in conducting business and investing in Indonesia. He emphasized the government's role in formulating regulations, overseeing, and making strategic decisions in strategic sectors. "If there are no clear strategic reasons, perhaps we really need a rationalization and privatization program for SOEs," he added.

Erick Thohir, the State-Owned Enterprises Minister, supports Prabowo's stance on rationalizing and privatizing SOEs. Erick claimed to have reduced the number of SOEs from 108 to 41 companies. Regarding state-owned hotels, Erick mentioned that each state-owned company used to have its own hotel. However, these hotels have been consolidated into a single entity comprising 122 hotels.