President Prabowo Subianto’s decision to hand over major infrastructure projects to the private sector is opening a new chapter for Indonesia’s national development ambitions. This policy is officially outlined in Presidential Instruction No. 1 of 2025, aimed at improving the efficiency of government spending and closing gaps that have long led to budget inefficiencies. Among the most vulnerable areas has been large-scale, state-managed infrastructure projects.
President Prabowo explained that many infrastructure projects in the past had struggled to deliver maximum impact due to weaknesses in planning and execution. Budget leaks and rent-seeking practices too often resulted in projects whose benefits fell short of their costs. By involving the private sector, the government hopes to boost transparency, improve efficiency, and fast-track key developments.
This shift in approach has reignited public discussion around two long-awaited megaprojects: the Sunda Strait Bridge (JSS) and the Malacca Strait Bridge (JSM). From the beginning, both projects were designed to be private-sector led, given their massive investment requirements and technical complexity. Under the new policy, the chances of bringing these projects to life are looking brighter than ever.
A recent meeting between President Prabowo and Malaysian Prime Minister Anwar Ibrahim has added to the optimism, as both leaders discussed boosting cross-border infrastructure partnerships. The Malacca Strait Bridge, which would directly connect Sumatra with Peninsular Malaysia, was one of the topics on the table. Both nations agreed to strengthen economic ties and regional connectivity.
The proposed Malacca Strait Bridge holds enormous strategic value. It would not only physically link Indonesia and Malaysia but also serve as a key logistics corridor for ASEAN, one of the busiest shipping regions in the world. Previous challenges, such as political hurdles and financing, may now be resolved more flexibly through private sector involvement.
Likewise, the Sunda Strait Bridge — which was once shelved after initial plans under former President Susilo Bambang Yudhoyono — is making its way back into national conversations. Under Prabowo’s leadership, the opportunity to revive this landmark project is within reach, thanks to the new policy favoring private investment in large infrastructure ventures.
The government believes that the private sector brings stronger financial capacity, agility, and risk management to the table, compared to the limitations of state budgets. Furthermore, encouraging private sector participation is expected to spark healthy competition among global investors eager to be part of Indonesia’s growth story. Both bridge projects, located along the world’s vital maritime shipping lanes, are especially attractive.
The Presidential Instruction emphasizes that while private investors will take the lead, the government will remain actively involved as regulator, supervisor, and provider of incentives. Public-Private Partnerships (PPP) will serve as the main vehicle for realizing these megaprojects.
In addition to inviting local investors, the government is opening the door to international consortiums. Several infrastructure firms from Japan, South Korea, China, and the Middle East have already shown interest in getting involved.
To move things forward, the Ministry of Public Works and Housing, alongside the Ministry of Transportation, is expected to review and update the original designs of both bridges, incorporating the latest technologies, regional needs, and environmental impact assessments.
Economically, these two projects are seen as game-changers for Sumatra, Banten, and western Indonesia. They are expected to ease the flow of goods and people, reduce logistics costs, and spark the development of new industrial areas along their routes.
From a geopolitical perspective, building the Sunda Strait and Malacca Strait Bridges would greatly enhance Indonesia’s influence in the Indo-Pacific region. These two shipping lanes are among the busiest in the world, and control over vital infrastructure would raise Indonesia’s strategic position globally.
In the long run, successfully completing both bridges would leave behind a historic infrastructure legacy for the nation — supporting not only economic progress but also regional security and stability.
President Prabowo stressed that involving private investors does not mean the government will step back. Instead, oversight will be stricter, with comprehensive audits, open financial reporting, and full compliance with international safety standards.
Some state-owned construction companies are also being prepared as local partners for foreign investors, creating opportunities for technology transfer and job creation for Indonesian workers.
The government is carefully considering potential environmental and social impacts as well. The Ministry of Environment and Forestry, along with academic experts, will be engaged from the earliest planning stages to ensure responsible development.
If all goes according to plan, the government is optimistic about breaking ground on the Sunda Strait Bridge’s first phase before 2029, with progress on the Malacca Strait Bridge expected to follow.
Public enthusiasm for this policy is high, as it offers renewed hope for improved connectivity in western Indonesia, long hampered by high logistics costs. These bridges could stimulate regional economies, open up remote areas, and foster new economic opportunities.
Most importantly — should President Prabowo dare to officially greenlight the construction of both the Sunda Strait and Malacca Strait Bridges during his administration, it would mark a monumental economic leap for Indonesia and the region. Indonesia would make history as the first Southeast Asian nation to build two international bridges along one of the world’s busiest shipping routes.