Public Works Ministry requests an additional Rp60.6 trillion budget

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily -  Kementerian PU minta tambahan anggaran Rp60,6 triliun

4 December 2024

Jakarta, ID – The Ministry of Public Works has proposed an additional Rp60.6 trillion for the 2025 budget. This was mentioned by Public Works Minister Dody Hanggodo during a working meeting with Commission V of the Indonesian House of Representatives (DPR) in Jakarta on Tuesday (3/12).

According to Minister Dody, this proposed additional budget is allocated for the continued development of Nusantara Capital City (IKN) and the new autonomous region of Papua.

"We actually propose an additional Rp60.6 trillion for the 2025 budget, allocated for, among other things, supporting IKN and also Papua in relation to the province's expansion," said Dody, as cited by Antara in Jakarta on Tuesday (3/12/2024).

Of the proposed additional Rp60.6 trillion budget for 2025, Rp14.87 trillion is anticipated to be allocated for supporting IKN. Rather than initiating new activities, this support will focus on completing existing projects.

In detail, support for IKN includes Rp9.9 trillion allocated to the Directorate General of Highways for the construction of roads within the Central Government Core Area (KIPP), the construction of toll roads, and the duplication of the Pulau Balang Short Span Bridge II.

Furthermore, for the Directorate General of Human Settlements, Rp4.96 trillion is allocated to complete the construction of the drinking water supply systems (SPAMs), sanitation, government office buildings, and offices for the Ministry of Defence, the Indonesian National Police, and the National Intelligence Agency (BIN).

The allocation plan to provide support for the new autonomous region in Papua is around Rp4 trillion from the total proposed additional budget for 2025. Specifically, the support for the new autonomous region in Papua includes Rp845 billion for the Directorate General of Highways, which will be used for the construction of national roads to provincial government areas in the provinces of Southwest Papua, Central Papua, Highland Papua, and South Papua.

Meanwhile, Rp3.15 trillion is allocated to the Directorate General of Human Settlements for the construction of 11 buildings for the Regional House of Representatives and the governor, as well as for drinking water and sanitation facilities and infrastructure.

The next allocation is for the implementation of presidential instructions (Inpres), which is planned to be Rp28.55 trillion. "We really hope that previous presidential instructions, such as the Inpres on regional road, irrigation, and drinking water and wastewater, can be continued," he said.

According to him, the Ministry of Public Works has conducted initial discussions with the National Development Planning Agency (Bappenas). "We hope that the drafts of the presidential instructions can be submitted to the President of the Republic of Indonesia this month," said Dody.

In addition, the proposed additional budget for 2025 is also planned to be allocated to other strategic activities, amounting to Rp13.8 trillion.

IKN becomes a quick win

Minister of Public Works, Dody Hanggodo, revealed that the construction of a giant sea wall, known as the National Capital Integrated Coastal Development (NCICD), and the development of Nusantara Capital City (IKN) are included in the Ministry of Public Works' quick win programme.

"Quick wins to support the strategic flagship programmes of other ministries and institutions include the construction of giant sea walls, IKN, connectivity (roads and bridges), community markets, drinking water, sanitation/wastewater, waste management, sports facilities, health facilities, and regional planning (covering tourism, industry, disaster-affected areas, and evacuation)," said Dody at the commemoration of the 79th Public Works Service Day in Jakarta on Tuesday.

The Ministry of Public Works has developed a quick win programme for infrastructure development, which will be implemented systematically and cohesively to follow the directive of the President of the Republic of Indonesia.

The third quick wins initiative of the Ministry of Public Works focuses on food security. This involves optimising the benefits of dams for irrigation by constructing and rehabilitating irrigation networks. Additionally, it includes the construction of roads and bridges to enhance connectivity to food centres, including food estates in Central Kalimantan, Merauke-South Papua, NTT, and other regions.

Meanwhile, the fourth quick win initiative is focused on constructing and renovating schools and madrasas across the country to support the 13-year compulsory education programme. The Ministry of Public Works plans to build or renovate 11,420 educational facilities, including kindergartens, elementary schools, junior high schools, senior high schools, vocational high schools, special schools, and madrasas.

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