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 - Memacu layanan transportasi yang terjangkau
9 May 2025
By Ichsan Amin
Jakarta, ID – The Ministry of Transportation (Kemenhub) has received an increase in its effective budget allocation, rising from Rp17 trillion to Rp26.2 trillion. This additional funding will be optimised to ensure accessible and affordable transportation services across Indonesia.
Lasarus, Chair of Commission V of the House of Representatives (DPR), announced that Commission V had approved the increased budget for Kemenhub. The decision will be reported to the Budget Committee of the DPR before final approval by the Ministry of Finance. Lasarus conveyed this during the public hearing (RDP) of Commission V with Kemenhub. "We will approve this shortly, report it to the Budget Committee, and then have it officially sanctioned by the Minister of Finance," he stated at the meeting in Senayan, Jakarta, on Thursday (8/5/2025).
During the same meeting, Minister of Transportation Dudy Purwagandhi explained that the budget increase aligns with more specific programmes based on the vision and mission of President Prabowo Subianto. "This is tailored to the President's development agenda, with a particular focus on food self-sufficiency," Dudy said.
He outlined the budget changes, citing the Minister of Finance Letter No. S867-MK.02-2024, dated 23 September 2024, which initially set Kemenhub's budget at Rp31.45 trillion, including a regular block of Rp0.05 trillion. In January 2025, according to Letter No. S37-MK.02-2025, Kemenhub faced a budget efficiency measure of Rp17.87 trillion, reducing its effective budget to Rp13.53 trillion.
In February 2025, the efficiency allocation was adjusted from Rp17.87 trillion to Rp13.73 trillion, increasing Kemenhub's effective budget to Rp17.67 trillion. Subsequently, in March 2025, based on a letter from the Director General of Budget at the Ministry of Finance dated 24 March 2025, Kemenhub received an efficiency relaxation of Rp5.37 trillion, bringing its effective budget to Rp3.04 trillion.
"Following the latest developments and the Director General of Budget’s letter dated 16 April 2025, Kemenhub received an additional budget rollout from 2024 amounting to Rp3.20 trillion, bringing the ministry’s effective budget to Rp26.24 trillion," Minister Dudy explained.
He provided a breakdown of the 2024 budget rollout, which included Rp3.15 trillion from Sovereign Sharia Securities (SBSN), Rp43.3 billion from Public Service Agencies (BLUs), and Rp6.59 billion from Foreign Loans and/or Grants (PHLN). "At present, the final budget for Kemenhub stands at Rp34.65 trillion, with Rp8.42 trillion blocked, resulting in an effective budget for 2025 of Rp26.24 trillion," he elaborated.
From this effective budget, Kemenhub is committed to ensuring and optimising affordable transportation services accessible across all regions of Indonesia.
Additionally, Minister Dudy explained that the budget is divided into four spending categories: personnel expenditure at Rp4.7 trillion (13.7% of the effective budget), goods expenditure at Rp14.1 trillion (40.8%), capital expenditure at Rp7.3 trillion (21.1%), and blocked budget allocations for goods and capital expenditure at Rp8.4 trillion (24.4%).
In terms of funding sources, the budget is categorised into four segments: Rp14.1 trillion (40.9%) from pure rupiah funds, Rp4.3 trillion (12.5%) from SBSN, Rp3.2 trillion (9.2%) from Non-Tax State Revenue (PNBP), and Rp3 trillion (8.8%) from Foreign Loans and/or Grants (PHLN). "BLUs contribute Rp1.4 trillion (4.2%), while blocked budget allocations sourced from pure rupiah, PNBP, BLUs, SBSN, and PHLN amount to Rp8.4 trillion (24.4%)," said Minister Dudy.
He also emphasised the need to address the issue of ODOL (Over Dimension and Overload) trucks, stating, "This is something we have prepared to address more strictly, as it directly impacts people's lives."
Vice Chair of Commission V of DPR RI, Syaiful Huda, revealed that President Prabowo Subianto has approved accelerating the Zero ODOL programme by the end of 2025. The increasing number of overweight cargo trucks poses significant risks to road users. "The President agrees that ODOL-related concerns must be tackled immediately. By the end of 2025, we expect all roads—both toll and non-toll—to be completely free from ODOL truck operations," Huda stated.
As a member of the National Awakening Party (PKB), he expressed deep concern over accidents caused by overweight trucks, which occur almost daily and involve 70% of ODOL vehicles. He urged the government to expedite the Zero ODOL programme, originally scheduled for implementation in 2026. "Around 70% of accidents are linked to ODOL trucks. Given the urgency of the situation, we request that the programme be moved forward without waiting until 2026," he urged.
Syaiful Huda further stated that he had conveyed the request for expedited implementation directly to President Prabowo, who would later relay the matter to the relevant stakeholders. "We initially submitted this request informally to the President, who will then communicate it to Kemenhub and the police," he explained.
Data from the Coordinating Ministry for Infrastructure and Regional Development (IPK) shows that ODOL trucks are the second largest cause of road accidents nationwide, accounting for 10.5% of incidents—second only to motorcycles, which account for 77.4%.
The number of accidents and economic losses caused by overweight cargo trucks has increased yearly due to factors such as brake failures and excessive loads, which compromise vehicle performance. The financial burden resulting from ODOL-related damage is substantial, with the state incurring losses of Rp43.4 trillion annually for road repairs.
To address this issue, Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), has targeted full enforcement of the Zero ODOL policy by 2026. "Our goal is next year, with full implementation by 2026. This requires comprehensive discussions involving all stakeholders," AHY stated recently.
AHY also pledged to engage business groups in implementing Zero ODOL, acknowledging that regional conditions vary. "We will listen to industry players and local governments to ensure that policy implementation is tailored to each region's specific needs," he concluded.
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