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 - Pagu anggaran Kementerian PU naik jadi Rp73,76 T
13 May 2025
House of Representatives (DPR) Commission V has approved an additional budget for the Ministry of Public Works (PU) in 2025, increasing it from Rp50.48 trillion to Rp73.76 trillion.
Minister of Public Works Dody Hanggodo announced the unblocking of this additional budget. Based on the Budget Revision Approval Letter (SPRA) issued by the Ministry of Finance, the effective budget for the Ministry of Public Works in 2025 has increased from Rp50.48 trillion to Rp73.76 trillion following the budget relaxation.
"In accordance with the directive from Commission V of the House of Representatives, which prioritised infrastructure preservation, we requested additional funds for irrigation, road maintenance, and cash-for-work projects. Our request for relaxation was approved by the Ministry of Finance through several Budget Revision Approval Letters, increasing the effective budget of the Ministry of Public Works for 2025 from Rp50.48 trillion to Rp73.76 trillion," Minister Dody stated in Jakarta on Friday, 9 May 2025.
The Rp73.76 trillion budget will be allocated to several programmes, including the Quick Best Results Programme (PHTC) for madrasahs, road maintenance and rehabilitation in the second half of this year, the handling of critical-value bridges, support for Papua’s new autonomous regions, the continuation of committed projects under the Multi-Year Contract (MYC) scheme, and infrastructure development for the new capital city, Nusantara (KN).
Following the budget restructuring, the effective allocations are as follows: the Secretariat General will receive Rp498.2 billion, the Inspectorate General Rp81.2 billion, the Directorate General of Water Resources Rp27.09 trillion, the Directorate General of Highways Rp28.78 trillion, and the Directorate General of Human Settlements Rp11.18 trillion.
Furthermore, the Directorate General of Strategic Infrastructure will receive Rp5.01 trillion, the Directorate General of Construction Rp460.9 billion, the Directorate General of Public Works Infrastructure Financing Rp87.8 billion, the Regional Infrastructure Development Agency Rp296.3 billion, and the Human Resource Development Agency Rp278.2 billion.
Previously, during a working meeting with the Ministry of Public Works at the House of Representatives building in Jakarta on Wednesday, 7 May, Commission V Chairperson Lasarus raised concerns about unclear budgetary information regarding the total allocation that had been agreed upon and ratified. The conclusion of the 13 February 2025 meeting recorded the Ministry of Public Works' budget at Rp50.48 trillion.
However, Minister Dody’s presentation indicated that after efficiency and restructuring processes, the total allocated budget, including blocked funds, amounted to Rp110.95 trillion.
"If the Public Works budget truly stands at Rp110.95 trillion, we demand official documentation from the Ministry of Finance. We cannot approve additional funding that has not been formally discussed," emphasised the Indonesian Democratic Party of Struggle (PDI-P) politician.
On this occasion, Minister Dody explained that the Rp110.95 trillion figure represents the budget after expenditure efficiency measures, as mandated by Presidential Instruction No. 1 of 2025 and the Ministry of Finance’s directive dated 24 January 2025.
Initial efficiency measures had reduced the budget to Rp29.57 trillion, but further adjustments brought it back to Rp50.48 trillion. Most of the blocked funds are expected to be gradually released according to internal government procedures.
In the second agenda item, the meeting also reviewed the audit report of the Supreme Audit Agency (BPK) for the first half of 2024 regarding the Ministry of Public Works and Housing (PUPR), which was its name at the time of the audit. The ministry received an unqualified opinion (WTP), although 26 findings and 96 recommendations still required immediate follow-up.
Commission V underscored the importance of preventive measures to avoid similar findings in future audits and encouraged greater inter-ministerial coordination on key strategic issues. These include accelerating infrastructure development to support food security, urban planning improvements, and post-disaster rehabilitation efforts.
Additionally, the commission discussed addressing over-dimension and overload (ODOL) trucks, which significantly impact national road maintenance costs, amounting to Rp40 trillion annually. Strengthening project tendering procedures and expanding cash-for-work programmes were also highlighted, given their proven positive effects on economic growth.
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