Minister Of Public Works Disbursed The Impact Of Budget Efficiency On The Construction Sector

JAKARTA - Minister of Public Works (PU) Dody Hanggodo said that the efficiency of the 2025 budget had a direct impact on the fiscal capacity of the construction sector. According to him, the construction sector is one of the main pillars of national economic growth.

Dody said, since early 2025, the Ministry of Public Works has faced fiscal dynamics which is quite complex. Initially, the ministry of infrastructure received an initial allocation of Rp110.95 trillion, then experienced several cuts to 7 May 2025 to Rp73.76 trillion.

"Economically, this cuts reduces fiscal capacity to support the construction sector, which has been supporting the country's growth. With each Rp1 trillion, capital expenditures have an impact on between 0.08 and 0.12 percent of GDP in the construction sector," said Dody at a Working Meeting with Commission V DPR RI at the Parliament Complex, Senayan, Jakarta, Wednesday, July 9.

He emphasized that a cut of IDR 37 trillion has the potential to reduce the contribution to the national Gross Domestic Product (GDP) to a maximum of 0.4 percent. Even so, Dody ensures that his ministry's budget structure remains of high quality.

"Our ceiling structure is maintained in quality, of which 81 percent is allocated for productive capital expenditures, while 10 percent for operational and goods spending. Priority is focused on national road preservation, national road construction, food irrigation, clean water and sanitation," he said.

According to Dody, the efficiency of the budget goes hand in hand with efforts to repay the multi-year contract of Rp. 14.2 trillion, the goal is to reduce the fiscal burden in the future.

"We also strengthen internal supervision and strengthen the digitalization system so that it is more efficient and does not sacrifice quality," he said.

However, Dody emphasized that additional budgets are still needed to ensure the sustainability of development.

"We certainly still need a measurable additional budget as a social and economic investment, for the sustainability of development," he explained.

Furthermore, Dody asked for support from members of Commission V DPR RI. "With the support of the honorable Council, we are optimistic that the balance of development can be maintained without sacrificing fiscal sustainability," he concluded.