PU Ministry Has Less Than Rp88 Billion Budget, Project Preparation Process Slows Down

JAKARTA - The Ministry of Public Works (PU) said that the limited budget for 2027 has the potential to slow down the completion of a number of Government Cooperation with Business Entities (KPBU) projects, including the construction of a number of toll roads.

The reason is that the Directorate General of Infrastructure Financing (DJPI) is still facing a budget shortfall or backlog of around Rp88 billion.

Acting Director General of Infrastructure Financing and Head of the Toll Road Regulatory Agency (BPJT) Ni Komang Rasminiati said that the DJPI budget needs in the 2027 Fiscal Year (TA) reached IDR 157.12 billion.

However, the indicative ceiling received was only IDR 69.12 billion.

"In an effort to meet the target in the DJPI and the Ministry of PU's renstra, an estimated Rp157.12 billion is needed. However, based on the joint letter from the Minister of PPN/Head of Bappenas and the Minister of Finance regarding the indicative ceiling for ministry/institution spending and DAK in 2027, the indicative ceiling for DJPI 2027 is Rp69.12 billion," said Komang in a Public Hearing (RDP) with Commission V of the Indonesian House of Representatives at the Parliament Complex, Senayan, Jakarta, quoted Wednesday, July 1.

"Therefore, to achieve the DJPI priority target, we still need an additional budget of Rp. 87.99 billion or a budget backlog of Rp. 87.99 billion," he continued.

Komang explained that the budget constraints had not made the KPBU projects canceled,

However, the process of preparing the project is ensured not to be carried out earlier, if additional budget is not available.

"This means that we cannot prepare earlier, yes, it may appear next year," he said.

Based on exposure materials, there are at least four priority targets for the DJPI next year that have not been included in the 2027 TA.

First, strengthening governance and developing a creative financing ecosystem (especially KPBU).

This target includes policy formulation, document preparation, planning and programs, preparation of legislation and the preparation of cooperation agreements to coordination and facilitation with stakeholders in the field of infrastructure financing.

Second, the development of creative financing schemes (especially KPBU) and partnerships. This includes the development of creative financing schemes (LVC, KPBU syariah, the use of dams for renewable energy and so on) as well as partnerships and cooperation both at home and abroad.

Third, the preparation of pre-study documents and project transaction support for KPBU. This includes the preparation and evaluation of pre-study feasibility documents for 12 projects as well as transaction support for seven water resources sector projects, the preparation and evaluation of pre-study feasibility documents for 12 projects and transaction support for four community building sector projects as well as the preparation of pre-study feasibility documents and the preparation of readiness criteria for the creation of work sector projects.

Fourth, monitoring and evaluating the implementation of infrastructure projects with the KPBU scheme.

This target includes monitoring, evaluation, and reporting on the implementation of public works infrastructure financing and the implementation of the accountability system for government agency performance (SAKIP).

He said, the government still hopes for additional budget allocations in the joint discussion with the DPR Budget Agency (Banggar), so that the completion of the project can continue to run according to plan.

"But, we still hope, right, members of Commission V from Banggar may still have the potential (to increase the budget) because the preparation projects for cooperation between the government and this business entity can also be prepared earlier," he said.