Budget ceiling set at Rp146.98tn, PUPR targets to complete priority projects
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 Rp146,98 T, PUPR targetkan proyek prioritas tuntas
31 August 2023
Jakarta - The Public Works and Housing (PUPR) Ministry has received a budget ceiling of Rp146.98 trillion for fiscal year (FY) 2024. The budget will be used to complete national strategic projects and major projects through multiyear contracts that commenced before 2024.
“In line with the directive from the President at the cabinet meeting before the announcement of the RAPBN (state budget draft) at the DPR (House of Representatives) [office], all construction projects in 2024 will be completed in 2024. Avoid new multiyear contracts. All multiyear contracts need to be completed in 2024, so the infrastructures can benefit the people,” PUPR Minister Basuki Hadimuljono said at the hearing with DPR Commission V in Jakarta on Wednesday (30/8/2023).
Basuki continued that the PUPR Ministry has three development priorities in 2024. Firstly, to complete national strategic projects and major projects through multiyear contracts that commenced before 2024.
“So, in 2024, the PSNs (national strategic projects) and the major projects will be completed,” he said.
Then, the PUPR Ministry will implement the operation, maintenance, optimisation, and rehabilitation (OPOR) programme.
“So, our programme is to operate the infrastructures that have been constructed, maintain existing infrastructures, and optimise existing buildings. If there are buildings that have not been optimised, it will be reworked to be optimised. Then, we will also repair or rehabilitate,” Minister Basuki said.
Next, to carry out the President’s directive regarding markets.
“There are 25 markets that will be improved and developed. Then, there are regional roads that are mentioned in the Presidential Instruction on Regional Roads that have commenced since 2023 worth Rp14.6 trillion. It also includes drinking water, schools, and others,” Basuki explained.
Furthermore, Basuki also explained that the budget ceiling that reaches Rp146.98 trillion for FY24 was determined through a joint letter (SB) from the Finance Minister and the National Development Planning Minister (PPN) /National Development Planning Agency (Bappenas) Head that was issued on 31 July 2023. Previously, the PUPR Ministry proposed a budget ceiling of Rp190.74 trillion. Then, they received an indicative budget ceiling of Rp128.15 trillion, but they finally received a budget ceiling of Rp146.98 trillion.
“In its development, based on the SB from the PPN Minister/Bappenas Head number B 644 of 2023 and the Finance Minister number S 26 PMK dated 31 July 2023, the budget ceiling of the PUPR Ministry for 2024 has been set at Rp146.98 trillion,” Basuki revealed.
