Highways Directorate General proposes additional budget for IKN toll roads
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 - Bina Marga usulkan tambahan anggaran tol IKN
5 July 2023
Jakarta - The Public Works and Housing (PUPR) Ministry is proposing an additional budget for 2024 regarding the assignments to construct infrastructures in Nusantara Capital City (IKN), such as the VVIP airport and the toll road access.
“The indicative budget ceiling for 2024 is Rp49 trillion, but it has yet to accommodate the assignments in Presidential Regulation No. 32 of 2023 on Acceleration in the Construction and Operation of VVIP Airport to Support Nusantara Capital City. Then, there are also assignments to construct sections 6A, 6B, 6C, 1, and 5B of the IKN toll road access that are set to be completed next year,” Highways Director General of the PUPR Ministry Hedy Rahadian said at the hearing with House of Representatives (DPR) Commission V in Jakarta on Tuesday (4/7/2023).
Hedy added that the proposal to increase the budget was also submitted to allocate a budget to assign the assignments in Presidential Instruction on Regional Roads.
“To improve the connectivity of regional roads next year, we want the presidential instruction to be included in the budget posture,” he added.
Hedy added that the Highways Directorate General proposed a budget of Rp49 trillion for 2024.
“The budget for 2024 is prioritised for committed programmes, such as optimisations, road and bridge maintenance, bridge reconstruction, rehabilitation, and replacement, as well as road and bridge corridor construction completion,” Hedy revealed.
From the Highways Directorate General’s budget allocation that reaches Rp49 trillion, Rp46.60 trillion will be allocated for connectivity infrastructure programmes and Rp2.39 trillion for management support programmes.
Meanwhile, connectivity infrastructure programmes in 2024 consist of regular activities worth Rp34.75 trillion and IKN construction activities worth Rp11.85 trillion. The Highways Directorate General’s regular activities in 2024 will consist of road construction, bridge construction, flyover and underpass construction, road, bridge, and suspension bridge preservation, toll road construction, and land acquisitions.
“The 2023 budget implementation progress until 3 July has physically reached 29.04%. Financially, it has reached 26.08% or Rp14.75 trillion from the total 2023 budget that reaches Rp56.57 trillion,” Hedy stated.
Meanwhile, Construction Management Directorate General of the PUPR Ministry logged that 22 IKN construction packages worth Rp2.68 trillion have been contracted until 16 June.
“For IKN, there are 88 packages worth Rp8.46 trillion with 26 packages have not been tendered and 40 packages currently being tendered. Meanwhile, for packages that have been contracted, there are 22 packages worth Rp2.68 trillion out of the 88 packages,” Construction Management Director General of the PUPR Ministry Rachman Arief Dienaputra said recently.
