Allocating Rp14.9 trillion: PUPR repairs roads in regions starting June
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 - Anggarkan Rp14,9 triliun: PUPR perbaiki jalan di daerah mulai Juni
22 May 2023
By: Amrozi Amenan
Jakarta - The Public Works and Housing (PUPR) Ministry through the Directorate General of Highways has allocated Rp14.9 trillion out of a total budget of Rp32.7 trillion to repair roads in various regions starting in June-July 2023. The policy is in accordance with Presidential Instruction (Inpres) Number 3 of 2023 on the Acceleration of Regional Road Connectivity Improvement.
“The total is Rp32.7 trillion this year, and perhaps we will continue it next year. We will allocate Rp14.9 trillion soon, we hope it can start in July, if possible June,” said Director General of Highways Hedy Rahadian to reporters in Jakarta on Friday (19/05/2023).
Rahadian explained that the budget would be used to repair regional roads throughout Indonesia. At present, repairs to damaged roads that have been confirmed will be carried out are in the provinces of Lampung, Jambi, and North Sumatra.
In the future, other provinces will also follow, such as West Nusa Tenggara and Java Island. However, he could not say for sure which regions would be prioritised after those three provinces.
“Basically, all regions. There are [damaged roads] in almost all regions in Indonesia. Those that have been verified by the President directly are in Lampung, Jambi, North Sumatra, but we will also repair roads in other areas,” he said.
For certain, said Rahadian, regional roads that will be repaired using the State Budget (APBN) must meet certain criteria and comply with Presidential Instruction No. 3 of 2023.
The road conditions that are prioritised are damaged roads, roads that support economic growth centres, roads that are connected to toll roads, roads that support industrial areas, and roads that support Nusantara Capital City (IKN).
“The point is that we are improving regional road connectivity so that it connects to the national road backbone,” said Rahadian.
In addition, the central government will also consider the financial condition of regional governments. The reason, he said, was that many regional roads were damaged because there were budgetary policy issues in the regional government, or they did not have policies for road repairs.
“How is the capability of the region? If indeed the region does not have a budget, we will help,” Rahadian explained.
Previously, PUPR Minister Basuki Hadimuljono said that the PUPR Ministry would spend a total budget of up to Rp32.7 trillion to repair damaged roads nationally. Out of the total budget of Rp32.7 trillion, Rp14.9 trillion will be disbursed in the first phase. The proposed Rp14.9 trillion budget has fulfilled the road readiness criteria in accordance with Presidential Instruction No. 3 of 2023.
He emphasised that the government has paid attention to the handling of roads in the regions through Presidential Instruction No. 3 of 2023. This Presidential Instruction was signed by the President on 16 March 2023 as an effort to accelerate the improvement of regional road connectivity, provide maximum benefits for the national and regional economies, reduce national logistics costs, integrate economic centres, and support equal distribution of stable road conditions.
According to Basuki, the Rp14.9 trillion budget in the first stage will be processed in two categories, namely the e-catalogue system and tenders.
Basuki stated the e-catalogue would be used for road repair projects with a budget of under Rp100 billion. Meanwhile, the tender method is for projects above Rp100 billion.
“So far, the Budget Execution List [DIPA] has been completed, then we will hold the tenders. Some will use e-catalogue if it is under Rp100 billion. If it is above Rp100 billion, we will conduct a tender,” said Basuki.
Basuki said that national road repairs were scheduled to begin in July 2023. According to him, this repair project will be focused on regency/city roads. This is because the number of damaged roads in regencies/cities is higher than provincial or national roads.
“The number [of damaged roads in regencies/cities] is higher. These roads are like trees. The trunks are national roads, the branches are provincial roads, the twigs are regency/city roads,” he said.
It is known that recently damaged roads in regions have gone viral on social media, gaining the attention of President Joko Widodo (Jokowi) to inspect them. Two of them are in Lampung and Jambi and one is in North Sumatra.
President Jokowi has announced that the repair to damaged roads in Lampung and Jambi will be taken over by the central government. For Lampung, he said, the central government would disburse Rp800 billion to repair 15 road segments.
“This year, the central government will disburse a budget of approximately Rp800 billion for 15 road segments in Lampung, including this one,” said Jokowi.
President Jokowi explained that the road repair process would begin in June because it would be preceded by a tender process first.
The same as in Lampung, President Jokowi also revealed that the repair to damaged roads in Jambi would also be taken over by the central government.
“We, the central government, will take over, because logistics and production roads are very important, especially if they are badly damaged, they must be worked on immediately,” he said.
He revealed that 1,030 kilometres of provincial roads in Jambi were in a damaged condition, whereas the length of damaged national roads in Jambi was 130 kilometres long.
While inspecting damaged roads in North Labuanbatu Regency, North Sumatra on Wednesday (17/05/2023), President Jokowi also revealed that, apart from data from the PUPR Ministry, he also received complaints on damaged roads in up to 7,400 locations from the public, which were submitted via social media, such as the President’s Instagram, Twitter, and Facebook accounts.
“Yesterday I checked the problem of damaged roads, there were 7,400 locations that were submitted to our Instagram, Twitter, Facebook,” said President Jokowi.
Extended by 1,385 km
Meanwhile, Finance Minister Sri Mulyani Indrawati said the length of national roads has extended by 1,385 km to 47,817 km in 2022. Not only was the main road infrastructure improved, the total length of provincial and regency or city roads also extended from 464,280 km to 501,344 km.
“The results of vital infrastructure development have improved significantly, both in terms of quantity and quality. The length of roads which was previously recorded at 46,432 km in 2014 had extended by 1,385 km to 47,817 km in 2022,” said Sri Mulyani in Jakarta on Friday (19/05/2023).
It was also recorded that the length of toll roads had extended by around 1,500 km from 930 km in 2014 to 2,499 km in 2022. She also revealed that there were still 1,800 km of projects that would be continued.
Beyond road infrastructure, the number of dams has also increased by 27 since 2014. This addition was followed by a growth in power generation capacity by more than 20 gigawatts. Moreover, irrigation capacity also increased from 110 thousand hectares in 2014 to 303 thousand hectares in 2022.
Furthermore, said Sri Mulyani, the 2024 expenditure policy would be directed to complete strategic priority projects, which include the development of IKN, the fulfilment of basic infrastructure and connectivity, and the implementation of the 2024 elections.
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