Finance Minister: Rp203.5 trillion allocated for handling national and regional 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 - Menkeu: Alokasi penanganan jalan nasional dan daerah Rp203,5 triliun
23 May 2023
By: Arnoldus Kristianus
Jakarta - This year, the budget to handle national and regional road segments (toll and non-toll roads) is allocated Rp203.5 trillion. The allocation for national roads reaches Rp87.4 trillion, for new roads spanning 693 km reaches Rp13.8 trillion, for bridge construction spanning 16,076 metres reaches Rp4.7 trillion, for road preservation spanning 50,299 km reaches Rp22.2 trillion, for bridge preservation spanning 549,857 metres reaches Rp3.5 trillion, for regional road rehabilitation and reconstruction reaches Rp14.6 trillion, and for toll roads reaches Rp5.5 trillion.
“Out of that amount, Sumatra receives the largest allocation,” Finance Minister Sri Mulyani Indrawati said during the press conference on APBN KiTa for May 2023 in Jakarta on Monday (22/5/2023).
Then, land procurement is allocated Rp23 trillion. Trans-Sumatra Toll Road (JTTS) phase II is allocated (state equity participation/PMN) Rp28.9 trillion. Regional roads through physical special allocation fund (DAK) are allocated Rp12.6 trillion. Regional roads through the state budget (APBN) or transfer budget to regions (TKD) are allocated Rp74.6 trillion.
The Finance Minister explained that the allocation for national and regional road segment handling in Sumatra reached Rp71.5 trillion. The budget provided for new roads spanning 119 km reaches Rp1 trillion, road preservation spanning 14,773 km reaches Rp9.7 trillion, and bridge construction spanning 6,447 metres reaches Rp900 billion.
Bridge preservation spanning 141,469 metres is allocated Rp800 billion, roads through DAK are allocated Rp3.8 trillion, JTTS is allocated Rp3.3 trillion, JTTS phase II is allocated Rp28.9 trillion, land procurement for roads is allocated Rp2.8 trillion, and regional roads are allocated Rp20.3 trillion.
The second largest budget allocation is allocated for Java, reaching Rp54.1 trillion. It includes new roads spanning 43 km that are allocated Rp1.5 trillion, road preservation spanning 7,644 km that is allocated Rp8.3 trillion, bridge construction spanning 1,899 metres that is allocated Rp1 trillion, road preservation spanning 111,849 metres that is allocated Rp600 billion, Serang-Panimbang Toll Road that is allocated Rp700 billion, Semarang-Demak Toll Road that is allocated Rp1.5 trillion, roads through DAK that are allocated Rp1 trillion, land procurement for roads that is allocated Rp20.2 trillion, and regional roads that are allocated Rp19.3 trillion.
Sri Mulyani continued that the next largest budget allocation was provided for road construction in Kalimantan worth Rp33.4 trillion. It includes new road construction spanning 267 km that is allocated Rp9.6 trillion, road preservation spanning 9,214 km that is allocated Rp5.7 trillion, bridge construction spanning 2,976 metres that is allocated Rp1.3 trillion, bridge preservation spanning 103,478 metres that is allocated Rp500 billion, roads through DAK that are allocated Rp1.6 trillion, and regional roads that are allocated Rp14.7 trillion.
The budget allocation in Maluku and Papua is the fourth largest as it reaches Rp19.5 trillion. It consists of new road construction spanning 125 km that is allocated Rp1.1 trillion, road preservation spanning 8,135 km that is allocated Rp4.4 trillion, bridge construction spanning 2,676 metres that is allocated Rp1.1 trillion, bridge preservation spanning 74,198 metres that is allocated Rp800 billion, roads through DAK that are allocated Rp2.6 trillion, and regional roads that are allocated Rp9.6 trillion.
In Sulawesi, he said that the allocation reached Rp17.3 trillion for new road construction spanning 41 km that is allocated Rp300 billion, road preservation spanning 9,502 km that is allocated Rp6.3 trillion, bridge construction spanning 1,526 metres that is allocated Rp300 billion, bridge preservation spanning 87,243 metres that is allocated Rp600 billion, roads through DAK that are allocated Rp2.5 trillion, and regional roads that are allocated Rp7.3 trillion.
Last but not least, in Bali and Nusa Tenggara, the budget allocation reaches Rp7.7 trillion for new road construction spanning 44 km that is allocated Rp300 billion, road preservation spanning 4,090 km that is allocated Rp2.5 trillion, bridge construction spanning 552 metres that is allocated Rp100 billion, bridge preservation spanning 31,620 metres that is allocated Rp200 billion, roads through DAK that are allocated Rp1.2 trillion, and regional roads that are allocated Rp3.4 trillion.
“All of the construction will improve the quality of economic activities, and we hope that they will also increase productivity in those regions,” he said.
Accelerating construction
Meanwhile, the Public Works and Housing (PUPR) Ministry through the Highways Directorate General will accelerate the construction of regional roads that are prioritised by the government. It is in line with the direction of President Joko Widodo that is stated in Presidential Instruction No.3/2023 on Acceleration in the Improvement of the Connectivity of Regional Roads.
PUPR Minister Basuki Hadimuljono said that the presidential instruction on regional roads would handle damaged non-national roads and improve regional road stability all over Indonesia through the state budget.
“We will immediately carry out the order of the President by holding tenders in May 2023. So, the roads can be repaired in June or July at the latest,” Minister Basuki said.
Highways Director General Hedy Rahadian added that the acceleration of road and bridge stability handling was prioritised in regions with low stability, especially segments that leverage economic growth and reduce access isolation.
“The prioritised road criteria are damaged [roads] and [roads that] support economic growth centres. Connectivity with toll roads is also prioritised. Then, there are several strategic industrial estates, such as Morowali, Konawe, Weda Bay, and Tanjung Selor to anticipate the growth of slums. We are repairing regional road connectivity so that they can be connected to the national road backbone,” Hedy explained.
Hedy continued that the budget allocation that is currently planned to accelerate regional road connectivity reached Rp32.79 trillion.
“The connectivity improvement acceleration will be continued in 2024. Meanwhile, the total budget allocated for the first phase of regional roads that will be constructed this year reaches Rp14.6 trillion. We hope that they can commence in June or July,” Hedy explained.
