Transportation Ministry's budget realisation reaches 68.63%
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 - Realisasi anggaran Kemenhub capai 68,63%
8 November 2023
By: Muawwan Daelami
Jakarta - As of 6 November 2023, the budget realisation of the Transportation Ministry has reached Rp24.76 trillion or 68.63% of the total budget ceiling of Rp36.08 trillion. Based on the type of expenditure, the Transportation Ministry’s budget realisation in 2023 is 92.8% for employee expenditure, 68.4% for goods expenditure, and 63.4% for capital expenditure.
Transportation Minister Budi Karya Sumadi will continue to boost budget realisation until the end of 2023, and he is optimistic about achieving optimal results.
“Last year, we targeted 97%. However, we could surpass it to reach 98%. We are one of the ministries with the highest absorption. So, the contracts have been carried out, it is only a matter of disbursement,” the Transportation Minister said in his official statement after the work meeting with House of Representatives (DPR) Commission V in Jakarta on Tuesday (7/11/2023).
Units in Echelon 1 with budget realisation that has surpassed 80% include the Inspectorate General, Greater Jakarta Transportation Agency (BPTJ), Transportation Policy Agency (BKT), and the Secretariat General. Meanwhile, units with budget realisation below 80% include Land Transportation Directorate General, Sea Transportation Directorate General, Air Transportation Directorate General, Railways Directorate General, and Transportation Human Resources Development Board (BPSDMP).
Meanwhile, as of 6 November 2023, state revenue realisation has reached Rp8.36 trillion or 85.56% of the realisation target of Rp9.66 trillion. In detail, realisation from non-tax state revenue (PNBP) reaches Rp6.74 trillion and realisation from public service agencies (BLUs) reaches Rp1.61 trillion.
The largest PNBP contributors are port services, educational services, motor vehicle testing, shipping navigation aid facility services, concession services, flight navigation services, shipping telecommunications, railway infrastructure utilisation, shipping and marine services, airport services, and other transportation services.
During the occasion, the Transportation Minister also announced several work programmes for 2024. The programmes include Nusantara Capital City (IKN), national tourism strategic areas (KSPNs), buy the service (BTS) in 10 cities, pioneer transportation services that include the maritime highway and the air bridge, transportation facilities and infrastructure improvement, as well as vocational education and training in the transportation sector.
In implementing the 2024 work programmes, the Transportation Ministry will refer to the 2024 Government Work Plan themed Accelerating Sustainable Economic Transformation and prioritise productive connectivity infrastructure development, safety and security improvement in the transportation sector, human capital development in the transportation sector, equitable national development, pro-people programme implementation, multiyear contract programme continuity, national programme and national strategic project implementation, IKN planning and development, urban mass transportation, and boosting new renewable energy utilisation.
The budget ceiling of the Transportation Ministry in fiscal year 2024 is Rp38.60 trillion. From the budget, 26% or Rp10.20 trillion will be allocated for management support, 6% or Rp2.47 trillion will be allocated for education and vocation, and 67% or Rp25.92 trillion will be allocated for infrastructure and connectivity.
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