Rp14.7 trillion budget allocation: Regional road progress reached 30%
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 - Alokasi anggaran Rp14,7 T: Progres penanganan jalan daerah 30%
30 October 2023
By: Tri Murti
Jakarta - The progress of regional roads through the implementation of presidential instruction on regional roads stage 1 with a total budget of around Rp14.7 trillion has reached 30%.
“The allocation covers all provinces in Indonesia, except for Jakarta and Central Kalimantan. The total reaches 3,140 road segments in provinces and regencies. Bridges span 2,700 metres,” Highways Director General Hedy Rahadian said in his official statement in Jakarta on Friday (27/10/2023).
According to Hedy, the implementation of the presidential instruction on regional roads is the government’s effort to improve the condition and the connectivity of regional roads to be integrated with the national road network system.
“It is also an effort for equal distribution as we also enter areas that are based on the people’s economy that are related to plantations, agriculture, and MSMEs (Micro, Small, and Medium Enterprises). The purpose is to reduce logistics costs and boost the economy,” Hedy said.
Meanwhile, President Joko Widodo (Jokowi) with Public Works and Housing (PUPR) Minister Basuki Hadimuljono, Presidential Staff Head Moeldoko, Lampung Governor Arinal Djunaidi, and House of Representatives (DPR) Commission V member Tamanuri visited the construction of Randu Interchange-Seputih Surabaya road segment in Rumbia District in Central Lampung Regency, Lampung Province on Friday (27/10/2023).
The President said that his work visit this time was to ensure that the construction of the regional road was on target.
“Today, I want to ensure what I saw five months ago. Everything is on progress. It is not yet 100% completed, it is around 60-70%,” President Jokowi said.
President Jokowi added that the Lampung Province was allocated Rp800.9 billion from the state budget (APBN) to be used to repair 17 regional road segments. The repairs are a follow up to the complaints from the people that have been handled by the government through the presidential instruction on regional roads.
“Now, it is smooth and rigid as it is 30 cm thick. I think that it will last for decades. It is also a cooperation between the central government and a provincial government. Some of the budget is from the APBD (Regional budget). So, I think that it is a great combination,” the President explained.
Furthermore, Lampung National Road Implementation Centre (BPJN) Head Susan Novelia said that Randu Interchange-Seputih Surabaya road segment that spans 14 km was one of the segments handled by the PUPR Ministry through the presidential instruction on regional roads.
“The total budget allocated for the construction of Randu Interchange-Seputih Surabaya road segment reaches Rp102.1 billion. The progress has reached 61.28%. It is set to be completed in December,” he explained.
APBD
Previously, Hedy Rahadian also said that there were still some funding gaps for national roads, provincial roads, and local roads, which impacts the road condition rate. The data mentions that local roads dominate the roads in Indonesia as they make up for 82% of the total road network in Indonesia spanning 433,654.4 km. Meanwhile, provincial roads make up for 8.9% of the road network spanning 47,874 km and national roads make up for 9.06% spanning 47,603.39 km.
Meanwhile, Road and Bridge Implementation System and Strategy Director of the Highways Directorate General Wilan Oktavian said that the APBD to handle regional roads was still quite low. According to the 2022 budget implementation document, the 34 provinces in Indonesia allocate 7.06% of their budget or Rp17 trillion for road construction. Meanwhile, sub-districts/cities allocate 5.7% or Rp45.10 trillion.
“The regional government that will receive funds from the presidential instruction on regional roads are expected to provide budget programmes to operate and maintain the regional roads that will be handed over,” Wilan said some time ago.
The handling of regional roads has been carried out by the PUPR Ministry in stages in 2023. Stage 1 has allocated a budget of Rp14.6 trillion with Rp5,295 trillion allocated for Sumatra, Rp3,216 trillion for Java, Rp1.21 trillion for Bali and Nusa Tenggara, Rp377.5 billion for Maluku, Rp1.74 trillion for Kalimantan, Rp1.94 trillion for Sulawesi, and Rp857.8 billion for Papua. Overall, the presidential instruction on regional roads covers 2,873 km of roads and 2,362 metres of bridges.
