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Indonesia plans to cut 80% budget for Public Works Ministry

The Indonesian Ministry of Public Works faces a significant budget cut of 80% in 2025 to 29.57 trillion IDR from 110.95 trillion IDR (6.6 billion USD) in 2024.

Indonesian Minister of Public Works Dody Hanggodo (right) in a press statement in Jakarta on January 20. (Photo: ANTARA)
Indonesian Minister of Public Works Dody Hanggodo (right) in a press statement in Jakarta on January 20. (Photo: ANTARA)

Jakarta (VNA) – Indonesian Minister of Public Works Dody Hanggodo has said that his ministry is facing a significant budget cut of 80% in 2025, from 110.95 trillion IDR (6.6 billion USD) in 2024 to 29.57 trillion IDR.

Speaking at a working meeting with Commission V of the Indonesian House of Representatives (DPR RI) on February 6, he said with the budget, the ministry will prioritise four sectors of infrastructure development this year including roads and bridges (742 million USD), water resources (594 million USD), construction (224 million USD), and strategic infrastructure ( 69 million USD).

Several programmes initiated by the ministry include constructing 63 km of new roads, increasing capacity and preserving improvements to 342 km of existing roads, building 13 km of toll roads, and developing 450 ha of irrigation areas.

Hanggodo said the budget efficiency will impact work patterns in the ministry. In addition to canceling infrastructure development plans, the ministry will cancel the purchase of new equipment and optimise existing heavy equipment, implement stricter guidelines for official travel, eliminate ceremonial activities, and transition to a paperless office environment.

Earlier, the Ministry of Finance had issued a letter mandating ministries and institutions to carry out budget efficiency on 16 expenditure items as a follow-up to Presidential Instruction of the Republic of Indonesia Number 1 of 2025./.

VNA
#Public Works Ministry #Indonesia #infrastructure #roads #water resources #construction #budget Indonesia
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