Public Works ministry seeks Rp68 T budget hike for 2026 amid efficiency concerns
Public Works Minister Dody Hanggodo has requested an additional Rp68 trillion (US$4.25 billion) for the ministry’s 2026 budget, despite the indicative ceiling already being set at Rp70.86 trillion (US$4.86 billion).
“Technically, we still need an additional Rp68 trillion for 2026. Of that, Rp65 trillion will go toward technical programs and Rp3.6 trillion for management support,” Dody said during a hearing with Infrastructure Commission V of the House of Representatives (DPR)on Wednesday, July 9, 2025.
The indicative ceiling had been determined in a joint letter issued on May 15, 2025 by Finance Minister Sri Mulyani and National Development Planning Minister Rachmat Pambudy.
In his presentation to lawmakers, Dody detailed the allocation of the proposed additional funds. The bulk of the Rp65 trillion technical budget would be used for key infrastructure initiatives: Rp6.03 trillion for road preservation, Rp10 trillion for the construction of "people’s schools," and Rp4.92 trillion to support food self-sufficiency infrastructure.
Other allocations include Rp12.01 trillion for multi-year contracts, Rp550 billion for disaster response, Rp2.49 trillion for land acquisition, and additional funds for various other programs.
The Rp3.6 trillion earmarked for management support includes Rp2.84 trillion for personnel expenses and Rp760 billion for non-operational expenditures.
Dody reiterated that the ministry’s top priorities in 2026 remain unchanged: improving road infrastructure, enhancing regional connectivity, and strengthening irrigation networks.
“We have been instructed to support national food self-sufficiency, starting in 2025 and beyond,” he said.
Lawmakers in Commission V have not yet publicly responded to the budget request, though concerns about transparency and fiscal discipline are expected to take center stage in upcoming deliberations.
However, the budget request comes amid scrutiny of the ministry’s financial management following corruption allegations involving two regional infrastructure agencies the River Basin Agency in Bangka Belitung and the National Road Implementation Agency in North Sumatra.
Dody admitted that inefficiencies have plagued the ministry’s spending, echoing a recent criticism by President Prabowo Subianto.
“President Prabowo’s prediction was accurate. There is inefficiency in the Public Works Ministry,” Dody stated during a press conference at the ministry's office on Friday, July 4, 2025.
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