The ministry has allocated a budget ceiling of Rp149.8 trillion for the programs, PUPR Minister Basuki Hadimuljono said during a hearing with Commission V of the House of Representatives (DPR) here on Wednesday.
"Our requirement is Rp140 trillion, but we have allocated Rp149 trillion. There is no excess, but (the allocation has been made) because it's an additional task, namely the development of food estates and supporting industrial zones," he informed.
The minister explained that the 2021 budget allocation has been formulated based on President Jokowi's five visions and in consideration of the impact of COVID-19. On that basis, the ministry has drawn up six priority programs.
The first program will seek to increase food security. One of the main projects under the program will be the development of food estates comprising rice and cassava farming in Central Kalimantan and horticultural farming in Humbang Hasundutan in North Sumatra.
The second program will be aimed at improving connectivity by continuing the construction and preservation of roads to support logistical efficiency and national competitiveness.
The third program will focus on improving the health of the environment and the society by developing livable, quality, and affordable housing, and developing healthy and productive settlements.
The fourth program will seek to boost investment by providing infrastructure to support national strategic areas for industrial zone development, particularly related to investment relocation. This will include the development of five super-priority National Tourism Strategic Areas (KSPN) for tourism, following the previous five destinations that have begun to be developed in 2020.
"This is one of the new tasks, namely (the development of industrial zones) in Batang with an area of 4,500 hectares and in Subang of about 1,600 hectares. This is a new concept because the land is state land. All basic infrastructure is prepared by the government, including roads, clean water, and employee housing. And investors will come free for 10 years or 20 years, as they will only pay the charges,” the minister remarked.
The fifth program will focus on strengthening the national safety net to reduce unemployment and maintaining purchasing power by carrying out cash-intensive programs, buying people's products, and funding training for local entrepreneurs.
The sixth program will seek to increase resilience to disasters and climate change to reduce disaster risk, accelerate post-disaster recovery, emergency response, rehabilitation, and construction.
Basuki explained that the total budget ceiling of Rp149.8 trillion comprises Rp5.87 trillion in loans, Rp14.76 trillion in State Sharia Securities (SBSN), and Rp129.18 trillion in the national currency alone.
He said food estate development will cost about Rp5.8 trillion, industrial zones Rp12 trillion, cash labor intensive program Rp18 trillion, drinking water supply facilities Rp7 trillion, sanitation Rp5.9 trillion, flood prevention facilities Rp10 trillion, irrigation system facilities Rp7 trillion, and housing development Rp8 trillion. (INE)
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Translator: Ade Irma J, Fardah
Editor: Suharto
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