"We are focusing on four sectors, namely Rp10.70 trillion (USD594 million) for water resources, Rp12.48 trillion (USD742 million) for roads and bridges, Rp3.78 trillion (USD224 million) for building construction, and Rp1.16 trillion (USD69 million) for strategic infrastructure," he said.
Speaking at a working meeting with Commission V of the Indonesian House of Representatives (DPR RI) on Thursday, Hanggodo added that his ministry faces a significant budget cut of 80 percent in 2025, decreasing from Rp110.95 trillion (USD6.6 billion) in 2024 to Rp29.57 trillion (USD1.7 billion) this year.
Several programs initiated by the ministry in the four priority sectors 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 hectares of irrigation areas.
Hanggodo said the budget efficiency impacted work patterns in the ministry.
The minister explained that in addition to canceling infrastructure development plans, the ministry should also cancel several physical and non-priority activities.
"The 2025 budget efficiency has implications for 10 changes in the ministry's work patterns, including the cancellation of physical infrastructure development activities and the implementation of non-priority activities," he explained.
Some of these changes include canceling new single-year contract (SYC) and multi-year contract (MYC) physical activities sourced from pure rupiah, canceling the purchase of new equipment and optimizing existing heavy equipment, implementing stricter guidelines for official travel, eliminating ceremonial activities, and transitioning to a paperless office environment.
Earlier, the Ministry of Finance had issued a letter numbered S-37/MK.02/2025, 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.
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Translator: Arnidhya Nur, Resinta Sulistiyandari
Editor: Rahmad Nasution
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