The funds would be taken from the provincial budget, East Java Governor Soekarwo said here on Sunday.
"The central government has stopped financing the construction of the southern coastal highway and consequently, the East Java provincial government will continue the project using provincial budget funds," he said.
The central government had stopped financing the project since last year because it had no funds for the project, he said.
"We still receive assistance from the central government but the assistance is only used to repair bridges. Even the amount of the assistance is very small so it is not enough to finance the project as a whole," he said.
The funds from the provincial budget would be used to repair and widen the road to seven meters from six meters to allow vehicles to move more freely, he said.
He said the central government had switched much of its funds to develop trans Sumatra or Kalimantan highways.
"The East Java provincial government could not do much when the central government stopped financing the project. However, we are still negotiating with the central government to continue the project to meet the wish of the East Java community," he said.
The 627-km highway stretches from Banyuwangi district in the east to Pacitan district in the west.
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Reporting by Indra Setiawan
(T.SYS/B/S012/B003)
Editor: Aditia Maruli Radja
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