Bekasi Regency Adjusts Infrastructure Project Cost Estimates Following Fuel Price Rise
The Bekasi Regency government in West Java is realigning the estimated costs of goods and services, known as Self-Estimated Prices (HPS), for infrastructure projects due to the impact of rising non-subsidised fuel prices.
The increase in non-subsidised fuel prices has affected infrastructure development plans in Bekasi Regency, triggering a domino effect on construction material prices, forcing several projects to undergo cost adjustments before implementation.
“We happened to consult with the Ministry of Home Affairs last Wednesday. We also do not want to force the issue given our already-determined regional budget,” said Iis Sandra, member of the Regional Government Budget Team (TAPD) of Bekasi Regency, in Cikarang, West Java, on Sunday.
She explained that the approval of Bekasi Regency’s 2026 Regional Revenue and Expenditure Budget (APBD) was based on planning from the previous year, whilst fuel price increases occurred only in recent weeks, necessitating HPS adjustments.
The local government plans to shift the budget to adjust prices for infrastructure development needs, following consultations with the Ministry of Home Affairs.
The results of this consultation will be discussed further with regional leadership next week.
“We plan to discuss this with leadership on Tuesday (26/5). There is a need for policy adjusting urgent conditions for infrastructure development in the public interest,” she said.
Head of the Bekasi Regency Department of Housing, Settlement Areas and Land Nur Chaidir stated that the fuel price increase has affected market prices for infrastructure building materials, necessitating HPS adjustments.
He disclosed that prices of various materials including asphalt, hotmix, cement and steel have increased following the government’s announcement of the latest non-subsidised fuel prices. This situation cannot be ignored as there is concern that forcing implementation would affect infrastructure development quality.
“The budget allocated in the HPS was based on planning from last year. We must not force it because the impact is on development quality. For example, under the old HPS we planned to construct a 100-metre community road; we are concerned that with the new price it will only cover 80 metres,” he said.
Meanwhile, Head of the Bekasi Regency Department of Water Resources, Highways and Construction Engineering Henri Lincoln admitted that infrastructure projects originally scheduled to begin have not yet been implemented due to the fuel price increase affecting heavy equipment operational costs and various material requirements.
“We are currently adjusting the HPS with current pricing. We will then submit to leadership several development plans reflecting the HPS following the non-subsidised fuel price increase policy,” he said.