Bina Marga Requests IDR 89.07 Trillion Budget for Construction and Rehabilitation
The Directorate General of Bina Marga at the Ministry of Public Works has proposed a budget requirement of IDR 89.07 trillion to support the achievement of its 2027 work plan. This figure includes IDR 3.02 trillion for management support and IDR 84.07 trillion for infrastructure connectivity programmes.
Director General of Bina Marga Roy Rizal stated that, based on a joint letter from the Minister of National Development Planning/Bappenas and the Minister of Finance regarding the Indicative Budget Ceiling for Ministries/Agencies and the Special Allocation Fund for 2027, the indicative ceiling for the Directorate General of Bina Marga has been set at IDR 29.24 trillion. This amount is 39.97 per cent lower than the 2026 allocation.
“To ensure the optimal implementation of duties and functions, the Directorate General of Bina Marga has submitted a request for additional funds. This was conveyed through a letter from the Minister of Public Works to the Minister of Finance and the Minister of National Development Planning/Head of Bappenas on 22 May 2026, regarding the benefits of the 2027 Indicative Budget Ceiling for the Ministry of Public Works and unmet needs,” he explained during a hearing with Commission V of the House of Representatives on Wednesday (1/7/2026).
For the record, the joint letter on the Indicative Ceiling from the Minister of National Development Planning/Bappenas and the Minister of Finance has stipulated budget allocations based on funding sources, including mandatory spending for National Priority Work Programmes and obligatory payments. Based on this letter, the 2027 Indicative Ceiling for the Directorate General of Bina Marga is recorded at IDR 29.24 trillion, allocated for management support programmes amounting to IDR 2.54 trillion, or 5.68 per cent, and infrastructure connectivity programmes amounting to IDR 26.70 trillion, or 91.32 per cent.
“So, based on the Indicative Ceiling and the joint letter, the allocation of IDR 29 trillion has been determined. The funding sources for the infrastructure connectivity programme consist of IDR 11.78 trillion in pure rupiah, IDR 12.15 trillion in Sharia-compliant securities (SBSN), and IDR 2.76 trillion from PLN and RMP,” he clarified.
Furthermore, the pure rupiah funding of IDR 11.78 trillion will be used to support the National Priority Programme for post-disaster rehabilitation and reconstruction in Sumatra, with an allocation of IDR 4.24 trillion, and the development of integrated food estate areas, with IDR 2.23 trillion. The funding is also intended for mandatory payments for Government and Business Entity Cooperation under the Available Payment scheme (KPBU-AP) amounting to IDR 1.46 trillion and Periodic Service-Based Payments (PBBL) of IDR 928 billion.
In addition, the Ministry of Public Works budget is also allocated for the continuation of multi-year contract (MYC) projects, reimbursement of land acquisition advances, construction of suspension bridges, regulatory and supervisory activities, as well as the operation and maintenance of national roads. However, the budget for national road preservation under the indicative ceiling only reaches approximately IDR 1.07 trillion.
Roy also revealed that budget constraints mean new MYC projects financed from pure rupiah cannot yet be allocated. Currently, the Directorate General of Bina Marga is prioritising the completion of physical MYC projects entering their final year of implementation and projects funded by Sharia-compliant securities (SBSN). He added that if no additional budget is provided in subsequent discussions, the Ministry of Public Works will be forced to rationalise its programmes. This would result in a number of projects experiencing extended implementation periods and potential delays in completion, which could slow the target for improving national road connectivity in 2027 from the original plan.