Budget Blocks and Refocusing Hit KLH Projects

Jakarta, CNBC Indonesia - The Ministry of Environment and Forestry (KLH) is facing budget pressures in 2026 following government policies on spending tightening and refocusing. Several programmes have been affected by these adjustments.

Minister of Environment and Forestry (MenLH) Hanif Faisol Nurofiq revealed that the ministry’s initial total budget of Rp1.3 trillion must be corrected due to these policies.

“Our budget allocation is recorded at Rp1.3 trillion. However, there is a spending tightening that corrects around Rp205 billion,” Hanif said during a working meeting with Commission XII of the House of Representatives (DPR RI) on Monday (6/4/2026).

This situation has made KLH’s fiscal space narrower, especially with significant budget blocks within the ministry’s spending structure. There are budget blocks, including funds that cannot be used without further approval.

“In addition to the adjustments, there are also significant budget blocks that affect the flexibility of programme implementation,” he stated.

Not only that, several special allocations have also been impacted by the refocusing, meaning not all planned funds can be used according to initial needs. One of the affected programmes is the management of waste into electricity in Surabaya. From the special allocation, only a small portion can be utilised.

“From the available special allocation, only Rp111 billion can be used to support waste management into electricity in Benowo, Surabaya,” Hanif explained.

Meanwhile, KLH’s budget performance in the first quarter remains relatively limited, in line with various adjustments that occurred at the beginning of the year. Budget realisation is recorded at around Rp214 billion, with additional ongoing contract commitments and some budgets still blocked.

“Our budget performance up to the first quarter is around 11 percent, with a realisation of Rp214 billion and several ongoing contracts,” he said.

Despite facing pressures, KLH continues to strive to maintain programme continuity, especially those directly related to public services and environmental control. Hanif emphasised that his side is also relying on additional non-tax state revenue (PNBP) to cover budget gaps arising from the refocusing policy.

“We hope for support from the DPR RI so that the re-use of PNBP can be approved, ensuring that environmental control programmes continue to run optimally,” Hanif stated.