Dedi Mulyadi Seeks IDR 2 Trillion Loan to Cover West Java's Fiscal Deficit

Bandung (ANTARA) - The Governor of West Java, Dedi Mulyadi, has taken a significant step by proposing a regional loan of IDR 2 trillion to salvage strategic infrastructure projects amidst the province’s declining fiscal capacity, which has reached IDR 3 trillion.

This measure is being taken to ensure that major projects such as the Puncak II road, as well as underpasses and flyovers in various regions, are not stalled due to the limited fiscal space in the regular 2026 regional budget (APBD).

“To be frank, to realise this, because the West Java Provincial Government is experiencing a fiscal loss of almost IDR 3 trillion, I am proposing a loan of IDR 2 trillion this year,” said Dedi at the Gedung Sate in Bandung, Thursday.

Dedi emphasised that this loan is not a blank cheque that will burden future generations. He guarantees that the repayment scheme will be completed by 2030 and will only be valid during his tenure to complete the urgent physical development.

“But it will only be valid during my leadership to complete the major infrastructure projects. The repayments will be until 2030. During my leadership, so it cannot be extended,” he said.

The fresh funds, according to Dedi, will come from a syndicated credit scheme between PT Sarana Multi Infrastruktur (SMI) and Bank BJB. This syndicated scheme was deliberately chosen to maintain the liquidity stability of the regional development bank.

The West Java Regional People’s Representative Council (DPRD) confirmed that it had received and signed an official letter from the governor regarding the plan. Deputy Chairman of the West Java DPRD, MQ Iswara, said that the loan option is a realistic solution if regional revenues are not sufficient to cover the agreed-upon activities.

“The Governor’s letter has been submitted to the DPRD. If, in the process, revenues do not meet the agreed-upon activities, a regional loan will be carried out,” said Iswara.

Iswara added that the points in the letter also affirm the West Java Provincial Government’s compliance with the guidance from the Ministry of Home Affairs regarding the preparation of the 2026 APBD in the face of challenging liquidity conditions.

Currently, the proposed loan of IDR 2 trillion is still in the stage of formal commitment between the executive and legislative branches before proceeding to the technical realisation of the disbursement of funds.