Minister Dody Reports to DPR on Rp12 Trillion Cut to PU Budget: What's Happening?

Jakarta, CNBC Indonesia - Public Works Minister Dody Hanggodo has revealed that the Ministry of Public Works’ budget plan for 2026 is at risk of being cut due to the impact of tensions in the Middle East, where President Prabowo Subianto has asked ministries and agencies to implement efficiencies through spending optimisation once again.

Dody explained that the Ministry of Public Works’ initial 2026 budget of Rp118.5 trillion will be reduced to Rp106.18 trillion, with the cut directed by President Prabowo to optimise spending amid global uncertainties.

“Initially, the budget allocation for the Ministry of Public Works for Fiscal Year 2026 was Rp118.5 trillion, but spending sharpening is being carried out as a follow-up to the President’s instructions to mitigate global conditions and keep the state budget deficit under control. This spending sharpening is based on Finance Ministry Letter No. S-181/MK.03/2026, through spending optimisation of Rp12.71 trillion, so the planned DIPA allocation for the Ministry of Public Works in 2026 becomes Rp106.15 trillion,” said Dody in his presentation at the working meeting (raker) with Commission V of the House of Representatives, Tuesday (7/4/2026).

Dody emphasised that his side is currently adjusting detailed allocations for internal organisational units (Unor) with the Finance Ministry to determine priorities for projects that will continue.

The budget revision process is targeted to be completed by mid-month before being officially presented to the House of Representatives for final approval.

“We have not yet presented the details for approval in Commission V, because we are still revising the budget with relevant Unor and the Finance Ministry, which has a deadline of 15 April 2026,” Dody explained.

It is known that this efficiency is the second time it has been carried out by the Prabowo administration. The efficiency results are targeted to save around Rp80 trillion to anticipate the swelling of fuel subsidy spending triggered by rising oil prices.

The efficiency being prepared is the government’s effort to dampen the impact of the Middle East war turmoil. This efficiency could also affect all ministries and agencies, including the Ministry of Public Works itself.