Ministry of Public Works Budget Cut by Rp 12.71 Trillion

Public Works Minister Dody Hanggodo has revealed that the budget for his ministry has been cut by Rp 12.71 trillion for the 2026 fiscal year. This budget reduction is an effort to maintain national fiscal health, as directed by President Prabowo Subianto.

“This spending sharpening is based on the Minister of Finance’s letter number S-181/MK.03/2026 dated 1 April 2026, through optimisation of the budget allocation by Rp 12.71 trillion,” Dody stated during a working meeting with Commission V of the House of Representatives (DPR) on Tuesday, 7 April 2026.

Dody explained that efficiency is being achieved through the optimisation of spending allocations to respond to global economic dynamics while curbing the 2026 State Revenue and Expenditure Budget (APBN) deficit.

Although the budget has been cut, Dody assured that community-based infrastructure development programmes will continue. The allocation has been set at Rp 5.48 trillion for infrastructure development at 15,364 locations across Indonesia.

This infrastructure development includes the Accelerated Programme for Improving Irrigation Water Management at 12,000 locations, construction of suspension bridges at 118 locations, the Regional Socio-Economic Infrastructure Development Programme at 808 locations, Community-Based Drinking Water and Sanitation Provision at 906 locations, Community-Based Sanitation at 823 locations, Sanitation for Religious Educational Institutions at 653 locations, and Waste Processing Facilities at 56 locations.

The Ministry of Public Works’ budget allocation for 2026 was previously set at Rp 118.89 trillion. After efficiency measures, the remaining budget is Rp 106.18 trillion. Dody added that his ministry is still adjusting budget allocations at the organisational unit level with the Ministry of Finance to determine priority projects that will continue.

This budget revision process is targeted to be completed by mid-April 2026 before being submitted to the House of Representatives (DPR RI) for final approval.