Indonesian Political, Business & Finance News

Ministry of Transport Launches Project to Support Food Self-Sufficiency: Locations and Budgets Revealed

| Source: CNBC Translated from Indonesian | Infrastructure
Ministry of Transport Launches Project to Support Food Self-Sufficiency: Locations and Budgets Revealed
Image: CNBC

The Ministry of Transport (Kemenhub) is preparing a budget of Rp50 billion for 2027 to support the infrastructure development of Wanam Port in South Papua. This budget is directed towards completing the port’s land area, which serves as a vital component in the development of the national food self-sufficiency zone.

Director General of Sea Transportation, Muhammad Masyhud, stated that supporting the development of Wanam Port is one of the mandatory activities of the Directorate General of Sea Transportation within the 2027 budget. This development is specifically linked to the acceleration of national food, energy, and water self-sufficiency zones.

“The support for port infrastructure development at KSOP Wanam in South Papua Province amounts to Rp50 billion. This support is based on Presidential Regulation 12 of 2025, and specifically follows Presidential Instruction number 14 of 2025 regarding the acceleration of national food, energy, and water self-sufficiency zones. The allocated budget will be used to complete the land area of Wanam Port,” Masyhud said during a hearing with Commission V of the House of Representatives (DPR RI) in Jakarta on Thursday.

Wanam Port is one of the key infrastructures being prepared to bolster connectivity in the South Papua region. The development of transport infrastructure in this area is part of the government’s agenda to accelerate the development of food self-sufficiency zones.

Within the 2027 budget for the Directorate General of Sea Transportation, support for Wanam Port falls under the mandatory activities group. Out of a total budget ceiling of Rp9.821 trillion, Rp8.493 trillion, or 86.48%, has been allocated to mandatory activities.

Masyhud explained that these mandatory activities encompass various government mandates and obligations, including support for safety, maritime transport services, and activities that directly impact the community.

In addition to Wanam Port, the 2027 budget for the Directorate General of Sea Transportation is also aimed at strengthening maritime transport connectivity across various regions of Indonesia. Of the total Rp9.821 trillion ceiling, Rp7.008 trillion is allocated for connectivity infrastructure programmes, while Rp2.814 trillion is for management support programmes.

For the connectivity infrastructure programme, one of the largest allocations is for maritime transport connectivity infrastructure at Rp3.718 trillion. This budget includes Multi-Year Contract (MYC) activities, the construction and rehabilitation of port facilities, activities funded by State Sharia Securities (SBSN) and foreign loans, as well as various technical port studies.

Meanwhile, maritime transport services have been allocated Rp2.061 trillion, which includes services for pioneer routes, goods transport, livestock transport, rede transport, and transport services during the Eid, Christmas, and New Year periods.

Regarding the Rp9.82 trillion ceiling for the Directorate General of Sea Transportation, this figure is an adjustment from the actual budget requirement, which reached Rp16.646 trillion. The previously set indicative ceiling of Rp10.812 trillion was ultimately adjusted to a 2027 budget ceiling of Rp9.821 trillion.

Masyhud noted that the allocation of the ceiling against previous requirements has not been fully met. In 2025, the fulfilment of the ceiling reached 54%, while in 2026 it was 61%. For 2027, the available ceiling is equivalent to approximately 58% of the requirement.

“The fulfilment of the allocation ceiling against the requirement ceiling in 2020 was 54% and in 2026 it was 61%. For the 2027 budget preparation process, the requirement ceiling is Rp16.646 trillion, the indicative ceiling is Rp10.812 trillion, and the final budget ceiling is Rp9.821 trillion, which is equivalent to 58%,” he explained.

In preparing this ceiling, there were also adjustments to foreign loan funding (PHLN) sources. PHLN funds for Aids to Navigation (AtoN) and Patimban, originally Rp2.887 trillion, were adjusted to Rp1.658 trillion. Conversely, there was an additional ceiling of Rp238.075 billion directed towards management support and connectivity infrastructure programmes.

Masyhud also mentioned that most of the 2027 budget will be used to fulfil mandatory activities, including pioneer services, maritime transport safety and security, and infrastructure maintenance.

For pioneer services, the government has allocated Rp2.061 trillion, covering 107 services, consisting of 30 assignment-based services and 77 private services. Additionally, there are 42 goods transport services, six livestock transport services, and 17 rede transport services.

For maritime transport safety and security, the government has prepared Rp765.56 billion within the connectivity infrastructure programme. This includes ramp checks, docking, fuel procurement, and maintenance of state vessels, as well as the procurement and upgrading of maritime telecommunications equipment and safety and security equipment.

The Ministry of Transport has also allocated Rp308.66 billion for the maintenance of maritime transport safety and security, including the maintenance of lighthouses, beacons, buoys, VTS, coastal radio stations, navigation ships, patrol boats, SAR equipment, and pollution response.

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