Indonesian Political, Business & Finance News

PU Budget Cut by Rp12 Trillion, Minister Dody Assures Priority Projects Safe

| Source: CNBC Translated from Indonesian | Infrastructure
PU Budget Cut by Rp12 Trillion, Minister Dody Assures Priority Projects Safe
Image: CNBC

Jakarta, CNBC Indonesia - Minister of Public Works Dody Hanggodo has assured that the budget cut for the Ministry of Public Works in 2026 will not affect the development of President Prabowo Subianto’s priority projects, with the reduction stemming from the impact of tensions in the Middle East.

Dody stated that the budget cut for the Ministry of Public Works in 2026 will not impact the implementation of President Prabowo Subianto’s priority programmes or the handling of flash flood disasters in Sumatra.

“Even though there is a budget cut, we ensure that the development of the President’s priority programmes remains unchanged, such as those related to food self-sufficiency, water, energy, and connectivity. The development of post-flood disaster rehabilitation in Sumatra also remains a priority,” Dody said when met by reporters after a working meeting with Commission V of the Indonesian House of Representatives on Tuesday (7/4/2026).

Later, Dody will request to President Prabowo that developments directly targeting the public are not affected by this budget cut.

“We will mature it to Mr President as well. This has many benefits for the public, especially in the current economic downturn. We will appeal to Mr President,” he continued.

Dody mentioned that the budget cut targets community-based infrastructure (IBM), which was previously asterisked because the preparation criteria were not yet met.

“There is indeed a letter from the Minister of Finance for budget efficiency. But what is cut is directly the community-based infrastructure. Because at that time the preparation criteria were not met, so it was asterisked,” he explained.

He emphasised that IBM projects are seen as directly touching the lower strata of society. Therefore, his side will seek various schemes to keep the programme running, including multi-year contracts (MYC) for light or small project works.

For example, the Cijurey Dam project in Jonggol, Bogor Regency, which can already hold back floods in Karawang and Bekasi, and the Bener Dam in Purworejo Regency, Central Java, which can support irrigation for 15,000 hectares of rice fields.

“However, heavy works we accelerate. For instance, the Cijurey Dam has successfully held back floods in Karawang, Bekasi, Tangerang; we accelerate that. Next, the Bener Dam for 15,000 hectares to support food self-sufficiency, we also accelerate,” Minister Dody stressed.

Dody is also continuing to coordinate with the Ministry of Finance regarding budget positions that can be adjusted. Discussions on this are ongoing until 15 April 2026.

“For community-based infrastructure, God willing, while we discuss with the Ministry of Finance whether, for example, that one should not be taken, others can be taken. That is still being finalised until 15 April,” he concluded.

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