Public Works Allocates Rp 26.3 Trillion for 'Sekolah Rakyat' Project Next Year
The government is preparing a substantial budget for the construction of ‘Sekolah Rakyat’ in 2027. However, plans to increase student capacity have caused the programme’s budgetary requirements to soar far beyond the available ceiling.
The allocation for the Directorate General of Strategic Infrastructure within the Ministry of Public Works for 2027 has reached Rp 32.57 trillion. From this amount, the largest portion is directed towards the construction of ‘Sekolah Rakyat’.
“From the total budget ceiling of the Directorate General of Strategic Infrastructure for the 2027 Fiscal Year of Rp 32.57 trillion, the budget utilisation is primarily for the construction of Sekolah Rakyat amounting to Rp 26.302 trillion, Religious Schools at Rp 2.5 trillion, MYC activities at Rp 1.951 trillion, Sumatra Disaster Management at Rp 1.156 trillion, Management Support Programmes at Rp 0.456 trillion, and Turbinwas at 0.205 trillion,” stated the Acting Director General of Strategic Infrastructure at the Ministry of Public Works, Kuswara, during a hearing with Commission V of the Indonesian House of Representatives (DPR RI) on Thursday (10/09/26).
The initial plan aims to continue the ongoing construction of ‘Sekolah Rakyat’. In addition to building new locations, the budget is also directed towards multi-year construction schemes to ensure the programme can continue into the following year.
“First, the Sekolah Rakyat Programme, in accordance with the mandate of Presidential Instruction (Inpres) Number 8 of 202lar, has an allocated budget of Rp 26.301 trillion. This is targeted to build 100 units of Sekolah Rakyat for Phase III (MYC 2026-2027) and down payments for 100 units of Sekolah Rakyat for Phase IV (MYC 2027-2028), with the final output to be calculated in 2028,” said Kuswara.
Issues have arisen following a proposal to change the capacity of the ‘Sekolah Rakyat’. The capacity, originally designed for 1,080 students per location, has been proposed to increase to 2,520 students.
“The Ministry of Public Works received a letter from the Minister of Social Affairs, Number S.866/MS/PR.01.04/7/2026 dated 21 July 2026, conveying the proposal to increase the capacity of Sekolah Rakyat Phase III from the initial capacity of 1,080 students to 2,520 students per educational unit location,” Kuswara explained.
This increase in capacity immediately altered the construction and budgetary requirements. With the budget ceiling remaining unchanged, the government must choose between building fewer locations with larger capacities or proceeding with a phased approach.
“Based on the Ministry of Public Works Letter Number KU.01.01/B/MN/2026/7 dated 22 May 2026, the initial budget requirement for the 2027 Fiscal Year for the Directorate General of Strategic Infrastructure was Rp 50.876 trillion. At the Indicative Ceiling stage, the available budget is Rp 31.53 trillion, resulting in a budget requirement backlog of Rp 19.353 trillion,” said Kuswara.
These requirements now have the potential to swell even further after the new capacity scenario was calculated. With a ceiling of Rp 32.57 trillion, the available budget remains far below the requirements for a programme designed for 2,520 students per location.
“With the proposal from the Ministry of Social Affairs to increase the capacity of Sekolah Rakyat from the initial 1,080 students to 2,520 students, the required budget is estimated to increase to Rp 104.091 trillion. Meanwhile, the available Budget Ceiling is Rp 32.57 trillion, resulting in a backlog of Rp 71.521 trillion,” Kuswara concluded.