Public Works Minister: Weak Rupiah and Rising Fuel and Asphalt Prices Have Not Yet Impacted Projects
The Minister of Public Works, Dody Hanggodo, has revealed that the recent rise in fuel and asphalt prices, alongside the weakening of the Rupiah, has not yet impacted the progress of construction projects being undertaken by the Ministry of Public Works. Dody noted that development processes continue despite high levels of global uncertainty.
“Regarding construction, up to this moment, there has been no impact. As for price escalation, we have coordinated with the LKPP (National Public Procurement Agency). The Ministry of Public Works, represented by the Directorate General of Construction Development, has submitted internal feedback and input from industry associations,” Dody stated when meeting journalists at the DPR RI building on Tuesday (2/6/2026).
The Ministry, through the Directorate General of Construction Development, has collaborated with various associations to summarise and submit recommendations to the LKPP. The LKPP is expected to issue a formal recommendation in the form of a circular letter.
“The Ministry of Public Works has summarised these inputs, represented by the Directorate General of Construction Development, and submitted them to the LKPP. We are now waiting for the LKPP to issue its circular,” Dody explained.
He added that potential price increases are possible, drawing a parallel to the situation in 2022 during the height of the Covid-19 pandemic when uncertainty was also high. “If the LKPP determines that prices must increase, then we will implement the increase. As happened in 2022, this is not a new phenomenon. If prices rise, we will certainly propose additional budget allocations,” he said.
Previously, in 2022, the LKPP issued Circular Letter Number 16 of 2022 to the Ministry of Public Works and Housing (PUPR) regarding the impact of rising fuel and other commodity prices on infrastructure development. This circular provided guidelines for Commitment Making Officers (PPK) to adjust prices and contract values for works heavily dependent on fuel and asphalt usage.