Public Works Ministry's Bina Marga Proposes Rp59 Trillion Budget Boost to Strengthen Connectivity

The Directorate General of Highways (Ditjen Bina Marga) at the Ministry of Public Works has proposed an additional budget of approximately Rp59.83 trillion for 2027 to strengthen the national connectivity infrastructure programme. During a working meeting with Commission V of the House of Representatives (DPR RI) in Jakarta on Wednesday, Director General of Highways Roy Rizali Anwar stated that the directorate general’s budget requirement for 2027 is proposed at Rp89.07 trillion to support development targets. The proposal comprises Rp3.02 trillion for management support and Rp84.07 trillion for the connectivity infrastructure programme, in line with the 2027 Strategic Plan (Renstra). Based on a Joint Letter from the Minister of National Development Planning/Head of Bappenas and the Minister of Finance, the indicative ceiling for the Directorate General of Highways has been set at Rp29.24 trillion. This results in a shortfall of approximately Rp59.83 trillion compared to the proposal. Roy explained that the indicative ceiling is about 39.97 per cent lower than the 2026 budget allocation for the Directorate General of Highways, necessitating adjustments to priority programmes. To optimise the execution of its duties and functions, the Ministry of Public Works submitted a request for additional budget to the Minister of Finance and the Minister of National Development Planning/Head of Bappenas on 22 May 2026. He noted that the Joint Letter on the Indicative Ceiling regulates budget distribution based on funding sources, including mandatory spending that is binding to support National Priority Projects/Activities (PKPN) and obligatory payments. Based on the indicative ceiling, the allocation for the Directorate General of Highways consists of Rp2.54 trillion for management support and Rp26.70 trillion for the connectivity infrastructure programme. Funding sources for the connectivity infrastructure programme include Rp11.78 trillion from pure rupiah, Rp12.15 trillion from State Sharia Securities (SBSN), and Rp2.76 trillion from Foreign Loans (PLN) and Companion Pure Rupiah (RMP). He disclosed that the pure rupiah allocation of Rp11.78 trillion is utilised for PKPN support for post-disaster rehabilitation and reconstruction in Sumatra amounting to Rp4.24 trillion and integrated food estate development of Rp2.23 trillion. The funding is also directed towards mandatory payments for Government and Business Entity Cooperation with the Available Payment scheme (KPBU-AP) of Rp1.46 trillion and Service-Based Periodic Payments (PBBL) of Rp928 billion. Further allocations include Rp145 billion for multi-year contract (MYC) projects, Rp97 billion for land advance reimbursement, Rp1.07 trillion for community-based infrastructure (IBM) suspension bridges, and Rp521 billion for regulatory, supervisory, and guidance activities. An additional Rp1.07 trillion is allocated for the operation and maintenance of national roads. For committed multi-year contracts, the indicative ceiling prioritises the completion of physical works in the final year and supervision of activities funded by SBSN, while other committed MYC physical works cannot yet be allocated. Of the Rp2.54 trillion management support allocation, 82 per cent, or Rp2.08 trillion, will be used to meet employee expenditure, with the remainder for operational goods.