Public Works Ministry's Indicative Ceiling for 2027 Budget Set at Rp98.47 Trillion

Minister of Public Works Dody Hanggodo revealed that the indicative budget ceiling for the 2027 fiscal year stands at Rp98.47 trillion. Dody explained that, with reference to the 2027 Government Work Plan (RKP), the Ministry of Public Works has calculated its total funding requirement for Fiscal Year 2027 at Rp219.81 trillion. This requirement is based on the 2027 infrastructure development plan, ongoing contracts, and support for the national development agenda. “Nonetheless, based on a joint letter from the Minister of Finance and the Minister of National Development Planning/Head of Bappenas dated 7 May 2026, the indicative ceiling for the Ministry of Public Works has been set at Rp98.47 trillion. Consequently, with this indicative ceiling, there remains an unmet budget requirement of Rp121.34 trillion,” Dody stated during a Working Meeting with Commission V of the Indonesian House of Representatives (DPR RI) in Jakarta on Thursday. He said the unmet requirement includes allocations for irrigation that needs to be built and rehabilitated, roads and bridges that still require maintenance, suspension bridges, drinking water services that need expansion, and sanitation and waste management that must be improved. It also covers educational infrastructure that needs to be prepared, disaster management that must remain a priority, and community-based infrastructure programmes that still require optimisation. In response to this, on 22 May 2026, the Ministry of Public Works sent a letter to the Minister of Finance and the Minister of National Development Planning/Head of Bappenas to explain the Rp121.34 trillion in unmet needs, requesting it be considered in the approval for setting the Ministry of Public Works’ budget ceiling for Fiscal Year 2027. “We fully understand that state budgeting requires prudence; therefore, we present these needs openly, measurably, and based on public infrastructure service functions,” Dody said. For context, Finance Minister Purbaya Yudhi Sadewa has signalled the continuation of budget efficiency policies into the 2027 fiscal year. “The government remains committed to improving the quality of state spending through efficiency and refocusing measures so that budget allocations become more productive, well-targeted, and capable of delivering tangible impacts for the economy and society,” Purbaya said during a Plenary Session of the DPR RI in Jakarta on Tuesday (9/6). Under the 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM PPKF), the government is targeting state spending within a range of 13.62 per cent to 14.80 per cent of gross domestic product (GDP). In managing state expenditure, the government is promoting the effectiveness of subsidies and social protection in safeguarding purchasing power and alleviating poverty.