Rupiah Weakens, Public Works Ministry States Business Entities Bear Project Risks

The Ministry of Public Works (PU) considers that the weakening of the rupiah has not yet impacted the execution of infrastructure projects, such as toll roads. The Acting Director General of Infrastructure Financing at the Ministry of Public Works, Ni Komang Rasminiati, stated that there have been no proposals for adjustments to construction costs from business entities affected by rising fuel prices and other factors.

“Under existing toll road agreements, unless there is another government policy, these costs should remain the risk of the business entities,” she said during an interview at her office in Jakarta on Friday, 5 June 2026.

A sluggish rupiah impacts building materials where the material composition or finished goods are still imported. Consequently, service providers may need to adjust costs that are affected by these fluctuations.

Rasminiati noted that there is a potential impact in the future. “Construction progress might be affected due to the increase in construction costs resulting from the rise in fuel prices,” she remarked.

Currently, the Toll Road Regulatory Agency (BPJT) within the Ministry of Public Works has a 2025-2029 strategic plan to build 1,500 kilometres of new toll roads. So far, under the Toll Road Business Agreements (PPJT), approximately 1,000 kilometres are targeted to be operational by 2029.

Targeted sections include the Probolinggo-Banyuwangi Toll Road, the Kuala Tanjung-Tebing Tinggi-Parapat Toll Road, and the Palembang Junction Toll Road. “We will also work to coordinate with these business entities to ensure completion,” said Rasminiati.

At present, the rupiah is at its weakest level of Rp 18,015 per US dollar, representing a 7.93 per cent decline since the beginning of 2026. Influencing sentiments include the war situation in the Middle East and global uncertainty.