South Sulawesi allocates Rp5 trillion for second phase of multi-year project
The Provincial Government of South Sulawesi is continuing its Multi-Year Project (MYP) development programme with a second phase budgeted at Rp5 trillion, covering road infrastructure, bridges, irrigation, agriculture, housing renovation and support for micro, small and medium enterprises (MSMEs).
“If I am not mistaken, there are 11 items. Some are multi-year and some are single-year. So, Rp4 trillion we have made multi-year and Rp1 trillion single-year,” said Deputy Speaker of the South Sulawesi Regional House of Representatives (DPRD) Fauzi Andi Wawo in Makassar on Friday.
According to him, a number of requirements must be met for the multi-year projects for the 2027-2029 period, while single-year works must be completed within a maximum of 12 months.
The budget for the first phase of the MYP, he said, was more than Rp3.7 trillion, and the second phase has been allocated Rp5 trillion. In total, the budget absorbed amounts to more than Rp7.7 trillion.
The budget for the MYP programme comes entirely from efficiency savings in the Regional Revenue and Expenditure Budget (APBD). The provincial government and the DPRD have agreed that this allocation is designed not to burden regional finances or require new borrowing.
To date, the provincial government’s remaining debt stands at Rp1.03 trillion, including short-term obligations and Revenue Sharing Funds (DBH). According to records from the Supreme Audit Agency (BPK RI), the provincial government has not yet distributed DBH and financial assistance totalling Rp705 billion to districts and cities across South Sulawesi.
Regarding this debt burden, the ex officio head of the DPRD Budget Committee (Banggar) said it must still be settled by the end of the current term of office, while taking into account the region’s fiscal space.
“God willing, we will determine that. Of course, we look at our fiscal space, then we try to calculate, and it turns out there is still room to implement the second phase of the MYP. This already includes the repayment of all existing debts,” he explained.
For the second phase of the MYP, South Sulawesi Governor Andi Sudirman Sulaiman has selected regions that were not included in the first phase. Areas already covered by the first MYP will not be included in the second phase.
“So, all districts and cities not covered in the first MYP will be included in the second MYP. The hope is that all regions in South Sulawesi will receive infrastructure improvements evenly,” he added.
Coordinator of the DPRD Budget Committee Working Team Mizar Roem, in his presentation on the General Policy for the Regional Revenue and Expenditure Budget and the Temporary Budget Priorities and Ceilings (KUA-PPAS) for the 2027 APBD, stated that the Budget Committee is giving serious attention to the MYP programme.
In addition, the committee is observing the principle of meeting the characteristics of multi-year activities as a single output unit, requiring more than one fiscal year to complete, and not being an annual budgeting activity. The provincial government must ensure the readiness and certainty of the MYP, as well as pay attention to the region’s fiscal capacity.
It is known that in the first phase of the MYP (2025-2027), the budget used reached Rp3.7 trillion from APBD efficiency savings. The programme prioritised road infrastructure development, irrigation improvements, and the construction of regional hospitals in Gowa Regency and Luwu Regency.
For the construction of the two regional hospitals, a budget of Rp485 billion was allocated. Meanwhile, Rp2.5 trillion was allocated for the repair and resurfacing of 1,400 kilometres of roads across 85 road sections in various areas. Irrigation development to serve 54,000 hectares of rice fields was allocated Rp780 billion.