Transport Minister reports budget absorption reaches Rp9.06 trillion as of May
The Minister of Transportation, Dudy Purwagandhi, stated that budget absorption in his ministry reached Rp9.06 trillion as of 31 May 2026, representing approximately 32.27 per cent of the effective ceiling of Rp28.09 trillion for this year. Speaking during a Working Meeting with Commission V of the House of Representatives (DPR RI) in Jakarta on Thursday, the Minister provided a detailed breakdown of the expenditure.
In terms of expenditure types, the realisation includes personnel expenses of Rp3.53 trillion (72.62 per cent of the effective ceiling of Rp4.86 trillion), goods expenditure of Rp4.04 trillion (25.90 per cent of the effective ceiling of Rp15.60 trillion), and capital expenditure of Rp1.5 trillion (19.62 per cent of the effective ceiling of Rp7.64 trillion). Regarding funding sources, the realisation comprises Rp6.56 trillion from the pure state budget (37.90 per cent of the effective ceiling of Rp17.31 trillion), Public Service Agencies (BLU) at Rp637 billion (27.38 per cent of the effective ceiling of Rp2.32 trillion), and Non-Tax State Revenue (PNBP) at Rp1.23 trillion (26.23 per cent of the effective ceiling of Rp4.68 trillion). Additionally, Foreign Loans and Grants (PHLN) accounted for Rp557 billion (20.25 per cent of the effective ceiling of Rp2.75 trillion), while State Sharia Securities (SBSN) contributed Rp78 billion (7.78 per cent of the effective ceiling of Rp1.01 trillion).
The Minister noted that overall absorption remains within the appropriate corridor relative to the stages of activity implementation and contractual processes occurring in the first semester of the 2026 fiscal year. He highlighted that the 32.27 per cent realisation is higher than the cumulative target of 30.10 per cent, resulting in a positive deviation of approximately Rp0.60 trillion against the May fund withdrawal target.
Projecting forward, the Minister expects that by maintaining the current trend of activity implementation and contract completion, the year-end realisation will reach Rp27.21 trillion, or approximately 96.84 per cent of the effective ceiling. He emphasised that the Ministry of Transportation will continue to maintain spending quality while ensuring optimal absorption targets are met.
To accelerate budget execution, the Ministry is implementing several strategic steps, including speeding up the procurement of goods and services, optimising the implementation of priority activities, and ensuring timely invoice settlements. Furthermore, the ministry aims to strengthen physical and financial monitoring and evaluation, accelerate budget revisions and shifts for ready-to-absorb activities, and enhance the coordination and control of fund withdrawal plans. These measures are intended to maintain absorption momentum until the end of the fiscal year.
The Ministry of Transportation holds an initial ceiling of Rp28.49 trillion with an effective ceiling of Rp28.09 trillion. As of late May 2026, budget execution shows positive progress, particularly regarding pioneer transport subsidies and national priority projects. The Minister noted that challenges such as contracting processes, procurement, and budget revisions are being anticipated through proactive control measures.