Transport Ministry Proposes Rp 20.25 Trillion Budget Increase for 2027
The Ministry of Transportation (Kemenhub) has stated that it has proposed an additional budget of Rp 20.25 trillion for the year 2027. This move comes in response to a budget deficit required to fulfil several of the Ministry’s priority programmes for the following year.
The Secretary-General of the Ministry of Transportation, Arif Toha Tjahjaguna, stated that the Ministry has received an indicative ceiling of Rp 28.34 trillion for 2027. However, when compared to the Ministry’s total requirement of Rp 55.16 trillion for 2027, there remains a backlog of Rp 26.82 trillion. This deficit has prompted the Ministry to seek additional funding.
“The total proposed additional budget for the Ministry of Transportation in 2027 is Rp 20.25 trillion, intended to meet safety support needs of Rp 7.99 trillion, pioneering initiatives of Rp 957.24 billion, service support of Rp 9.31 trillion, and personnel expenditure of Rp 2 trillion,” he stated during a Working Meeting with Commission V of the House of Representatives (DPR RI) on Thursday (2/7/2026).
Furthermore, Arif highlighted the issue of insufficient funds for personnel expenditure. In 2027, the Ministry’s personnel expenditure requirement is estimated to reach Rp 7.03 trillion, while the allocation within the indicative ceiling is only Rp 5.03 trillion. Consequently, there is a deficit of Rp 2 trillion that has been proposed to be covered through additional government funding.
“However, if the proposal is not met by the budget allocation stage, the Ministry of Transportation is preparing two scenarios to meet personnel expenditure requirements during the current year,” he said.
Firstly, the Ministry will reallocate a portion of the Infrastructure Maintenance and Operation (IMO) budget, amounting to Rp 2.82 trillion, to personnel expenditure, considering that IMO payments are scheduled for the fourth quarter of 2027.
Secondly, the Ministry will shift funding sources from foreign loans to pure Rupiah-based funding worth Rp 1.23 trillion to cover part of the personnel expenditure needs.
This situation is not the first time the Ministry of Transportation has faced such challenges. In the 2026 fiscal year, the Ministry also experienced a personnel expenditure deficit of Rp 1.82 trillion. While part of that deficit was covered through the optimisation of internal budgets, the remainder was proposed through additional expenditure budgets.
Therefore, the Ministry of Transportation hopes that the proposed additional budget for 2027 can be accommodated to ensure that safety, connectivity, and transport service programmes continue to operate optimally.