West Java Governor Drops Rp3.4tn SMI Loan Plan, Opts to Optimise 2026 Budget

The West Java provincial government has scrapped plans to borrow Rp3.4 trillion from PT Sarana Multi Infrastruktur (SMI) to cover a fiscal shortfall.

West Java Governor Dedi Mulyadi said the provincial government would optimise its available budget. Although it will not take out the loan, development programmes in 2026 will still be carried out according to priority, he said.

“We are racing to finish all the work over the next two and a half months and meet the target in full. Is there enough money? God willing, we will manage the finances well. Although revenue-sharing funds have been delayed, we will keep pressing ahead with development,” Dedi said.

Acknowledging the fiscal shortfall, Dedi said he was confident that sound budget management would address the situation without the need to seek a loan from SMI.

“We will simply optimise the budget we have. Some payments may be deferred, with activities carried out in 2026 paid for in 2027. This benefits the government, because it can continue development without taking on loans or the burden of interest payments,” he added.

Dedi also thanked the West Java Regional House of Representatives (DPRD) for its continued support of development programmes and budget management to ensure spending is properly targeted.

He also expressed his appreciation to the Ministry of Home Affairs for consistently providing guidance and advice on budget management.

“Of course, I also thank the people of West Java for paying their taxes on time. Without motor vehicle taxpayers, the West Java provincial government would not be able to function,” Dedi said.