West Java's 2 Trillion Rupiah Loan Plan: Realisation Prospects in 2026 Revised Budget
BANDUNG — West Java provincial government’s plan to secure a regional loan to accelerate infrastructure development remains in its early stages. The West Java provincial legislature has emphasised that to date there has been no formal submission from the governor regarding the plan.
Deputy Chairman of the West Java provincial legislature, MQ Iswara, stated that the mechanism for regional borrowing cannot be carried out directly without joint deliberation with the legislature. The regional government must first submit an official letter to the legislature before the plan is discussed further.
“If the province does proceed with a loan, the governor must first submit an official letter to the legislature. After that, it will be discussed in the Budget Committee of the legislature,” said Iswara on Wednesday (11 March 2026).
According to him, the results of such deliberation would then form the basis for determining whether the regional loan plan is included in the Revised Regional Budget or not. Consequently, the process remains lengthy and requires discussion stages in accordance with applicable mechanisms.
Iswara explained that to date the legislature also has not ascertained precisely what loan amount will be proposed. This is because the formal submission letter from the provincial government has not yet been received by the legislature.
He added that discussion of a regional loan has emerged following a reduction in transfer funds from the central government to the region, valued at approximately 2.458 trillion rupiah. This situation potentially affects the region’s fiscal capacity to finance various development programmes.
Because of this, according to Iswara, the loan option is positioned as a precautionary measure or reserve fund in the event that development budget requirements cannot be covered by the regional budget.
“If the regional budget later proves sufficient, of course the loan would not need to be undertaken. So its position is more as a reserve only,” he said.
Several strategic infrastructure projects are mentioned as priorities for accelerated development should the additional financing scheme be realised. These include construction of the Puncak 2 route, construction of a flyover in Bekasi, and an underpass in Cimahi.
The legislature, according to Iswara, will in principle examine the plan in detail once it is formally submitted by the provincial government, including considering the urgency of the programme and the region’s financial capacity to bear the loan burden.
“Everything will be discussed openly in the Budget Committee. The final decision will go through the revised regional budget discussion mechanism,” he said.