West Java's Fiscal Capacity Falls by IDR 3 Trillion, KDM Applies for IDR 2 Trillion Loan

REPUBLIKA.CO.ID, BANDUNG — The Governor of West Java, Dedi Mulyadi, has applied for a regional loan of IDR 2 trillion to maintain the continuity of strategic infrastructure projects amidst a fiscal capacity decrease of nearly IDR 3 trillion. This step is taken to ensure that several priority projects, such as the Puncak II route, the construction of underpasses, and flyovers in various regions, continue to progress despite the limited fiscal space in the 2026 regional budget.

“To be frank, to realise this, because the West Java Provincial Government is experiencing a fiscal loss of almost IDR 3 trillion, I am applying for a loan of IDR 2 trillion this year,” said Dedi at the Gedung Sate, Bandung, Thursday (26/2/2026).

Dedi emphasised that the loan is designed with a measured scheme and will not burden the next administration. He ensured that the instalments are targeted to be completed by 2030 and will only be applicable during his tenure.

“The instalments will be until 2030. During my leadership, so it cannot be longer,” he said.

The funds will come from a syndicated credit scheme between PT Sarana Multi Infrastruktur (SMI) and Bank BJB. The syndicated scheme was chosen to maintain the liquidity stability of the regional development bank while also ensuring that project financing remains controlled.