Jakarta, IndonesiaSentinel.com — The Indonesian Ministry of Transportation (Kemenhub) has requested an additional budget of IDR 7.68 trillion for 2025 from the Ministry of Finance and the Ministry of National Development Planning (Bappenas).
According to a joint letter from the Minister of Finance and the Minister of National Development Planning dated July 19, 2024, the budget ceiling for the Ministry of Transportation for the 2025 fiscal year is set at IDR 24.76 trillion.
This represents a significant reduction from the 2024 budget allocation of IDR 38.6 trillion, which was later adjusted to an effective budget of IDR 43.47 trillion.
Transportation Minister Budi Karya Sumadi acknowledged the substantial budget decrease but stressed that many critical and priority projects could not be accommodated within the reduced budget.
“In an effort to address these needs, we have submitted a request for an additional budget of IDR 7.68 trillion to the Minister of Finance and the Minister of National Development Planning for priority activities that were not included in the 2025 budget,” Minister Budi Karya said in an official statement on Thursday (August 29, 2024).
Minister Budi Karya also highlighted the theme of the 2025 Government Work Plan (RKP), which focuses on accelerating inclusive and sustainable economic growth. The Ministry of Transportation plans to support this theme through three key priorities: developing high-quality human resources, improving infrastructure, and fostering inclusive and sustainable economic growth.
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For the 2024 fiscal year, Minister Budi Karya reported that as of August 21, 2024, the ministry had realized IDR 22.58 trillion in spending, representing 51.95% of the budget. This includes 74.04% of the allocated funds for personnel expenses, 50.84% for goods and services, and 48.48% for capital expenditures. The ministry exceeded its August 2024 target of IDR 22.57 trillion in disbursements.
“We remain on track to meet our initial targets. We are optimistic that we will achieve a 96% realization rate by the end of the year,” Minister Budi Karya concluded.
(Ray)
