Indonesia's Infrastructure Budget Realization Soars 50.4% by April 2024

The Indonesian Ministry of Finance (Kemenkeu) revealed that Indonesia's infrastructure budget realization reached Rp89.8 trillion (approximately US$5.8 billion based on current exchange rates) by April 2024. This figure fulfills 21.2% of the 2024 State Budget (APBN) allocation.

Finance Minister Sri Mulyani stated that the April 2024 budget realization growth was very sharp, at 50.4% year-on-year (yoy) compared to the previous year's Rp59.7 trillion (approximately US$3.8 billion).

This infrastructure budget allocation includes spending by ministries/agencies (K/L), transfers to regions (TKD), and below-the-line financing.

K/L spending was the largest component of infrastructure realization, reaching Rp41.8 trillion (approximately US$2.7 billion) in April 2024.

The Ministry of Public Works and Public Housing (PUPR) received Rp22.2 trillion (approximately US$1.4 billion), some of which was allocated to road construction (Rp8.5 trillion or approximately US$0.5 billion); bridges (Rp1.1 trillion or approximately US$71 million); dams (Rp2.6 trillion or approximately US$170 million); irrigation networks (Rp1.4 trillion or approximately US$91 million); clean water supply (SPAM) (Rp1 trillion or approximately US$65 million); and low-cost apartments (rusun) (Rp800 billion or approximately US$52 million).

The Ministry of Transportation received Rp8.3 trillion (approximately US$540 million), including funds for railway construction (Rp200 billion or approximately US$13 million); airports (Rp800 billion or approximately US$52 million); and seaports (Rp1.6 trillion or approximately US$104 million).

The Ministry of Communication and Information Technology (Kominfo) realized Rp4.2 trillion (approximately US$274 million), including operational and maintenance costs for 4G BTS (Rp1.6 trillion or approximately US$104 million); the national data center (Rp500 billion or approximately US$32 million); satellite capacity (Rp600 billion or approximately US$39 million); and Palapa Ring (Rp900 billion or approximately US$58 million).

The Ministry of Religious Affairs received Rp2.3 trillion (approximately US$150 million) for the construction of higher education buildings (Rp900 billion or approximately US$58 million); madrasah infrastructure (Rp800 billion or approximately US$52 million); and religious higher education infrastructure (Rp400 billion or approximately US$26 million).

The Indonesian National Police (Polri) received Rp1.9 trillion (approximately US$123 million) for building defense and security infrastructure in the new capital city (IKN).

The next budget item, TKD, amounted to Rp17.4 trillion (approximately US$1.1 billion), mostly for regional revenue sharing (DBH) and general allocation funds (DAU) for regional infrastructure (Rp17.3 trillion or approximately US$1.1 billion).

Finally, below-the-line financing amounted to Rp30.6 trillion (approximately US$2 billion), including housing financing through FLPP (Rp6 trillion or approximately US$390 million) and PMN (Rp24.6 trillion or approximately US$1.6 billion).

Note: USD exchange rates are approximate and subject to change.