Amidst Intensive Development Efforts, Infrastructure Budget Realization Decreased in April 2023

Infrastructure spending realization in the State Revenue and Expenditure Budget (APBN) has decreased amidst intensive development efforts. In April 2023, it reached Rp59.7 trillion, a 2.4% decline year-on-year (yoy) from Rp61.1 trillion in April 2022.

Finance Minister Sri Mulyani attributed the decrease to the impact of the 2023 Eid al-Fitr holiday, which affected the performance of infrastructure projects. Furthermore, the higher infrastructure spending realization in April 2022 was due to the Rp10 trillion disbursement of financing from the State Asset Management Institute (LMAN).

The Rp59.7 trillion realization was utilized in three ways: ministry/agency spending (K/L); transfers to regions (TKD); and financing.

K/L spending reached Rp34.4 trillion, with Rp22.8 trillion allocated to the Ministry of Public Works and Public Housing (PUPR) and Rp8.2 trillion to the Ministry of Transportation (Kemenhub).

PUPR's budget was used for road construction (Rp5.3 trillion, 15%); bridges (Rp1.2 trillion, 14.4%); dams (Rp2.8 trillion, 20.2%); irrigation networks (Rp2.6 trillion, 25.8%); education infrastructure (Rp0.7 trillion, 21.2%); clean water supply (Rp0.7 trillion, 17.2%); sanitation infrastructure (Rp1.2 trillion, 27.7%); and self-help housing stimulus assistance (Rp1.8 trillion, 35.7%).

Kemenhub's spending was allocated to railway construction (Rp0.9 trillion, 18.1%), airports (Rp0.7 trillion, 23.7%), and seaports (Rp0.6 trillion, 47 locations).

TKD, amounting to Rp19.3 trillion, was used for improving road stability in 328 regencies/cities and 31 provinces (0.79%); expanding clean water supply pipe networks by 94,036 SR; and upgrading clean water supply pipe networks by 47,079 SR (0.12%).

Finally, Rp6 trillion was allocated to financing, specifically the realization of the FLPP (Affordable Housing Financing Program) for the disbursement of housing financing to 16,647 housing units.