How much has the Indonesian government spent on road construction in Lampung?

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Erlina Fury Santika 08/05/2023 12:06 WIB

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The TikTok video by Bima Yudho highlighting conditions in Lampung has resulted in a direct inspection by President Joko Widodo. But how much funding has actually been allocated for road construction

Road Construction Costs, Guarantees, and Land Acquisition for the Lampung Toll Road (2022-2023)

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Road Construction Costs, Guarantees, and Land Acquisition for the Lampung Toll Road (2022-2023)

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The condition of Lampung, highlighted by TikToker Bima Yudho Saputro, has received a positive response. President Joko Widodo, or Jokowi, even made a visit to personally inspect the damaged roads in Lampung on Friday, January 5, 2023.

According to *Katadata*, Jokowi assessed that the Lampung Provincial Government lacks the capacity to maintain all road sections.

Generally, the government divides road operation into two types: national roads and regional roads. National roads connect provinces, while regional roads connect districts and sub-districts.

Jokowi instructed the Ministry of Public Works and Public Housing (PUPR) to maintain some regional roads.

"Mainly the severely damaged roads," said Jokowi.

Given the concerning condition, how much state funding has been allocated for road development in Lampung?

(See also: Realization of Lampung Provincial APBD, Mostly for Employee Expenditures)

Sri Mulyani, Minister of Finance, revealed that road development in Lampung is quite diverse.

The most expensive program is the construction of the Sumatra toll road that crosses Lampung. The government provided State Capital Participation (PMN) and guarantees to Hutama Karya, the state-owned construction company appointed to implement the program with two toll road sections.

For the Bakauheni-Terbanggi Besar section, 140 kilometers (km) long, the PMN provided was Rp2.2 trillion, with a guarantee of Rp22.09 trillion.

For the Terbanggi Besar-Pematang Panggang-Kayu Agung section, 189 kilometers long, the PMN provided was Rp4 trillion, with a guarantee of Rp14.37 trillion.

Toll road construction requires land acquisition costs. The State Asset Management Institute (LMAN) was appointed to handle this.

The land acquisition cost for Bakauheni-Terbanggi Besar reached Rp3.75 trillion, while for Terbanggi Besar-Pematang Panggang it was Rp1.86 trillion.

Furthermore, the 2023 physical special allocation fund (DAK) for roads throughout Lampung reached Rp402.44 billion, for 231.9 km of roads.

Meanwhile, the Regional Revenue and Expenditure Budget (APBD) for all roads in Lampung totaled Rp2.16 trillion, with Rp886.8 billion specifically for Lampung Province.

"Infrastructure development is a national priority this year. Taxes paid by the people are used to create equitable development throughout the Nusantara region," said Sri Mulyani on her Instagram page, @smindrawati, on Sunday, May 7, 2023.

Sri Mulyani stated that the general expenditure of the PUPR ministry/agency for the construction and maintenance of national roads has an allocation of Rp588.7 billion for 2023, with Rp81.6 billion realized until May 2, 2023. The 2022 realization reached Rp508.1 billion.

(See also: What Was the Initial Condition of Roads in Lampung?)

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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How much has the Indonesian government spent on road construction in Lampung?

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