Indonesian Government Trim Infrastructure Budget of Rp 300 Trillion

JAKARTA - The Indonesian government is certainly trim the overall portion of infrastructure budget spending until 2019, as much as Rp 300 trillion. This causes the allocated funds which initially Rp 5,000 Trillion is now Rp 4,700 Trillion.

The certainty of this was expressed by the Minister of National Development Planning (PPN/Bappenas) Bambang Brodjonegoro who explained that the deduction was due to limited funds and economic factors. "It has been corrected according to needs and capabilities," he said as reported from Koran Tempo, Thursday (4/27/2017).

On the occasion, Bambang explained that the cutting of infrastructure funds will affect the quality of domestic economic growth. With the budget revision, the allocation of funds for the state budget to 1,500 trillion, for state-owned companies to Rp 1,175 trillion, while the remaining Rp 2.025 trillion is driven by the private sector and cooperation scheme of government and business entities.

So far the Indonesian government has divided the two categories of infrastructure projects undertaken until 2019 namely the priority categories (30 projects) and the strategic (226 projects). Finance Minister Sri Mulyani Indrawati said it would work with PPN/Bappenas and all ministries and agencies to ensure effective infrastructure spending.

Indonesia is now focusing on developing infrastructure, therefore it is expected that this budget cuts will not have a negative impact on the pace of construction of various infrastructure projects. It is expected that State-Owned Enterprises will become more creative in finding financing fund.