Infrastructure Indonesia's 2024 budget will cost IDR 422 trillion

In the 2024 State Budget Draft (RAPBN) speech, President Joko Widodo announced that Infrastructure funding would reach IDR 422.7 trillion. This marks a substantial increase from the Infrastructure budget in the 2023 State Budget, recorded at IDR 392 trillion.

During the Plenary Session of the Indonesian House of Representatives (DPR RI) discussing the 2024 RAPBN in Jakarta on Wednesday (August 16), President Widodo revealed that the allocation of IDR 422.7 trillion aims to drive productivity, mobility, and connectivity, while also ensuring equitable distribution.

This Infrastructure budget is allocated for:

• Enhancing basic service provision.
• Improving work efficiency through connectivity and mobility Infrastructure development.
• Expanding irrigation networks by building dams and irrigation channels at primary, secondary, and tertiary levels.
• Providing affordable, reliable, and sustainable Infrastructure in energy and food sectors.
• Ensuring equal access to Information and Communication Technology.
• Supporting strategic projects, including the development of the Nusantara Capital City (IKN).

President Widodo stated that accelerating Infrastructure development is achieved through a combination of various financing schemes by optimizing the synergy between investment financing and the budgets of Ministries/Agencies, while strengthening the role of the private sector.

Therefore, the Government continuously promotes broader and sustainable Public-Private Partnership (PPP) schemes, he noted.

The 2024 Infrastructure budget marks the highest allocation in the past 10 years.

This Infrastructure budget sets a record high during President Joko Widodo's administration in Indonesia. Below is an annual breakdown of the Infrastructure budget that can be viewed in the accompanying chart.

In the 2023 budget year, the Indonesian government allocated a significant fund of IDR 392 trillion for various Infrastructure projects. This allocation reflects a substantial increase of 7.8% compared to the 2022 budget of IDR 363.8 trillion. This increase is expected to accelerate the development of essential Infrastructure such as roads, bridges, and other public facilities, to support connectivity and accessibility throughout Indonesia.

In 2021, the Infrastructure budget reached IDR 417.4 trillion, the highest amount before the 2024 State Budget Draft. Conversely, the lowest Infrastructure budget during Widodo’s administration occurred in 2015, with a total of IDR 256.1 trillion.