Public Works Ministry Streamlines Nusantara Capital Project Amid Budget Cuts

Jakarta – The Indonesian Public Works Ministry has announced the cancellation of comparative studies on building designs for the nation’s new capital, Nusantara, due to stringent budget efficiency measures. Minister Dody Hanggodo emphasized that the team will now rely on online resources rather than conducting physical study visits to countries like Egypt, Turkey, and India.

Budget Efficiency Measures Impact Nusantara Project

Originally, the ministry had planned to analyze government building designs in Egypt, Turkey, and India by visiting these locations. However, given the reduction in the ministry’s budget, these field studies have been deemed unnecessary. “The comparative studies may not be required anymore,” stated Minister Dody Hanggodo on Friday, “since we can access the necessary information through online platforms like Google.”

The change in plans is part of broader budget cuts aimed at conserving funds for more critical projects. With substantial reductions in state spending worth Rp 81.38 trillion ($5 billion), multiple infrastructure initiatives have been suspended. These include road maintenance, expensions of clean water supplies, and waste management programs across the country.

Ministry Aims to Cut 2025 Budget

The ministry’s adjustments are part of President Prabowo’s larger strategy to pare back Rp 306 trillion ($18.7 billion) from governmental expenditures. This strategy aims to fund more vital programs. Consequently, the Public Works Ministry must trim its 2025 budget significantly.

The budget constraints have had far-reaching implications. Around 18,000 contract workers have been affected, with their non-permanent contracts not being renewed due to ongoing financial reviews. Furthermore, the suspension of road maintenance is widespread, impacting 47,603 kilometers of roads and 563,402 meters of bridges.

Impact on Infrastructure and Environmental Projects

All new bridge construction and technical management support initiatives have been put on hold. Additionally, wastewater treatment systems for 10,240 households and waste management facilities for 9,540 households have been canceled. The expansion of clean water access to 863 households has also been scrapped.

Other affected areas include sanitation programs at 1,400 locations, infrastructure initiatives at 825 community sites, and waste processing facilities at 100 locations. These cuts demonstrate the ministry’s prioritization of essential services amidst financial constraints.

Final Design Considerations

Minister Dody emphasized that the final design of buildings for Nusantara could be finalized following a regional retreat planned in Magelang. This gathering aims to conclude design decisions based on the available resources and considerations.

Conclusion

The Public Works Ministry’s shift towards online research and the cancellation of physical study visits reflect budgetary realities. Despite the challenges posed by substantial budget reductions, infrastructure priorities and management remain crucial. The ministry continues its mission to serve the needs of the Indonesian people, adapt to financial pressures, and fulfill its obligations effectively.

As these changes unfold, it is essential to monitor the impact on Indonesia’s infrastructure landscape and to stay informed about future developments.

We encourage our readers to share their thoughts on this significant shift in the ministry’s approach to the Nusantara project. Please feel free to comment below or subscribe to our newsletter for updates on further developments.