Toll Road Projects Suspended as Gov't Implements Austerity Measures
Jakarta. The Public Works Ministry announced the suspension of all toll road projects funded by the State Budget (APBN) due to budget efficiency measures.
Among the halted projects are Phase 2B of the Bekasi-Cawang-Kampung Melayu (Becakayu) Toll Road, which spans 6.9 kilometers connecting East Jakarta and West Java with a budget of Rp 5.9 trillion ($362 million), and the Puncak Toll Road in West Java. The Puncak project, covering 52 kilometers from Sentul to Cipanas via Hambalang, Sukamakmur, and Pacet, has an initial investment estimate of Rp 24.37 trillion.
These toll roads were considered important in alleviating traffic congestion, particularly in Puncak, a hotspot for severe gridlock during holiday seasons. Last September, a 56-year-old woman died after being stuck in a 24-hour traffic jam in Puncak.
“With the 2025 APBN, continuing these projects is not feasible,” Deputy Public Works Minister Diana Kusumastuti said on Friday.
However, Kusumastuti clarified that toll road projects under public-private partnership (PPP) schemes will proceed as planned, as these do not rely on state budgets. “Projects under PPP will continue, but those funded by APBN are being postponed for further review,” she explained.
The Public Works Ministry faces the largest budget reduction this year, with a planned cut of Rp 81 trillion, equivalent to 80 percent of its allocation. Health Minister Budi Gunadi Sadikin also revealed that his ministry will experience a Rp 19 trillion budget cut.
Other ministries affected include the Finance Ministry, which will reduce its spending by Rp 12.3 trillion, the Elementary and Middle Education Ministry by Rp 8.01 trillion, and the Spatial Planning Ministry by Rp 2.3 trillion.
These budget cuts are part of the government’s broader Rp 306.69 trillion spending reduction directive for 2025, outlined in Presidential Instruction No. 1 of 2025 on Budget Efficiency.
The move aims to reallocate resources for the president’s flagship program, which will provide free nutritious meals for children and expectant mothers. Central government agencies will reduce spending by Rp 256.1 trillion, while Rp 50.5 trillion will be deducted from funds transferred to provincial governments.
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