Public Works Ministry of Indonesia Seeks 42% Budget Bump in 2021

Sep 2020

The Ministry of Public Works and Housing (PUPR) of Indonesia is requesting a USD 10.1 billion budget for 2021 to fund the country’s infrastructure projects. This marks almost a 43% increase from the current year budget. In 2021, the ministry will be focusing on six priority programs: food security, connectivity development, attracting investment in strategic regions, prioritizing social safety net through labor-intensive projects and disaster mitigation.

The ministry plans to allocate 12% of the budget for labor-intensive cash for work programs. Additionally, it will allocate 4% of the budget for a food estate program in Central Kalimantan with a total potential farmland of 165,000 hectares. About 8% will be channeled for labor-intensive projects which are expected to create jobs for 680,000 workers.

The 2021 budget is still under deliberation in the House of Representatives and subject to approval. This year, Indonesia’s economy is projected to contract by 0.2-1.1%. But growth is expected to rebound during 2021 to 4.5-5.5%.

(Source: The Jakarta Post)

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