Prabowo’s Directive Halts Major Infrastructure Projects

Alfida Rizky Febrianna
November 18, 2024 | 4:32 pm
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Residents walk to attend the inauguration of the Temef Dam in Oenino, South Central Timor Regency, East Nusa Tenggara, Wednesday, Oct. 2, 2024. The Temef Dam, inaugurated by President Joko Widodo, provides raw water with a capacity of 131 liters per second for residents in both the South Central Timor and North Central Timor regencies. (ANTARAFOTO/Mega Tokan)
Residents walk to attend the inauguration of the Temef Dam in Oenino, South Central Timor Regency, East Nusa Tenggara, Wednesday, Oct. 2, 2024. The Temef Dam, inaugurated by President Joko Widodo, provides raw water with a capacity of 131 liters per second for residents in both the South Central Timor and North Central Timor regencies. (ANTARAFOTO/Mega Tokan)

Jakarta. Finance Minister Sri Mulyani has temporarily frozen all infrastructure budgets for government construction projects, following directives from President Prabowo Subianto.

Public Works Minister Dody Hanggodo confirmed the decision on Monday after a meeting with National Development Planning Minister Rachmat Pambudy. "All infrastructure funds are on hold as instructed by President Prabowo," Dody said.

Dody did not specify which megaprojects would be affected, but the freeze impacts major infrastructure projects, such as dams and bridges. The future of the planned capital city, Nusantara, becomes uncertain despite its Rp 15 trillion ($947.7 million) allocation for 2025.

"Large-scale developments are paused for now," he said.

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The budget will be redirected to programs supporting food, energy, and water security—Prabowo's key priorities. This includes a planned Rp 71 trillion program to provide meals for 15 million students nationwide and efforts to achieve food self-sufficiency within the next four to five years. 

Infrastructure projects will resume once sufficient funding becomes available. "We’ll wait for adequate resources. Right now, public welfare is the priority. As welfare improves, so will tax revenues and the budget," Dody said.

He also mentioned plans to develop alternative financing schemes for future projects. "We’re considering funding compromises to align infrastructure development with other national goals," he said.

A Cabinet meeting led by Bappenas will finalize the plans. "Bappenas will lead discussions to ensure unified decisions on the nation’s direction," Dody concluded.

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