Erfan Maruf, Jakarta – Indonesia's government under President Prabowo Subianto will sharply scale back state funding for toll road construction starting next year, marking a departure from the infrastructure-heavy policies of his predecessor, Joko "Jokowi" Widodo.
From 2026, the government will allocate funding for only 28 kilometers of new toll roads, compared with the hundreds of kilometers built under Jokowi's presidency across Java, Sumatra, and Kalimantan.
For years, toll road projects have relied on public-private partnership schemes that included injections from the state budget. But beginning next year, no state funds will be allocated for toll road construction except for the 28 km stretch already budgeted, said Rachman Arief Dienaputra, Director General of Infrastructure Financing at the Public Works Ministry, on Tuesday.
"The government-to-business cooperation contracts will no longer receive direct construction funding from the state," Rachman told reporters in Jakarta.
Instead, the government will focus its support on developing surrounding areas to boost traffic volume and the commercial viability of toll road projects, he added.
Under the draft 2026 state budget, infrastructure spending has been consolidated into a broader "economic function budget" worth Rp 820.4 trillion ($50.5 billion). The funding is earmarked primarily for food and energy security programs as well as subsidies and assistance for low-income households, farmers, and fishermen.
This means the Public Works Ministry will no longer hold a dedicated infrastructure budget, as allocations will be shared across several ministries.
The policy shift reflects the Prabowo administration's priority to reallocate state funds toward essential services and welfare programs, while leaving large-scale toll road development to the private sector.
The government's infrastructure projects for 2026 will include:
- 194.75 km of new national roads (inter-provincial)
- 1,507.08 km of national road maintenance and preservation
- 28.19 km of new toll roads
- 3,954.74 meters of new bridges
- 362.71 meters of flyovers and underpasses
- Development of two airports
- Expansion of Patimban Port
- Construction of 15 dams
- Development of 4,000 hectares of new irrigation networks
- Rehabilitation of 100,000 hectares of irrigation systems
Source: https://jakartaglobe.id/business/prabowo-government-scales-back-infrastructure-spending-on-toll-road