Indonesia's Public Works Ministry Maintains Optimism on Budget Absorption

Current Budget Absorption Status

The Ministry of Public Works (PU) has absorbed only 52% of its budget as of October 2025, raising concerns about potential fund returns to the Ministry of Finance. Despite this low uptake, Minister Dody Hanggodo expressed confidence that the ministry can still achieve its target of 96% absorption by year-end.

Commitment to Meeting Budget Targets

In a recent media briefing, Minister Hanggodo stated, "Insyaallah sampai detik ini belum ada yang dikembalikan, dan Kita masih pede penyerapan di atas 96%,. Insyaallah masih bisa lah," emphasizing the ministry's commitment to utilizing its allocated budget. This assurance comes amid scrutiny from the Ministry of Finance, led by Minister Purbaya Yudhi Sadewa, which has been monitoring the budget absorption performance of various government ministries and agencies.

Implications of Low Budget Absorption

The low budget absorption rate has been a concern for the government as it indicates potential inefficiencies in public spending. When ministries fail to utilize their allocated funds, it can lead to budget reallocation or returns to the state treasury. For the Public Works Ministry, maintaining a high absorption rate is crucial not only for infrastructure development but also for demonstrating effective governance of public funds.

Government Oversight and Financial Management

The Ministry of Finance has been closely monitoring the budget execution of various government agencies. The decision to return unspent funds, amounting to Rp 4.5 trillion across several ministries and agencies, highlights the government's efforts to optimize fiscal management. The Public Works Ministry's ability to meet its budget target will be a significant indicator of its operational efficiency and project implementation capabilities.