INDUSTRY.co.id - Jakarta - Ministry of Public Works and Public Housing (PUPR) get the largest budget allocation in RAPBN 2018 which is Rp106,9 trillions.

"The budget is allocated to four sectors, namely connectivity increase of Rp41.3 trillion, food and water security Rp37.3 trillion, residents Rp15.9 trillion, Residence Rp9.6 trillion," said PUPR Minister Basuki Hadimuljono at the Press Conference of Financial Note and Budget Bill of Fiscal Year 2018 in Jakarta, Wednesday (16/08/2017)

Basuki explained that in terms of budget posture, the PUPR Ministry focuses on capital expenditure of 70 percent for construction, equipment, machinery and for land procurement outside of national strategic projects already financed by LMAN (Badan Pengelola Aset Negara).

Minister of PUPR said the increase of connectivity is done through the construction of new road 864 Km, preservation of national road 46.000 Km and construction of toll road along 25 Km.

"The target of 2018 toll road construction is targeted for additional 615 Km of new toll road, but the government's portion and funded through the state budget is only 25 Km, meaning that the utilization of APBN to build toll road with total investment value of Rp260 trillion, will mostly use funding from Investors / business entities, "he explained.

Meanwhile, to achieve food and water security, the PUPR Ministry allocates budget for the development of 47 dams ie 11 new dams and 36 is in the process (on going).

In addition, a new irrigation network of 54,000 hectares will be constructed and rehabilitation of 160,000 hectares of damaged irrigation networks.

In the residential sector, he said, the coverage of national drinking water services was also improved by developing a drinking water supply system with a production target of 9,372 liters per second.

"Wastewater treatment in various areas will also be built with the target of 860,836 heads of households," he said.

Provision of housing for Low-Income Communities (MBR) is also a priority of the Ministry of PUPR with a target of 6,328 units through the development of flats, 180,000 self-help houses, 5,000 housing units and infrastructure and utilities for 15,400 housing units.

Investment financing, Basuki also explained his party allocates investment financing in the form of State Investment of Rp2, 5 trillion as initial capital of Housing Savings (Tapera) and Rp2, 2 trillion to the Public Service Board of Housing Fund Management Center (BLU-PPDPP).

He added that the allocation of this fund is big and for that it will strive for the budget can be spent accountably, effectively and efficiently.

Acceleration of the implementation of the activities of Fiscal Year 2018 will be done by simplifying packaging and early auction which will begin in October 2017.

Basuki will also issue regulations so that construction works are not dominated by large contractors and state-owned enterprises but also by small contractors.

"Currently, the work under Rp50 billion may only be done by small contractors," he said.