South Sulawesi Continues Multi-Year Project Phase II with $5 Trillion Budget for Infrastructure and SMEs

The South Sulawesi Provincial Government has officially greenlit Phase II of its ambitious Multi-Year Project (MYP) development program, earmarking a significant $5 trillion budget. This funding injection is set to bolster a range of vital sectors, from essential infrastructure like roads, bridges, and irrigation systems to agricultural advancements, housing renovations, and the crucial development of micro, small, and medium enterprises (MSMEs).

According to Fauzi Andi Wawo, Deputy Speaker of the South Sulawesi Regional House of Representatives (DPRD), the total budget is divided into 11 work items. Approximately $4 trillion will be dedicated to multi-year projects, while $1 trillion is allocated for single-year initiatives. The multi-year projects are slated to run from 2027 to 2029, with single-year projects requiring completion within a maximum of 12 months. This new phase builds upon the initial MYP, which previously utilized over $3.7 trillion, bringing the combined investment from both phases to more than $7.7 trillion.

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If I'm not mistaken, there are 11 items. So, $4 trillion we make multi-year, and $1 trillion we make single-year.

Fauzi emphasized that the funding for this extensive program is derived entirely from efficiencies within the Regional Revenue and Expenditure Budget (APBD). Both the provincial government and the DPRD have committed to financing this initiative without burdening the regional finances through new debts or loans. Despite this commitment, the provincial government currently carries a remaining debt burden of $1.03 trillion, encompassing short-term obligations and revenue sharing funds (DBH). Records from the Audit Board of the Republic of Indonesia (BPK RI) indicate that outstanding obligations to regencies and cities in South Sulawesi for DBH and financial assistance amount to $705 billion.

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God willing, we will determine it. Of course, we will look at our fiscal space, then calculate, and it turns out there is still ample room to carry out MYP Phase II. This includes the settlement of all existing debts.

Fauzi assured that all outstanding obligations must be settled by the end of the current term, contingent on available fiscal space. "God willing, we will determine it. Of course, we will look at our fiscal space, then calculate, and it turns out there is still ample room to carry out MYP Phase II. This includes the settlement of all existing debts," he explained. The discussion surrounding MYP Phase II was reportedly intense within the Budget Committee (Banggar), involving expert teams and economic advisors to scrutinize the APBD and assess the region's fiscal capacity through 2029.

Governor Andi Sudirman Sulaiman has specifically selected areas not covered in the first MYP phase for inclusion in the second phase. "So, all regencies and cities not covered in the first MYP, we are including in the second MYP. The hope is that all regions in South Sulawesi will receive infrastructure improvements and equitable development," Fauzi added. This move aims to ensure that development benefits are spread more evenly across the province, addressing regional disparities.

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So, all regencies and cities not covered in the first MYP, we are including in the second MYP. The hope is that all regions in South Sulawesi will receive infrastructure improvements and equitable development.