Indonesia's Infrastructure Seen Absorbing 1 Million Jobs, Minister Says

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TEMPO.CO, Jakarta - The Minister of Public Works Dody Hanggodo claimed that the Community-Based Infrastructure Development Program can absorb up to 1 million workers in 2026. According to him, this program is the government's mainstay to maintain purchasing power while also driving the local economy amid global pressure.

"This program has a dual effect. Not only building infrastructure, but also driving the community's economy," Dody said in a work meeting with Commission V of the House of Representatives, on Tuesday, April 7, 2026.

Dody explained that this year's community-based infrastructure program reaches 15,364 locations throughout Indonesia. Furthermore, he stated that the government has increased the budget allocation for this program from Rp4.84 trillion to Rp5.48 trillion.

According to Dody, the labor-intensive program is a crucial strategy that ensures the community directly benefits from development. In addition to producing infrastructure, this scheme also provides immediate income for the involved residents.

Most of the infrastructure development is focused on the water resources sector. With implementation in around 12,000 locations and an approximate budget of Rp2.7 trillion, the Acceleration Program for Irrigation Water Management (P3TGAI) is the largest contributor.

In the connectivity sector, the Ministry of Public Works targets the construction of 118 suspension bridges through the labor-intensive scheme. This project is expected to provide access to remote areas and facilitate economic activity within the community.

Meanwhile, in the housing sector, the Community-Based Infrastructure Program includes activities that target the improvement of residents' quality of life. These include the development of socio-economic infrastructure in the region (PISEW), provision of community-based clean water and sanitation (Pamsimas), as well as environmental sanitation and waste management programs.

Read: Statistics Indonesia: Unemployment Drops to 7.35 Million by November 2025

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