Strengthening Inclusive Infrastructure Development in North Kalimantan

Indonesia, through its 2020-2024 National Medium-Term Development Plan (Rencana Pembangunan Jangka Menengah), emphasises the role of infrastructure in driving economic growth and ensuring equitable public services. To support this goal, the government introduced Law No. 1 of 2022 which expands the fiscal space for local infrastructure development. The law mandates that by 2027, at least 40 per cent of Local Budgets (Anggaran Pendapatan dan Belanja Negara/APBD) must be allocated for public service infrastructure. 

North Kalimantan is a strong example of local implementation of this policy. With a fiscal capacity of IDR 3.12 trillion – 69 percent of which comes from central government fiscal transfers – the province has prioritised infrastructure investment. In 2024, North Kalimantan allocated 39.02 percent of its budget to public service infrastructure, including initiatives to expand household access to electricity and renewable energy. While the province is close to meeting its mandatory infrastructure spending target, all four regencies and the city within the province have already exceeded the 40 percent allocation benchmark, which demonstrates their commitment to the development agenda.

Mainstreaming Gender Equality, Disability and Social Inclusion

Through its Gender Equality, Disability and Social Inclusion (GEDSI) work, SKALA supports North Kalimantan to integrate inclusion principles into local development planning. The goal is to ensure that infrastructure helps local communities by improving mobility and quality of life for all, including women, persons with disabilities and other vulnerable groups. 

As part of this effort, North Kalimantan has established the Forum for Communication among Persons with Disabilities, Vulnerable Groups, Women, and Children. This platform provides a space for civil society organisations to network, collaborate and exchange ideas. It is also a strategic channel for civil society to directly contribute their perspectives and insights to the local development planning process.

Technical Guidance for Evidence-based Planning

To strengthen the local government’s capacity to plan for inclusive public service infrastructure, SKALA, in collaboration with the North Kalimantan Provincial Government, organised a Technical Guidance (Bimbingan Teknis/Bimtek) session on “Planning for Mandatory Public Service Infrastructure Expenditure in Local Budgets” in Tanjung Selor on 13-14 November 2024. The event brought together 48 participants, including representatives from local government agencies, women’s organisations, and organisations for persons with disabilities. 

During the session, experts from the Directorate General of Fiscal Balance (Direktorat Jenderal Perimbangan Keuangan/DJPK) and the Directorate General of Treasury, Ministry of Finance, shared insights on key regulations, including sanctions for local governments that fail to meet infrastructure spending targets. The session adopted an evidence-based approach and used case studies and examples from other provinces to deepen participants’ understanding. The post-training evaluation showed that participants’ understanding increased by 23.3 per cent after the Bimtek. 

Rahmat E. Siregar, a representative of DJPK, praised the success of the Bimtek and stressed the importance of inter-agency cooperation in meeting infrastructure spending targets.  

“Synergy between all local government agencies is essential to ensure that budget planning is in line with the mandatory 40 per cent infrastructure spending requirement. Through strong communication and coordination, SKALA and North Kalimantan Province have successfully brought together five key infrastructure agencies and five supporting agencies. This collaboration serves as a best-practice example for organising Bimtek in other regions,” he noted. 

The Bimtek has also brought benefits to local governments currently preparing their budgets, as highlighted by Asmawati, Secretary of the Tarakan City Regional Finance, Revenue and Asset Management Agency. 

“The Bimtek has given us, the Tarakan City Government, a clearer understanding of regulations such as the Minister of Finance’s Decree No. 11/KM.7/2024, especially on budget tagging — what is allowed and what is not. We hope that similar initiatives will be carried out before the budget is finalised so that we can produce better quality budgets,” she said.

Fostering Synergy for Sustainability

As a follow-up, North Kalimantan plans to map its infrastructure spending and prioritise its budget allocations. SKALA will continue to provide technical support and help the province improve its monitoring and evaluation practices to ensure sustainable progress. 

North Kalimantan’s commitment to multi-stakeholder collaboration in public service infrastructure planning is already evident. Going forward, greater involvement of women, persons with disabilities and vulnerable groups in planning, implementation and evaluation will be crucial. By embracing meaningful inclusion, the province can create public service infrastructure that benefits all members of society.