Govt Allocates USD 60 Trillion for Sumatra Disaster Recovery

KBRN, Jakarta: Indonesian Finance Minister Purbaya Yudhi Sadewa has confirmed that a budget of IDR 60 trillion (USD 3.6 billion) has been secured to rebuild disaster-stricken areas across Sumatra. 

The Minister emphasized that these funds are readily available in the 2026 state budget, ensuring that urgent reconstruction efforts in regions like Aceh, West Sumatra, and North Sumatra will proceed without compromising other national priorities, such as the Free Nutritious Meal (MBG) program

The announcement came during a virtual Coordination Meeting of the Post-Disaster Recovery Task Force on Tuesday, December 30, 2025. 

Minister Purbaya stated that the estimated cost of recovery for Aceh and North Sumatra currently stands at around IDR 51 trillion, but cautioned that the figure could rise to as much as IDR 60 trillion as more detailed field assessments are completed.

“In essence, if the Task Force or BNPB (National Disaster Mitigation Agency) is there, as directed by the President, we are fully prepared. Funds have been allocated for Aceh and other disaster-affected regions, and there will be no interference,” he stated firmly, as quoted by Antara.

The government has also emphasized that no budget diversion will occur, assuring that the Free Nutritious Meal (MBG) program will remain fully funded and unaffected. To secure the recovery budget, officials carried out a thorough “sweeping” of ministerial and agency allocations, consolidating resources to meet the financial needs of post-disaster efforts.

Ultimately, the disbursement of these funds will be coordination-driven, triggered only by direct requests from the National Disaster Management Agency (BNPB) or the specialized Task Force in accordance with the President's directives.

The announcement comes as local administrations and volunteers ramp up efforts to restore normality. In Aceh, civil servants have already begun cleaning schools to ensure that teaching and learning activities can resume by January 5, 2026. 

Meanwhile, regional solidarity is growing, with the Banten provincial administration contributing IDR 1 billion to assist victims.

Minister Purbaya assured that as long as the Task Force provides the necessary documentation and the President gives the green light, the Ministry of Finance is prepared to release the funds immediately. 

The goal is to ensure that the infrastructure and social fabric of Sumatra are not only restored but built back better to withstand future hydrometeorological challenges. ***

News Recomendation