Indonesia Earmarks IDR-93-Billion for Economic-Recovery in Disaster-Hit-Provinces

  • 21 Jan 2026 14:06 WIB
  •  Voice of Indonesia

RRI.CO.ID, Jakarta - The Indonesian government has announced financial and operational commitment to revive micro, small, and medium enterprises (MSMEs) devastated by recent floods across Sumatra. Minister of MSMEs, Maman Abdurrahman, conveyed the statement during a meeting with Commission VII of the House of Representatives (DPR RI) on Tuesday, 20 January 2026.

He also said the government has earmarked IDR 93 billion specifically for economic recovery in the disaster-hit provinces of Aceh, North Sumatra, and West Sumatra. "So, there is a policy to consolidate the budget of Rp546 billion, which will be prepared to support the economic recovery of our brothers and sisters affected by the disaster in Sumatra," he stated.

This recovery fund is sourced from a strategic consolidation of the Ministry’s 2026 budget. Aside from that, Minister Abdurrahman said that IDR 166 billion is dedicated to national programs.

The Ministry also dedicated IDR 50 billion to support 8 strategic ministerial initiatives including "Sapa UMKM," the "Business Card" program, and the integration of MSMEs into the high-profile "Free Nutritious Meals" program.

Recognizing that economic restoration is a long-term endeavour likely to span one to two years, the Ministry has established "Klinik UMKM Bangkit" (MSMEs Rise Clinics) to serve as local command centers for rehabilitation. These clinics have been deployed based on the severity of the disaster’s impact. There are 5 locations in Aceh, 2 locations in North Sumatra, and 1 location in West Sumatra.

The minister said that the Klinik UMKM Bangkit is designed to provide more than just financial aid, they function as holistic service hubs through three specific departments. Namely financing services in the form of loan relaxation and capital support, local product purchasing services to open market access for MSMEs, and production services that offer alternative solutions for MSMEs that are unable to continue their business activities.

"We are very aware that in the context of economic recovery, it is impossible to finish the job in a day, a week, or even a month. Based on our field assessments, we predict it will take approximately one to two years to truly restore the disaster-hit regions of Sumatra to their original strength," he stated.

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