Indonesia Allocates $74 Million to Help Disaster-Affected Small Businesses Recove

RRI.CO.ID, Jakarta - The Indonesian government will provide Rp1.2 trillion (approximately US$74 million) in presidential assistance to support the recovery of micro and small businesses affected by natural disasters in Aceh, North Sumatra, and West Sumatra. The funding is expected to help entrepreneurs rebuild their businesses and restore local economic activity.

Minister of Micro, Small, and Medium Enterprises Maman Abdurrahman said the assistance will be distributed in two phases. The first Rp600 billion tranche will be disbursed in 2026, followed by a second Rp600 billion allocation in 2027.

“Presidential assistance will be distributed in two stages, with Rp600 billion in 2026 and the same amount in 2027,” Maman said in Jakarta on Wednesday.

Based on the release received by RRI Voi Friday, June 4, 2026, according to the minister, the program reflects President Prabowo Subianto’s commitment to helping small business owners recover from disaster-related losses. The initiative was designed in response to requests from affected entrepreneurs seeking support to restart their operations.

The funding will come from the state budget and forms part of the government’s Master Plan for Accelerated Post-Disaster Rehabilitation and Reconstruction in Aceh, North Sumatra, and West Sumatra. Through the economic recovery program, authorities aim to reach approximately 200,000 micro-entrepreneurs.

Each eligible recipient will receive Rp3 million in business capital assistance to support the restoration of productive activities. The aid is intended for business owners who have not yet gained access to formal banking finance.

“Business capital assistance worth Rp3 million will only be provided to entrepreneurs who have not accessed bank financing. Those who already have access to bank loans will be supported through existing banking mechanisms,” Maman explained.

To ensure the program reaches the intended beneficiaries, the government plans to coordinate with regional administrations in the three provinces to conduct data collection and verification. The ministry is also continuing its SME Clinic program to assist local entrepreneurs throughout the recovery process.

Maman said the assistance is expected to help affected business owners replace damaged equipment, restore working capital, and rebuild their enterprises. He emphasized that the government wants disaster-affected entrepreneurs to regain productivity, strengthen their businesses, and continue contributing to regional and national economic growth.