Additional Regional Transfer of Rp 10.6 Trillion Fully Disbursed, Regional Execution to Determine Recovery
The central government has finalised the distribution of the additional 2025 Regional Transfer (TKD) to Aceh, North Sumatra, and West Sumatra provinces. According to a report from the Task Force for Recovery and Rehabilitation Post-Disaster (Satgas PRR) Sumatra as of 4 May 2026, the funds have been disbursed at 100 per cent.
The total budget of Rp 10.65 trillion, deposited into regional cash accounts, was disbursed in three stages. The first disbursement on 27 February amounted to Rp 4.385 billion, the second stage Rp 3.198 billion on 31 March, and the final Rp 3.064 billion on 4 May.
To accelerate recovery from flash floods, the government has taken special measures to speed up funding for rehabilitation and reconstruction in Aceh, North Sumatra, and West Sumatra. The funds are directed towards restoring public infrastructure, revitalising economic activities, and maintaining the continuity of basic community services.
To expedite the process, the central government has implemented an unconditional disbursement scheme. Under this scheme, regional governments can receive the funds directly without waiting for phased administrative completeness, unlike the regular disbursement mechanism.
This disbursement is based on Ministerial Decree of Finance (KMK) Number 59 of 2026, which regulates adjustments to allocations for Profit-Sharing Funds (DBH) and General Allocation Funds (DAU). Additionally, this policy also covers the disbursement of Special Autonomy Funds for Aceh and the settlement of underpaid DBH obligations up to the 2024 fiscal year.
Furthermore, Interior Minister Tito Karnavian has issued a circular as guidance for utilising the additional TKD in the regional budgets of affected areas. This policy encourages regional governments to accelerate spending, prioritise recovery programmes, and optimise the involvement of local businesses in procurement of goods and services.
“I am trying to facilitate my fellow regional executive heads,” said Tito. “We want to strengthen the financial capacity of the disaster-affected regions, the three Sumatra disaster provinces.”
Based on the budget distribution, North Sumatra Province receives the largest allocation of Rp 6.35 trillion, consisting of additional DAU of Rp 4.26 trillion and settlement of underpaid DBH of Rp 1.53 trillion.
West Sumatra Province receives Rp 2.63 trillion, with the largest portion from additional DAU of Rp 2.19 trillion to support public services. Aceh Province receives Rp 1.65 trillion, including additional Special Autonomy Funds of Rp 75.97 billion.
With the completion of the third stage disbursement in early May, the central government states that all fiscal obligations have been fulfilled. Subsequently, the acceleration of realisation at the regional level becomes the key factor for the funds to quickly impact the disaster-affected communities.