Indonesian Political, Business & Finance News

Additional TKD for North Tapanuli: Farmers and MSMEs to Benefit

| Source: TEMPO_ID Translated from Indonesian | Economy

The post-flood recovery following the late 2025 disasters in North Tapanuli Regency is extending beyond the reconstruction of roads and settlements. The local government is leveraging the Additional Regional Transfer Funds (TKD) for the 2026 Fiscal Year to expedite economic recovery.

A range of programmes has been prepared, spanning the agricultural and fisheries sectors, as well as the empowerment of micro, small, and medium enterprises (MSMEs). North Tapanuli has received an additional TKD of Rp 74.35 billion, with allocations of Rp 43.16 billion for infrastructure, Rp 22.57 billion for other affairs, Rp 4.29 billion for health, Rp 2.68 billion for agriculture, and Rp 1.65 billion for the education sector.

The Head of the Regional Financial and Asset Agency (BKAD) of North Tapanuli, Josua Hutabarat, stated that the Rp 2.68 billion agricultural allocation will be implemented through several programmes. One such initiative includes the procurement of 16 type-2 cultivators with a budget of approximately Rp 360 million. This equipment will be distributed to affected farmer groups, alongside the procurement of avocado seeds valued at Rp 260 million.

The local government is also preparing an integrated agricultural land maturation programme. This activity includes land clearing, soil stripping and levelling, land compaction, and the construction of drainage systems to ensure land returns to productivity.

In the aquaculture sector, the additional TKD will be utilised through the optimisation of the Purbatua Fish Seed Centre (BBI) and the revitalisation of the Silangkitang Muara Installation Technical Implementation Unit.

According to Josua, the Purbatua Fish Seed Centre will produce freshwater fish seeds, including catfish, carp, and tilapia, which are the primary commodities for aquaculture in North Tapanuli. The availability of these seeds is expected to accelerate the recovery of aquaculture businesses affected by the disaster.

Josua emphasised that every programme was selected based on community needs while considering budget effectiveness. “The approach is based on real field needs, avoiding duplication of funding and optimising budget benefits so that the post-disaster agricultural recovery process in North Tapanuli Regency can proceed more quickly, comprehensively, and provide a tangible impact for farmers,” he said.

The programme details were presented during an assistance session for the utilisation of additional TKD, organised by the Task Force for the Acceleration of Post-Disaster Rehabilitation and Reconstruction (Satgas PRR) alongside the Directorate General of Regional Financial Management of the Ministry of Home Affairs at the North Tapanuli Regent’s Office on Tuesday, 1 July 2026.

The event was attended by the Special Staff to the Minister of Home Affairs for Politics and Media, Kastorius Sinaga; the Secretary of the Directorate General of Regional Financial Management, Horas Maurits Panjaitan; the Regent of North Tapanuli, Jonius Taripar Parsaoran Hutabarat; the Vice Regent, Deni Lumbantoruan; and various regional officials.

Through this assistance, the Satgas PRR is ensuring that the use of additional TKD complies with the Home Affairs Minister’s Circular Letter Number 90 $ ext{900.1.3/1084/SJ}$ regarding the utilisation of additional TKD.

Kastorius Sinaga noted that the success of the additional TKD utilisation needs to be widely communicated to the public to ensure the recovery process receives public support and encourages the revival of local economic activities. He proposed the establishment of a media centre to serve as a public communication hub and a support platform for MSMEs affected by the disaster. “This is necessary to prevent hoaxes and misinformation and to help promote the products of MSMEs that were victims of the disaster,” he said.

“If the space in conventional media and social media is left empty and not filled with news regarding post-disaster recovery progress, that space becomes vulnerable to misleading news,” added Kastorius, who also serves as the Media Coordinator for Satgas PRR.

The assistance by Satgas PRR in North Tapanuli is part of the Ministry of Home Affairs’ effort to ensure that the use of additional TKD truly addresses the needs of the community post-disaster. The Minister of Home Affairs, Tito Karnavian, previously requested that best practices in the use of recovery funds be published as examples for other regions undergoing rehabilitation and reconstruction.

“We appreciate local governments that are disciplined in using these funds for the recovery of fundamental sectors and public facilities accountably, rather than diverting them to the operational facilities of officials,” said Tito in a Ministry of Home Affairs release on 17 June 2026.

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