Indonesian Political, Business & Finance News

Coordinating Minister Decree Mandates Task Force to Oversee Budget and Recovery Hurdles in Sumatra

| Source: TEMPO_ID Translated from Indonesian | Infrastructure

The Decree of the Coordinating Minister for Human Development and Culture (Menko PMK) Number 25 of 2026 concerning the Master Plan for the Acceleration of Post-Disaster Rehabilitation and Reconstruction (Renduk PRRP) for Sumatra not only establishes a recovery roadmap for areas affected by flash floods and landslides in Aceh, North Sumatra, and West Sumatra. The document also regulates the monitoring, evaluation, and periodic reporting mechanisms for rehabilitation and reconstruction to the President. The decree, signed by the Menko PMK on 13 May 2026, serves as the foundation for implementing permanent rehabilitation and reconstruction until 2028. The government is using the Sumatra PRRP Master Plan as a national reference for synchronising programmes across ministries, agencies, and regional governments, as well as for mapping out post-disaster rehabilitation and reconstruction financing needs. The Menko PMK Decree contains ten points that form the mandate basis for the Task Force for the Acceleration of Rehabilitation and Reconstruction (Satgas PRR) in carrying out recovery. The first two points in the decree stipulate the establishment of the master plan as the national reference for post-disaster rehabilitation and reconstruction in Sumatra. The subsequent points require 32 ministries, agencies, and regional governments in the three affected provinces to refer to the Sumatra PRRP Master Plan in implementing rehabilitation and reconstruction. The government assesses that large-scale post-disaster recovery cannot be carried out sectorally and separately but requires a single integrated national roadmap. This PRRP Master Plan is valid for three years, from 2026 to 2028. In addition, the Task Force is assigned to monitor and evaluate programme targets and realisation, budget utilisation, implementation policies, and various field constraints. This oversight has been carried out by the Task Force during its operations in Sumatra. The results of activities and evaluations will be reported by the Chair of the Task Force Steering Team to President Prabowo Subianto periodically, every two months, or at any other time if required. Sources of financing for rehabilitation and reconstruction may originate from the State Budget (APBN), Regional Budgets (APBD), and other legitimate and non-binding funding sources. In the master plan document, the government estimates the total need for post-disaster rehabilitation and reconstruction in Sumatra reaches approximately Rp 205.2 trillion. The government is targeting phased permanent rehabilitation and reconstruction until 2028 with cross-ministerial and institutional oversight to ensure programme implementation remains well-targeted and accountable. The master plan contains 11,512 rehabilitation and reconstruction activities to be implemented in phases until 2028. These programmes include the construction of permanent housing (huntap), the rehabilitation of schools and health facilities, the construction of permanent roads and bridges, river normalisation, rehabilitation of landslide-affected areas, and economic recovery for communities through support for MSMEs, fishermen, and traditional markets. The government is also promoting a Build Back Better, Safer, and Sustainable (BBBSS) approach, meaning reconstruction with standards that are safer, more resilient, and sustainable. This concept is applied from housing construction and public infrastructure rehabilitation to the spatial planning of disaster-prone areas and environmental rehabilitation in upstream river regions. The drafting of the master plan itself took place from February 2026 by the Task Force together with the Coordinating Ministry for Human Development and Culture and the 32 ministries and agencies involved in the post-disaster handling of Sumatra. The document subsequently underwent several revisions and harmonisation processes throughout March and April before finally being finalised and signed by the Menko PMK on 13 May 2026. Subsequently, on 25 May 2026, the government presented the master plan document in a discussion with the DPR and the Minister of Finance as part of synchronising budget support for permanent rehabilitation and reconstruction. Chairman of the Task Force and Minister of Home Affairs Tito Karnavian stated that the master plan is the primary key to the permanent recovery phase following Sumatra’s emergency response and transition periods.

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