Disaster Hits Sumatran MSMEs, Government Oversees Recovery Until 2028
The Ministry of Micro, Small, and Medium Enterprises (UMKM) is overseeing the economic recovery of communities affected by disasters in Aceh, North Sumatra, and West Sumatra. The recovery is being carried out through an economic rehabilitation programme implemented in stages until 2028.
Minister of UMKM Maman Abdurrahman said the recovery is not only directed at providing assistance in the initial post-disaster phase. The government is also ensuring the sustainability of community businesses so that economic activity in affected areas can grow again.
This commitment was conveyed by Maman at the Kick Off for the Socialisation of the Economic Recovery Programme for Disaster-Affected Areas in Sumatra, together with regional government officials from the three provinces. The event was attended by the Governor of North Sumatra, the Governor of West Sumatra, the Deputy Governor of Aceh, as well as regents, mayors, and heads of relevant agencies.
“The President conveyed a special message to me that assistance and support for economic recovery in these three provinces should not just end at the initial stage. We must focus on achieving economic recovery with continuity maintained until 2028. The central government will not leave provincial or district/city governments to work alone,” Maman said in a written statement on Thursday (27/8/2026).
Maman also apologised for the shift in the programme realisation schedule of around one and a half months. The adjustment occurred as the economic recovery phase commenced and the state budgeting mechanism was being adjusted.
“It should be understood that the economic recovery phase has only entered these months, in addition to adjustments in the budgeting mechanism. However, we assure you of our full commitment to realising it,” Maman said.
Based on Ministry of UMKM data, more than 498,000 MSMEs in 50 districts/cities and 4,310 villages across the three provinces have been recorded as affected by the disasters. This figure comprises approximately 285,000 MSMEs in Aceh, 117,000 in North Sumatra, and 95,000 in West Sumatra.
To address the impact, the government has prepared a budget scheme and phased recovery targets over three years. In 2026, the budget prepared reaches more than Rp618 billion with a target of more than 212,000 MSMEs.
The programme continues in 2027 with a budget of more than Rp622 billion to reach more than 215,000 MSMEs. Meanwhile, in 2028, the government has allocated more than Rp21 billion targeting more than 11,000 MSMEs.
Maman emphasised the importance of data accuracy and synchronisation so that the recovery programme is precisely targeted. Data on prospective beneficiaries that has been verified by regional governments will be integrated through the SAPA UMKM platform so that it can serve as the basis for programme implementation while also being connected to other empowerment programmes.
“What has been approved by the regents, mayors, and governors is what we will accept and enter into SAPA UMKM. Because SAPA UMKM’s position is not to reject, but rather to review whether the incoming data meets the criteria we have prepared,” Maman said.
The integration is also expected to produce a dynamic database so that the conditions and needs of affected MSMEs can be continuously updated. Thus, government support does not stop at providing assistance, but can be continued through coaching and empowerment programmes according to the needs of each business actor.
Given that the effective implementation time for the programme in the 2026 fiscal year is increasingly limited, the Ministry of UMKM has asked provincial, district, and city governments to accelerate the process of proposing and verifying prospective beneficiaries. Data submission through the SAPA UMKM portal is targeted to be completed by 14 September 2026 at the latest.
“Our time is very limited until December. I ask for the full cooperation and support of the governors, regents, and mayors. Let us complete data verification on time so that community assistance can be disbursed promptly and the regional economy can revive,” Maman stressed.
In addition to support through the economic rehabilitation programme, the Ministry of UMKM has confirmed that the Klinik UMKM Bangkit facilities that have been operating in Aceh, North Sumatra, and West Sumatra will continue to be activated as part of long-term assistance.
Klinik UMKM Bangkit functions as a consultation and handling centre for various business problems faced by disaster-affected MSMEs. The facility also supports the collection and updating of the Single MSME Data as a basis for preparing sustainable coaching and empowerment programmes.
Through synergy between central and regional governments, data integration, budget support, and assistance until 2028, the Ministry of UMKM is targeting recovery that not only restores community business activity to pre-disaster levels. The recovery is also directed at strengthening the resilience of MSMEs as drivers of the economy and sources of livelihood for communities in affected areas.