Economic Foundations in Disaster-Affected Regions Grow Stronger, SMEs Increasingly Recover

Activities of micro, small, and medium enterprises (UMKM) in disaster-affected areas of Aceh Province, North Sumatra, and West Sumatra continue to show strong recovery trends. The Task Force for Accelerating Rehabilitation and Reconstruction (Satgas PRR) notes that most community business sectors, such as shops, stores, restaurants, and cafes, have resumed operations and serve as the main pillar of economic revival for survivors.

Based on data, the recovery rate of UMKM activities in West Sumatra Province has reached 100 per cent, while in Aceh Province and North Sumatra, it has reached 94.44 per cent each, with 17 districts/cities where economic activities have returned to normal.

Nevertheless, there are still two regions requiring special attention, namely Central Aceh Regency and Central Tapanuli Regency. In Central Aceh Regency, at least 13 business units such as restaurants, shops, cafes, and stalls remain impacted due to severe damage scattered across several villages, including in Linge and Kebayakan sub-districts. Additionally, five hotel and accommodation units have also suffered damage, so economic activities in several points have not fully recovered.

Meanwhile, in Central Tapanuli Regency, the disaster’s impact is broader, with around 2,059 affected business units spread across 14 sub-districts. Damage from floods and landslides not only affects business buildings but also hampers goods distribution and community trading activities.

Head of Satgas PRR Muhammad Tito Karnavian emphasised that UMKM recovery is one of the main indicators of the revival of the affected regional economy.

“UMKM shops/stores are also important as economic indicators; the economy must run because economic growth in the affected areas has declined across the board. Then inflation relatively increased previously, but now it has improved. In Aceh, 94 per cent of UMKM are operating; this is being handled by the Minister of UMKM, together with the Minister of Trade and the Minister of Tourism and Creative Economy,” said Tito in Jakarta, quoted Saturday, 18 April 2026.

To accelerate this recovery, the government is not only encouraging the reopening of business activities but also providing tangible support in the form of production facilities for affected UMKM actors.

This support is realised through the distribution of various direct and practical business needs, including food and beverage sector production tools such as cooking and food processing equipment, business raw material assistance, and cooking oil packages to support daily operations of business actors. In addition, new clothing assistance is provided for affected business actors as part of the recovery of the small trading sector, as well as songket thread to support the continuity of local craft businesses.