Indonesian Political, Business & Finance News

Five Ministries Secure Budgets, 28 Others Urged to Accelerate Proposals for Sumatra Disaster Recovery

| Source: TEMPO_ID Translated from Indonesian | Economy

Five ministries and agencies have received approval for their additional budget allocations (ABT) from the Ministry of Finance as of 17 June 2026, marking an initial step in funding recovery programmes for areas affected by the November 2025 flash floods. The entities that have secured their budgets are the Central Statistics Agency (BPS), the Ministry of Public Works, the Ministry of Transportation, the Ministry of Social Affairs, and the Ministry of Health. This budget certainty serves as initial capital for implementing various recovery programmes under the agreed Master Plan for the Acceleration of Post-Natural Disaster Rehabilitation and Reconstruction (Renduk PRRP) in Sumatra.

However, 28 other ministries and agencies are still undergoing internal processes or checks at the Ministry of Finance. This situation drew the attention of the Recovery Task Force (Satgas PRR) during a daily meeting led by Senior Commissioner Wahyu Widiarso Suprapto at the Ministry of Home Affairs on Wednesday, 17 June 2026. Wahyu reiterated the need to resolve all obstacles promptly, as Task Force Head Tito Karnavian has stressed that the disbursement of the additional budgets must show tangible progress within the coming week. Tito stated, ‘This week we are pushing ministries and agencies still working on their proposals to submit them to the Ministry of Finance immediately. Do not delay. The affected people cannot endure prolonged hardship. They have been suffering for seven months.’

According to updated data from the Ministry of Finance, 19 ministries and agencies are still in the discussion and administrative process stage, including the Ministry of Forestry, the Meteorology, Climatology and Geophysics Agency (BMKG), the Ministry of Housing and Settlement Areas, the Ministry of Religious Affairs, the Ministry of Agriculture, the Ministry of Marine Affairs and Fisheries, the Ministry of Trade, the Ministry of Micro, Small and Medium Enterprises, the Ministry of Villages and Development of Disadvantaged Regions, and the National Disaster Management Agency (BNPB). Meanwhile, nine other ministries and agencies are still finalising their proposals internally, including the Ministry of Industry, the Ministry of Energy and Mineral Resources, the Ministry of Communication and Digital Affairs, the National Research and Innovation Agency (BRIN), the Geospatial Information Agency (BIG), the Ministry of National Development Planning/Bappenas, and the Ministry of Environment.

The Ministry of Trade reported that its additional budget proposal has entered the checking stage at the Ministry of Finance and is expected to be approved the following week. The Ministry of Micro, Small and Medium Enterprises has also made several document revisions with the Ministry of Finance. The Ministry of Health reported that the Ministry of Finance has approved the use of part of its budget for the rehabilitation of medical equipment and hospital facilities, with the funds already transferred. Meanwhile, the Ministry of Public Works stressed the importance of submitting detailed operational plans for the Renduk PRRP to ensure all rehabilitation and reconstruction programmes are integrated and aligned.

After hearing the reports, the meeting chair assessed that post-disaster recovery support is already underway across various sectors, including social assistance, MSME recovery, construction of educational and religious facilities, and restoration of public services. However, accelerated coordination, data validation, and planning synchronisation are still needed to ensure all programmes are effective and on target. Wahyu concluded, ‘We once again emphasise the need to immediately complete administrative documents and validate rehabilitation and reconstruction needs. These steps are necessary to accelerate the implementation of the Sumatra PRRP.’

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