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Funds Begin to Flow, Minister Tito Urges Acceleration of Post-Flood Rehabilitation in Sumatra

| Source: CNBC Translated from Indonesian | Economy
Funds Begin to Flow, Minister Tito Urges Acceleration of Post-Flood Rehabilitation in Sumatra
Image: CNBC

The government is accelerating the realisation of the rehabilitation and reconstruction budget following the flash flood disaster that struck Aceh, North Sumatra, and West Sumatra in November 2025. From the total budget requirement approved by President Prabowo Subianto for the recovery programme through to 2028, a number of ministries and agencies have begun receiving fund disbursements and have been instructed to immediately expedite programme implementation on the ground.

Minister of Home Affairs Tito Karnavian stated that most ministries and agencies have submitted their 2026 rehabilitation and reconstruction budget requirements to the Ministry of Finance. Of that amount, he said, five ministries and agencies have received disbursements.

"The total is Rp39.8 trillion, most have been submitted to the Ministry of Finance, five have been disbursed, meaning the funds have been transferred. The others are being processed at the Ministry of Finance, hopefully as soon as possible. Earlier we requested support from the steering committee and steering committee members to accelerate the process, and also the Minister of Finance to speed up the submission process," Tito said during a press conference at the Coordinating Ministry for Human Development and Cultural Affairs office in Jakarta on Thursday.

"Once transferred, our speed will be very fast," he continued.

Tito explained that President Prabowo has issued a directive approving a total rehabilitation and reconstruction budget of Rp100.1 trillion until 2028. The budget will be disbursed in stages, namely Rp38.9 trillion in 2026, Rp32.9 trillion in 2027, and Rp28.2 trillion in 2028. He noted that the budget involves 33 ministries and agencies, comprising 23 primary entities directly handling the needs of affected communities, and 10 supporting entities.

While awaiting the full disbursement of central government funds, regional governments have been asked to utilise the Transfer to Regions funds that were previously distributed by the central government. Tito said a total of Rp10.6 trillion in additional Transfer to Regions funds has been received by all affected regional governments since 5 May. The funds consist of Rp1.6 trillion for Aceh, Rp2.3 trillion for West Sumatra, and Rp6.1 trillion for North Sumatra.

"In parallel, while waiting for the large ship with its big engine to come down with a budget of nearly Rp40 trillion in 2026, regional governments have already received Rp10.6 trillion and it was completed on 5 May 2026. I checked all the receipts, three provinces and all their districts and cities received the additional Transfer to Regions funds. That was a direct order from the President, Rp10.6 trillion," Tito clarified.

He therefore urged regional heads to immediately use the budget to resolve urgent issues in their respective areas. "We held a direct meeting last Tuesday in Banda Aceh with the acting governors and all regents and mayors, so that this budget truly moves quickly, is beneficial, and is used to resolve urgent problems in each region," he said.

In addition to funds from the central government, several regions have also provided inter-regional grant assistance to accelerate recovery in areas that suffered severe damage. Tito mentioned that the regional government of North Sumatra provided a total of Rp240 billion in assistance to several affected areas in Aceh. Meanwhile, the regional government of West Sumatra also channelled Rp23 billion in aid to affected areas in Aceh.

Going forward, the government will continue to push for the acceleration of central budget disbursements while ensuring that available funds are promptly converted into recovery programmes on the ground. "Now, with the existing Transfer to Regions budget, I am encouraging regions to move using their respective funds," he said. "Then for the ministries and agencies whose budgets have been disbursed, like the Ministry of Public Works, we asked them to speed up even more."

For ministries and agencies still in the disbursement process at the Ministry of Finance, he said he has asked the ministry to review them promptly so the central government can move quickly in carrying out post-disaster rehabilitation and reconstruction in Aceh and Sumatra. "For those not yet or still in process, we ask the Ministry of Finance to please review them soon, and if they meet the requirements, transfer them immediately to the respective ministries and agencies so they can move," he concluded.

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