Government allocates Rp1.2 trillion for micro-business recovery in Sumatra

The government is preparing a budget of approximately Rp1.2 trillion for an economic rehabilitation programme for micro-entrepreneurs affected by disasters in Aceh, West Sumatra, and North Sumatra until 2027. The Minister of Micro, Small, and Medium Enterprises (MSMEs), Maman Abdurrahman, stated that the programme targets around 200,000 micro-business owners across these three regions.

“Each will receive presidential assistance (Banpres) amounting to Rp3 million per micro-business unit,” Maman said during a press conference in Jakarta on Wednesday.

For the initial phase, the government has allocated approximately Rp600 billion for 2026. The programme will continue in a second phase in 2027 with an identical budget allocation.

Maman explained that the assistance is prioritised for micro-entrepreneurs who currently lack access to banking finance. “Those who already have access to banking finance are being handled through banking mechanisms; however, those who have not yet gained access can receive assistance of Rp3 million per micro-business through presidential aid,” he said.

He added that this programme is part of the Master Plan for Disaster Economic Rehabilitation in Aceh, North Sumatra, and West Sumatra, which encompasses various sectors ranging from infrastructure and health to social services. The assistance is expected to help micro-entrepreneurs resume their operations, including the purchase of production equipment and operational necessities.

“The goal is to provide them with breathing room so they can purchase production tools… and reactivate their small businesses in the region,” Maman said.

Maman noted that the government is currently undergoing the administrative process and will coordinate with local governments to compile data on the intended beneficiaries. “We will realise this soon. It must be implemented immediately,” he concluded.