Gov't sets Rp3 mln aid for disaster-hit Sumatra micro businesses
Quoted from a press release on Friday, MSMEs Minister Maman Abdurrahman said the aid will be rolled out in phases throughout 2026 and 2027.
The business rehabilitation program aims to speed up economic recovery for communities affected by devastating floods and landslides that struck the three provinces in late 2025.
The aid will be transferred directly into the bank accounts of recipients, with the government allocating around Rp600 billion (US$33.9 million) in 2026 and an equal amount for 2027.
The initiative targets more than 400,000 affected micro-entrepreneurs who do not currently hold active bank loans, including the government’s subsidized People’s Business Credit (KUR) scheme.
Maman emphasized that priority is being given to micro-businesses without access to commercial bank financing, helping them get their daily operations back on track.
Meanwhile, business owners affected by disasters who hold active KUR loans will receive separate relief support schemes. These include interest rate subsidies—dropping to 0 percent in 2026 and 3 percent in 2027—alongside loan restructuring options, such as tenure extensions.
Nevertheless, former KUR borrowers who have paid off their loans remain eligible for the grant, provided they meet the criteria.
To ensure the aid truly reaches the intended targets, the Ministry of MSMEs is implementing a multi-tiered verification system to register eligible recipients.
Candidate data must first be submitted and approved by local governments through district heads or mayors, before being verified by the ministry.
“As a fundamental rule, we will not accept any data outside of the regional leaders’ recommendations. MSMEs with active KUR loans will be filtered out automatically by the system,” Maman explained.
He urged local authorities to tighten coordination and ensure candidate data accurately reflects the status of disaster-affected entrepreneurs, allowing the relief funds to be disbursed swiftly to restore local economic activity.
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Translator: Shofi Ayudiana, Raka Adji