Guidelines for Additional Transfer to Regions Funding in 2026 for Post-Disaster Recovery in Aceh, North Sumatra, and West Sumatra
The Ministry of the Interior has issued Circular Letter Number 900.1.3/1084/SJ concerning the adjustment of Transfer to Regions (TKD) for the 2026 fiscal year in the regional budgets of disaster-affected areas in Aceh, North Sumatra, and West Sumatra provinces. The letter, signed on 2 March 2026, provides guidelines for utilising TKD funds for these three provinces and other unaffected regions.
Minister of the Interior Tito Karnavian, who also heads the Task Force for Accelerated Rehabilitation and Reconstruction (PRR) following the Sumatran disaster, conducted a socialisation of the circular letter to governors, regents, and mayors from Aceh, North Sumatra, and West Sumatra through an online meeting on Thursday, 5 March 2026. The circular stems from adjustments to Transfer to Regions funding to accelerate the recovery of regional government operations, development implementation, and improvement of public services, as well as economic and social recovery in Aceh, North Sumatra, and West Sumatra.
The following are the key points as guidelines for TKD utilisation contained in the circular letter.
Rapid adjustment of TKD budget allocation for fiscal year 2026
Regional governments in Aceh, North Sumatra, and West Sumatra provinces must immediately adjust their TKD budget allocation for 2026 in accordance with the additional TKD allocation that has been determined and adjust the use of TKD in accordance with the provisions of applicable regulations.
TKD allocation for pre-disaster needs
In situations where no disaster occurs, TKD may be used for disaster management planning, disaster risk reduction, prevention, integration into development planning, disaster risk analysis requirements, implementation and enforcement of spatial planning rules, education and training, and fulfilment of technical standards for disaster management.
In situations where there is potential for a disaster to occur, TKD may be used for preparedness, early warning, and disaster mitigation.
Provision of disaster emergency response budget
TKD funds may be utilised for rapid and accurate assessment of the location, damage, losses, and resources; determination of disaster emergency status; rescue and evacuation of affected communities; fulfilment of basic needs; protection of vulnerable groups; and immediate recovery of vital infrastructure and facilities.
Provision of post-disaster budget
Rehabilitation in post-disaster areas is conducted through activities including improvement of the disaster area environment, improvement of public infrastructure and facilities, provision of assistance for house repairs for communities, psychosocial recovery, healthcare services, reconciliation and conflict resolution, social, economic and cultural recovery, restoration of security and public order, restoration of government functions, and restoration of public service functions.
Activities carried out for reconstruction in post-disaster areas include:
Mud clearance through community participation schemes
Reconstruction of infrastructure and facilities, including social facilities
Revival of communities’ social and cultural life
Application of appropriate design and use of better equipment resistant to disasters
Participation and involvement of community institutions and organisations, the business sector, and communities
Improvement of social, economic, and cultural conditions
Enhancement of public service functions
Improvement of essential services in communities
For regional governments in Aceh, North Sumatra, and West Sumatra that are not directly affected by the disaster, the additional TKD for 2026 must also be directed towards funding activities including:
Mitigation and preparedness for potential disasters
Tree planting and environmental improvement
Provision of financial assistance to regencies/municipalities directly affected by the disaster
Inflation control
Economic recovery
Construction and maintenance of infrastructure and facilities such as roads, bridges, transportation modes, and other infrastructure to support basic public services
Provision of assistance for relocation and construction of houses to accommodate disaster-affected communities
The circular letter also contains provisions on budgeting, administration, accounting, reporting, and accountability. There are also directives for local government heads to instruct the Government Internal Supervisory Apparatus (APIP) to provide risk-based assistance and oversight of the use of additional TKD funds for 2026, and to take preventive measures where there are indications of corruption, collusion, and nepotism, and to report to the Minister of the Interior as head of the Task Force for Accelerated Rehabilitation and Reconstruction Following Natural Disasters in Aceh, North Sumatra, and West Sumatra provinces.