Indonesian Political, Business & Finance News

Home Affairs Minister Reveals Rp130 Trillion Cost for Sumatra Recovery, Here are the Details!

| | Source: MEDIA_INDONESIA Translated from Indonesian | Infrastructure
Home Affairs Minister Reveals Rp130 Trillion Cost for Sumatra Recovery, Here are the Details!
Image: MEDIA_INDONESIA

The government estimates the budget needs for post-disaster recovery over the next three years to reach Rp130 trillion. Home Affairs Minister Muhammad Tito Karnavian stated that this figure is provisional and awaits finalisation of the master plan by Bappenas.

According to Tito, the budget requirements span various sectors, from infrastructure to agriculture. “For the budget over the next three years, it is estimated at Rp130 trillion, for building bridges, schools, and others,” he said in Jakarta on Wednesday (25/3).

He explained that the largest proposal comes from the Ministry of Public Works, requesting around Rp72 trillion for river construction, bridges, permanent roads, places of worship, and public facilities. Additionally, sectors such as education, agriculture, and maritime affairs have submitted their respective budget needs.

All these plans are compiled from regions in the R3P document (post-disaster rehabilitation and reconstruction plan), which is then aligned by the central government through the master plan.

“This is being prepared by Bappenas as a master plan, at the latest by early April, 1 April; if not made, the Finance Minister will only fund what is included in the clear and detailed budget with specific values,” Tito said.

He emphasised that the Rp130 trillion budget is not only allocated for permanent housing (huntap) but covers all recovery needs.

Specifically for huntap, the government estimates the need to build nearly 37,000 units. The offered schemes vary, from independent construction to centralised relocation.

“If they want to expand it with their own costs, that’s fine; the government standard is Rp60 million,” he said.

However, Tito acknowledged that the calculation process for huntap needs is still hindered by data from regions. Many local governments have not yet submitted detailed data based on names and addresses, making it difficult to determine the budget accurately.

“If it’s in bulk like this, we can’t determine the figure, because the PKP index standard is quite high,” he said.

To accelerate the process, Tito plans to set a deadline for local governments to submit detailed data. He also stated that regions that are slow will face consequences from their own communities.

“This huntap mechanism, I think I will take the same step; districts/cities that can submit three groups by name by address completely, we will execute immediately; those who haven’t submitted, go ahead, you will be protested by your community. Don’t blame the central government,” Tito remarked.

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