Home Affairs Minister States Disaster Relief Distribution in Sumatra Will Boost Purchasing Power
Indonesia’s Home Affairs Minister and Chair of the Post-Disaster Sumatra Acceleration Task Force for Rehabilitation and Reconstruction (PRR), Muhammad Tito Karnavian, has stated that the distribution of post-disaster social assistance in the Sumatra region will boost community purchasing power.
“When the public receive money, they can shop. When there is shopping, there will be traders. When there is demand, supply will follow, allowing commerce to flow and markets to operate,” Tito said in a statement on Monday, 16 March 2026.
He made these remarks at a Government Assistance Handover Ceremony for Natural Disaster Victims in the Sumatra Region at the East Aceh Regent’s Office in Aceh. Tito commended Social Affairs Minister Saifullah Yusuf for symbolically distributing assistance in East Aceh through PT Pos Indonesia. He explained that the natural disasters affecting the Sumatra region, including East Aceh, have caused significant economic impact to the areas.
Tito believes that government social assistance distribution not only benefits the community but will also stimulate economic activity. “And this applies across all regions. This is the purpose of such assistance,” he added.
Tito assured that this distribution is not the final round of assistance. Should additional vulnerable populations be identified with verifiable data, the government will provide additional aid.
Tito also explained that the natural disasters affecting Sumatra have different characteristics compared to other natural disasters across Indonesia. The disasters have occurred across 52 districts in West Sumatra, North Sumatra, and Aceh with uneven conditions.
Tito emphasised that these conditions have complicated the data collection process. In response, the PRR Task Force is conducting data collection in phases.
“If we wait until all data is complete before distributing or providing temporary housing, the recovery process will take much longer,” he said.
Based on the data situation, the PRR Task Force has classified home damage into three categories: light damage, moderate damage, and severe damage/total loss.
For communities experiencing home damage, stimulus assistance is provided based on data submitted and verified by the Central Statistics Agency (BPS).
“For those needing economic stimulus assistance and household goods aid, we will send it immediately. After BPS verification, then we hand it over to BNPB for housing assistance and to the Social Affairs Minister for individual assistance,” Tito concluded.