Indonesian Political, Business & Finance News

Interior Minister Says Rp130 Trillion Needed to Rebuild Sumatra After Floods

| Source: CNN_ID Translated from Indonesian | Infrastructure
Interior Minister Says Rp130 Trillion Needed to Rebuild Sumatra After Floods
Image: CNN_ID

Interior Minister (Mendagri) and Head of the Task Force for Accelerating Rehabilitation and Reconstruction, Tito Karnavian, estimates that rebuilding areas affected by flash floods and landslides in Sumatra will require funds of up to Rp130 trillion. He states that this cost estimate is the result of calculations by Bappenas from proposed work plans by several ministries and local governments. “In the Task Force, there is already a master plan for the development of these three provinces over three years, as far as I know, the preliminary exercise is around Rp130 trillion,” Tito said during a press conference at the Presidential Staff Office in Jakarta on Wednesday (25/3). Tito said that the budget will at the latest be formalised into an official master plan set by the government. He conveyed that the master plan will be formed at the latest by 1 April 2026. Tito gave examples that such a budget is planned to be used for building permanent housing, infrastructure such as roads and permanent bridges, to the repair of schools and health facilities. “Once it’s made, the Finance Minister will fund it if it becomes a proper plan, this is really clear planning, ready, what will be built, and how much it costs,” Tito said. At the same time, he also encouraged local governments to help neighbouring areas that are severely affected and have heavy damage. Tito emphasised that the recovery from hydrometeorological disaster impacts in the Sumatra region is carried out through strengthening collaboration between local governments. He explained that this collaboration initiative arose following an additional allocation of regional transfer budget for accelerating disaster handling from the President amounting to Rp10.6 trillion. “From the latest update this morning, there are already three regions that have made commitment statements to help the affected areas, namely Simalungun, Asahan, and Pematangsiantar,” he said.

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