Interior Minister Tito Facilitates Acceleration of Disaster Recovery in Sumatra with IDR 4.3 Trillion Regional Performance Grant Distribution

The Ministry of Internal Affairs – Interior Minister Tito Karnavian has facilitated measures for regional governments to work swiftly and effectively in utilising the Regional Performance Grant (TKD) funds that have been disbursed. These measures are outlined in a circular letter addressed to both disaster-affected and non-affected regions in three Sumatran provinces: Aceh, North Sumatra, and West Sumatra.

This facilitation is essential for regions to clarify policy procedures and accelerate decision-making implementation. Previously, TKD fund utilisation required regional regulations approved by the Regional House of Representatives (DPRD), which demanded considerable time. Through the circular letter, Interior Minister Tito has authorised TKD allocation policy based on regional head regulations.

The circular letter also incorporates a mutual aid scheme involving self-management, enabling faster TKD fund absorption whilst supporting local service providers. This approach simplifies procedures compared to regional governments having to conduct tender processes to hire contractors for rehabilitation work.

The first tranche of TKD distribution, representing 40 percent, was realised on 27 February 2026 at IDR 4.38 trillion. The second tranche of 30 percent was provided on 3 March 2026 at IDR 3.13 trillion, whilst the third tranche of 30 percent is scheduled for 4 April 2026 at IDR 3.13 trillion.

The TKD policy is based on Ministry of Finance Decree (KMK) Number 59 Year 2026 regarding adjustments to the allocation and disbursement of revenue-sharing funds, general allocation funds, and special autonomy funds for fiscal year 2026, benefiting designated regions in Aceh, North Sumatra, and West Sumatra provinces.

During a Zoom meeting on Thursday, 5 March 2026, Interior Minister Tito, also chairing the Task Force for Acceleration of Post-Disaster Rehabilitation and Reconstruction in Sumatra, presented Circular Letter Number 900.1.3/1084/SJ concerning adjustments to regional transfers for fiscal year 2026 in regional budgets for disaster-affected regions in Aceh, North Sumatra, and West Sumatra. Governors, regents, and mayors from the three provinces attended the meeting.

On that occasion, Interior Minister Tito announced that President Prabowo Subianto has approved that Regional Financial Transfer (TKD) for Aceh, North Sumatra, and West Sumatra will not be deducted and will be restored to match 2025 TKD levels following efficiency measures, valued at IDR 10.6 trillion. The breakdown of additional TKD for the three flood-affected provinces is Aceh at IDR 1.6 trillion, North Sumatra at IDR 6.3 trillion, and West Sumatra at IDR 2.6 trillion.

“I am attempting to facilitate matters for regional executive officials,” said Tito. “We wish to strengthen the financial capacity of regions affected by disaster, three Sumatran disaster provinces.”

According to Tito, regional heads need only inform the DPRD of budget allocation changes whilst maintaining DPRD oversight functions. Fiscal year 2026 budget disbursement from the Ministry of Finance to provincial and regency/municipal governments in Aceh, North Sumatra, and West Sumatra will proceed without conditions.

For disaster-affected regions, Tito continued, TKD funds may be used to finance community mutual aid labour initiatives. “This intensive labour mutual aid mechanism is coordinated by regional government,” he stated. Additionally, Disaster Region Additional TKD may be allocated for spatial planning management, disaster mitigation training, and adjusting fund usage according to specific regional needs.

For example, for mud clearing activities using mutual aid schemes, TKD funds may be utilised to cover meals and beverages for implementing staff and community members during clearing operations. The Interior Minister’s circular letter contains provisions for accelerating expenditure whilst prioritising local business operators in procuring goods and services related to disaster-affected area rehabilitation activities.

Tito explained that regional governments and communities must collaborate through mutual aid because numerous areas remain muddy. Moreover, deploying personnel from the State Administration Institute (IPDN), military, and police forces cannot continue indefinitely and personnel numbers are insufficient. “Therefore, the principal spearhead of the rehabilitation and reconstruction phase rests with regional government including community elements,” he said.

Regional governments and communities, Tito added, better understand precisely what urgent needs exist down to remote areas. Without adequate clearing, nearly all aspects become disrupted including economic activity. The mutual aid mechanism represents both acceleration and shared responsibility. Besides regional government, the Rehabilitation and Reconstruction Task Force also prioritises synergy and coordination with ministries and institutions.

For regions not directly affected by disaster, TKD funds may be utilised for mitigation programmes, such as improving disaster-prone infrastructure like bridges or dams. Disaster prevention efforts have become important focus areas to prepare regions for future risk potential. Indeed, Tito continued, TKD funds could be utilised for inflation control. This demonstrates the policy’s broad scope in supporting economic stability. The objective is to maintain public welfare in regions receiving assistance.