Interior Minister Tito Urges Disaster-Affected Regional Governments to Revise Budget According to Finance Ministry Decree
The proactive efforts of Interior Minister Muhammad Tito Karnavian in advancing the recovery of areas affected by flooding in northern Sumatra have produced significant results.
The positive outcome is evident in an official letter from the Director General of Financial Equalisation at the Finance Ministry, Askolani, addressed to the Director General of Regional Financial Development at the Interior Ministry, Agus Fatoni, on Saturday, 28 February 2026.
In letter number S-28/PK/2026, the Director General of Financial Equalisation communicated Finance Minister Decree No. 59 of 2026 regarding adjustments to the allocation and distribution of revenue-sharing funds (DBH), general allocations (DAU), and special autonomy funds (Otsus) for the 2026 fiscal year, and the distribution of underpayments of revenue-sharing funds through the 2024 fiscal year for designated regions in Aceh Province, North Sumatra Province, and West Sumatra Province.
As Chairman of the Task Force for Accelerated Rehabilitation and Reconstruction (Satgas PRR), Tito recognises that affected regions possess limited fiscal capacity. With constrained own-source revenues (PAD), regional governments in Aceh and surrounding areas depend heavily on central transfers to address infrastructure damage and substantial material losses from flash floods and landslides.
Accordingly, Tito actively coordinated with and persuaded President Prabowo to reallocate budgetary funds from the State Treasury to increase regional financial transfer allocations by Rp 10.64 trillion. This increase encompasses revenue-sharing funds, general allocations, and special autonomy funds.
Previously, budget efficiency measures had been implemented regarding central transfers to regions. However, Tito ensured that this policy would not apply to disaster-affected areas. Instead, the former national police chief emphasised that regional financial transfer allocations (TKD) for affected provinces would be restored to previous levels, with significant increases.
“The budget for regional financial transfers has been restored to previous year levels, meaning it has increased,” Tito stated firmly. This measure ensures that Aceh, North Sumatra, and West Sumatra possess sufficient financial capacity to accelerate regional recovery without constraint from budget reduction policies.
Tito has communicated directly with President Prabowo Subianto to emphasise that the realisation of these transfers cannot be delayed. For him, speed is critical so that local government operations and rehabilitation programmes can proceed immediately.
Further, he requested fund disbursement in the shortest possible timeframe for the most severely affected regions. “Provide super-priority rapid disbursement to the regions we consider critical. That is, as quickly as possible,” Tito stated. For regions beginning to stabilise, disbursement is projected to be completed within two to four weeks.
As an operational foundation, Tito reminded regional governments to use the Finance Ministry Regulation (PMK) as the primary legal basis. Once this legal framework is firmly established, the Interior Ministry will promptly issue detailed technical guidelines to ensure all fund distribution processes proceed transparently, smoothly, and reach their intended targets.
Special Staff to the Interior Minister Kastorius Sinaga added that the Interior Minister has tasked the Director General of Regional Finance Agus Fatoni with issuing a circular instructing disaster-affected regional governments to immediately revise their budgets in accordance with Finance Minister Decree No. 59 of 2026. “The Interior Minister has also reminded that the use of these budget adjustments should prioritise accelerating rehabilitation from disaster impacts,” Kastorius stated on Monday, 2 March 2026.
The success of Tito’s proposal is also evident in the simplified distribution mechanism. In the letter from the Director General of Financial Equalisation, it was emphasised that these additional funds will be distributed in stages beginning February 2026 without requiring applications from regional authorities and on an unconditional basis. “Distribution is conducted without conditions to accelerate emergency response in the field,” wrote Askolani in the letter.
This massive fiscal support demonstrates Tito Karnavian’s leadership in consolidating ministries and agencies under the Satgas PRR. With assured funding, regional governments in Aceh, North Sumatra, and West Sumatra now possess strong financial instruments to promptly rehabilitate their regions and assist residents in recovering from the flooding.