Ministry of Finance Distributes Additional Regional Transfer of Rp4.39 Trillion to Aceh, West Sumatra and North Sumatra
Jakarta — Indonesia’s Ministry of Finance has distributed an additional Rp4.39 trillion in Regional Transfers (TKD) to three disaster-affected provinces: Aceh, West Sumatra, and North Sumatra.
The Ministry of Finance has implemented a policy to provide supplementary Regional Transfers by restoring 2026 fiscal year TKD allocation levels to match 2025 levels. This additional allocation has been disbursed to 67 municipalities across the three disaster-affected provinces and surrounding areas impacted by the disasters, which had experienced reductions in their 2026 TKD compared to 2025.
The policy was established through Ministry of Finance Decree No. 59 of 2026 concerning adjustments to detailed allocations and disbursement of revenue-sharing funds, general allocation funds, and special autonomy funds for fiscal year 2026, along with shortfall disbursements of revenue-sharing funds through 2024 for certain regions in Aceh, North Sumatra, and West Sumatra provinces.
“The total amount of additional TKD allocation determined by the Ministry of Finance is Rp10.65 trillion,” said Deni Surjantoro, Head of the Ministry of Finance’s Communications and Information Services Bureau, on Tuesday (10 March 2026).
The TKD increase for each region has been implemented in stages to meet the difference between reduced 2026 TKD allocations and 2025 allocations following presidential instruction, through additional revenue-sharing funds, general allocation funds, and special autonomy funds.
The Ministry of Finance has planned the distribution of this additional TKD in three phases: 40 per cent in February, 30 per cent in March, and 30 per cent in April.
“By the end of February 2026, the Ministry of Finance had distributed additional TKD totalling Rp4.39 trillion,” Surjantoro said.
Previously, Surjantoro noted that as an initial step in supporting disaster management and recovery, the Ministry of Finance had also arranged relaxation provisions for TKD disbursement and utilisation in disaster-affected regions through Ministry of Finance Regulation No. 102 of 2025.
These relaxation measures include unconditional disbursement and the use of earmarked TKD for disaster management and post-disaster recovery, as well as relaxation of National Economic Recovery (PEN) programme loan obligations for disaster-affected regions.
Surjantoro explained that the forms of PEN loan obligation relaxation for disaster-affected regions in Aceh, North Sumatra, and West Sumatra include deferment of principal and/or interest payments during the post-disaster period, extension of loan repayment periods up to 15 years, and conditional forgiveness of remaining loan obligations for infrastructure that has suffered total or severe damage from flooding, flash floods, or landslides with damage exceeding 70 per cent of the asset value financed.
“These relaxation facilities are not automatic but are provided according to applicable PEN loans. To date, four regional administrations affected by disasters in Sumatra have utilised these PEN loan relaxation facilities,” Surjantoro said.
Based on the fiscal support policies implemented, by February 2026, the realisation of 2026 TKD disbursement to the three disaster-affected provinces had reached Rp23.18 trillion, a 54.07 per cent increase compared to 2025, including the distribution of additional TKD across the three Sumatran provinces totalling Rp4.39 trillion.
“The additional TKD and these relaxation policies represent concrete support from the Central Government in facilitating the recovery of disaster-affected regions,” he explained.
Fiscal support through additional TKD complements various emergency response and rehabilitation and reconstruction programmes for post-disaster Sumatra. Surjantoro emphasised that all these policies are aimed at enabling faster and more coordinated post-disaster recovery, sustaining public services, and supporting community economic recovery.