Ministry of MSMEs proposes Rp622 billion boost for Sumatra's economic recovery
The Ministry of Micro, Small, and Medium Enterprises (Ministry of MSMEs) has proposed a budget increase to Rp1.5 trillion, with Rp622 billion earmarked for economic recovery on Sumatra Island.
“I want to convey that within that Rp1.5 trillion, there is additional budget for Aceh, North Sumatra, and West Sumatra,” stated the Minister of MSMEs, Maman Abdurrahman, in Jakarta on Monday.
Maman noted that the total budget proposal submitted by the Ministry of MSMEs for 2027 amounts to Rp1.5 trillion, detailed as Rp622 billion for Sumatra’s economic recovery and Rp900 billion for the ministry’s core programmes.
He explained that the proposal is part of a long-term plan by the Ministry of MSMEs to restore the economy following disasters that have occurred in Aceh, West Sumatra, and North Sumatra.
“The Rp62<0xA0>billion is for the economic recovery from disasters in Sumatra. We have prepared the planning for this from 2026, 2027, and 2028,” he said.
According to him, the ministry has held meetings with several regional heads of the disaster-affected areas to realise the economic recovery plan for micro-businesses in these three regions.
“Alhamdulillah, it is progressing smoothly, and we will accelerate it within these three months of 2026, continuing into 2027. Therefore, this Rp622 billion budget will be dedicated to continuing the economic recovery in Sumatra,” he added.
Regarding the proposed 2027 budget, the Deputy for Micro Enterprises, which originally had a ceiling of Rp29 billion, is proposed to increase to approximately Rp223 billion, plus an additional Rp600 billion for disaster recovery. This brings the total proposal for this sector to Rp829 billion, with a total proposed ceiling of Rp859 billion.
Furthermore, the Deputy for Small Enterprises, originally at Rp29 billion, has a proposed increase of approximately Rp144 billion, while the Deputy for Medium Enterprises is set to increase from Rp20 billion to Rp114 billion.
Additionally, the Deputy for Entrepreneurship, which was initially at Rp47 billion, is proposed to increase to Rp192 billion. The Ministry’s Secretariat, originally at Rp288 billion, is proposed to rise to Rp474 billion, while the Ministry’s LLP remains at Rp44 billion with no increase.
“Lastly, for the decentralisation fund, which was initially zero, we are requesting an increase of approximately Rp151 billion. Therefore, the total amount we are proposing for an increase is Rp1.5 trillion, bringing the final total to Rp1.98 trillion when added to the already established budget ceiling,” he added.