Indonesian Political, Business & Finance News

North Sumatra Governor Bobby Nasution Allocates Additional Rp 1.13 Trillion in Regional Transfers for Post-Disaster Recovery

| Source: TEMPO_ID Translated from Indonesian | Infrastructure

The North Sumatra Provincial Government has begun mobilising an additional Transfer ke Daerah (TKD) for the 2026 Fiscal Year, valued at Rp 1.13 trillion, to accelerate post-disaster rehabilitation and reconstruction. The additional TKD is prioritised for infrastructure development, rehabilitation of educational and health facilities, strengthening the agricultural sector, and improving basic services. This allocation is stipulated in North Sumatra Governor Regulation Number 17 of 2026 concerning the Second Amendment to the Elucidation of the 2026 Fiscal Year Regional Budget, enacted on 7 May 2026, and subsequently updated through Governor Regulation Number 22 of 2026 concerning the Fourth Amendment on 13 July 2026. North Sumatra Governor Bobby Nasution said the additional TKD will be optimised to support development that provides direct benefits to the community. “Especially in the fields of education, health, and infrastructure,” Bobby said during the Coordination Meeting on the Use of Additional TKD throughout North Sumatra Province with the Ministry of Home Affairs and the PRR Task Force at the North Sumatra Governor’s Office Hall on Tuesday, 14 July 2026. He detailed that the largest portion is allocated to the infrastructure sector, valued at Rp 777.41 billion, or nearly 70 percent of the total budget. Its use includes the rehabilitation and maintenance of roads and bridges, rehabilitation and strengthening of river embankments in disaster-affected areas, and the construction of special housing along with supporting infrastructure and facilities. In addition, the provincial government allocated Rp 190.54 billion for the education sector. This budget is prioritised for rehabilitating classrooms, constructing new classrooms, and procuring school furniture to accelerate the recovery of education services in affected areas. In the health sector, the government has prepared a budget of Rp 91.58 billion for the revitalisation of inpatient community health centres and the procurement of medical equipment for hospitals. Meanwhile, the agricultural sector received an allocation of Rp 35.5 billion, used for procuring seeds, agricultural equipment assistance, constructing farm roads, and rehabilitating irrigation networks to support the recovery of community economic activities. As part of accelerating rehabilitation and reconstruction, the Provincial Government is also strengthening coordination with district and city governments. One form of this collaboration is in land preparation and infrastructure development around permanent housing areas. “Currently, the construction of 100 permanent housing units in Padangsidimpuan City has entered the land readiness stage,” Bobby said. The utilisation of the additional TKD for various rehabilitation and reconstruction programmes refers to the Circular Letter of the Minister of Home Affairs Number 900.1.3/1084/SJ. The circular stipulates that additional TKD for regions not directly affected by the disaster can be used to strengthen disaster mitigation, support strategic programmes, and provide assistance to districts and cities affected by the major Sumatra floods of 2025. Through a financial assistance scheme, the North Sumatra Provincial Government allocated Rp 25 billion to help infrastructure development in Central Aceh Regency, which was affected by the major Sumatra floods of 2025. Bobby acknowledged that financial realisation as of 10 July 2026 had only reached Rp 31.43 billion, or about 2.77 percent of the total ceiling. “The delay in realisation is influenced by the process of completing planning documents, which impacts the implementation of procurement and tenders for activities, especially physical infrastructure,” he said. The National Head of the PRR Task Force Post, Inspector General of Police Wahyu Bintono HB, said the rehabilitation and reconstruction process in North Sumatra continues to show positive progress. National roads have fully recovered, while regional road handling has reached 98.53 percent. For bridge infrastructure, national bridge progress has reached 100 percent and regional bridges 93.98 percent. Distribution of social assistance in the form of living allowances, housing contents, and economic stimulus has also exceeded 90 percent. Wahyu encouraged the North Sumatra Provincial Government to pay special attention to Central Tapanuli Regency and North Tapanuli Regency, which are still grappling with post-disaster recovery. National PRR Task Force Media Coordinator, Kastorius Sinaga, appreciated the North Sumatra Provincial Government’s active coordination from the emergency response period through to the rehabilitation and reconstruction process. Kastorius also reminded that the public is waiting for tangible benefits from the additional TKD disbursed by the central government. Therefore, local governments are urged to accelerate the procurement process and implementation of activities in accordance with the provisions of the Minister of Home Affairs Circular Letter. One area requiring attention from the North Sumatra Provincial Government is strengthening disaster mitigation measures, including accelerating river normalisation in several areas. “Currently, only one-third has been completed. The rest needs serious attention to prepare for potential subsequent floods or landslides, such as those that occurred in Central Tapanuli,” Kastorius said. The acceleration of utilising the additional TKD for post-disaster rehabilitation and reconstruction in North Sumatra aligns with the directive of PRR Task Force Chair Tito Karnavian, who from the outset encouraged local governments to quickly transform the additional budget into programmes and development that can be directly felt by the community. “I have given broad discretion for its use. It can be for building, strengthening damaged district roads due to the disaster, repairing village bridges, reinforcing infrastructure, and disaster-prone areas,” Tito said.

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