North Sumatra Receives Larger Disaster Recovery Funds Than Aceh, Explained

JAKARTA, KOMPAS.com - The central government has disbursed Rp10.6 trillion in Transfer to Regions (TKD) funds specifically allocated for post-disaster management in three provinces on Sumatra Island. This budget restoration move has drawn public attention to the stark disparity in allocated funds between North Sumatra and Aceh provinces. The disparity in transfer funds is not due to the scale of priority for physical damage recovery on the ground, but stems from technical regulatory adjustments regarding previous fiscal year budget cuts. Disaster recovery budgets are framed as restoring regional fiscal rights previously reduced by central efficiency measures, with repayment amounts directly proportional to past cuts. The central government confirmed the Rp10.6 trillion is a restoration from the 2025 budget restructuring. The amounts were determined via mathematical calculations based on historical local spending cuts, not new proposals from regional leaders. Home Affairs Minister and Chair of the Sumatra Post-Disaster Rehabilitation and Reconstruction Task Force, Tito Karnavian, explained that the formula automatically allocates the largest share to North Sumatra. ‘Why does North Sumatra get the most? Because it was cut more. Naturally, it gets restored to its original level, so it receives more. We also monitor from the central government to ensure the Rp10.6 trillion is used by local governments for disaster management within their respective capabilities,’ said Tito Karnavian at the Parliament Complex in Senayan, Jakarta, on Monday (25 May 2026). Distribution of TKD Repayment for Sumatra: Conversely, Aceh recorded a relatively modest additional fund absorption of Rp1.6 trillion. Aceh’s lower repayment amount is due to its fiscal instruments only experiencing minor budget cuts by the Ministry of Finance in 2025. Despite North Sumatra benefiting from the budget repayment formula, on the ground, Aceh requires more urgent post-disaster mitigation attention in several regencies and cities. Limited local fiscal capacity due to the TKD formula is addressed through horizontal coordination mechanisms, including inter-provincial grants. The North Sumatra provincial government allocated a direct grant of Rp26 billion to bolster Aceh’s regional budget for housing rehabilitation. West Sumatra provincial government also contributed Rp2.4 billion in grants to support emergency interventions in 11 financially non-self-sufficient regencies. Horizontal Fiscal Solidarity Scheme: The central government has completed the inventory process for all activity proposals submitted by provincial governments. To prevent budget overlap with the National Disaster Management Agency (BNPB) funds or technical ministry budgets, transfer fund usage accountability is enforced through local regulations. All recipient local leaders must draft and issue Local Regulations (Perkada), whether Governor’s, Regent’s, or Mayor’s Regulations, before executing the funds.