Indonesian Political, Business & Finance News

North Sumatra to Accelerate Post-Disaster Recovery with Additional Regional Transfer Funds

| Source: DETIK Translated from Indonesian | Economy
North Sumatra to Accelerate Post-Disaster Recovery with Additional Regional Transfer Funds
Image: DETIK

The North Sumatra Provincial Government is following up on the additional Regional Transfer Funds (TKD) for the 2026 fiscal year totalling Rp 6.356 trillion allocated by the central government. One of its intended uses is to accelerate post-disaster rehabilitation and reconstruction.

The North Sumatra Provincial Government has given assurances that the budget will be realised promptly so that it delivers tangible benefits to the public and speeds up the recovery of affected areas.

North Sumatra Governor Bobby Afif Nasution said the central government has restored the TKD allocation for North Sumatra to around Rp 6 trillion. Of that amount, the North Sumatra Provincial Government will receive around Rp 1.1 trillion, which will be used to support rehabilitation and reconstruction programmes in disaster-affected areas.

“We are committed to ensuring that this additional TKD genuinely benefits the public. Every rupiah of the budget must be used optimally to accelerate development, support the recovery of disaster-affected areas, and drive economic growth for our communities,” Bobby said in a written statement on Wednesday (15 July 2026).

He made the remarks during a Coordination Meeting on the Monitoring and Assistance of Additional TKD Use for the 2026 Fiscal Year, held at the Raja Inal Siregar Hall of the North Sumatra Governor’s Office on Tuesday (14 July).

Based on the allocation set by the government, the additional TKD for North Sumatra amounts to Rp 6,356,935,460,290, of which Rp 4.331 trillion is specifically allocated to 18 disaster-affected regions. The additional budget has been provided to accelerate post-disaster rehabilitation and reconstruction.

Timur Tumanggor, Head of the Regional Finance and Asset Agency (BKAD) of North Sumatra Province, said coordination between the central government, the provincial government, and regency/municipal governments is key to ensuring that the additional TKD can be realised promptly, effectively, and on target.

“Synergy between the central government, provincial government, and regency/municipal governments must continue to be strengthened so that the use of the additional Regional Transfer Funds runs effectively, reaches the right targets, and delivers real benefits to the public, particularly in supporting the acceleration of post-disaster regional development,” Timur said.

Agus Fatoni, Director-General of Regional Financial Management at the Ministry of Home Affairs, said the government has allocated Rp 10.68 trillion in additional TKD for three disaster-affected provinces: North Sumatra with Rp 6.35 trillion, West Sumatra with Rp 2.63 trillion, and Aceh with Rp 1.65 trillion. He commended the commitment of regional governments that have adjusted their 2026 regional budgets through Regional Head Regulations (Perkada), enabling the additional funds to be utilised without delay.

In accordance with Circular Letter of the Minister of Home Affairs Number 900.1.3/1084/SJ, the additional TKD is prioritised to support all stages of disaster management, from mitigation and preparedness, emergency response, rehabilitation and reconstruction, and strengthening Unanticipated Expenditure (BTT), through to inter-regional financial assistance.

This commitment has been demonstrated by eight regional governments in North Sumatra, which have allocated Rp 260 billion in financial assistance to eight disaster-affected regencies in Aceh as a form of fiscal mutual cooperation to accelerate post-disaster recovery.

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