North Sumatra to Utilise Additional TKD Funds to Accelerate Post-Disaster Recovery

The North Sumatra Provincial Government (Pemprov Sumut) has confirmed that an additional Regional Transfer Fund (TKD) for the 2026 Fiscal Year amounting to Rp6.356 trillion will be immediately realised, among other things, to accelerate the recovery of areas affected by the Sumatra disaster late last year. Director General of Regional Financial Development (Dirjen Bina Keuda) at the Ministry of Home Affairs (Kemendagri), Agus Fatoni, stated that the government has allocated an additional TKD of Rp10.68 trillion for three disaster-affected provinces, comprising North Sumatra at Rp6.35 trillion, West Sumatra at Rp2.63 trillion, and Aceh at Rp1.65 trillion. He appreciated the commitment of regional governments that have adjusted the 2026 Fiscal Year Regional Budget (APBD) through a Head of Region Regulation (Perkada) so that the additional budget can be utilised immediately. The commitment of the North Sumatra Provincial Government was conveyed by the Governor of North Sumatra, Bobby Afif Nasution, during a Coordination Meeting on Monitoring and Assistance for the Use of Additional TKD for the 2026 Fiscal Year held at the Raja Inal Siregar Hall, North Sumatra Governor’s Office, on Tuesday (14/7). Governor Bobby Nasution said the central government has restored the TKD allocation for North Sumatra to around Rp6 trillion. From this amount, the provincial government receives approximately Rp1.1 trillion, which will be used to support rehabilitation and reconstruction programmes in disaster-affected areas. ‘We are committed to ensuring this additional TKD truly benefits the community. Every budget must be utilised optimally to accelerate development, support the recovery of disaster-affected areas, and encourage community economic growth,’ said Bobby. Based on the allocation set by the government, the additional TKD for North Sumatra reaches Rp6,356,935,460,290, with Rp4.331 trillion of that specifically allocated for 18 disaster-affected regions. The additional budget is provided to accelerate post-disaster rehabilitation and reconstruction. The Head of the North Sumatra Regional Finance and Assets Agency (BKAD), Timur Tumanggor, stated that coordination between the central government, provincial government, and district/city governments is key to ensuring the additional TKD can be realised effectively and on target. ‘Synergy between the central government, provincial government, and district/city governments must continue to be strengthened so that the utilisation of the additional Regional Transfer Funds runs effectively, is on target, and provides real benefits to the community, particularly in supporting the acceleration of post-disaster regional development,’ said Timur. In accordance with the Minister of Home Affairs Circular Letter Number 900.1.3/1084/SJ, the additional TKD is prioritised to support all stages of disaster management, ranging from mitigation and preparedness, emergency response handling, to rehabilitation and reconstruction, as well as strengthening Unexpected Expenditure (BTT) and inter-regional financial assistance. This commitment has been demonstrated by eight regional governments in North Sumatra that have allocated Rp260 billion in financial assistance to disaster-affected districts in Aceh as a form of fiscal mutual cooperation to accelerate post-disaster recovery.