Indonesian Political, Business & Finance News

Post-Sumatra Flood, Inflation Emerges: Satgas PRR Focuses on Restoring Logistics Connectivity

| Source: TEMPO_ID Translated from Indonesian | Economy

Interior Minister Tito Karnavian stated that inflation in several flood-affected areas in Sumatra is beginning to show positive trends. This was conveyed during the Regional Inflation Control Coordination Meeting on Monday, 6 April 2026. Indeed, Aceh remains the province with the highest inflation rate. Data from the Central Statistics Agency records that in March 2026, the annual or year-on-year (YoY) inflation in the Verandah of Mecca province reached 5.31 percent. The high annual inflation trend in Aceh has been occurring since the end of 2025. In December 2025, inflation was recorded at 6.71 percent, then slightly decreased to 6.69 percent in January 2026, before rising again to 6.94 percent in February. Not only Aceh, North Sumatra and West Sumatra also entered the top four provinces with the highest annual inflation in December 2025. West Sumatra occupied the second position with 5.15 percent, while North Sumatra at 4.66 percent held the fourth position. Fortunately, the two provinces besides Aceh were able to suppress the annual inflation rate in the following months, thus exiting the top four. North Sumatra, for example, recorded inflation of 3.81 percent in January, increased to 4.71 percent in February, then fell back to 3.86 percent in March 2026. A similar trend occurred in West Sumatra. In January, annual inflation was at 3.92 percent, then rose to 4.39 percent in February, before easing to 3.37 percent in March 2026. These figures did not come about by chance. Extremely heavy rainfall at the end of November last year created floods that swept through almost the entire territory in 53 districts/cities in Aceh, North Sumatra, and West Sumatra. The effect was a rise in commodity prices, particularly in the food, beverages, and tobacco group, which contributed the most to inflation in the three regions. Additionally, connectivity such as roads and bridges was disrupted during the initial emergency response period and could not supply logistics to the affected areas. Nevertheless, thanks to various efforts, progress can be seen in monthly or month-to-month (MtM) inflation developments. According to Tito, who is also the Head of the Task Force for Accelerating Rehabilitation and Reconstruction (Satgas PRR) Post-Sumatra Disaster and National Coordinator of the Regional Inflation Control Team (TPID), the three affected provinces have recorded relatively good performance. “If we look at the progress due to our efforts. Look at the month-to-month inflation in the regions. Aceh is no longer in the top positions,” he said. Indeed, although it is the province with the highest annual inflation, Aceh has recorded itself as one of the provinces with the lowest monthly inflation, occupying the 6th position from the bottom in March 2026 at only 0.04 percent. This means that the Consumer Price Index (CPI) increase in March compared to February was only 0.04 percent or relatively stable. The same applies to West Sumatra, which recorded the same figure as Aceh, namely 0.04 percent. Meanwhile, North Sumatra even experienced deflation of -0.13 percent. This is where the good news lies. Because these statistics indicate smooth supply of goods, controlled prices, and the beginning of normal economic activity. “This means that what has been done so far to normalise Aceh, West Sumatra, and North Sumatra by controlling the prices of goods and services has been quite good, because a lot of supplies have entered,” said Tito. Of course, this is not just a claim. Indeed, various strategies have been implemented by Satgas PRR under the coordination of Tito Karnavian. All national roads and bridges as logistics connectivity have reached 100 percent functionality since 25 January 2026. As of 10 April, what remains are 14 local road segments that are not yet functional out of a total of 2,421 segments, as well as 360 bridges out of a target of 1,151 units. Not only that, Satgas PRR is also preparing 298 temporary bridge units of Bailey, Armco, and pioneer types. Now, 190 of them have been completed, leaving 108 units still under construction. Local economic activity is also slowly bringing fresh wind. Of the 210 affected traditional markets, 196 of them are now accessible to the public. To encourage increased purchasing power, the government is distributing various social aids, from economic stimulus, housing fillings, to livelihood guarantees, which as of 10 April have reached 45,656 household heads, with a total value of Rp 506.1 billion. Then, there is the Micro, Small, and Medium Enterprises (UMKM) sector. In the period from 22 January to 4 March 2026, a total of 7,461,422 transactions were recorded, with details in Aceh of 1,396 products and 10,230 transactions, North Sumatra 631 products with 285,737 transactions, and West Sumatra 101 products with 1,867,456 transactions. Of course, this positive achievement will continue to be maintained by Satgas PRR, which is always present among the flood-affected communities. Tito has repeatedly stated during his visits that the government’s target is to return community life to normal as quickly as possible.

View JSON | Print