Indonesian Political, Business & Finance News

Prabowo Allocates Rp 600 Billion for Micro-Entrepreneurs in Sumatra

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

President Prabowo Subianto has allocated a budget of Rp 600 billion this year for the business rehabilitation of micro-entrepreneurs affected by disasters in Aceh, North Sumatra, and West Sumatra. Approximately 200,000 micro-entrepreneurs impacted by flooding in Sumatra will receive assistance of Rp 3 million each.

The Minister of Micro, Small, and Medium Enterprises (MSMEs), Maman Abdurradhman, stated that the amount for this assistance has already been budgeted. “In 2026, 200,000 micro-businesses in these three regions will each receive assistance in the form of business rehabilitation; this is part of the nomenclature known as Banpres (Presidential Assistance),” he said at the Ministry of MSMEs office in Jakarta on Wednesday, 3 June 2026.

Maman explained that the total budget for this assistance will reach Rp 1.2 trillion through 2027. This means the government will disburse the aid in two stages: Rp 600 billion this year and another Rp 600 billion next year.

Regarding the proportion of funds per region, he stated that the central government will adjust the allocation based on proposals from each regional head. However, according to Maman, the largest portion of the budget will be allocated to micro-entrepreneurs in Aceh, which was most severely impacted by disasters.

“Looking at the coverage area of the affected regions, the proportion for Aceh will be larger,” Maman noted.

While he did not specify exactly when the Banpres funds would be distributed, Maman ensured that the fresh funds would be released soon. In the near future, the central government will hold coordination meetings with the regional governments of the three provinces to prepare data collection and identify the micro-entrepreneurs eligible to receive the aid.

The Presidential Assistance is funded by the State Budget (APBN). Maman noted that this decision has been communicated with several ministries and is currently in the administrative realisation process. These funds are part of the Master Plan for Economic Rehabilitation and Disaster Recovery for Aceh, North Sumatra, and West Sumatra, which has been set at Rp 100.166 trillion.

“So, until 2027, approximately Rp 1.2 trillion is being prepared for our micro-entrepreneur brothers and sisters, so they can have breathing room, purchase production tools, food supplies, cooking equipment, and reactivate their small businesses.”

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