Indonesian Political, Business & Finance News

President Grants Rp10.6 Trillion Additional TKD to Three Disaster-Affected Provinces

| Source: VIVA Translated from Indonesian | Politics
President Grants Rp10.6 Trillion Additional TKD to Three Disaster-Affected Provinces
Image: VIVA

Pidie Jaya – VIVA

Minister of Home Affairs (Mendagri) and Chair of the Task Force for the Acceleration of Rehabilitation and Reconstruction (PRR) after the Sumatra disaster, Muhammad Tito Karnavian, announced that President Prabowo Subianto has provided an additional Transfer to Regions (TKD) to three provinces affected by disasters in Sumatra. The total additional budget amounts to around Rp10.6 trillion.

He made the explanation at the handover ceremony for compensation payments to heirs of victims of hydrometeorological disasters and the 2026 TKD expansion socialisation for Aceh, North Sumatra and West Sumatra provinces, held in hybrid format from the MTQ Building in Pidie Jaya, Aceh, on Friday 6 March 2026.

The TKD top-up is the realisation of the Mendagri’s proposal to the President and the Indonesian House of Representatives (DPR RI). This step is intended to accelerate recovery after disasters.

‘We hope the regions can handle disaster management according to their capabilities. Those that cannot will still be handled by the central authorities,’ he said.

Earlier, at a virtual meeting with disaster-affected regional governments on Thursday 5 March 2026, the Mendagri explained that the TKD top-up is to strengthen the financial capacity of disaster-hit regions. The President decided the top-up would not only be provided to areas affected directly but to all regencies/cities and provinces in North Sumatra, Aceh and West Sumatra, including those not affected.

‘He decided to provide everything, whether affected or not within the three provinces, because disaster is considered a provincial disaster,’ the Mendagri said at the meeting.

From the total Rp10.6 trillion, the allocations were varied by province: Aceh about Rp1.6 trillion, North Sumatra Rp6.3 trillion, and West Sumatra Rp2.6 trillion.

The policy has been followed up by the Ministry of Finance Regulation (KMK) No. 59 of 2026. The Mendagri has also issued a circular to set the technical usage.

Furthermore, he said, the President asked that the additional budget be used to speed up disaster recovery. For areas not affected by disasters, the funds may be used to support mitigation or disaster prevention programmes, such as repairing bridges or dams deemed at risk of being affected.

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