Indonesian Political, Business & Finance News

PRR Task Force: Delays in Disaster Fund Absorption Could Lead to Sanctions

| Source: ANTARA_ID Translated from Indonesian | Finance
PRR Task Force: Delays in Disaster Fund Absorption Could Lead to Sanctions
Image: ANTARA_ID

Banda Aceh (ANTARA) - The Ministry of Home Affairs’ Post-Disaster Rehabilitation and Reconstruction (PRR) Task Force has warned the Aceh provincial government and regencies/cities across Aceh to accelerate the absorption of additional regional transfer funds (TKD) for disaster management, noting that delays could result in sanctions.

“Therefore, we hope that local governments are committed to executing this budget and these activities to the maximum extent,” said the Chairman of the Ministry of Home Affairs’ PRR Task Force Monitoring Team, Imran, in Banda Aceh on Monday.

Imran made these remarks following a coordination and consultation meeting with the Aceh Government regarding plans for joint field visits to disaster-affected areas in Banda Aceh.

For context, Aceh has been allocated an additional TKD fund of Rp1.652 trillion for disaster management for 2026. Under the authority of the Aceh Government, Rp824 billion is managed by the province, while the remaining Rp827 billion is managed by the regencies and cities within Aceh.

To date, the absorption of these funds has only reached Rp498 billion, or 30.16 per cent of the total Rp1.652 trillion allocation. The realised amount includes Rp244 billion from the provincial government and Rp253 billion from regency/city governments.

To accelerate progress, local governments must immediately finalise regional head regulations (Perkada), prepare implementation plans, and manage the tendering process in accordance with applicable regulations.

“Progress is now starting to show, and we hope that in the next three months, all planned activities and budget absorption can be maximised by the provincial and regency/city governments,” he said.

Imran noted that the slow realisation of disaster TKD in Aceh is due to several issues. Firstly, the establishment of Perkada in several regions has been quite slow.

Secondly, delays have occurred during the tendering process in some areas, with some tenders even failing. Consequently, it is expected that these issues be rectified immediately without further delay.

This also pertains to field implementation; once a contract is in place, down payments must be processed promptly so that realisation is reflected in financial reports.

“Do not wait until the work is finished, because the Ministry of Finance, when they see no movement, considers that the work has not been performed and that the funds are effectively unused,” he said.

Regarding these delays, Imran emphasised that the Minister of Home Affairs, Tito Karnavian, has stated on several occasions that sanctions will be imposed on regions that fail to maximise the use of TKD.

“He has frequently stated that he will intercept the amount of TKD for next year for regions that are unable to realise their funds maximally in 2026,” he added.

He continued that the Ministry of Home Affairs may take several actions, including cutting the amount of unutilised funds and imposing penalties.

Furthermore, other ministries or agencies may impose additional sanctions if regions fail to realise the budgets allocated to them.

“At the end of the year, we will see the extent to which regencies, cities, and the Aceh province have realised their budgets,” Imran concluded.

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