PRR Task Force Prepares 2 New Funding Schemes to Accelerate Permanent Housing Provision

The Post-Disaster Rehabilitation and Reconstruction Task Force (Satgas PRR) for Sumatra has prepared two policy proposals to accelerate the provision of permanent housing (huntap) for communities affected by disasters in Aceh, North Sumatra, and West Sumatra. The proposals include the use of the Ready-to-Use Fund (DSP) mechanism managed by the National Disaster Management Agency (BNPB) and an adjustment to the amount of housing construction assistance. Satgas PRR Chairman Muhammad Tito Karnavian stated that the DSP mechanism is proposed to support the construction of both in-situ and ex-situ independent permanent housing. According to him, these two schemes have a higher level of complexity compared to centralised or communal housing construction. “For in-situ and ex-situ independent huntap, which are the responsibility of BNPB, the challenges are more complex because the locations are scattered. Therefore, we are proposing the use of the more flexible Ready-to-Use Fund mechanism,” Tito said after a Ministerial-Level Coordination Meeting at the Coordinating Ministry for Human Development and Culture (Kemenko PMK) office in Jakarta. He explained that the DSP mechanism is expected to provide BNPB with the flexibility to accelerate the housing construction process in various affected areas, allowing disaster survivors to immediately occupy safe, decent, and permanent homes as part of the recovery process. In addition to the funding scheme, the Task Force also proposed an adjustment to the value of housing construction assistance. The current grant of Rp60 million per unit is deemed no longer sufficient to build a habitable home based on field conditions. Tito explained that the proposal refers to various house construction cost standards. The Ministry of Housing and Settlement Areas (PKP) estimates the need for a habitable home reaches around Rp120 million per unit. Meanwhile, house construction in Aceh requires a budget of around Rp96 million per unit, and construction carried out by the Buddha Tzu Chi Foundation costs around Rp75 million per unit. Based on this comparison, the Task Force is proposing that the housing construction grant be increased to around Rp80 million per unit to better match real needs in the field while supporting construction quality. All proposals will be submitted to President Prabowo Subianto through the Ministry of State Secretariat as material for the government’s consideration in accelerating post-disaster rehabilitation and reconstruction in the Sumatra region. The coordination meeting was chaired by Coordinating Minister for Human Development and Culture Pratikno. Also in attendance were Head of BNPB Suharyanto, Director General of Regional Administration Development at the Ministry of Home Affairs Safrizal ZA, and representatives from relevant ministries and agencies to strengthen synergy in accelerating post-disaster rehabilitation and reconstruction.