Indonesian Political, Business & Finance News

PRR Task Force Urges Ministries and Local Governments to Accelerate Permanent Recovery as Budget Begins to Flow

| Source: VIVA Translated from Indonesian | Infrastructure
PRR Task Force Urges Ministries and Local Governments to Accelerate Permanent Recovery as Budget Begins to Flow
Image: VIVA

The permanent recovery process in disaster-affected areas of Aceh, North Sumatra, and West Sumatra is being accelerated by the Sumatran Post-Disaster Rehabilitation and Reconstruction Acceleration Task Force (Satgas PRR), following the restoration of basic services and the passing of the emergency phase. Satgas PRR Chairman Muhammad Tito Karnavian stated that the government has prepared a rehabilitation and reconstruction budget of Rp100.1 trillion for the 2026–2028 period. The funds will be used to expedite recovery across various affected sectors, including basic infrastructure, housing, education, health, and community economic strengthening. Based on the 2026–2028 Sumatran Post-Disaster Rehabilitation and Reconstruction Master Plan, the budget will be realised in stages: Rp38.9 trillion in 2026, Rp32.9 trillion in 2027, and Rp28.2 trillion in 2028. The permanent recovery programme involves 33 ministries and agencies as main and supporting implementers. The acceleration of programme implementation is showing positive progress. According to a budget realisation progress report on 17 June 2026, five ministries and agencies have received their rehabilitation and reconstruction budget allocations: the Ministry of Public Works, the Ministry of Transportation, the Ministry of Social Affairs, the Ministry of Health, and the Central Statistics Agency (BPS). Meanwhile, several other ministries and agencies are still undergoing evaluation and approval processes at the Ministry of Finance or completing internal administrative procedures. “Five have been disbursed, meaning the funds have been transferred. The others are in process at the Ministry of Finance. Hopefully we can expedite this. Earlier, we requested support from the steering committee chair, steering committee members, and the Minister of Finance to accelerate the submission process. Once transferred, the speed will be very fast,” Tito said during a coordination meeting at the ministerial level of the Satgas PRR Steering Committee at the Coordinating Ministry for Human Development and Cultural Affairs complex on Thursday (18/6/2026). While waiting for the entire ministry and agency budgeting process to be completed, the Satgas PRR is also encouraging local governments to optimise the additional Regional Transfers (TKD) amounting to Rp10.6 trillion, which the central government has distributed to all affected regions since early May 2026. The additional fiscal support consists of approximately Rp1.6 trillion for Aceh, Rp6.3 trillion for North Sumatra, and Rp2.6 trillion for West Sumatra. These funds are expected to be used immediately to accelerate the handling of priority community needs, including the repair of basic infrastructure and public services that still require strengthening during the permanent recovery phase.

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