Indonesian Political, Business & Finance News

Purbaya Reveals Rp60 Trillion Sumatra Disaster Recovery Funds Not Fully Utilised

| Source: CNBC Translated from Indonesian | Infrastructure
Purbaya Reveals Rp60 Trillion Sumatra Disaster Recovery Funds Not Fully Utilised
Image: CNBC

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa revealed that the government’s Rp60 trillion allocated for Sumatra disaster recovery has not been fully utilised. This is due to phased infrastructure rebuilding efforts.

It is known that the Rp60 trillion fund stems from efficiency measures in ministerial and agency spending within the 2025 national budget.

“When asked about funding readiness, I confirmed it was prepared from the start of the year. By the end of last year, we had already allocated Rp60 trillion, but less was used this year as it is divided into three phases for infrastructure development,” Purbaya said after attending a coordination meeting of the Sumatra Disaster Recovery Task Force and the Accelerated Rehabilitation and Reconstruction Task Force at the Nusantara IV Building, DPR/MPR Complex, on Monday (25 May 2026).

Purbaya explained that funds are not an issue in the disaster recovery process. However, many ministries and agencies have not submitted complete documentation when requesting budgets.

Therefore, a special team has been established to follow up on unspent budgets due to incomplete documents.

“I instructed my director-general to follow up on disaster-related budget requests: if ministries or agencies are short on documents, they should be contacted. If they cannot prepare the documents, we will send staff to assist,” he said.

“I hope this approach will speed up disaster-related budget disbursements, so there’s no need to worry – the money is available,” he added.

The Ministry of Finance reported that regional transfers (TKD) had reached Rp256.8 trillion by 30 April 2026, equivalent to 37.1% of the national budget’s Rp693 trillion ceiling for 2026.

“TKD disbursements amount to Rp256.8 trillion, or 37.1% of the national budget ceiling,” Finance Minister Purbaya Yudhi Sadewa said during the May 2026 APBN KITA press conference in Jakarta on Tuesday (19 May 2026).

April’s disbursements were driven by revenue sharing, general allocation, non-physical special allocation, and special autonomy funds, along with relaxed disbursement terms and additional allocations for regional transfers to disaster-affected areas in Sumatra. Meanwhile, some TKD remains pending due to local governments not meeting disbursement requirements.

During Purbaya’s presentation, progress on accelerating TKD disbursement and additional allocations for disaster-affected regions in Sumatra was noted. In the first phase, Rp4.4 trillion was disbursed without conditions. The second phase reached Rp3.1 trillion, disbursed in March 2026 without conditions.

The third phase was disbursed in April 2026, amounting to Rp3.1 trillion without conditions. With accelerated disbursement and additional allocations, the regional TKD for Sumatra reached Rp42.96 trillion, or 48% of the ceiling, higher than the average programme rate.

Breakdown: Additional 2026 TKD allocations of Rp10.65 trillion for Aceh, North Sumatra, and West Sumatra have been fully disbursed, with the final disbursement of Rp3.1 trillion in April 2026.

The Ministry of Finance also noted additional special autonomy funds for Aceh. Latest data shows the first phase of Rp30.39 billion (40%) has been disbursed, the second phase of Rp22.79 billion is scheduled for May, and the third phase of Rp22.79 trillion is set to begin in June 2026.

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