Sumatra Disaster Recovery Budget Rp100 Trillion, Purbaya: Funds Available

Jakarta, CNBC Indonesia – The government has allocated Rp100.1 trillion for Sumatra’s post-disaster recovery, to be used for rehabilitation and reconstruction.

Minister of Home Affairs Tito Karnavian explained the funds will be spread over three years: Rp38.9 trillion in 2026, Rp32.9 trillion in 2027, and Rp28.2 trillion in 2028.

The largest share, Rp69 trillion over three years, will go to the Ministry of Public Works. This year’s allocation is Rp22 trillion. Additionally, the Ministry of Public Works and Housing (PUPR) will receive Rp7.4 trillion for permanent housing over two years, with a target to complete it by 2027 to avoid prolonged stays in temporary shelters.

Finance Minister Purbaya Yudhi Sadewa confirmed the government is prepared financially for disaster recovery. Previously, Rp60 trillion was set aside from 2025 budget efficiency measures.

‘When asked about budget readiness, I confirmed funds were available. We had already set aside Rp60 trillion from last year’s end, but this year’s usage is lower as it is spread over three years for infrastructure projects,’ Purbaya said during a coordination meeting for Sumatra’s disaster recovery task force at the Nusantara IV Building, DPR/MPR Complex, on Monday, 25 May 2026.

Purbaya added that while funds are not an issue, many ministries and agencies have not submitted complete documentation for budget requests. A dedicated team has been formed to follow up on pending disbursements due to incomplete documents.

‘I instructed my director general to follow up on disaster-related budget requests; if documents are missing, ministries will be contacted. If they cannot prepare them, we will send staff to assist,’ he said. ‘With this approach, disbursement for disaster-related budgets will be faster, so there is no need to worry – the funds are available.’