Indonesian Political, Business & Finance News

Tito Karnavian's Task Force Confirms Additional TKD for Disaster-Affected Areas to Accelerate Recovery

| | Source: MEDIA_INDONESIA Translated from Indonesian | Politics
Tito Karnavian's Task Force Confirms Additional TKD for Disaster-Affected Areas to Accelerate Recovery
Image: MEDIA_INDONESIA

Minister of Home Affairs (Mendagri) who also chairs the Rehabilitation and Reconstruction Acceleration Task Force (PRR) for post-disaster rehabilitation and reconstruction in Sumatra, Muhammad Tito Karnavian, has reaffirmed the addition of Transfer to Regions (TKD) funds to disaster-affected areas in Sumatra to speed up recovery. The total TKD increase amounts to around Rp10.6 trillion.

He conveyed this during the socialisation of the Circular Letter on TKD adjustments for the 2026 Fiscal Year in the Regional Revenue and Expenditure Budgets (APBD) for disaster-affected areas in the provinces of Aceh, North Sumatra (Sumut), and West Sumatra (Sumbar). The event, attended virtually by local governments in the three affected provinces, was held from the Ministry of Home Affairs Central Office, Jakarta, on Thursday (5/3).

The TKD addition is a realisation of Mendagri’s proposal to President Prabowo Subianto and the DPR. “We want to strengthen the financial capability of the disaster-affected regional governments, the three disaster provinces in Sumatra,” he said.

He added that the President decided the additional funds would not only be allocated to areas directly affected by the disaster. Instead, the increase would be provided to all regencies/cities and provinces in Sumut, Sumbar, and Aceh, including those not affected.

“He (the President) decided to provide to everyone, whether affected or not province-wide, because the disaster is considered a provincial disaster,” he explained.

The policy has now been operationalised through the Indonesian Finance Minister’s Decree (KMK) No. 59 of 2026. He has also issued a circular to regulate its technical usage. “I am trying to make it easier for fellow executive heads of regional governments,” he said.

Furthermore, he noted that the President requested that the additional budget be genuinely used to accelerate disaster recovery. For areas not affected by the disaster, this budget may be used to support mitigation or disaster prevention programs, such as repairing bridges or dams deemed at risk of being affected.

“It also includes spatial planning handling, for instance, training for disaster management. I have even created opportunities that can be used for inflation management,” he explained.

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