Tito Urges Acceleration of Inter-Regional Grants for Post-Disaster Recovery

The Chairman of the Sumatra Post-Disaster Rehabilitation and Reconstruction Task Force (Satgas PRR), Muhammad Tito Karnavian, has given local governments, both donors and recipients, until next week to complete the entire process of distributing inter-regional financial aid to disaster-affected areas. This is to ensure that the acceleration of rehabilitation and reconstruction is not hampered by administrative issues, while affected communities still require immediate handling. Tito stated that the emergency response phase has ended and the handling has now entered the permanent recovery stage. Therefore, all financing instruments prepared by the government must be immediately optimised, including additional Regional Transfers (TKD) and inter-regional grants. ‘I respectfully request, specifically regarding grants, please settle this by next Monday. If the problem is that the prospective recipient has not properly and correctly submitted the proposal, I may cancel it and announce it. Do not complain to us later, because the assisting region is ready,’ Tito said while chairing a hybrid coordination meeting on accelerating post-disaster rehabilitation and reconstruction in Sumatra with local governments in Jakarta on Wednesday (17/6). Based on data from the Satgas PRR, the government has allocated an additional Rp10.6 trillion in TKD to all local governments in Aceh, North Sumatra, and West Sumatra to support post-disaster handling and risk mitigation. At the same time, the government is also promoting an inter-regional grant scheme to assist affected areas with high recovery needs, especially in Aceh. Under the aid scheme from North Sumatra to Aceh, the committed financial assistance amounts to Rp260 billion, sourced from the City of Medan, the Regencies of Deli Serdang, Simalungun, Asahan, Serdang Bedagai, the Province of North Sumatra, the City of Pematangsiantar, and the Regency of Labuhanbatu. Most of this aid has already been transferred to the recipient local governments’ accounts. Only one aid package remains pending, namely Rp25 billion from Labuhanbatu Regency to Gayo Lues Regency, due to incomplete proposal requirements from the recipient. Meanwhile, financial assistance from 15 districts and cities in West Sumatra to affected areas in Aceh totals Rp29 billion. However, as of mid-June 2026, only a small portion has been realised. The Task Force noted that several regions have yet to finalise head of region regulations (perkada), regulatory harmonisation, or other administrative processes, despite the government providing facilitation through Ministry of Home Affairs Letter Number 900/4277/SJ dated 21 May 2026. One of the facilitations stipulates that the use of grants and financial assistance does not require approval from the Regional People’s Representative Council (DPRD). ‘I have emphasised in the circular that only a notification to the DPRD is required. I am putting myself on the line to assist regional heads. Do not let this simple process hinder regions that are in need of assistance,’ Tito said. If by next week there are still regions that have not followed up on their grant commitments, the Task Force will take firmer action. For recipient regions that do not complete their proposals, the aid may be cancelled. Meanwhile, for donor regions that fail to fulfil their commitments even though all requirements have been met, Tito stated he will coordinate with the Ministry of Finance to find a direct disbursement mechanism to the recipient region and evaluate the donor region’s commitment in subsequent fiscal policies. On the other hand, Tito urged local governments to immediately utilise the additional TKD they have received to address urgent needs on the ground, such as river normalisation, basic infrastructure repairs, strengthening of roads and bridges, and handling other disaster impacts. According to Tito, these funds must not remain idle in regional coffers while communities are still waiting for accelerated recovery. In line with this, the Task Force is also continuing to push for the acceleration of budget disbursements from ministries and agencies that have been included in the Sumatra Post-Disaster Master Plan. ‘Regions move with the existing TKD and grants, while we push ministries and agencies to move immediately with the budget prepared by the central government. The important thing now is that everything is synchronised and no more time is wasted,’ Tito said.