TKD Rp10.6 trillion fully disbursed for Aceh, North Sumatra, and West Sumatra

The Government has completed the disbursement of additional Transfer to Regions (TKD) for disaster-affected areas in Aceh, North Sumatra, and West Sumatra provinces. As of 4 May 2026, additional funds amounting to Rp10.65 trillion have been fully disbursed to accelerate post-disaster recovery in the three provinces. The disbursement was carried out in stages to ensure regional governments have liquidity to carry out rehabilitation and reconstruction programmes. The first phase, 40 percent or Rp4.38 trillion, was released on 27 February 2026. The second phase, Rp3.19 trillion or 30 percent, was disbursed on 31 March 2026. The final phase worth Rp3.06 trillion was released on 4 May 2026. All disbursement processes were unconditional so that regional governments could immediately use the funds for needs on the ground. The realisation ensures the affected areas have fiscal space to accelerate rebuilding infrastructure and public services. Overall, Aceh Province received an additional TKD of Rp1.65 trillion. North Sumatra received Rp6.35 trillion and West Sumatra Rp2.63 trillion. The funds have been disbursed down to district and city levels via additional Revenue Sharing Fund (DBH), General Allocation Fund (DAU), and Special Autonomy Fund (Otsus). Specifically in Aceh, eight districts/cities with heavy impact also received an additional grant worth Rp287 billion from several counties in North Sumatra and West Sumatra. Home Affairs Minister and Head of the Post-Disaster Rehabilitation and Reconstruction Task Force for Sumatra, Muhammad Tito Karnavian, said the additional TKD is a strategic policy by President Prabowo Subianto to accelerate recovery. ‘The President has decided that all provinces and districts/cities will receive additional TKD. The total is around Rp10.6 trillion. This is to ensure the recovery proceeds quickly and evenly,’ Tito said in a statement issued on Tuesday (19/5). According to Tito, the decision was taken based on real needs on the ground. The Government does not only prioritise directly affected areas but all parts of the provinces involved so that the recovery process is more integrated. ‘If only the affected areas were funded, the figure would be around Rp8 trillion, but the President decided to provide it to all. This is a show of commitment to speeding up recovery,’ he added. He noted that the impact of the funding is already visible in various regions. Basic infrastructure such as roads and bridges is back in operation, logistics distribution is smoother, and public services are recovering. ‘As of today, most areas are functionally normal. Roads are passable, logistics are not an issue, and electricity and markets are up and running,’ said Tito. With all the additional budgets received by local governments, rehabilitation is now entering a broader acceleration phase. The construction of permanent housing, recovery of public facilities, and strengthening of local economies are expected to proceed more quickly as budget support becomes available. (Mir/P-3) The TKD increase is the realisation of a proposal from the Minister of Home Affairs to President Prabowo Subianto and the DPR. The Government has increased TKD by Rp10.6 trillion for flood and landslide recovery in Aceh, North Sumatra, and West Sumatra. The funds were disbursed in phases from February to April 2026. KPPOD notes that 25 years of regional autonomy have shown progress in poverty reduction and improvements in the Human Development Index, but a trend of centralisation and fiscal dependence on the centre is strengthening. The Ministry of Finance has confirmed it has allocated Transfer to Regions (TKD) funds for the three disaster-affected areas, namely Aceh, North Sumatra, and West Sumatra. According to Mahyeldi, the disasters not only damaged infrastructure but also narrowed the fiscal space of local government.