JAKARTA - The government estimates that the budget needs for post-disaster rehabilitation and reconstruction in Aceh, North Sumatra and West Sumatra, will reach Rp51 trillion in the 2026 Fiscal Year.
To meet the large budget needs, the Ministry of Finance has prepared a number of fiscal measures, including the rearrangement of ministry and agency spending (K/L), relaxation of the Transfer to the Region (TKD) policy, and restructuring options to the elimination of loans from the National Economic Recovery Program (PEN) for affected local governments.
Deputy Minister of Finance Suahasil Nazara emphasized that the State Budget would be the main instrument in supporting the reconstruction of disaster-affected areas.
He added that the need for funds of IDR 51 trillion was planned to come from various schemes, including the reallocation of infrastructure spending for K/L and the use of disaster funds managed by the Environment Fund Management Agency (BPDLH).
"For the whole of 2026 or the overall estimated needs of Rp. 51 trillion, we will do this with various sources, one Minister has said there is a reprioritization of 2026, the utilization of unnecessary budget allocations. We will allocate to meet the needs of rebuilding disaster areas," he said in a press conference for the Kita APBN, Thursday, December 18.
In addition, the Ministry of Finance also instructed the Ministry of Public Works, the Ministry of Transportation, and other related K/L to prioritize the Special Allocation Fund (DAK) and regular infrastructure spending to disaster-affected areas.
On the other hand, the government has prepared a strategic policy in the form of a TKD allocation of IDR 43.8 trillion in 2026 which can be disbursed without any specific requirements for affected areas.
Suahasil said that this policy was designed so that local governments could immediately carry out the reconstruction process without being hampered by administrative procedures and emphasized that the relaxation of the distribution of TKD was aimed at ensuring the availability of funds quickly in emergency situations.
"We understand that friends in the Regional Government need to act quickly. Don't let it be hampered by administration. So, the total TKD without condition is Rp. 43.8 trillion in 2026," he said.
According to him, the role of the state budget is very crucial in supporting post-disaster recovery and with the relaxation, the distribution of funds to the affected areas is expected to run more efficiently in the disaster-affected areas including Aceh, North Sumatra, and West Sumatra.
"For disaster-affected areas, the allocation of transfers to the 2025 area has been transferred and in 2026 we will transfer the channel unconditionally," he explained.
In addition to funding support, the Ministry of Finance has prepared a scheme for handling PEN loans owned by local governments.
Suahasil explained two main approaches related to PEN loans that were previously used for infrastructure development.
First, for infrastructure that can still function, the government will restructure loans through extension of tenor and reduction of installment amount.
Second, for infrastructure that has suffered heavy damage or is completely lost, the government provides relief in the form of loan cancellation so as not to burden the APBD.
Suahasil emphasized that the restructuring and loan cancellation policies were carried out selectively and accountable.
According to him, to ensure the accuracy of the target, the Ministry of Finance will work with the Financial and Development Supervisory Agency (BPKP) to conduct a direct assessment of the infrastructure conditions in the affected areas.
"So that the administration is good, we ask BPKP to see the condition of the infrastructure in the affected local government. We want to ensure that this policy is targeted and still maintains the credibility of the state's finances," he concluded.
Meanwhile, for short-term handling in the remaining 2025 Fiscal Year, President Prabowo Subianto has disbursed a Community Fund of IDR 268 billion.
The funds were allocated to the APBD of three provinces, each Rp20 billion, and to 52 regencies/cities with an allocation of Rp4 billion per area.
The Ministry of Finance has also added the BNPB Ready-to-Use Fund (DSP) by Rp1.6 trillion for the three affected provinces, as well as securing the remaining disaster reserve fund worth Rp2.97 trillion that is ready to be used at any time.
As an additional step, Suahasil encouraged the acceleration of insurance claims for State-Owned Assets (BMN).
The Ministry of Finance has also issued a circular so that K/L immediately lists state assets that are insured in disaster areas and coordinates with the Financial Services Authority (OJK) to expedite the claim process.
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