North Sumatra 2026 Budget Prioritizes Infrastructure, Disaster Recovery

North Sumatra Governor Bobby Nasution announced that the province's 2026 budget will concentrate on bolstering infrastructure and recovering from natural disasters. This strategic focus was detailed during a plenary meeting of the Regional People's Representative Council (DPRD) in Medan.

The governor explained that the primary goals for the 2026 budget include enhancing infrastructure, facilitating post-disaster recovery, improving basic services, and advancing other priority programs. This proposed budget revision stems from an agreement between the North Sumatra Provincial Government and the DPRD on the general budget policy and provisional ceiling priorities for the 2026 budget.

Furthermore, the budget adjustments align with central government directives, specifically referencing the Minister of Finance's Decree No. 59 of 2026. This decree concerns the adjustment of revenue sharing funds, general allocation funds, and the settlement of arrears in revenue sharing funds. These national policies directly influence the provincial budget's revenue streams.

In terms of revenue, the revised budget projects a substantial increase for North Sumatra. Regional revenue is expected to grow by Rp1.259 trillion, or 10.80 percent, from the initial Rp11.664 trillion to Rp12.924 trillion. This growth is attributed to updated estimates for local revenue, increased revenue transfers from the central government, and additional grants. Local revenue alone is targeted to reach Rp7.089 trillion, a 1.76 percent increase from the original Rp6.967 trillion. Central government transfers are projected to significantly boost revenue, reaching Rp5.816 trillion, a 24.22 percent increase from the initial Rp4.682 trillion.

Spending is also set to increase, from Rp11.679 trillion to Rp13.356 trillion, an addition of approximately Rp1.678 trillion. This increased expenditure is earmarked for mandatory and binding expenses, basic services, disaster recovery efforts, infrastructure projects, priority programs, and financial support for regencies and cities within North Sumatra. Governor Nasution emphasized that the budget revision is not merely a numerical adjustment but a strategic allocation aimed at addressing priority needs with measurable outcomes and tangible benefits for the people of North Sumatra.