Sumatra's Additional Disaster Funds See Varied Progress, Some Regions Lagging
Translated from Indonesian, summarized and contextualized by DistantNews.
At a glance
- Additional Regional Transfers (TKD) have been fully disbursed to three provinces in Sumatra affected by major floods in late 2025.
- Local governments are now tasked with ensuring these funds are spent effectively, with infrastructure development being a key focus.
- While some cities like Pematang Siantar show high realization rates, other affected areas are still struggling to disburse the funds.
Additional Regional Transfers (TKD) intended for disaster recovery in Sumatra have been fully disbursed, but the effectiveness of their distribution remains a concern. A monitoring visit by the Ministry of Home Affairs and the Rehabilitation and Reconstruction Acceleration Task Force (Satgas PRR) in July 2026 revealed varying levels of progress across affected regions.
In North Sumatra, Rp 433.45 billion, or 6.82 percent of the Rp 6.35 trillion allocation, had been realized by August 4, 2026. Infrastructure development has seen some movement, with Rp 89.23 billion allocated and 2.54 percent realized. Pematang Siantar leads with a 40.72 percent realization rate, focusing on education and health sectors. Medan follows with 21.61 percent, prioritizing drainage and flood-prone area management to mitigate future risks and boost the economy.
Gunungsitoli, with a 15.03 percent realization rate, is concentrating on road infrastructure and facility improvements. The Ministry of Home Affairs guidance differentiates between directly impacted areas, which should use the funds for immediate disaster response and reconstruction, and those less affected, which can use them for broader recovery through development. The varying paces highlight the challenges local governments face in translating financial aid into tangible recovery efforts.
Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.