Thousands of Indonesian Small Industries Hit by Disasters; Ministry Launches Recovery Program

Thousands of small industries across Aceh, North Sumatra, and West Sumatra have been impacted by recent hydrometeorological disasters, with the Ministry of Industry (Kemenperin) identifying 3,020 affected businesses. In response, the government is fast-tracking recovery efforts through the "Restart Small Industry" (Restart IK) program, aiming to enable businesses to resume production and stimulate regional economies.

Minister of Industry Agus Gumiwang Kartasasmita announced the issuance of Ministerial Instruction Number 1 of 2026, which provides guidelines for the accelerated recovery of small industries in the three provinces. "We have issued Ministerial Instruction Number 1 of 2026 on the Recovery of Small Industries Post-Disaster in Aceh Province, North Sumatra, and West Sumatra. This instruction serves as a guide for all levels of the Ministry of Industry to move quickly to strive for the recovery of affected small industry players so that they can resume their business activities," Agus stated.

Data collected up to April 2026 reveals Aceh as the most severely affected province, with 2,148 small businesses impacted, accounting for approximately 71% of the total. West Sumatra recorded 649 affected businesses, while North Sumatra had 223.

The Restart IK program is part of the government's broader post-disaster rehabilitation and reconstruction efforts. Kemenperin is optimizing resources to provide necessary assistance and facilitation to business owners. The program operates on two approaches: one targeting small industries within Joint Business Groups (KUB), and another focusing on individual businesses.

Sectors most affected include food industries, with 1,321 businesses, followed by chemicals, apparel, and crafts (876 units), furniture and building materials (412 units), metals, machinery, electronics, and transportation equipment (374 units), and miscellaneous industries (11 units). Facilitation measures include aid for production machinery and equipment, recovery of market access, financial assistance, and product quality improvement through technical guidance and certification.

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We have issued Ministerial Instruction Number 1 of 2026 on the Recovery of Small Industries Post-Disaster in Aceh Province, North Sumatra, and West Sumatra. This instruction serves as a guide for all levels of the Ministry of Industry to move quickly to strive for the recovery of affected small industry players so that they can resume their business activities.