Key insights and market outlook
The Indonesian government has allocated Rp51 trillion for the reconstruction of disaster-affected areas in Sumatra, with Rp26 trillion specifically earmarked for Aceh 6
The Indonesian government has unveiled a comprehensive recovery plan for Sumatra following recent devastating floods and landslides. The Ministry of Finance has estimated that Rp51 trillion will be required for reconstruction efforts in 2026, with the largest allocation of Rp26 trillion directed towards Aceh's rehabilitation 6
To support the recovery process, the Ministry of Finance is urging government agencies to expedite insurance claims for damaged state assets (BMN) 1
The Ministry of Public Works has reported 1,413 infrastructure damage points across affected regions, including 477 in Aceh, 306 in North Sumatra, and 630 in West Sumatra. Aceh remains the most severely impacted, with many areas still isolated as of mid-December 2025 3
The disaster has resulted in more than 140,000 homes being damaged or destroyed, presenting significant reconstruction challenges. Minister AHY emphasized that housing reconstruction requires more detailed technical assessment compared to other infrastructure 5
In response to the disaster, the government is conducting a comprehensive evaluation of spatial planning regulations in affected areas. Minister AHY indicated that any violations of spatial planning will be addressed with severe legal consequences, including potential criminal action 6
Disaster Recovery Fund Allocation
Insurance Claims Acceleration
Unconditional Funding Transfer