Indonesian Government Launches Comprehensive Relief Package for Disaster-Affected Areas

Automatic Fund Disbursement for Regional Governments

The Ministry of Finance has decided to disburse Regional Transfer Funds (TKD) without conditionality for regions affected by the recent natural disasters ¹

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Source 2

https://nasional.kontan.co.id/news/kemenkeu-permudah-penyaluran-tkd-bagi-daerah-terdampak-bencana

. This measure aims to expedite emergency response and support local governments facing administrative challenges due to the disaster. According to Vice Finance Minister Suahasil Nazara, "The Ministry of Finance will simplify the TKD disbursement process for disaster-affected regions" ¹

Source 1

https://finance.detik.com/berita-ekonomi-bisnis/d-8262777/syarat-dihapus-transfer-anggaran-ke-daerah-terdampak-bencana-diklaim-sat-set

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Restructuring of KUR Loans for Affected Businesses

The government has announced plans to introduce a three-year restructuring program for Kredit Usaha Rakyat (KUR) loans taken by businesses affected by the disasters ³

. Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the restructuring will follow a similar pattern to the COVID-19 relief measures, with 0% interest in the first year, 3% in the second year, and returning to normal rates in the third year ³

Source 3

https://finansial.bisnis.com/read/20251216/90/1937359/pemerintah-bakal-rilis-pp-terkait-restrukturisasi-nasabah-kur-terdampak-bencana

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Financial Support and Subsidies

The government will provide interest subsidies through the state budget, with the exact allocation to be determined based on data from the Ministry of SMEs ³

. The relief measures are designed to support not just agricultural sector borrowers but all KUR recipients in the affected regions ⁵

Source 5

https://finance.detik.com/moneter/d-8263187/nasabah-kur-terdampak-banjir-sumatera-bebas-bayar-cicilan

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Banking Sector Response

Major state-owned banks like BRI are cooperating with the government's relief efforts. BRI's Director, Hery Gunardi, stated that the bank has identified affected debtors and is working on further assessments ⁶

. The bank has assured that the restructuring process will not burden the customers ⁶

Source 6

https://finansial.bisnis.com/read/20251216/90/1937347/bri-kantongi-data-debitur-kur-terdampak-bencana-sumatra-pastikan-tak-bebani-nasabah

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Poverty Prevention Measures

The Task Force for Poverty Acceleration (BP Taskin) is developing comprehensive strategies to prevent new poverty emergence in the affected regions ⁴

. BP Taskin head Budiman Sudjatmiko emphasized the importance of quick socio-economic rehabilitation and reconstruction to prevent long-term economic vulnerability ⁴

Source 4

https://nasional.kontan.co.id/news/bp-taskin-siapkan-strategi-cegah-kemiskinan-baru-pascabanjir-di-sumatera

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Implementation Timeline

The relief measures will be implemented in phases, with the first phase (December 2025 to March 2026) allowing debtors to suspend loan repayments completely ⁵

. The government is working on detailed guidelines and financial allocations to support these initiatives.