Executive Summary

Key insights and market outlook

The Indonesian government is preparing financial assistance for disaster victims in Sumatra, with plans to provide Rp 8 million per household. The aid package includes Rp 3 million for housing needs and Rp 5 million for economic recovery. Additional support includes monthly rice rations, food allowances, and temporary housing assistance. The government is also considering Kredit Usaha Rakyat (KUR) relaxation for affected businesses, including potential loan restructuring and interest relief.

Full Analysis

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Deep Dive Analysis

Indonesian Government Launches Comprehensive Disaster Relief Package for Sumatra Victims

Financial Assistance Program

The Indonesian government has announced a comprehensive financial assistance program for victims of the recent Sumatra disaster. The package includes a direct cash assistance of Rp 8 million per household, with Rp 3 million allocated for housing needs and Rp 5 million for economic recovery ¹

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Additional Support Measures

In addition to the cash assistance, the government will provide several other forms of support:

Monthly rice rations of 10 kg
Food allowance ranging from Rp 300,000 to Rp 450,000 per month
Temporary/permanent housing assistance
Waiting allowance for housing of Rp 600,000

Business Support through KUR Relaxation

The government is also planning to provide relief to affected businesses through Kredit Usaha Rakyat (KUR) relaxation. This includes ²

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Potential waiver of principal and interest payments for affected KUR borrowers
Loan restructuring including extended tenor and grace periods
Interest rate adjustments to support business recovery

Economic Recovery Focus

The relief measures are designed not only to provide immediate assistance but also to support the economic recovery of affected communities. Minister of Economic Affairs Airlangga Hartarto emphasized the government's commitment to supporting Aceh's economic recovery following the disaster ³

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References