Indonesian Government Implements Comprehensive Financial Relief for Sumatra Disaster Zones

Regulatory Framework and Key Provisions

The Indonesian government, through Minister of Finance Regulation No. 102/2025, has established a comprehensive framework to support regions affected by recent natural disasters in Sumatra. The regulation covers Aceh, North Sumatra, and West Sumatra provinces ¹

⁴

Source 4

https://nasional.kontan.co.id/news/resmi-50-daerah-ini-dapat-kelonggaran-tkd-dari-purbaya

, which experienced severe flooding, landslides, and other disasters.

Loan Extensions and Debt Relief

One of the most significant provisions is the extension of the National Economic Recovery (PEN) loans to a maximum of 15 years ²

, providing substantial relief to affected regional governments. The Minister of Finance, Purbaya Yudhi Sadewa, indicated that there is also a possibility of debt forgiveness for infrastructure damaged beyond repair ³

Source 3

https://nasional.kontan.co.id/news/menkeu-purbaya-buka-peluang-hapus-sisa-utang-pinjaman-pen-daerah-terdampak-bencana

. This measure is particularly important as it could help alleviate the financial burden on regions with significant infrastructure damage.

Financial Assistance and Support Measures

The government has implemented multiple support measures:

1. Transfer to Regions (TKD) relaxation: 50 regions will receive relaxed funding arrangements to support disaster response and recovery efforts ⁴
   Source 4

   https://nasional.kontan.co.id/news/resmi-50-daerah-ini-dapat-kelonggaran-tkd-dari-purbaya
2. Compensation for victims: The Ministry of Social Affairs will provide Rp 5 million per family to disaster victims as part of economic recovery support ⁵
   Source 5

   https://nasional.kontan.co.id/news/keluarga-korban-bencana-sumatera-akan-menerima-bantuan-rp-5-juta-dari-pemerintah
3. Corporate support: Companies like PT Finnet Indonesia have contributed over Rp 180 million in relief efforts ⁶
   Source 6

   https://keuangan.kontan.co.id/news/finnet-salurkan-bantuan-lebih-dari-rp-180-juta-untuk-korban-bencana-di-sumatra

Implementation and Coordination

The financial relief measures are being implemented through coordinated efforts between various government ministries and agencies. The Ministry of Finance is working closely with regional governments to ensure that funds are distributed effectively and efficiently. The regulation is designed to support both immediate relief efforts and long-term reconstruction plans.