Indonesian Government Implements Comprehensive Relief Package for Sumatra Flood Victims

Relief Measures for Affected Businesses

The Indonesian government has introduced multiple relief measures to support businesses affected by the recent floods in Aceh, North Sumatra, and West Sumatra. The primary relief measure involves the Kredit Usaha Rakyat (KUR) repayment relaxation program, which will be implemented in three phases ¹

Phase 1: Payment Suspension (December 2025 - March 2026)

During the initial phase, debtors are allowed to suspend their KUR payments without penalty. This measure aims to provide immediate financial relief to affected businesses ¹

Additional Relief Measures

1. Tax Relief: The Directorate General of Taxes has issued a special regulation (KEP-251/Pin/2025) waiving tax penalties for affected taxpayers. This provides significant relief to businesses struggling with tax obligations ⁴

   Source 4

   https://nasional.kontan.co.id/news/ditjen-pajak-hapus-sanksi-bagi-wajib-pajak-terdampak-bencana-di-sumatra
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2. Unconditional Funding: The government has allocated Rp43.8 trillion for unconditional transfers to affected regions in 2026, ensuring that local governments have the necessary funds for recovery efforts ³

   Source 3

   https://finance.detik.com/berita-ekonomi-bisnis/d-8266689/pemerintah-hapus-syarat-transfer-anggaran-ke-aceh-sumut-rp-43-8-t-di-2026
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3. Banking Sector Support: PT Bank Tabungan Negara (BTN) is offering restructuring of KPR (Kredit Pemilikan Rumah) for affected debtors, with potential moratoriums of up to 1 year on mortgage payments ⁵

   Source 5

   https://finance.detik.com/moneter/d-8266936/nasabah-btn-korban-banjir-sumatera-bisa-tunda-bayar-kpr-hingga-1-tahun
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Implementation and Impact

The KUR program, which has reached Rp250.8 trillion in disbursements as of November 2025 (87.7% of the annual target), will be a key focus of the relief efforts. The government has also allocated Rp26.0 trillion (67.9% of the target) for interest subsidies on KUR loans ²