Indonesian Government Implements Comprehensive Disaster Relief Package for Sumatra

Economic Relief Measures

The Indonesian government has introduced significant economic relief measures for communities affected by recent disasters in Sumatra. Coordinating Minister for Economic Affairs Airlangga Hartarto announced that new KUR loans will have 0% interest for businesses in Aceh, North Sumatra, and West Sumatra starting January 1, 2026 ¹

. This zero-interest period will last until December 2026, with interest rates gradually increasing to 3% in 2027 and 6% in 2028. The measure aims to support economic recovery in disaster-affected areas by reducing financial burdens on affected businesses and individuals.

Housing and Infrastructure Development

In addition to financial relief, the government has launched a comprehensive housing reconstruction program. State-owned enterprises (BUMN) have been tasked with building 15,000 temporary housing units, with a target of completing at least 500 units in the first week of construction ²

. The Minister of Housing and Settlement, Maruarar Sirait, further announced plans to build 2,600 permanent housing units in collaboration with Buddhist Tzu Chi Foundation, ensuring locations are safe from future disasters and environmentally sustainable ⁴

Source 4

https://newssetup.kontan.co.id/news/gandeng-yayasan-buddha-tzu-chi-pemerintah-bangun-hunian-tetap-pascabencana-sumatra

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Direct Financial Assistance

The government has also announced direct cash assistance of Rp 8 million per affected family. This financial aid is structured to support both immediate housing needs and longer-term economic recovery. Of the total amount, Rp 3 million is allocated for housing needs while Rp 5 million is for economic recovery, providing a comprehensive support package for affected families ³

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Implementation and Coordination

The relief efforts involve multiple government agencies and state-owned enterprises, demonstrating a coordinated approach to disaster response. The government has emphasized the importance of preparing safe and sustainable housing locations, ensuring they are free from flood and landslide risks while being close to essential public facilities ⁴

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