Indonesian Government Maintains Aceh's Regional Budget Amidst Disaster Recovery

Presidential Approval for Unchanged Allocation

In a significant policy decision, Indonesian President Prabowo Subianto has approved maintaining Aceh's Regional Transfer Budget (TKD) at Rp 7.26 trillion for the fiscal year 2026, keeping it consistent with the 2025 allocation. This decision was revealed by Minister of Home Affairs Tito Karnavian during a public event in Jakarta on January 14, 2026.

Rationale Behind the Budget Decision

The decision to maintain Aceh's TKD at the same level as the previous year is primarily driven by the province's continued classification as a severely disaster-affected region. The government recognizes the ongoing recovery efforts required in Aceh, which has faced significant challenges due to natural disasters.

Potential Expansion to Other Affected Regions

Minister Tito Karnavian indicated that while Aceh's budget has been approved, similar considerations are being extended to other disaster-affected regions. Specifically, Sumatra Barat and Sumatra Utara are being considered for comparable budgetary treatment. However, these proposals are still pending presidential approval and have not yet been finalized.

Implications for Regional Development

The maintenance of Aceh's TKD at Rp 7.26 trillion for 2026 is expected to provide continued financial support for the region's recovery and development initiatives. This budget plays a crucial role in funding various regional projects and programs aimed at rebuilding infrastructure, supporting affected communities, and fostering economic recovery in the disaster-affected areas.