Minister of Finance Purbaya Yudhi Sadewa has revealed that a substantial budget of Rp 60 trillion was allocated for Sumatra Disaster management. While preparations for these funds commenced in late last year, the Minister noted that the entire allocation has not been fully utilized this year. A portion of these funds has been strategically redirected towards crucial infrastructure development initiatives.
Speaking at the Parliament Complex in Senayan, Jakarta, on Monday, May 25, Purbaya elaborated, “From late last year, we had prepared Rp 60 trillion. However, less was spent this year because the funds were divided into three segments for infrastructure development.” He underscored a primary challenge in the disbursement process: the necessity for complete documentation from the various ministries and institutions (K/L) involved in submitting proposals. Frequently, these crucial documents are found to be incomplete, impeding the timely release of funds.
To mitigate these bureaucratic hurdles, the state treasurer has issued clear directives to his staff, emphasizing the importance of swift and responsive action upon receiving documentation. Purbaya confirmed that funds would be promptly released once all necessary paperwork is in order. Furthermore, the Ministry of Finance (Kemenkeu) has adopted a proactive ‘jemput bola’ strategy, reaching out directly to follow up on incomplete submissions from the relevant K/L.
Purbaya even disclosed that he has instructed bureaucrats within the Ministry of Finance to directly contact K/L that are experiencing difficulties in preparing the required documents. Should an agency be unable to complete its submissions, the Ministry of Finance is prepared to send its own personnel to assist and facilitate the process, ensuring no delays due to administrative shortcomings.
In a further significant development, the government is set to disburse an additional Rp 100.1 trillion specifically for post-Sumatra disaster recovery efforts. This substantial recovery fund will be allocated over a three-year period, spanning from 2026 to 2028. This decision was reached following a high-level coordination meeting on post-Sumatra disaster management, held with the House of Representatives (DPR) at the Parliament Complex in Senayan, Jakarta, also on Monday, May 25.
Purbaya, the former Chairman of the Board of Commissioners of the Deposit Insurance Agency (LPS), emphatically assured the public of the government’s unwavering capability to disburse these crucial funds. “I truly hope that with such proactive steps, the disbursement of disaster-related budgets will be much faster. There’s no need to worry. The money is there. It’s there!” Purbaya asserted, reinforcing the government’s commitment to effective disaster response and recovery.
Summary
Minister of Finance Purbaya Yudhi Sadewa announced that Rp 60 trillion has been allocated for Sumatra disaster management, with a portion strategically redirected toward infrastructure development. Disbursement has faced delays due to incomplete documentation from various ministries and institutions, prompting the Ministry of Finance to adopt a proactive approach to assist agencies in finalizing their submissions efficiently.
Additionally, the government has approved an extra Rp 100.1 trillion for long-term post-disaster recovery, to be distributed between 2026 and 2028. Minister Purbaya emphasized that the state has sufficient funds available and remains fully committed to accelerating the disbursement process through improved bureaucratic cooperation.