Antara News·Indonesia·Thursday, August 27, 2026 at 02:58 PM

Sumatra post-disaster MSME recovery to continue through 2028

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Shofi Ayudiana, Raka Adji

Jakarta (ANTARA) - Indonesia's Minister of Micro, Small, and Medium Enterprises (MSMEs) Maman Abdurrahman said the economic recovery programme for disaster-affected MSMEs in Aceh, North Sumatra, and West Sumatra will continue in phases through 2028.

In a press release quoted here in Jakarta on Thursday, Maman noted the economic recovery goes beyond initial post-disaster aid. It also involves ensuring business continuity, so that local economic activity in affected areas can thrive again.

He added the central government will keep coordinating with local authorities to implement the recovery programme, which was put in place after devastating floods and landslides struck the three provinces in late 2025.

"The central government will not leave provincial, district, and city governments alone," Maman reassured.

Under the scheme prepared by the Ministry, the recovery programme will run in phases over three years, with Rp618 billion (approximately US$34.79 million) allocated for 2026 to target 212,000 MSMEs.

The recovery programme will continue in 2027 with Rp622 billion, aimed at reaching 215,000 MSMEs and followed by Rp21 billion in 2028 targeting 11,000 MSMEs.

Maman noted the programme’s rollout was pushed back by roughly a month and a half as the government entered the economic recovery phase, while adjusting its budgeting mechanism.

"It is important to understand that the economic recovery phase only began in recent months, alongside necessary budget adjustments. Nevertheless, we remain fully committed to carrying it out," the minister said.

Ensuring the programme truly reaches the eligible recipients, the Ministry has asked regional governments to expedite the submission and verification of candidate lists, which must be completed by September 14, 2026 at the latest.

In addition to support the MSMEs' recovery, the Ministry confirmed the MSME Revival Clinics operating in Aceh, North Sumatra, and West Sumatra will remain active as part of long-term support for disaster-affected business owners.

The clinics serve as consultation hubs aimed at resolving operational challenges, while also facilitating data collection and updates to support ongoing business mentoring and empowerment initiatives.

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