Indonesia expands 2026 budget to combat El Niño, climate risks

Jakarta (ANTARA) - Indonesia has structured built-in flexibility and boosted funding reserves within its 2026 budget to mitigate extreme weather impacts from El Niño and emerging natural disasters, Finance Minister Suahasil Nazara confirmed Wednesday.

"The 2026 State Budget already includes funds specifically prepared for disasters," Nazara told reporters following a parliamentary session in Jakarta.

"Budgetary flexibility is certainly crucial to ensure that funds are responsive to evolving situations—such as natural disasters, droughts and other issues we must address."

Nazara emphasized that maintaining fiscal adaptability remains key to shielding the public from environmental and economic shocks.

The statement follows announcement by House of Representatives Budget Committee Chairman Said Abdullah that President Prabowo Subianto directed more than a twofold increase in the baseline disaster management allocation, elevating it to 1.1 trillion rupiahs (approx. $62.5 million).

Beyond baseline funding, Jakarta has earmarked 256 billion rupiahs in on-call funds and maintained a 5-trillion-rupiah ready-to-use contingency fund for immediate emergency response.

The nation's financial architecture also incorporates a 14-trillion-rupiah pooled insurance fund to absorb systemic disaster risks.

Additionally, the government is setting aside 10 trillion rupiahs dedicated specifically to long-term post-disaster rehabilitation and reconstruction across affected regions in Sumatra.

Translator: Bayu Saputra, Yashinta Difa
Editor: Aditya Eko Sigit Wicaksono
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