Indonesia Allocates $625 Million in Additional Funds for Flood-Hit Provinces
Jakarta, The Gulf Observer: Indonesian President Prabowo Subianto has approved additional fiscal transfers totaling Rp10.6 trillion (more than $625 million) to support three provinces severely affected by floods and landslides last November, Home Affairs Minister Tito Karnavian announced on Saturday.
Speaking in Jakarta, Karnavian said the funds are intended to help regional administrations address the impact of the disasters and accelerate recovery efforts.
“These funds are expected to help regional governments manage the impacts of the disasters to the best of their capacity. For those unable, the central government will step in,” he said.
The minister made the remarks after distributing compensation to disaster victims and briefing officials on the additional fiscal support during a visit to Pidie Jaya District in Aceh province.
Karnavian, who also heads the Task Force for Accelerating Post-Disaster Rehabilitation and Reconstruction in Sumatra, said Rp1.6 trillion has been allocated to districts and cities in Aceh, Rp6.3 trillion to North Sumatra, and Rp2.6 trillion to West Sumatra.
According to the minister, the central government approved the additional fiscal support after he proposed the measure to President Prabowo and the House of Representatives (DPR). The proposal was discussed during a virtual meeting with governments of disaster-affected regions on March 5.
He added that the president decided the funds would be distributed to all districts and cities across the three provinces, regardless of whether they were directly impacted by the disasters.
“This is because the president considers the emergencies provincial in scale,” Karnavian explained.
Finance Minister Purbaya Yudhi Sadewa has issued a decree related to the fiscal policy, while the Ministry of Home Affairs has circulated technical guidelines for the utilization of the funds.
President Prabowo has directed that the financial assistance be used strictly for rehabilitation and recovery efforts, as well as strategic projects aimed at reducing future disaster risks, including strengthening bridges and dams.
Karnavian also noted that part of the budget could be allocated to disaster mitigation training programs to enhance preparedness and resilience in affected communities.
