Jakarta. Indonesia has set aside Rp 60 trillion ($3.6 billion) in its 2026 state budget to finance post-disaster recovery efforts across parts of Sumatra hit by deadly floods and landslides, Finance Minister Purbaya Yudhi Sadewa said.

Speaking at the State Palace in Jakarta on Tuesday, Purbaya said the funds will be used to support rehabilitation and reconstruction in West Sumatra, North Sumatra and Aceh, with financing fully sourced from the 2026 state budget.

“We have prepared Rp 60 trillion,” Purbaya said, adding that the money was secured after a comprehensive review of government spending programs following parliamentary approval of the 2026 budget.

According to the minister, the government reallocated funds from programs deemed non-essential across ministries and agencies, allowing it to pool roughly Rp 60 trillion even before the disasters struck. The funds are now earmarked for execution next year, when large-scale reconstruction is expected to begin.

For disaster response in the current year, Purbaya said the National Disaster Management Agency (BNPB) had requested around Rp 1.6 trillion, with about Rp 1.3 trillion still available. Combined with remaining reserves from previous allocations, funding for emergency response remains adequate, he said.

The government has also pledged fiscal flexibility for disaster-hit regions in 2026, including easing cuts to transfers to local governments to give them more room to rebuild damaged areas.

“There is no issue with funding for rehabilitation,” Purbaya said.

Earlier estimates by BNPB put total recovery costs in West Sumatra, North Sumatra and Aceh at Rp 51.82 trillion, placing the Rp 60 trillion allocation within the country’s fiscal capacity. BNPB data show Aceh will require the largest share of reconstruction spending, estimated at Rp 25.41 trillion, followed by West Sumatra at Rp 13.52 trillion and North Sumatra at Rp 12.88 trillion, based on preliminary calculations with the Public Works Ministry.

The government plans to spend Rp 60 million to rebuild each damaged home, constructing the units directly rather than distributing cash to prevent misuse. Homes will be rebuilt on their original sites, meaning evacuees will not be relocated.

President Prabowo Subianto said this week that restoring infrastructure and daily life in affected areas could take two to three months, citing severe damage and difficult terrain.

As of Tuesday night, BNPB reported at least 1,050 deaths across the three provinces, with around 200 people still missing. More than 146,000 homes and thousands of public facilities, including schools, bridges and health centers, have been damaged.

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