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Indonesia Seeks Rp 60 Trillion to Rebuild Homes, Infrastructure After Sumatra Floods

Erfan Maruf
January 15, 2026 | 6:44 pm
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A boy walks along the logs of wood at the Darul Mukhlishin Islamic Boarding School in the flood-hit Aceh on Dec. 5, 2025. (Antara Photo/Erlangga Bregas Prakoso)
A boy walks along the logs of wood at the Darul Mukhlishin Islamic Boarding School in the flood-hit Aceh on Dec. 5, 2025. (Antara Photo/Erlangga Bregas Prakoso)

Jakarta. Indonesia will need nearly Rp 60 trillion ($3.55 billion) to rehabilitate damaged infrastructure and rebuild almost 239,000 homes following flash floods in Aceh, North Sumatra and West Sumatra last November, the government said.

Chief Infrastructure and Regional Development Minister Agus Harimurti Yudhoyono said Thursday authorities are still updating damage assessments, including homes classified as lightly, moderately, and severely damaged, as well as those destroyed or swept away.

Preliminary data show Aceh suffered the most extensive damage, with about 206,893 homes affected, followed by North Sumatra with 24,294 units and West Sumatra with 5,796 units. Based on those figures, the estimated cost of rebuilding and repairing homes could reach Rp 7.2 trillion, Agus said.

Beyond housing, the Public Works Ministry has reported that restoring basic infrastructure — including roads, bridges, irrigation systems and flood control — could require around Rp 51.8 trillion.

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The disasters have also taken a heavy human toll. The National Disaster Mitigation Agency (BNPB) reported that 1,189 people have died as a result of flooding and landslides in the three provinces. Of the total, 550 fatalities were recorded in Aceh, 375 in North Sumatra, and 231 in West Sumatra.

Agus said rehabilitation and reconstruction efforts would follow a “build back better” approach, aimed at improving resilience to future disasters.

“We must rebuild in a better, stronger, and more resilient way, so communities are better prepared to mitigate future risks,” he said.

That approach, he added, depends heavily on proper spatial planning and disaster mitigation. In some areas, homes will not be rebuilt on their original sites, particularly in high-risk zones. The government will verify land ownership and ensure plots are legally cleared before developing permanent housing.

To speed up recovery, land administration services will be normalized, with National Land Agency officials deployed directly to affected communities and evacuation centers to accelerate documentation and administrative processes.

The government is also prioritizing access to clean water and sanitation, restoring communications networks, and river normalization to prevent disease outbreaks and support the return of daily economic activity.

Data alignment between central and regional governments remains critical, Agus said, acknowledging the challenges of consolidating assessments but stressing the need for a single, shared dataset to guide policy decisions.

He also highlighted the urgency of repairing damaged irrigation infrastructure, given its importance to agricultural production in disaster-hit regions.

Reconstruction plans include public facilities such as schools, health centers, hospitals and places of worship. In Aceh Tamiang, Agus said residents have urged authorities to prioritize reopening religious facilities even as housing reconstruction continues.

The minister underscored the need for close coordination between the central government and regional leaders — including governors, regents and mayors — to avoid overlapping programs and funding inefficiencies.

“This requires tight oversight, faster deployment of heavy equipment and strong cooperation between central and regional governments,” Agus said. “Monitoring and evaluation must be carried out regularly, both from Jakarta and directly in the field.”

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