Prabowo Allocates Rp1.2tn for Micro Business Recovery in Sumatra

TEMPO.CO, Jakarta - Indonesian president Prabowo Subianto has allocated Rp600 billion this year to support the rehabilitation of micro-entrepreneurs affected by disasters in Aceh, North Sumatra, and West Sumatra.

Around 200,000 micro-entrepreneurs impacted by flooding in Sumatra will each receive Rp3 million in business recovery assistance.

Minister of Micro, Small and Medium Enterprises (MSMEs) Maman Abdurrahman said the budget for the program has already been allocated. He added that in 2026, a total of 200,000 micro-enterprises across the three provinces will receive assistance under a business rehabilitation scheme known as Banpres (Presidential Assistance).

“In 2026, a total of 200,000 micro enterprises in the three regions will receive assistance for business rehabilitation under the Banpres program,” he said at the MSME Ministry office in Jakarta on Wednesday, June 3, 2026.

Maman explained that total funding for the program is set at Rp1.2 trillion through 2027, with disbursement split into two phases: Rp600 billion this year and another Rp600 billion next year.

He said the allocation for each region will be adjusted based on proposals from regional governments, although Aceh is expected to receive the largest share due to the severity of the disaster impact.

“Based on the coverage of affected areas, Aceh will receive a larger portion,” Maman said.

While he did not specify the exact disbursement date, Maman assured that the funds will be distributed soon. The central government will soon hold coordination meetings with the three provincial administrations to finalize data and identify eligible micro-entrepreneurs.

The Presidential assistance will be funded through the state budget (APBN). Maman said the decision has been coordinated with several ministries and is currently in the administrative process. The program is part of the broader Disaster Economic Rehabilitation Master Plan for Aceh, North Sumatra, and West Sumatra, with a total allocation of Rp100.166 trillion.

“So until 2027, around Rp1.2 trillion has been prepared for micro-entrepreneurs so they can recover, purchase production tools, food supplies, cooking equipment, and restart their small businesses,” he said.

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