Politics · Indonesia · 1 hr ago
Indonesia to Review Budget Support for Cash-Strapped Regions and Disaster Recovery
Indonesia’s finance minister, Suahasil Nazara, met Home Affairs Minister Tito Karnavian in Jakarta to discuss support for regions struggling with budgets.
Technical teams from their ministries will identify regions where staff costs take up about 40% to 50% of spending and consider possible solutions.
They also discussed a three-year recovery plan for Aceh, North Sumatra and West Sumatra, scheduled to run from 2026 to 2028.
The government wants to ensure that work funded in 2026 can continue in 2027 and finish in 2028, without projects being left incomplete.
The 2027 national budget has been approved, and officials said they will ensure disaster-recovery programs have funding to continue.
The ministers also discussed aligning national and local budgets and using Rp1 trillion in 2027 local-government incentives to encourage progress on development targets.
Indonesia's home and finance ministers discussed budget support for financially strained regions and disaster recovery.
The meeting took place at the Home Affairs Ministry in Jakarta on 27 October 2026.
The ministers said recovery and reconstruction in Aceh, North Sumatra and West Sumatra are planned for 2026 to 2028.
They discussed ensuring that work budgeted for 2026 is completed and that funding continues in 2027 and 2028.
They also discussed technical help for regions where employee spending accounts for more than 40 to 50 percent of budgets and performance-based fiscal incentives.
- Who
- Home Affairs Minister Tito Karnavian and Finance Minister Suahasil Nazara.
- What
- They discussed support for regions with fiscal difficulties, disaster recovery funding and fiscal incentives for local governments.
- When
- 27 October 2026.
- Where
- The Home Affairs Ministry headquarters in Jakarta.
- Why
- To find solutions for financially strained regions and ensure funding for disaster recovery and reconstruction.
This story does not have two clearly opposing sides.
The planned rehabilitation and reconstruction period for affected areas in Aceh, North Sumatra and West Sumatra begins.
Tito Karnavian and Suahasil Nazara meet in Jakarta to discuss regional budgets and disaster recovery.
The government plans to continue disaster recovery funding under the multi-year programme.
The planned rehabilitation and reconstruction period is due to end.
- Meeting date
- 27 October 2026
- Meeting place
- Home Affairs Ministry headquarters, Jakarta
- Recovery period
- 2026–2028
- Regions named
- Aceh, North Sumatra and West Sumatra
- Employee spending threshold
- More than 40–50% of regional spending
- Local-government incentives
- Rp1 trillion in the 2027 state budget
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What people are saying
There must not be any work left hanging or later unfinished.
What was budgeted and planned for 2026 must all be completed.
We have already held that discussion with the Finance Minister; thank God, hopefully, the budget is available.