Indonesia is preparing an extensive post-disaster recovery program after severe flooding and landslides devastated Aceh, North Sumatra, and West Sumatra. Early government calculations indicate that rehabilitation and reconstruction costs could exceed USD 3.12 billion, with the figure expected to rise as field assessments continue.
Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono (AHY) said the government is working intensively with the Ministry of Public Works (PU) and the Ministry of Housing and Settlements (PKP) to finalize the budget needed to restore critical infrastructure, homes, road access, and agricultural land.
“I just spoke with the Minister of Public Works yesterday. The initial calculation requires around USD 3.12 billion, but this figure is not definitive and continues to evolve. This will require significant funding. As instructed by President Prabowo Subianto, we are told to calculate carefully, prepare thoroughly, and execute effectively,” AHY said in Jakarta, quoted by Kontan.
He emphasized the importance of early planning, noting that rebuilding public facilities damaged by floods and landslides demands substantial resources. AHY also stressed that while fast action is essential, reconstruction must meet quality standards.
“We cannot be careless. Speed is important, but rebuilding also requires strong quality. It’s not just about finishing quickly, but ensuring the infrastructure will be resilient in the future,” he added.
BNPB: Aceh Suffers the Most Extensive Damage
Earlier, The National Disaster Management Agency (BNPB) estimated that recovery across Aceh, North Sumatra, and West Sumatra will require USD 3.24 billion. BNPB Chief Suharyanto said Aceh alone needs USD 1.59 billion, making it the most heavily affected province.
BNPB recorded 37,546 homes as damaged—ranging from light to severe, including those swept away by flood currents. Several areas remain isolated. In Aceh, two districts still lack road access, and parts of the national highway remain cut off.
“Fifteen of Aceh’s 17 districts have regained communication networks, including through Starlink, but access in the remaining areas is still very challenging,” Suharyanto explained, as reported by Bisnis.
North Sumatra requires USD 805 million for rehabilitation, while West Sumatra needs about USD 845 million. Two districts in each province still require special handling as road access and essential services remain disrupted.
Government Affirms Funding Capability
President Prabowo Subianto has assured that the state has the financial capacity to restore the affected regions and that recovery efforts will be carried out with careful planning and strong management. He highlighted severe damage to irrigation systems, farmlands, and major bridges handled by PUPR and the Indonesian military.
Prabowo also reminded the government to prioritize rebuilding homes. “The state must help rebuild people’s houses. Our response has been massive, but challenges remain due to extreme terrain,” he noted.
The Center of Economic and Law Studies (Celios) estimates national GDP losses at USD 4.29 billion, far exceeding several regional revenue streams. Aceh’s economy alone is projected to contract by 0.88%, equivalent to about USD 128 million.
Celios urged structural mitigation efforts, including a moratorium on new mining and palm oil expansion, full evaluation of existing concessions, and strict reclamation enforcement to prevent future disasters.
Source: Kontan, Bisnis
Photo Credit: ANTARA FOTO/Syifa Yulinnas/nz
