Prabowo’s Fiscal Buffer: Deploying IDR 268 Billion to Defuse Year-End Budget Crisis in Sumatra
The Indonesian government is intensifying its fiscal intervention to accelerate post-disaster recovery across the Sumatra region. In a strategic move to bypass regional liquidity constraints, President Prabowo Subianto has authorized the disbursement of IDR 268 billion in emergency aid targeting 52 regencies and three provinces in Aceh, North Sumatra, and West Sumatra.
Matrix: Fiscal Allocation for Sumatra Recovery
Strategic Liquidity: Addressing the Year-End Budget Gap
Deputy Finance Minister Suahasil Nazara confirmed that the funds, sourced from the Presidential Community Fund, will be funneled directly into Regional Revenue and Expenditure Budgets (APBD). This mechanism is designed to provide local authorities with the necessary fiscal flexibility to address urgent infrastructure restoration and social stabilization.
The urgency of this central intervention was underscored by Home Affairs Minister Tito Karnavian, who revealed that many regional “unexpected spending” (Belanja Tak Terduga) accounts are nearing depletion as the fiscal year concludes. “Some regions are left with as little as IDR 75 million to IDR 300 million—amounts insufficient for large-scale crisis management,” Tito noted.
Inter-Regional Synergy and Mutual Cooperation
Beyond central funding, a wave of “Mutual Cooperation” (Gotong Royong) has emerged. Various local governments have contributed an additional IDR 34 billion from their own coffers to support Sumatra. For instance, Lhokseumawe regency received IDR 3 billion in direct solidarity aid from other regions.
Getnews Analysis: Strengthening the National Safety Net
This fiscal deployment demonstrates a tangible central presence in regional crises. By utilizing the Presidential Community Fund as a buffer, the Prabowo administration is effectively neutralizing the “year-end budget paralysis” that often plagues regional governments during natural disasters.
