Indonesia will begin reconstruction and economic recovery efforts on January 9 for more than 2 million micro, small, and medium enterprises (MSMEs) impacted by recent floods and landslides in Sumatra.
MSME Recovery Efforts to Begin in Sumatra
Minister for MSMEs Maman Abdurrahman said the first phase of recovery will focus on reopening local markets and cleaning stalls and shops in disaster-hit areas, stating, “The goal is to get the local economy moving again.” The announcement followed a coordination meeting in Jakarta with Coordinating Minister for Community Empowerment Muhaimin Iskandar on Wednesday.
Government data indicates that 2,304,297 MSMEs across Aceh, North Sumatra, and West Sumatra provinces have been affected by the disasters.
The ministry has established eight MSME Rise Clinics in Banda Aceh, Pidie, Pidie Jaya, North Aceh, Aceh Tamiang, Central Tapanuli, Medan, and Padang to support recovery. More than 200,000 MSMEs participating in the government’s subsidized People’s Business Credit (KUR) program will receive loan relief, coordinated with banks and guarantee institutions.
Economic revitalization will also be supported by the reactivation of local markets, with assistance from 1,132 personnel from the Institute of Public Administration (IPDN) and civil servants.
The ministry has pledged comprehensive monitoring and mapping to ensure effective implementation of recovery programs across the three provinces. Minister Iskandar added that community empowerment initiatives will be coordinated by a multi-agency working team, including the Ministry of Social Affairs and the MSMEs Ministry, in collaboration with the Post-Disaster Rehabilitation and Reconstruction Acceleration Task Force.
Local communities will be directly involved through cash-for-work programs, providing income opportunities while contributing to recovery efforts.
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