Indonesia moves to revive 8,034 flood-hit small industries

Jakarta (ANTARA) - Indonesia's Industry Ministry has set a target to help the recovery of 8,034 small industries affected by last year's major floods in Sumatra through the Post-Disaster Rehabilitation and Reconstruction Acceleration (PRRP) program by 2028.

Industry Minister Agus Gumiwang Kartasasmita outlined the program's implementation during a hearing with Commission VII of the House of Representatives at the Parliament Complex here on Monday.

"The program includes the provision of machines and simple production equipment, production materials, technical assistance, financing access, market access, halal certification, and legal assistance," he told lawmakers.

The ministry estimates that the recovery programs for small industries for Aceh, North Sumatra, and West Sumatra will require a budget of Rp329 billion (US$18.1 million) over the 2026–2028 period.

In 2026, Rp170.5 billion (US$9.3 million) will be allocated to 3,403 beneficiaries. Another Rp120.5 billion (US$6.6 million) will be distributed to 2,464 recipients in 2027, followed by Rp38.3 billion (US$2.1 million) for 2,167 recipients in 2028.

Kartasasmita expressed hope for broad support for the recovery effort, including from lawmakers representing disaster-affected regions.

The ministry has issued Industry Ministry Instruction No. 1 of 2026 as the legal basis for accelerating the recovery of small industries in Sumatra.

The program will be implemented through a "small industry restart" scheme using two approaches: support for small industry centers with shared production facilities and direct assistance to individual business units.

The first phase ran from January to February 2026, focusing on rapid assistance to help affected businesses resume production.

Further assistance throughout 2026 will be provided on a case-by-case basis following evaluations of proposals and field conditions.

Aceh, North Sumatra, and West Sumatra were hit by floods and landslides triggered by heavy rainfall in late November 2025.

According to records from the National Disaster Mitigation Agency (BNPB), the disaster claimed 1,207 lives, damaged more than 300,000 homes, and disrupted economic activity across the region.

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Translator: Muzdaffar Fauzan, Nabil Ihsan

Editor: M Razi Rahman

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