Govt speeds up recovery of small, medium-sized industries in Sumatra

Jakarta (ANTARA) - Indonesia's Ministry of Industry is accelerating the recovery of small and medium-sized industries (IKMs) affected by floods and landslides that struck Aceh, North Sumatra, and West Sumatra in late 2025 through its Restart IK program.

In a statement confirmed on Friday, Industry Minister Agus Gumiwang Kartasasmita said accelerating the recovery of affected industries is an essential part of the government's post-disaster rehabilitation and reconstruction efforts.

He emphasized that the ministry is committed to mobilizing all available resources to ensure affected small industries receive targeted assistance and support.

"We have issued Minister of Industry Instruction No. 1 of 2026 on Post-Disaster Recovery for Small Industries in Aceh, North Sumatra, and West Sumatra," he said, adding that the directive instructs all ministry units to act swiftly in helping affected businesses resume operations.

The ministry has also instructed all relevant units to strengthen coordination with regional governments, related ministries, state agencies, and other stakeholders to ensure recovery programs are implemented effectively and respond to the specific needs of small industries in each region.

In addition, the ministry is mapping the needs and potential of affected industries to facilitate business partnerships between small industries and large manufacturers.

According to ministry data, as of April 2026, a total of 3,020 small industries had been affected by the floods and landslides that occurred in November 2025. The figure includes 2,148 businesses in Aceh, 649 in West Sumatra, and 223 in North Sumatra.

The food sector accounts for the largest number of affected businesses, with 1,321 enterprises impacted.

To accelerate recovery, Kartasasmita said the ministry has prepared a range of support measures.

These include providing production machinery and equipment to businesses whose assets were damaged, restoring and expanding market access, facilitating financing through banking and non-banking financial institutions, and offering technical guidance and certification assistance to improve product quality.

The Restart IK program will be implemented through two main approaches.

The first is a business-unit-based approach targeting small industries that are members of Joint Business Groups (KUBs) under the guidance of local industry offices.

The second is a Small and Medium Industry Center-based approach, which uses shared production facilities to help entrepreneurs in disaster-affected areas resume operations.

Reni Yanita, Director General of Small, Medium, and Miscellaneous Industries, said the initial phase of Restart IK will be tailored to the specific approach adopted in each region.

Under the business-unit-based approach, beneficiaries will receive basic production machinery and equipment, support for raw material procurement, expanded market access, financing facilitation, halal certification, packaging design assistance, and other forms of support based on their individual needs.

Meanwhile, under the Small and Medium Industry Center-based approach, the government will provide shared production machinery and equipment, production facilities for entrepreneurs unable to resume operations independently, and assistance in securing raw materials and market access.

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Translator: Ahmad Muzdaffar, Raka Adji

Editor: Primayanti

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