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Indonesia to begin recovery for 2.3 mln MSMEs hit by Sumatra floods

by 198indonesianews_v2w0tn
January 7, 2026
in BUSINESS NEWS FROM AROUND THE WORLD
0
Indonesia to begin recovery for 2.3 mln MSMEs hit by Sumatra floods
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Jakarta (ANTARA) – The Indonesian government announced that reconstruction and economic recovery efforts for more than 2 million micro, small, and medium enterprises (MSMEs) affected by recent floods and landslides in Sumatra will begin on January 9.

In a press statement, 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.

“The goal is to get the local economy moving again,” he stated during a coordination meeting in Jakarta with Coordinating Minister for Community Empowerment Muhaimin Iskandar on Wednesday.

According to government data, 2,304,297 MSMEs across three provinces—Aceh, North Sumatra, and West Sumatra—have been impacted by the disasters.

To support recovery, the ministry has set up eight MSME Rise Clinics in Banda Aceh, Pidie, Pidie Jaya, North Aceh, Aceh Tamiang, Central Tapanuli, Medan, and Padang.

Abdurrahman also noted that more than 200,000 MSMEs registered under the government’s subsidized People’s Business Credit (KUR) program will receive loan relief, coordinated with banks and guarantee institutions.

Economic revitalization will be reinforced by the reactivation of local markets, supported by 1,132 personnel from the Institute of Public Administration (IPDN) and civil servants.

The ministry pledged comprehensive monitoring and mapping to ensure recovery programs are implemented effectively 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 synergy with the Post-Disaster Rehabilitation and Reconstruction Acceleration Task Force.

He emphasized that local communities will play a direct role through cash-for-work programs, enabling residents to earn income while contributing to recovery efforts.

Translator: Shofi Ayudiana, Raka Adji
Editor: Aditya Eko Sigit Wicaksono
Copyright © ANTARA 2026



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Tags: floodshitIndonesiamlnMSMEsrecoverySumatra
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