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[BUSINESS] · Indonesia · 2 sources

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Indonesia speeds up recovery of 3,020 small firms in flood‑hit Sumatra

Indonesia's Ministry of Industry, led by Minister Agus Gumiwang Kartasasmita, announced accelerated aid for small and medium‑size enterprises damaged by the November 2025 floods and landslides in Aceh, North Sumatra and West Sumatra. The ministry issued Instruction No. 1 of 2026 and launched the Restart IK programme, targeting 3,020 affected businesses – 2,148 in Aceh, 649 in West Sumatra and 223 in North Sumatra, largely from the food sector.

Recovery measures include provision of production machinery and equipment, expanded market access, financing facilitation through banks and non‑bank lenders, and technical guidance such as certification and packaging assistance. The programme operates via two approaches: a business‑unit‑based model for firms in Joint Business Groups and a Small and Medium Industry Centre model that supplies shared production facilities. Coordination with regional governments and other ministries is emphasized to ensure effective implementation.