Indonesia to provide Rp1.2 trillion in aid to Sumatra micro-businesses

The Indonesian Ministry of Micro, Small, and Medium Enterprises (UMKM) has announced a Presidential Assistance (Banpres) program to support micro-businesses affected by disasters in Sumatra, specifically in Aceh, North Sumatra, and West Sumatra. The program will provide cash grants of Rp3 million per micro-enterprise, distributed directly to recipients' bank accounts.

The initiative will be implemented in two stages, with an allocated budget of approximately Rp600 billion in 2026 and another Rp600 billion in 2027. The program aims to reach over 400,000 micro-entrepreneurs who do not currently have access to banking credit, such as the People's Business Credit (KUR).

To ensure the aid reaches the correct recipients, the Ministry will use a multi-layered verification process. Data must be proposed and approved by local regional heads, such as regents or mayors. This information will then be cross-verified through the SAPA UMKM system, which integrates with various government databases including Dukcapil, OJK, and the Online Single Submission system.

For micro-businesses currently utilizing KUR, the government will offer alternative support, including interest rate reductions of 0 percent in 2026 and 3 percent in 2027, alongside credit term restructuring.