North Sumatra regional development and budget planning

The North Sumatra provincial government is focusing on strategic planning and budget optimization to drive regional development and public welfare.

In late August 2026, Vice Governor Surya initiated efforts to strengthen synergy between the executive and legislative branches. During a working meeting in Simalungun, officials aimed to establish the 2027 work plan by evaluating previous performance and leveraging the province’s economic potential in sectors such as agriculture, palm oil, and tourism.

Following these planning efforts, Acting Regional Secretary Timur Tumanggor emphasized the need for impactful spending within the Regional Revenue and Expenditure Budget (APBD). He advocated for a paradigm shift, stating that budget success should be measured by “actual outputs, outcomes, and benefits generated for the public” rather than mere absorption rates. He recommended that spending align with development priorities and be increasingly based on data and evidence.

By early September 2026, the provincial administration expanded its focus to include disaster mitigation and fiscal efficiency. Authorities began implementing mitigation strategies across six disaster-prone areas to reduce risks associated with floods, landslides, and earthquakes. Concurrently, efforts to support local economies continued, with Bank Sumut collaborating with Tapanuli Utara to improve access to credit for farmers and micro-businesses.