Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, has affirmed his readiness to disburse emergency funds for the ongoing flood and landslide mitigation efforts across Sumatra, pending a direct order from President Prabowo Subianto. This declaration underscores the government’s preparedness to address the severe natural disasters gripping the region.
“That’s not my primary area of expertise. However, if I am instructed to make payments, I will do so without hesitation,” Purbaya stated during a sideline interview at the Conference on Indonesian Foreign Policy (CIFP) 2025 in Jakarta on Saturday (November 29). His straightforward comment highlights a commitment to action when directed, especially in critical situations demanding swift financial intervention.
While Purbaya admitted to not yet being fully familiar with the specifics of the Pooling Fund for Disasters (PFB), he unequivocally reiterated his readiness to allocate reserve funds to alleviate the devastating impacts of the disasters in Sumatra. This reassurance signals the government’s dedication to supporting affected areas, regardless of the specific financial mechanism.
The innovative PFB financing framework was established through Presidential Regulation Number 75 of 2021 concerning the Joint Fund for Disaster Management, enacted on August 13, 2021. According to the Ministry of Finance’s official website, the PFB represents a strategic government initiative aimed at strengthening fiscal resilience to effectively manage the repercussions of both natural and non-natural disasters. This mechanism is crucial for long-term disaster preparedness and response.
The PFB empowers the government to strategically manage disaster risk financing by utilizing both the State Budget (APBN) and Regional Budgets (APBD), or by transferring risk to third parties through insuring government and community assets. This approach ensures that the substantial costs associated with major disaster response do not solely depend on annual APBN/APBD allocations, thereby providing a more robust and flexible funding strategy. Ultimately, the PFB is designed to accelerate recovery efforts and provide vital protection for the most affected populations, particularly the poor and vulnerable communities.
President Prabowo Subianto has emphasized that the government’s immediate priority is the distribution of humanitarian aid to regions currently grappling with natural disasters. Regarding the potential declaration of a disaster status, President Prabowo indicated that the government is still conducting on-the-ground monitoring before making any further decisions, reflecting a cautious and data-driven approach.
Meanwhile, various stakeholders are intensifying calls for the central government to declare a national disaster emergency status in response to the recent floods and landslides that have ravaged Sumatra, notably in North Sumatra, West Sumatra, and Aceh. These appeals highlight the growing concern over the scale of the destruction.
The primary rationale behind these urgent pleas is the widespread damage and profound impact of the disasters, which are widely believed to have surpassed the capacity of local governments to manage independently. Despite provincial governments having already declared local emergency response statuses, proponents of a national declaration argue that such a move is essential to mobilize greater, more coordinated resources and assistance from the central government, ensuring a comprehensive and effective response to the unfolding crisis.
Summary
Menteri Keuangan, Purbaya Yudhi Sadewa, menyatakan kesiapannya untuk mencairkan dana darurat guna penanganan banjir dan tanah longsor di Sumatera, jika diperintahkan langsung oleh Presiden Prabowo Subianto. Meskipun belum sepenuhnya memahami detail Pooling Fund for Disasters (PFB), Purbaya menegaskan akan mengalokasikan dana cadangan. PFB sendiri merupakan kerangka pembiayaan inovatif yang dibentuk melalui Peraturan Presiden Nomor 75 Tahun 2021 untuk memperkuat ketahanan fiskal dalam pengelolaan risiko bencana.
Presiden Prabowo Subianto menekankan prioritas pemerintah adalah distribusi bantuan kemanusiaan dan masih memantau situasi sebelum memutuskan status bencana lebih lanjut. Sementara itu, berbagai pihak mendesak pemerintah pusat untuk mendeklarasikan status darurat bencana nasional. Hal ini didorong oleh dampak kerusakan yang meluas dan diyakini telah melampaui kapasitas pemerintah daerah untuk menanganinya secara mandiri, khususnya di Sumatera Utara, Sumatera Barat, dan Aceh.
