Speaking to the media on Thursday, the top minister highlighted how the disaster in the three affected provinces could impact the government’s national economic growth target of 5.6 percent.
"It has been confirmed that (economic growth) will decline in disaster-affected areas, North Sumatra, Aceh, and West Sumatra," Hartarto said.
To halt the decline, he said that the government will provide economic relaxation and adjustments in affected regions, such as credit restructuring for micro, small, and medium enterprises (MSMEs).
"We will provide relaxation for MSMEs. We already have the regulations, and they will be activated automatically. There will also be restructuring and elimination of bad debts," the coordinating minister stated.
The minister also confirmed that infrastructure rehabilitation will take place in the three provinces. "We are concerned by the ongoing situation. We also have programs to improve and rehabilitate infrastructures there," Hartarto remarked.
Floods and landslides have recently hit Aceh, North Sumatra, and West Sumatra following several days of intense rainfall.
According to the National Disaster Mitigation Agency (BNPB), as of December 4, the disasters have killed 776 people, left 564 missing, and affected a total of 3.2 million residents.
President Prabowo Subianto visited several disaster-affected areas on Monday and said the government would airlift supplies to isolated locations while ground access remains cut off.
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Translator: Arnidhya Nur Zhafira, Nabil Ihsan
Editor: Azis Kurmala
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