Indonesia Bank Sends $2.97 Million to Flood-Hit Businesses
Bank Sumut is distributing grants to 16,118 microbusiness owners affected by late-2025 disasters in North Sumatra, with each recipient receiving 3 million rupiah.
MEDAN, Indonesia — A state-backed grant program is directing about $2.97 million to 16,118 microbusinesses affected by disasters in North Sumatra, aiming to help owners restart operations in a province where small firms account for nearly all businesses.
Regional lender PT Bank Sumut is distributing the first-phase aid, totaling 48.35 billion rupiah, or about $2.97 million. Each eligible business owner receives a cash grant of 3 million rupiah, about $184, paid directly into an individual bank account.
Bank Sumut President Director Heru Mardiansyah announced the distribution at the bank’s Kampung Lalang branch in Medan on Friday. The grants are for businesses hit by natural disasters in late November 2025, the bank said.
Langkat receives the largest allocation
Four districts and cities are included in this phase. Langkat has the most recipients, with 9,396 microbusinesses, followed by Deli Serdang with 6,189. Medan has 469 recipients and Humbang Hasundutan 64.
Heru said recipients could use the money to support business recovery, including buying production equipment and covering working capital needs. The grants are intended to help firms whose production or trading activities were disrupted by the disasters resume operations.
Small firms dominate North Sumatra’s business base
North Sumatra’s Cooperative, Small and Medium Enterprises Office counted about 1.4 million micro, small and medium-sized businesses in the province in 2025. Micro and small firms made up 98.9% of that total.
Heru said disruption to small businesses can affect household income, employment and economic activity in surrounding communities. Bank Sumut Finance Director Ahmad Faisal Daulay described the government assistance as a measure to speed the recovery of microbusinesses and help owners meet basic needs as they return to production and trade.
Ahmad said the bank also supports small businesses by expanding access to financing and financial services, with the aim of helping them recover and grow.
Grant recipient cites damage to poultry business
Herawati Nainggolan, a recipient whose poultry business was affected by flooding in November 2025, said the assistance would help sustain her operation.
The first phase covers recipients in Langkat, Deli Serdang, Medan and Humbang Hasundutan, with payments made directly to beneficiaries’ accounts.
