Indonesia estimates flood recovery costs could exceed $3 billion

The disaster left 950 people dead and 274 missing in Indonesia, and caused heavy casualties in neighboring Thailand and Malaysia, with around 200 victims. With the widespread devastation, this is considered one of the most serious natural disasters in the region in many years.

Speaking at a cabinet meeting held on the evening of December 7 in Aceh province about the estimated figure, Mr. Suharyanto, head of the Indonesian Disaster Mitigation Agency (BNPB), stressed that "recovery costs may increase as the agency continues to count the extent of damage."

Aerial view of damage caused by flash floods in Tamiang, Aceh, Indonesia on December 2, 2025. Photo: ANTARA FOTO

Faced with that situation, the Indonesian Government quickly developed a detailed budget allocation plan, focusing on the three most affected provinces on Sumatra island.

According to the plan announced at the meeting chaired by President Prabowo Subianto, the funding needs are specifically allocated: Aceh province needs 25.41 trillion rupiah, West Sumatra needs 13.52 trillion rupiah and North Sumatra needs 12.88 trillion rupiah.

"For reconstruction, Aceh province needs the largest amount of funds at 25.41 trillion rupiah, followed by West Sumatra with 13.52 trillion and North Sumatra with 12.88 trillion rupiah," Suharyanto said.

The top priority is to address the housing crisis for the hundreds of thousands of displaced people through a two-phase strategy. In the first phase, people will be moved from evacuation centers to temporary 40-square-meter plywood houses built by the government. They will then be relocated to more permanent homes. Reconstruction will begin early in more favorable areas such as North Sumatra and West Sumatra.

President Prabowo Subianto affirmed the country's commitment and capacity to manage the disaster: "The issue is that we have the capacity and we will do it meticulously and try our best to manage it." However, he also acknowledged that many challenges remain as many areas still suffered heavy damage to rice fields, dams and houses.

Based on reports from local leaders, President Prabowo Subianto stressed: "There are a significant number of houses that we have to help rebuild." In addition, providing medicine and clothing to victims is also an urgent priority.

Source: https://congluan.vn/indonesia-uoc-tinh-chi-phi-khac-phuc-lu-lut-co-the-vuot-3-ty-usd-10321856.html