APD | Indonesia allocates US$ 1 bln fund to mitigate disasters this year

BY APD NEWSJan 07,2019 at 23:22

By APD writer Aditya Nugraha

JAKARTA, Jan. 7 (APD) – Indonesia allocated standby fund up to 15 trillion rupiah (around US$ 1 billion) from 2019 state budget this year to finance disaster mitigation activities this year following frequent disasters that hit several areas in the country last year.

Indonesia Finance Minister Sri Mulyani Indrawati said here on Monday the allocated fund was double from more than 7 trillion rupiah (about US$ 497 million) allocated last year.

“Part of the allocated fund would cover operation of BNPB (National Disaster Mitigation Agency), while the other part would be set as ‘on call’ fund,” the minister said.


The ‘on call’ allocation can be disbursed after getting confirmation from BNPB on the need to do so following its assessments on emergency situation generated from the disasters, she added.

Consideration to declare emergency situation in a disaster would be based on scale of destruction, number of deaths and damaged infrastructure, state facilities as well as public houses.

Besides doubling the disaster mitigation allocation, the central government also requested regional governments to initiate “pooling funds”, conducted by collecting donations to cover the losses generated by disasters in respective region.


The central government has initially set up the pooling fund mechanism through insurance scheme, has collected some 1 trillion rupiah (about US$ 71 million) of funds to mitigate disasters that possibly to occur in the future.

Indonesia that sits in earth’s ring of fire geological vault line saw major disastrous events last year.

Part of them were in catastrophic earthquakes and tsunamis that claimed thousands of lives and displaced hundreds of thousands others. 


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