TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Alternative schemes for disaster risk financing

  • Nopriyanto Hady Suhanda
    Nopriyanto Hady Suhanda

    Works at the Center for Regional and Bilateral Policy, Fiscal Policy Agency, Finance Ministry

PREMIUM
Jakarta   /   Wed, January 15, 2020   /  10:40 am
Alternative schemes for disaster risk financing All that is left: A girl sits on the rubble of her home in Palu, Central Sulawesi. The home crumbled following ground liquification after an earthquake hit the city. (The Jakarta Post/Ruslan Sangadji)

Indonesia could be one of the world’s five biggest economies by 2045, some experts predict. Yet one obvious constraint is that the country’s geography means it has a high risk of natural disasters. Tsunamis, floods, earthquakes and forest fires are some of the most common calamities to have struck Indonesia in the last decade, with the potential to cause wider poverty and economic slowdown. According to the National Disaster Management Agency (BNPB), the losses from the Aceh earthquake and tsunami in December 2004 might seem relatively small compared to the nation’s gross domestic product (GDP) of around 0.3 percent, but it accounted for a significant 30-45 percent of the provincial GDP. Total state losses from natural disasters in 2004-2014 increased a massive Rp 240 trillion (US$17.54 billion). The BNPB reported that the central government allocates Rp 4 trillio...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.