Indonesia's Finance Minister Sri Mulyani Indrawati (L), President World Bank Jim Yong Kim (M), and Managing Director of IMF Christine Lagarde (R) - Photo by World Bank

JAKARTA (TheInsiderStories) – The World Bank has announced funding up to US$1 billion for Indonesia to supplement relief and reconstruction efforts in the disaster-affected areas of Lombok and Sulawesi, and to bolster long-term resilience.

This augmentation of existing social protection systems is designed to support the local economy and employment during the recovery phase and to avoid long-term damage to human capital.

The funding will be available on request by the government would be guided by a $5 million grant for technical assistance for detailed planning to ensure reconstruction is resilient and community-led. The World Bank package could include cash transfers to the poorest 150,000 affected families for a period between 6 months to one year.

“On Friday I visited the city of Palu in Sulawesi with His Excellency Vice President Kalla. It is humbling to see the devastation and hear the stories of those who have been affected”, said World Bank Chief Executive Officer, Kristalina Georgieva in a joint press conference in Nusa Dua, Bali on Sunday (14/10).
She explained, the proposed $1 billion package could also include a new standalone emergency recovery program to finance rebuilding of critical public facilities and infrastructure assets like hospitals, schools, bridges, roads, highways, water supply infrastructure.
It would also strengthen monitoring and early warning systems, and help to finance the reconstruction of housing settlements and neighborhood level infrastructure and services.
“The government appreciates the attention and support of the international community in our time of need, including from the World Bank Group. Indonesia aims to strengthen our resilience towards natural disasters and we look forward to our continued partnership,” ” Sri Mulyani Indrawati, Finance Minister of Indonesia stated.
The World Bank has recently concluded a preliminary damage needs report that assesses the geospatial distribution of the damage, and the estimated cost of the infrastructure, residential and non-residential property that was affected by the Tsunami in Central Sulawesi.
The estimated physical loss is around $531 million, wich is residential housing approximately $181 million, non-residential sector approximately US$185 million, and infrastructure approximately US$165 million.
The preliminary report is the first economic loss estimate based on scientific, economic and engineering analysis. It does not account for loss of life, lost land or the disruption to the economy through lost jobs, livelihoods and business, and is the first input towards supporting the government of Indonesia’s recovery and reconstruction planning.
World Bank Country Director for Indonesia, Rodrigo A. Chaves added, “By working with the government on resilience, disaster recovery and preparedness we aim to help ensure that Indonesia continues its upward economic path.”
The World Bank’s deep and productive partnership with Indonesia dates back to 1954. Over the past three years, the Fund have committed to 18 projects to covering social assistance, primary health care and nutrition and early childhood development.
The partnership is particularly focused on supporting the development of Indonesia’s human capital and in the implementation of the government’s ambitious National Strategy for Stunting Prevention.
Following the 2004 Tsunami, the World Bank, along with several global partners, contributed to the recovery and reconstruction efforts in Indonesia by establishing the Multi Donor Fund for Aceh and Nias.
This managed around $655 million to rebuild 20,000 earthquake-resistant homes, 3,850 km of roads, 1,600 km of irrigation canals, 677 schools, 500 town halls, 72 clinics, 8,000 wells and clean water sources, as well as more than 1200 sanitation units, among others.
Commenting on global attention like from United Nation, World Bank, Asian Development Bank and other countries on disaster recovery in Indonesia, Indrawati stated, for Lombok and Palu are sufficient from the 2018’s State Budget. The funds will use for temporary assistance and infrastructure by National Disaster Mitigation Agency and Publik Works and Public Housing ministry.

“If the institution announces grants such as ADB $3 million they will carry out rapid damage assessments. If there is assistance, we will see the structure because we are still finalizing the 2019 State Budget,” she said.

The damages and losses caused by the Lombok earthquake are huge. The latest estimate by the Disaster Agency on August 13, the damage of the earthquake at Rp7.45 trillion ($520.97 million).

The spokesman Soetopo Purwo Nugroho explained, the damages and losses included Rp6.02 trillion in houses, Rp9.1 billion in infrastructure, Rp570.55 billion in economic facilities, Rp779.82 billion in social facilities and Rp72.7 billion from others.