REPUBLIC OF INDONESIA

STATE MINISTRY FOR NATIONAL DEVELOPMENT PLANNING/

NATIONAL DEVELOPMENT PLANNING AGENCY

Dr. Suprayoga Hadi (suprayoga@bappenas.go.id)

Director for Special Area and Disadvantaged Region

LEARNING FROM THE INDIAN OCEAN TSUNAMI:

Asian Development Bank's RESPONSE IN INDONESIA
Manila, 7-8 December 2009
ƒ Magnitude : 6,2 Richter scale
ƒ Occurred at 5.55pm for 57 seconds
ƒ Epicenter in the Indian Ocean at about 33
kilometers south of Bantul district
ƒ Human toll: 5,716 killed
ƒ The damage was very heavily concentrated on
housing and private sector buildings
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 (Rp Trillion)
Damage Losses TOTAL
Housing 13.9 1.4 15.3
13.7 2.5 16.2
Social sector 3.9 0.1 4

Productive sector 4.3 3.3 4.7 7.7 9.0 11.1

Infrastructure 0.4 5.9 0.2 2.2 0.6 8.1

Cross Sectoral 0.2 2.3 0.1 3.7 0.3 6.0

TOTAL 22.8 27.2 6.3 14.2 29.1 41.4

Aceh-Nias Figures 3
 Yogya-C.Java DAMAGE AND LOSSES (Billion Rp.) (Rp Trillion)

6,398

22,751

Damage Losses
Aceh-Nias
16.6
Damages & Losses, Aceh vs. Yogya:
27.3 1. Aceh: Damage (27.3T) > Losses (16.2T)
2. Yogya: Damage (22.7T) > Losses (6.4T)

Damage Losses
4
 DAMAGE AND LOSSES IN MAIN AFFECTED SECTORS

Yogya-C.Java
16000

14000

12000

10000

R p B illio n 8000

6000

4000

2000

Aceh-Nias 0
Housing Productive Sectors Social Sectors Infrastructure Cross Sectoral
14

Damage Losses
12

Main affected sectors, Aceh vs. Yogya:

10
Rupiah Trillion

6 1. Aceh: Housing > Infrastructure > Economic

2. Yogya: Housing > Economic > Social
4

0
Housing Transport Industry Education Energy Agriculture Fishery
5
Damage Losses
 THE RECOVERY POLICY AND PROGRAM
1. The action plan for rehabilitation and reconstruction prepared by Bappenas, in close
collaboration with the provincial government of Yogyakarta and Central Java
The principle of post disaster recovery: utilization of rehabilitation and reconstruction
to recover livelihood and promote community resilience towards the potential natural
disaster in the future
2. The main element of the recovery program comprised:
a) Housing and settlement infrastructures
b) Public infrastructures
c) Revitalization of regional economy
d) The timeframe for rehabilitation and reconstruction 18 months (until the end of 2007 but in
due course extended until December 2008)
3. The recovery policy framework:
a) Reconstruction /retrofitting damaged infrastructures
b) Provision of small grant assistant/stimulant for housing reconstruction and micro/small
businesses revitalization
c) Provision of regulation for development acceleration
4. The recovery process implemented by the local government with policy and funding
support from the central government
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 Presidential Decree (Keppres) Nr.9/2006

President RI

Line The Steering Line

Ministries Committee Ministries

The Implementing The Implementing

The National
Committee Committee
Technical Team
Province Yogyakarta Province Central Java
The Coordination Team
For Rehabilitation and Reconstruction

The Implementing The Implementing

The Implementing
Agencies Agencies
Agencies

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 Financed by Financed by Government Finance by
private/ community / Expenditure, Government
company/ private with support by Expenditure
community government community
support
Housing and Physical
settlement rehabilitation
Infrastructure Physical Physical Physical
rehabilitation : rehabilitation : rehabilitation:
electricity market-place road, bridge,
water, telecom irrigation
Social sectors Physical Physical
rehabilitation : rehabilitation:
culture/national government
and world offices, public
heritage, health, facilities
education
Economic Financial Financial
sectors stimulation, stimulation and
and regulatory regulatory
support : support : SME
economic sector
in general
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 Total Government
Damages and Losses Financed
(IDR trillion) (IDR trillion) %

Housing 15.3 7,0 46%/60%

Social Sector 4 2,8 70%/24%

Productive Sector 9.0 1,3 14%/11%

Infrastructure 0.6 0,4 60%/3%

Cross-Sector 0.3 0,2 66%/2%

TOTAL 29.2 11,7 40%/100%

(Exclusive IDR 400 billion for emergency response)

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 Prioritization for housing reconstruction
and preparation of earthquake resistance 4
building guideline

Administrative
arrangement for fund
3 channeling

Establishment of
Community Group

Fund Channeling
1 5 and housing
reconstruction
Consolidation
and socialization
to the affected
community

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1. The Government adopted a community-driven development approach for
house reconstruction: one of the largest community-based housing projects in
the world: total number of heavily damaged or destroyed houses = 177,469 for
Yogyakarta and = 104,084 for Central Java
2. The government assistance for constructing seismic resistant core housing
units of 36 sq. meters: construction of sound foundations, frames, and roof;
and technical support and community education for incorporating improved
seismic standards in reconstruction and the local government issues building
permits free of charge
3. The provincial government of Yogyakarta decided to distribute funds through a
priority-based, phased approach, which completed prioritized houses first
<<<>>> The provincial government of Central Java, adopted an equity-based
approach whereby funds were distributed simultaneously to all beneficiaries in
multiple phases.
4. One year after the earthquake, more than 140,000 houses had either been
completed or were under construction; communities realized that good
construction for their houses ensures they will live in safe and healthy homes
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In reference to Bappenas’ 2 years evaluation on rehabilitation and reconstruction,
funding gap FY 2008 identified on the are a as following :

Funding Funding Funding

Needs Available Gap

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1. The National Coordinating Board for the Management of Disaster (BAKORNAS
PB), along with provincial and local authorities took a lead role in coordinating
emergency response mechanisms on the ground and work together with the
UN’s Inter-Agency Standing Committee (IASC), and non-UN Agencies
Immediate requirements after the disaster: shelter support, water and
sanitation, health and nutrition, child protection and education, emergency
telecommunication, logistics, early recovery, and coordination
2. Very different donor response compared with the Aceh 2004 tsunami
a) The interim support prior to the start-up reconstruction diminished by early
2007.
b) The number of remaining international agencies thereafter small: ie UNDP,
GTZ, JICA, AUSAID followed by some major donors joining the Java
Reconstruction Fund.
c) The total donor assistance for Yogyakarta and Central Java approx. 15% of
total IDR 7.9 trillion allocated funding by the end of FY 2008.
3. Contrasting funding situation:
a) Multi Donor Fund Aceh-Nias: $ 676.08 million in commitments
b) Java Reconstruction Fund: $ 94,76 million in commitments
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1. The JRF – using a governance structure similar to the Aceh-Nias MDF --
governed by a Steering Committee responsible for:
a) endorsing overall priorities
b) endorsing project financing proposals
c) reviewing fund progress
d) ensuring coherence and collaboration with activities funded by the government’s
action plan
e) the results framework
2. The Steering Committee also serves as a forum for policy dialogue with the
government on issues relating to the reconstruction and development efforts
3. Members of the Steering Committee are:
a) a representative from the National Coordinating Team, formed to coordinate and
implement the reconstruction efforts in Yogyakarta and Central Java
b) The contributing donors to the JRF
c) The World Bank as trustee
d) The Indonesian government representative co-chairs the steering committee,
along with the European Commission, as the largest donor, and the World Bank
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1. From JRF’s total funds of US$ 79.9 million, to date 66.7 million has been
committed to reconstruct housing and community infrastructure projects.
The remaining funds are planned to finance projects restoring livelihoods.
2. Transitional Housing: The JFR aimed to provide safe and durable
transitional housing while permanent houses were rebuilt; thereby
promoting early resumption of household activities.
3. Permanent Housing and Community Infrastrucure: The JFR rebuild 15,153
earthquake-resistant houses and community infrastructure, and
implement disaster preparedness and mitigation investments in 100
villages, using a community-driven approach to planning, prioritization, and
implementation.
4. Livelihoods: The Restoring Livelihoods Program plans to provide livelihood
recovery in the affected areas in Yogya and Central Java based on the
required gaps identified during a livelihood assessment in April 2007.

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Pledges: Seven donors committed and disbursed a total of $94.06 million

Source $ million

1 European Commission 51.17
2 Government of the Netherlands 12.00
3 Government of the United Kingdom 10.77
4 Asian Development Bank 10.00
5 Government of Canada 6.53
6 Government of Finland 1.99
7 Government of Denmark 1.60
Total Contributions 94.06

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1. Overall GoI reconstruction efforts delivered more than 270,000 houses in 18
months – this is an achievement unprecedented worldwide
2. In accordance to TTN’s evaluation; 80% housing construction have met the
seismic resistant standard
3. Retrofitting to the unqualified standard to be implemented through the sector
program
4. The CDD approach generates community contribution in many forms: capital,
work force, building material and equipment
5. One of the major contributing factors of success – giving the implementation
task to the provincial government of Yogyakarta and Central Java
6. Although inferior in reconstruction fund supports, both provinces managed to
recover the function of basic services, and shifting paradigm from disaster
response to prevention
7. Both province promptly adopted the Law 24/2007 on Disaster Management to
reform their local development policy and institutional framework for disaster
management
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 YOGYAKARTA & CENTRAL JAVA ACEH & NIAS ISLAND
1. The impact of earthquake only received 1. The impact of earthquake and tsunami received
“standard” media coverage and lesser attention extensive media coverage and drew the attention
when the emergency response expired of international assistance
2. The local government still fully functional 2. The local government function incapacitated by
aftermath the disaster
the massive impact of tsunami
3. The central government entrusted the task for
rehabilitation and reconstruction to the provincial 3. The central government set up BRR to implement
government the rehabilitation and reconstruction
4. APBN (national) projects implemented through 4. APBN projects implemented through BRR, with
the line ministries, APBD (provincial) projects participation of the local government
through the local sector agencies 5. Donor projects coordinated and monitored by
5. Donor projects coordinated by the central BRR
government and monitored by the local
government 6. Housing reconstruction implemented through
6. Housing reconstruction fully adopted the CDD mixed approach (contractors and CDD)
approach 7. DRR approach in the initial recognition stage
7. DRR approach mainstreamed into development 8. Except the MDF, the Implementing Agency BRR
framework established RANTF to collect donations
8. Except the JRF governs by the central agency and 9. BRR mandate expired on April 2009
donors, there is no other trust fund established by
the central government
9. The Tim Keppres 9/2006 mandate expired on
April 2008

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 YOGYAKARTA & CENTRAL JAVA
1. The handing-over mechanism from Tim Keppres
9/2006 to the central and local government was
less complicated
2. The provincial and district government at both
provinces carry on development activities in FY
2008 through regular development processes
and mechanism
3. Asset transfer managed through regular process
at the Ministry of Finance
4. Both provinces established Local DM Agency and
provide DRR feed back for the local development
framework
ACEH & NIAS ISLAND
1. Prior to BRR’s departure April 2009, the
central government made transitional
arrangement through Perpres 47/2008 and
Perpres 3/2009
2. The central agencies took over the remaining
BRR responsibility FY 2009 for reconstruction
through the PMU-RRI (led by MPW) and other
sector by relevant line ministries
3. The asset transfer managed through the Tim
Likuidasi at the MoF
4. Bappenas facilitated Bappeda Aceh and North
Sumatera to prepare the Action Plan for
Development Continuation at both affected
provinces until 2012
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REGULATORY AND INSTITUTIONAL REFORM ON DM

1) Law No 24 year 2007 on Disaster Management

2) Law No 26 year 2007 on Spatial Planning
3) Law No 27year 2007 on Small Islands and Coastal Management
4) Government Regulation No 21/2008 on DM Operations,
5) Government Regulation No 22/2008 on Funding & Management of
Disaster Assistance,
6) Government Regulation No 23/2008 on Participation of International
Institutions and Foreign Non-Government Institution in DM
7) Government Regulation No 26 / 2008 on National Spatial Planning
8) Presidential Regulation No 8 / 2008 on the establishment of BNPB
9) Ministry of Home Affairs Regulation No 46/2008 on BPBD Organization
and Works Mechanism
10)Head of BNPB Regulation No 3/ 2008 on the establishment of BPBD

1) Establishment of National DM Agency (BNPB)

2) Establishment of Local DM Agency (BPBD) in a number of
provincial and district/city levels
3) Establishment on National Platform on DRR
4) Establishment of Mitigation Forum
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Post‐Disaster Needs Assessment
DaLA &  Needs  Recovery  Recovery 
Humanitarian  Identification Action Plan Financing Plan
Relief Needs Ass’t

Early Recovery
Human Effects Rehabilitation
Needs

Recovery
Damages
Financing
Recovery
Reconstruction 1. Nat’l Budget
Needs
2. Local Budget
Losses 1. Donors
2. Communities

Post-Disaster Post-Disaster Long-term

Risk Assessment DRR Needs Recovery

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1. The simplicity of Yogyakarta and Central Java recovery framework has been
replicated (with locality modification) at post earthquake in Bengkulu-West
Sumatera (2007), and recently post earthquake in West Java-Central Java
(2009) and West Sumatera (2009)
2. The existing public funding regulations and mechanisms does not allow a quick
response to post disaster needs, except from the restricted “on-call” resources
managed by the National Disaster Management Agency
3. Immediately after humanitarian relief, an interim intervention is required to
address the on-going crisis for the provision of transitional shelter, water and
sanitation, temporary health and education facilities, food allowance,
protection etc. to the affected communities
4. To fill-out the gap for interim intervention and scarcity of fund for longer term
recovery, international assistance is required

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A national post disaster reconstruction fund may be an alternative mechanism
to address current and future disaster response in Indonesia; it should have the
following features:
1. Provide flexible financing instrument for systematic response to disaster,
preferably for longer-term and future use if desired
2. Have a streamlined approval process through flexibility in preparation, use
of emergency and early recovery procurement procedures and policy for
rapid response to crisis and emergency
3. Have a focus on financing critical post disaster needs ie: housing,
community infrastructure, livelihoods, disaster risk reduction, technical
assistance for quality assurance, monitoring and evaluation
4. Government-led with appropriate roles for the participating donors, when
possible the secretariat attached to the lead government institution

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