With the support of the Centre of Disaster Protection (CDP) and collaboration with the Disaster Mitigation Research Centre (Pusat Penelitian Mitigasi Bencana/PPMB) Institut Teknologi Bandung (ITB), Resilience Development Initiative (RDI) successfully organised an International seminar titled “Shaping Resilience: Financing a Disaster-Resilient Indonesia”. The seminar was held on 26 November 2024 at the Multipurpose Hall, Centre for Research and Community Services (CRCS) ITB. Using various approaches and best practices from other countries in disaster mitigation, Indonesia is expected to predict better and prepare its people to manage disaster risks proactively.
The seminar centred around four sessions, each examining specific aspects of disaster risk financing (DRF) in Indonesia.
Exploring Gaps and Opportunities in Indonesia’s Disaster Risk Financing Landscape
In the first session, the seminar explored prospects, challenges, and global best DRF practices to enhance Indonesia’s DRF landscape. Moderated by Hoferdy Zawani, MSc, Our experts, Dr Saut Sagala, assistant professor and senior research fellow at RDI, and Shakira Mustapha, a research lead from CDP, delivered their perspectives on gaps in Indonesia’s DRF. Dr Saut Sagala, highlighted critical challenges in DRF, emphasising funding gaps and insufficient cross-sector collaboration. He identified market-based financing as a promising opportunity to support vulnerable communities while enhancing responsive social protection systems. As a way forward, Dr Sagala proposed the integration of risk modelling and assessment to develop more effective, market-driven, and adaptive financing strategies. Shakira Mustapha, underscored that while various financing instruments are available, it is essential to align these tools with government objectives and strategies to meet national needs effectively. Their insights highlight the necessity for collaborative and innovative strategies in DRF to address gaps, leverage opportunities, and ensure resilience against future challenges.
Strengthening Resilient Communities with Strategic and Sustainable Financing Approaches
Moderated by M. Didi Herdiana, the second session focused on strategies for achieving innovative community resilience through DRF. Dr Ir Udrekh, SE, MSc, Director of Risk Mapping and Evaluation at National Agency for Disaster Management (Badan Nasional Penanggulangan Bencana/BNPB) and Prof Dr Ir Krishna S. Pribadi, researcher at Disaster Mitigation Research Centre ITB, shared their insights during this session. Dr Udrekh emphasised that one of the challenges in achieving sustainable resilience is the high vulnerability of marginalised communities, which is exacerbated by their limited access to disaster financing and risk reduction tools. He provided several recommendations, such as continuous socialisation and the need to involve local communities in planning and decision-making processes. Additionally, regarding issues related to disaster financing, he suggested that mitigation funding should be accelerated through various sources, including governmental, private, and community funding. This could also involve crowdfunding initiatives at the community level or community-based financing models.
The next speaker, Prof Dr Ir Krishna S. Pribadi, emphasised the importance of enhancing resilience at the Micro, Small, and Medium Entreprises (MSMEs) level in response to earthquake damage, which has exceeded 50%, with an estimated total recovery time of over one year. He proposed solutions such as providing funds for post-disaster recovery and offering active counselling for MSMEs that may lack understanding of disaster risk reduction efforts in earthquake-prone areas. Following his presentation, Dyah Larasati, MSc, contributed to the panel discussion by stating that building an inclusive and resilient society, which includes vulnerable groups in the context of Gender Equality, Disability, and Social Inclusion (GEDSI), requires support through funding, microinsurance, data-driven advocacy, and community development. Dr Udrekh highlighted the critical need for government consideration of disaster mitigation issues by utilizing existing information. He noted that while disaster mitigation efforts may not be perfect, continuous implementation can lead to effective and targeted disaster financing. Finally, Dr Krishna responded by discussing the potential application of AI and machine learning technologies to enhance the accuracy of infrastructure data management.
Enhancing Community Protection through Risk Transfer and Insurance
The third session elaborated on strategies for community protection against disaster risks, specifically focusing on risk transfer and insurance mechanisms. A Microfinance Specialist, Ikatri Meynar Sihombing, MA, underlined the importance of microfinance in providing access to financial resources for lower socioeconomic communities, including MSMEs. Microfinance institutions are essential as disaster-resilient solutions, significantly facilitating post-disaster recovery. This is exemplified by the case of the Tanaoba Lais Manekat Indonesia (TLMI) Cooperative. Mr Hengki Eko Putra, Research and Development Principal at Maipark Reinsurance, explained the importance of Disaster Risk Financing and Insurance (DRFI) in disaster risk management in Indonesia. He highlighted the significance of disaster insurance such as MAIPARK and innovations like parametric insurance products. Key challenges identified include protection gaps, data limitations, and the evolving dynamics of climate risk, all of which necessitate e flexible approaches and the integration of advanced technological solutions. Dra Dumaria Rulina Tampubolon, Assistant Professor Faculty of Mathematics and Natural Sciences ITB, presented findings from a three-year study on catastrophe risk modelling and financing in Indonesia, focusing on state-owned property. Her research employed methodologies such as risk inventory, annual loss calculation, and data distribution analysis. The main challenge identified in her research is determining the optimal retention level for reinsurance premiums through risk analysis and ensuring data accuracy to support effective disaster mitigation strategies.
Furthermore, in the panel discussion of this session, Shofianina Dwi Ananda Putri, serving as a discussant, underscored the importance of rapid response financing and microinsurance in safeguarding MSMEs in the aftermath of disasters. She also emphasised the government's role in developing holistic natural disaster insurance frameworks to address the emerging challenges posed by climate risk. Dra Dumaria, in her contribution to the discussion, highlighted the challenges of historical data accuracy in disaster risk modelling and the importance of science-based adjustments to improve accuracy to obtain appropriate and relevant predictive results. Mr Hengki further reinforced the importance of accurate risk modelling to ensure insurance can effectively deal with uncertainty and provide protection against future disaster risks. The final response was submitted by Ms Ikatri Meynar Sihombing, who pointed out the challenge of limited public interest in disaster insurance products. Despite their potential to enhance public awareness of disaster risk protection and long-term benefits, these products struggle to attract widespread engagement.
Unveiling Global Perspectives on Adaptive Social Protection and Disaster Risk Financing
Session four centred on Adaptive Social Protection (ASP) and Disaster Risk Financing (DRF), which were key objectives of the seminar. Daniel Clarke, PhD, Director of the Centre for Disaster Protection, highlighted the importance of ASP systems, particularly Shock-Responsive Social Protection (SRSP), in addressing disaster risks by fostering resilience and enabling timely crisis responses. Drawing on case studies from Jamaica, Mozambique, and Malawi, he emphasised the need for proactive financing and long-term preparedness strategies. He further explained that sustaining social protection systems relies on government efforts to adopt technology, collaborate with international organisations such as the World Bank, and prioritise public safety. Hasatama Hikmah, a Junior Expert at Indonesia’s Ministry of Social Affairs, discussed the participatory and sustainable principles underpinning Indonesia’s social protection programmes, such as Program Keluarga Harapan (PKH) and Taruna Siaga Bencana (TAGANA), which enhance community resilience and welfare. He elaborated on Data Terpadu Kesejahteraan Sosial (DTKS) assistance, which integrates data for targeted aid, and outlined various forms of post-disaster assistance, including support for injuries and death benefits. Both speakers underscored the importance of cross-sector collaboration, technology adaptation, and effective governance for sustainable social protection systems and enhancing disaster preparedness.
In conclusion, the International Seminar on “Shaping Resilience: Financing a Disaster-Resilient Indonesia” successfully highlighted the pivotal role of innovative approaches in disaster risk financing and adaptive social protection in enhancing Indonesia's resilience to disaster risks. Through comprehensive discussions and expert insights across four sessions, the seminar facilitated a robust platform for knowledge exchange, collaboration, and formulation of actionable strategies to address challenges, leverage opportunities, and build a disaster-resilient future. With the support of the Centre for Disaster Protection (CDP) and the collaboration of the Disaster Mitigation Research Centre (PPMB) at Institut Teknologi Bandung (ITB), this event has underscored the need for cross-sector partnerships, advanced risk assessment tools, and inclusive policies to ensure sustainable and equitable disaster risk management. We look forward to continued collaboration and innovation to achieve a safer, more resilient Indonesia.
Here is the after-movie of the seminar “Shaping Resilience: Financing a Disaster-Resilient Indonesia” 2024. You can also access the recording of the event at the following link: Record Seminar "Shaping Resilience: Financing a Disaster-Resilient Indonesia."
