Draft report

Investment design: Australia-Indonesia partnership in disaster risk management

10 Jan 2019

Preventing, reducing and managing disaster risks can protect economies from unexpected shocks, safeguard assets and infrastructure to help rapid economic and social recovery, and protect human capital from loss of life, injury and long-term vulnerability. Indonesia faces high levels of disaster risk with approximately 90% of the population of 262 million exposed to a range of hazards including earthquakes, flooding, tsunami, volcanoes, forest fire, drought, epidemics and disease outbreaks.

Disaster risk management (DRM) is an Indonesian national development priority, a shared responsibility across all levels of government, civil society organisations (CSOs), universities, media, the private sector and communities. Indonesia has an active DRM “ecosystem” with a large range of state and non-state stakeholders engaged in disaster response as well as preventing and reducing risk. These stakeholders, including the Ministry of Foreign Affairs (MoFA), are also involved in responding to humanitarian crises in other countries.

The national and subnational disaster management agencies, BNPB and BPBDs, are important hubs in the “ecosystem” with responsibility to lead and coordinate disaster risk management, response and recovery in Indonesia. They have a challenging role in leading and coordinating the range of state and non-state stakeholders, as evidenced in recent disaster events in Lombok and Central Sulawesi. These recent experiences serve as another reminder for Indonesia of the importance of building community resilience to prepare for and respond to disasters.

DRM continues to be a critical development issue for Indonesia and over the years Indonesia has invested heavily in improving disaster response preparedness. While Indonesia has made progress in developing its DRM capacity there is still the need to strengthen DRM government structures and coordination between state and non-state actors in particular during the disaster response period.

The Australia – Indonesia Partnership in Disaster Risk Management (AIP-DRM) is a five year, $25 million investment and will be delivered from 2019 – 2024, with the option of a two year extension. The goal of the investment is to strengthen Indonesia’s management of disaster risk and engagement between Australia and Indonesia. The investment has both a domestic focus on improving Indonesia’s ability to prevent, prepare for, respond to and recover from rapid and slow onset disasters in Indonesia; and a regional focus to strengthen cooperation between Australia and Indonesia on regional humanitarian issues.

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