JAKARTA, NNC - The Federal Republic of Germany, through KfW Development Bank, on Wednesday signed a financing agreement with the United Nations Development Program (UNDP) in Indonesia to support communities in Central Sulawesi and West Nusa Tenggara (NTB) to recover from the impact of the 2018 disasters and become more resilient against future shocks.
Under this agreement, KfW on behalf of the German Government will allocate EUR25 million (around USD28.4 million or IDR413 billion) to rebuild important infrastructure facilities in Central Sulawesi and NTB. UNDP will manage this multi-year initiative, which runs from 2019-2022 in close collaboration with National Development Planning Agency (BAPPENAS), National Disaster Management Agency (BNPB) and the Provincial Government, and is in line with the Master Plan and Action Plan for Reconstruction.
"I was shocked by the amount of severe losses and damage that I witnessed on my last visit to Sulawesi. Therefore I am very proud of this important project, which is also an example of solidarity between our countries. I look forward to quick and real results," said Dr. Peter Schoof, Ambassador of the Federal Republic of Germany to Indonesia, ASEAN, and Timor Leste, in a press release on Saturday (12/15/2018).
In August 2018, the island of Lombok was hit by a magnitude 7.0 earthquake, killing 564 people and causing 400,000 people to lose their homes. The earthquake also damaged more than 70,000 homes. The following month, a magnitude 7.4 earthquake and tsunami hit Palu and its surroundings, killing more than 2,000 people, and causing more than 173,000 people to lose their homes. The disaster also damaged 68,000 houses, 176 health facilities including two large hospitals and more than 1500 educational buildings.
The UNDP Indonesia Director Christophe Bahuet thanked the German Government for the financial contributions given to UNDP, which will help rebuild infrastructure and support communities in disaster-stricken areas.
"When entering the recovery and reconstruction phase, funding from the KfW Development Bank will provide much-needed resources for the process of reconstruction and recovery of public infrastructure, such as health, education, solid waste management. This will also help communities restart their economic activities and become more resistant to future shocks," Bahuet said.
He added that the Master Plan and the Reconstruction Action Plan, which was being completed by the Indonesian Government, would guide the implementation of the project.
Together with other UN agencies, UNDP has implemented a rapid disaster relief program to support post-disaster recovery efforts in 2018, with some funding coming from UNDP's own resources and the UN Central Emergency Response Fund. An important part of this program is the UNDP cash-for-work initiative to clean up the debris of buildings hit by the earthquake, which involved hundreds of people who survived the earthquake in Palu.