Wednesday, 22 May 2019 | 06:47 WIB

World Bank to Loan $1 Billion for Disaster Recovery

World Bank

JAKARTA, NNC - The World Bank is preparing funding aid of up to $1 billion to the Indonesian government to complement reconstruction relief efforts in areas affected by the earthquake in Sulawesi and Lombok. The aid is also expected to strengthen Indonesia's long-term resilience regarding post-disaster funding.

Funding will be available upon request from the government, with a $5 million grant for technical assistance for detailed planning, to ensure that reconstruction will go well and be implemented in a community-based manner.

"On Friday, I visited Palu City with the Indonesian Vice President Jusuf Kalla. "Its very sad to see the destruction and hear stories from those affected by the disaster," World Bank Chief Executive Officer Kristalina Georgueva told the press at the WBG IMF Annual Meeting in Bali on Monday, Oct 15.

Responding to the aid from the World Bank, the Indonesian government expressed its greatfulness. Finance Minister Sri Mulyani Indrawati said Indonesia has invited the World Bank and other institutions to help with disaster risk financing and insurance.

As described in a statement released by the Finance Ministry, the aid package could include cash transfer for the 150,000 poorest families affected by the disaster for a 6 months to 1 year period. Strengthening the existing social protection system is designed to support the economy and local employment during the recovery phase.

The aid is also suggested to include a new independent emergency recovery program to finance the rebuilding of public facilities and important infrastructure assets, such as hospitals, schools, bridges, highways, and clean water supply infrastructure.