Indonesia is one of nations in the world which is most vulnerable to disaster (UNU, 2014). Indonesia is suspectible to the danger of a wide variety of disasters, as well as hydro-meteorological disaster, such as flood, drought, landslides, and geological disaster, such as tsunami and earthquake. Indonesia vulnerability to both hydro-meteorological and geological disaster is worsened by development challenges, such as increasing poverty, population growth, lack of urbanization planning, implementation policies and building code enforcement, etc. Climate change and number of disasters increase in Indonesia have caused an increasing number of fatalities and damage, compared to previous years (BAPPENAS, 2015). Economic loss caused by disasters have reached 22 trillion IDR in average (Paramesti, 2018). The Indonesian government and insurance companies have important roles on managing disaster insurance for optimalizing insurance potential as an effective instrument on disaster risk financing. Futhermore, Disaster Risk Financing's (PARB/Pembiayaan dan Asuransi Resiko Bencana) document stated that protection toward households and societies affected by disaster is one of priorities (BKF, 2018). Thus, understanding disaster insurance and its roles especially insurance for community housing, is an important aspect to be studied together by policy makers and stakeholders in disaster risk financing.
Related to the statement in paragraph above, Directory of Disaster Reduction Risk, Indonesia National Disaster Management Agency (BNPB), cooperating with Bandung Institute of Technology (ITB) and supported by Resilience Development Initiative (RDI), held a Focus Grup Discussion (FGD) in relation to research on Disaster Risk Financing & Insurance. In this FGD there will be deeper discussion on the potential of insurance as an instrument for disaster risk financing. Furthermore, it is hoped that through this FGD there will be further coordination and discussion between key stakeholders on the topic of disaster risk financing, especially insurance as an instrument for protection of community housing, to prepare the stakeholders to implement and accommodate insurance payment mechanism in near future, in accordance with PARB's strategies.
This FGD is aimed to increase cooperation and synergy between stakeholders, and increase awareness on the importance of disaster risk protection through disaster risk insurance. The subjects from this program are national government, non-governmental organizations (NGO), academicians, and other stakeholders involved in managing disaster risk insurance in Indonesia. Specifically, invited stakeholders includes, but aren't limited to: experts/academicians from reputable universities, National Disaster Management Agency (BNPB) Disaster Risk Reduction Directorate, PT MAIPARK Indonesia, General Insurance Association of Indonesia (AAUI), Ministry of Finance - Fiscal Policy Agency, World Bank, International Federation of Red Cross and Red Crescent Societies (IFRC), and other related stakeholders. The discussion is also aimed at disseminating initial findings of research on disaster risk insurance as an alternative for post-disaster financing in Indonesia. Focusing on earthquake risk insurance as a source for alternative post-disaster financing in Indonesia. The potential of disaster insurance that will be socialized are findings on:
- The potential of earthquake insurance implementation in natural disaster risk management in Indonesia, measured by ratio of cost and benefit.
- Evaluation on roles of insurance as an instrument of risk transfer for earthquake risk between 2004-2018, including its role on series of earthquakes occurred on 2018 in Center Sulawesi and Lombok, particularly on households/residents coverage as the objects.
- Qualitative findings on current conditions of disaster risk financing and insurance implementation in Indonesia.
Through this FGD, it is hoped that the next steps in regards to the implementation of insurance as a tool for disaster risk financing can be developed and further concrete steps between stakeholders could be taken.
Timeline:
HI 25.43°C | LO 25.43°C
