Why we need IDMF?

Nusantara Archipelago have geographical conditions and characteristics that make it vulnerable to natural disasters; such as earthquakes, volcanic eruptions, tsunamis, landslides, floods and so on. In fact, the number of disasters in Indonesia continues to increase from year to year.

Currently, 415 sub-districts in 93 districts/cities in 34 provinces are located in disaster risk areas. In these locations, it is necessary to increase the government and community capacity in facing disaster risk.

From budget side, only less than 1% of the APBN is allocated for disaster mitigation that may occur throughout the archipelago. And, because there are good financial management constraints, the use of the budget is sometimes less flexible.

Within the global scope, the Government of Indonesia has been committed to achieve the Sustainable Development Goals, and one of its derivatives is the Global Disaster Risk Reduction Agenda.

Funding potentials for disaster management beyond government budgets--from donor countries and institutions, private sector and public-- need to be seriously mobilized to help solve homework that the government cannot implement. IDMF, with its mechanisms and experience, is the institution that is able to manage these funds better, right on target and impactful.

IMDFF-DR to IDMF transformation

In 2013, a review of the role of IMDFF-DR has been conducted. The result of this study was the need for transformation process. The role and scope of IMDFF-DR activities needs to be expanded and become more flexible.

The key points of the proposed change are as follows:

  • The scope of work originally focused on post-disaster activities should be transformed into a more complete scope of work; ie covering activities before, during and after the disaster.
  • Renewal of mechanisms and SOPs is required to be more effective and efficient, with reference to laws and regulations.

To that end, the Indonesian Multi Donor Fund Facility for Disaster Dacility (IMDFF-DR) is proposed to be transformed into Indonesia Disaster Managemenr Fund (IDMF).

Future strategy

In order to implement better natural disaster mitigation and more impactful use of grant funds, a regulatory review will be needed, including:

  • PP 10/2011 on Procedures for Procurement of Foreign Loans and Grant Receipts
  • Presidential Regulation 80/2011 on Trust Funds
  • PP 23/2008 on the Participation of International Institutions and Non-Government Foreign Institutions in Disaster Management

Meanwhile, three strategies has to be taken:

  1. Concerning Types of Grants; there are two types of grants: Planned Grants whose management mechanisms have been planned in accordance with the APBN and Direct Grants where ministries or agencies receive grants without following the APBN process.
  2. Regarding the Institution, it is necessary to establish an institution in charge of managing thematic grants according to development priorities.
  3. Concerning Investment Mechanisms, we have to accomidate:
  • Source of foreign and domestic fund
  • Type of direct and planned grants
  • Disbursement system of direct grant and planned grant
  • Use of funds for priority development agendas and for disaster relief