The Ministry Of Finance Inaugurates BMN Insurance With A Disaster Pooling Fund Fund Fund Fund Fund Fund Fund Fund Scheme

Deputy Minister of Finance (Wamenkeu) Suahasil Nazara. (Photo: Doc. ANTARA)

JAKARTA - The Ministry of Finance (Kemenkeu) through the Directorate General of State Assets (DJKN) officially launched the State Property Insurance (BMN) program with a funding scheme using the Disaster Management Joint Fund (PFB).

The BMN insurance program with the PFB scheme launched was piloted in three ministries/agencies (K/L), namely the Ministry of Religion (for BMN in the form of educational buildings), the Ministry of Health (for BMN in the form of health buildings), and the Ministry of State Secretariat (for BMN in the form of office buildings, especially the state palace area).

Deputy Minister of Finance Suahasil Nazara said this approach allowed the government to test limited governance, funding mechanisms, and institutional coordination before this program was implemented thoroughly in the following years.

Suahasil said that the implementation of BMN insurance with the PFB scheme shows the government's commitment to protect strategic assets from disasters.

He hopes that ministries/agencies can continue to improve BMN security through the allocation of the insurance budget, so that the protection of state assets will be more optimal.

"We hope that the security of BMN through the insurance budget allocation in the DIPA of each ministry/institution can continue to be implemented effectively, so that the protection of state assets is more optimal. Furthermore, we would like to thank all parties who participated in realizing the implementation of BMN insurance with this PFB scheme," he said in his statement, Tuesday, December 2.

For information, the program is the result of synergies between the ranks at the Ministry of Finance and relevant stakeholders, such as the Financial Services Authority (OJK), the insurance industry, the National Disaster Management Agency (BNPB), and the World Bank which also provides technical assistance in the development of PFB.

This synergy is carried out in order to follow up on the policy of the Joint Disaster Management Fund which has been stipulated through Presidential Regulation Number 75 of 2021 along with its implementation regulations, namely through the Minister of Finance Regulation (PMK) Number 28 of 2025 concerning Management of Joint Disaster Management Funds and PMK Number 43 of 2025 concerning Insurance for State Property.

Through the launch of the BMN insurance program with the PFB scheme, he hopes that the protection of BMN will increase, so that the government's fiscal resilience and the sustainability of public services will be maintained when a disaster occurs.

As is known, the BMN insurance program is one of the government's strategies to transfer disaster risk to BMN to the insurance industry.

He conveyed that this step was a form of government mitigation efforts to maintain fiscal resilience during disasters.

Suahasil added that the program has been implemented since 2019, by relying on funding sources from DIPA of each ministry/institution (K/L), and is part of the Disaster Risk Financing and Insurance Strategy (PARB) launched by the government in 2018.

However, in its development, BMN insurance efforts are often constrained by the limited budget allocation of K/L.

According to Suahasil, this is what is then behind the formulation of the BMN insurance policy with the PFB scheme.

"This PFB fund is managed by the BLU of the Environmental Fund Management Agency (BPDLH), which is sourced from the APBN, APBD, grants, investments, and receipt of insurance claims," he said.

According to him, through the use of the results of the development of PFB, the implementation of BMN insurance can be accelerated, as a complement to BMN insurance funded by DIPA Ministries/Agencies.

Suahasil said that this policy is expected to be able to expand the coverage of BMN protection as well as increase the efficiency of disaster risk management by the government.