2,112 Ministry And Institutional Buildings Insured, Value Of IDR 17 Trillion

Head of the Fiscal Policy Agency of the Ministry of Finance (Kemenkeu) Febrio Kacaribu. (Photo: Antara)

JAKARTA - Head of the Fiscal Policy Agency of the Ministry of Finance (Kemenkeu) Febrio Kacaribu said that currently Indonesia has insured 2,112 ministry and institutional buildings.

This insurance is part of the Disaster Risk Financing and Insurance (DRFI) Strategy and has been started since 2019.

"Insurance for government buildings, training centers, and health facilities against disaster risk is a pilot project. To date, we have insured 2,112 buildings of all K/L with a total coverage value of around IDR 17.05 trillion or equivalent to 1.03 billion dollars. US," Febrio said, quoted from Antara, Saturday, May 28.

The government plans to insure all buildings of ministries and government agencies this year and in the future the insured state assets will also be expanded to include roads, bridges and other infrastructure.

"Local governments are also expected to increase their role in disaster risk financing through involvement in the Joint Fund where they are encouraged to insure their assets. The government is developing incentive mechanisms to realize this," he said.

The Disaster Pooling Fund (PFB) was established through Presidential Regulation Number 75 of 2021 which provides additional funds to complement the disaster contingent budget and the regular budget for short-term disasters and is designed as an insurance tool against disaster risks in the long term.

PFB is managed by the Environmental Fund Management Agency (BPDLH) in order to strengthen the synergy between climate change action and disaster risk reduction because more than 90 percent of Indonesia's natural disasters are in the form of hydrometeorological disasters such as floods, landslides, strong winds, extreme weather or typhoons.

“PFB mobilizes funds especially at the pre-disaster stage from the APBN, APBD, and other resources such as the private sector, financial institutions, communities, partner countries and others. The funds will be used to finance disaster-related activities in the pre-disaster, emergency and post-disaster stages, including risk transfer by obtaining insurance products to protect public assets and our vulnerable communities, such as farmers and fishermen," said Febrio.