The Financial resilience for disaster risk management in Indonesia

Abstract

Disasters can cause a significant financial loss on the human livelihoods. Indonesia is located in very vulnerable area to disasters. So that Indonesia needs a good disaster management to handle any possible disasters exposure. Resilience is an essential concept in disaster risk management which is defined as the ability to recover quickly from or resist being affected by various disaster impacts. Financial resilience is a kind of ability to fund every disaster response, recovery and reconstruction in an efficient and effective manner. Financial resilience to manage the disaster risk is very crucial for Indonesia in order to avoid financial loss caused by any disasters. This study is aimed to identify the importance role of financial resilience for disaster risk management in Indonesia, describe the current financing mechanism of disaster costs in Indonesia, and explore some recommendations to build better financial resilience in the future. This research is using a qualitative approach method by conducting documentation study and in-depth interview. The finding of this study describes the current condition of financial resilience for disaster risk management in Indonesia. This research develops some practical recommendations for improving the financial resilience in Indonesia. The study result is expected to provide important contribution in strengthening the financial resilience for disaster risk management especially in Indonesia. Recommendations are proposed that minimizing hazards and exposure of financial loss from disasters need a high collaboration and synergy of any related parties such as public and private sectors, domestic and foreign institutions, and local and worldwide communities