Indonesia: Govt establishes US$500m disaster insurance fund

Indonesia: Govt establishes US$500m disaster insurance fund (asiainsurancereview.com)

The government has launched a Pooled Disaster Fund (PFB), aimed mainly at reducing state spending on natural disaster relief, like earthquakes and tsunamis, which are a common occurrence in the archipelago.

Other sources of financing for the Fund will include insurance claims settlements, investment returns of managed funds, and grants from fund management units within the Ministry of Finance, etc.

The government introduced the Fund by issuing on 13 August Presidential Regulation No 75/2021 on a joint fund for disaster management, reported The Jakarta Post. President Joko Widodo signed the Presidential Regulation.

"The joint fund aims to support and complement the availability of adequate, timely, targeted, planned and sustainable disaster management funds in an efficient, effective and accountable disaster management effort," reads the presidential decree.

Money from the Fund will be disbursed for disaster management, including pre-disaster activities, disaster emergencies, post-disaster measures especially regional recovery. The Finance Ministry is managing the Fund.