Strengthening Indonesia's Fiscal Resilience to Natural Disasters and Health-Related Shocks
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WASHINGTON, January 21, 2021 – The World Bank’s Board of Executive Directors today approved a $500 million loan to strengthen Indonesia's financial and fiscal resilience. The loan will help the country build and strengthen its financial response to natural disasters, climate risks, and health-related shocks.
Such shocks and disasters have become a constant threat to Indonesia's development progress. From 2014 to 2018, the central government spent between US$90 million and US$500 million annually on disaster response and recovery, while local governments spent an estimated additional $250 million over the same period.
"Financial preparedness for disasters, climate shocks, and health crises such as COVID-19 is increasingly important for Indonesia. This support will help the government deliver a more targeted and timely response, reducing the impact of disasters and helping to protect Indonesia’s development progress," said