BPDLH examines best approach for FRLD disaster recovery fund mechanism
Jakarta (ANTARA) - The Indonesian Environmental Fund Management Agency (BPDLH) is still examining the best approach for the international disaster recovery fund mechanism through the Flood, Risk, and Loss Fund (FRLD) managed by the World Bank.
“BPDLH is currently accessing this; we have two proposals related to the FRLD. First, to establish a disaster fund for terrestrial areas, and second, to establish a disaster fund for coastal areas, because when we discuss disasters, they can occur on land or at sea,” explained the President Director of BPDLH, Joko Tri Haryanto, in Jakarta on Thursday.
Quoting from the official World Bank website, the FRLD is a multilateral fund designed to assist developing nations in facing the adverse impacts of climate change. The World Bank serves as the trustee and host of the temporary secretariat for four years, without the authority to decide on the mobilisation, allocation, or eligibility of funds.
Furthermore, Joko stated that the FRLD is still considered a new institution; therefore, the targeted form or focal point must still be reviewed in more detail by interested countries. “From its initial setup to its current operations, due to the conditionality of being a new fund institution, they are still finding their form,” said Joko.
He assessed that Indonesia is still seeking the best approach through two proposal options, namely regarding post-disaster management and disaster mitigation. “We are navigating this with one proposal focusing on evidence—how recovery occurs after a disaster happens. Then, the second proposal focuses on forward-looking mitigation,” said Joko.
“This is our way to ensure we do not get ‘trapped’ by their current unclear pattern, specifically regarding whether their focus is on post-disaster or pre-disaster measures,” he added.
Meanwhile, Joko noted that Indonesia possesses the Disaster Pooling Fund (PFB), an endowment fund for disasters managed by the Ministry of Finance. He continued that the PFB is a scheme to collect, accumulate, and distribute specific disaster funds through a fund management agency.
The establishment of the PFB is intended to protect the State Budget (APBN) from the pressures caused by disasters through proactive efforts during periods when no disasters occur, involving fund accumulation through investment and risk transfer via insurance. This instrument is designed to provide sustainable funding for pre-disaster, emergency response, and post-disaster financing.