Indonesian Political, Business & Finance News

New Purbaya Disaster Detection System: Preventing Local Government Economic Devastation

| Source: CNBC Translated from Indonesian | Economy
New Purbaya Disaster Detection System: Preventing Local Government Economic Devastation
Image: CNBC

The Directorate General of Fiscal Balance (DJPK) of the Ministry of Finance, together with the United Nations Office for Disaster Risk Reduction (UNDRR) and the Bandung Institute of Technology (ITB), has introduced a new system designed to detect the impact of disasters on regional economies and finances.

Introduced on Monday (31/08/202/6), the new system is named the Adaptive Regional Integrated System for Fiscal Resilience (ARISE). This system functions as a policy support tool integrated with disaster risk modelling, providing estimates of the impacts on regional economies and fiscal health.

The Acting Director General of Fiscal Balance, Nufransa Wira Sakti, emphasised that disasters create fiscal pressure from two sides: reducing regional revenue and increasing expenditure requirements. Therefore, disaster risk management must be conducted in a measurable and proactive manner, rather than merely as a post-disaster response.

“We need to shift the paradigm from post-disaster response towards pre-disaster planning, and from financing losses towards managing risks,” he stated via a press release on Tuesday (01/09/2026).

ARISE is designed to provide comprehensive information regarding hazards, exposure, vulnerability, economic losses, and fiscal impacts. Consequently, local governments can strengthen mitigation planning, financial preparedness, and risk transfer strategies before a disaster occurs.

For the Central Government, ARISE will serve as an evidence-based policy foundation for refining Regional Transfer (TKD) policies and regional financial management.

The initial implementation of ARISE is being conducted in Bali Province. Subsequently, the government, alongside UNDRR and ITB, is committed to expanding the system to four more provinces: Aceh, DKI Jakarta, East Nusa Tenggara, and Central Sulawesi.

In the long term, ARISE aims to cover all provinces in Indonesia to strengthen regional capacity in anticipating the fiscal impacts of disasters.

The government hopes that ARISE can serve as an initial step in strengthening regional fiscal resilience against disaster shocks and climate change, while simultaneously maintaining the sustainability of national development.

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