Indonesia to Focus on Disaster Insurance, Financing at 2018 IMF-World Bank Meetings

From left, Finance Minister Sri Mulyani Indrawati, Communications Minister Rudiantara, Coordinating Maritime Affairs Minister Luhut Panjaitan and Central Bank Governor Perry Warjiyo participating in a press conference ahead of the 2018 International Monetary Fund-World Bank Annual Meetings in Bali on Monday. (Photo courtesy of Bank Indonesia)

By : Sarah Yuniarni | on 6:41 PM October 09, 2018
Category : Economy, Featured, Banking/Finance, Disasters

Nusa Dua. Indonesia will focus on discussions on disaster insurance and financing during the 2018 International Monetary Fund-World Bank Annual Meetings in Bali this week.

"We will discuss this at the annual meetings. Each country has a different risk level and many countries have taken some steps to prevent disasters," Finance Minister Sri Mulyani Indrawati told reporters during a press conference in Nusa Dua, Bali, on Monday.

She cited the example of some South American countries that have issued sustainable development bonds through the World Bank to obtain insurance against disaster risks.

Chile, Mexico, Colombia and Peru have collectively raised $1.36 billion earlier this year for earthquake protection.

Sri Mulyani said Indonesia shares similarities with South American countries and that she wants to learn from their experience on how to limit disaster risks.

"We want to expand our financial instruments so that we can cover the myriad of risks our society faces," the minister said.

Indonesia is known as a disaster-prone country and it is currently grappling with two massive recent natural disasters in two provinces – a series of powerful earthquakes that struck Lombok in West Nusa Tenggara during July and August, and an earthquake and tsunami in Palu and Donggala in Central Sulawesi last month – which have claimed thousands of lives and destroyed crucial infrastructure.

Aside from a disaster-financing scheme, Indonesia will also focus on other issues, such as creative and innovative financing, digital economy, climate change, human resources investment and gender disparity.

Bank Indonesia Governor Perry Warjiyo said the IMF-World Bank meetings, which will take place on Oct. 12-14, will feature 10 main meetings, 107 side events and 46 parallel events.

More than 34,000 people, including heads of state, academics, international observers, bankers, journalists and representatives of 189 countries, are expected to attend.

Indonesia has set aside Rp 855 billion ($56 million) to host the event. The government has so far spent Rp 556 billion on infrastructure development in Bali, including an expansion of the runway at Bali's Ngurah Rai International Airport.

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