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Lessons Learned from Post-Disaster Recovery in Yogyakarta and Central Java, Indonesia

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Dr. Suprayoga Hadi ([email protected]) Director for Special Area and Disadvantaged Region

LEARNING FROM THE INDIAN OCEAN TSUNAMI: Asian Development Bank's RESPONSE IN INDONESIA

Manila, 7-8 December 2009

REPUBLIC OF INDONESIA

STATE MINISTRY FOR NATIONAL DEVELOPMENT PLANNING/ NATIONAL DEVELOPMENT PLANNING AGENCY

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ƒ Magnitude : 6,2 Richter scale

ƒ Occurred at 5.55pm for 57 seconds

ƒ Epicenter in the Indian Ocean at about 33

kilometers south of Bantul district

ƒ Human toll: 5,716 killed

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Damage

Losses

TOTAL

Housing 13.9 1.4 15.3 Social sector 3.9 0.1 4 Productive sector 4.3 4.7 9.0 Infrastructure 0.4 0.2 0.6 Cross Sectoral 0.2 0.1 0.3 TOTAL 22.8 6.3 29.1 13.7 3.3 5.9 2.3 27.2 2.5 7.7 2.2 3.7 14.2 16.2 11.1 8.1 6.0 41.4 Aceh-Nias Figures (Rp Trillion) (Rp Trillion)

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27.3 16.6

DAMAGE AND LOSSES (Billion Rp.)

22,751 6,398

Damage Losses

Damage

Damagess & Losses, Aceh vs. Yogya:& Losses, Aceh vs. Yogya: 1. Aceh: Damage (27.3T) > Losses (16.2T) 2. Yogya: Damage (22.7T) > Losses (6.4T)

Aceh

Aceh--NiasNias Yogya

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5 0 2000 4000 6000 8000 10000 12000 14000 16000 R p B ill io n

Housing Productive Sectors Social Sectors Infrastructure Cross Sectoral

DAMAGE AND LOSSES IN MAIN AFFECTED SECTORS

Damage Losses 0 2 4 6 8 10 12 14 R u p ia h T ri llio n

Housing Transport Industry Education Energy Agriculture Fishery

Main affected sectors, Aceh vs. Yogya:

Main affected sectors, Aceh vs. Yogya:

1. Aceh: Housing > Infrastructure > Economic 2. Yogya: Housing > Economic > Social

Aceh

Aceh--NiasNias

Yogya

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THE RECOVERY POLICY AND PROGRAM

THE RECOVERY POLICY AND PROGRAM

1. The action plan for rehabilitation and reconstruction prepared by Bappenas, in close

collaboration with the provincial government of Yogyakarta and Central Java

The principle of post disaster recovery: utilization of rehabilitation and reconstruction to recover livelihood and promote community resilience towards the potential natural disaster in the future

2. The main element of the recovery program comprised:

a) Housing and settlement infrastructures b) Public infrastructures

c) Revitalization of regional economy

d) The timeframe for rehabilitation and reconstruction 18 months (until the end of 2007 but in

due course extended until December 2008)

3. The recovery policy framework:

a) Reconstruction /retrofitting damaged infrastructures

b) Provision of small grant assistant/stimulant for housing reconstruction and micro/small

businesses revitalization

c) Provision of regulation for development acceleration

4. The recovery process implemented by the local government with policy and funding

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The Implementing Agencies President RI The Steering Committee The Implementing Committee Province Yogyakarta The Implementing Committee Province Central Java

The National The National Technical Team Technical Team Line Ministries Line Ministries The Implementing Agencies The Implementing Agencies

The Coordination Team

For Rehabilitation and Reconstruction Presidential Decree (Keppres) Nr.9/2006

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Financed by private/ company/ community Financed by community / private with government support Government Expenditure, support by community Finance by Government Expenditure Housing and

settlement Physical rehabilitation

Infrastructure Physical rehabilitation : electricity water, telecom Physical rehabilitation : market-place Physical rehabilitation: road, bridge, irrigation

Social sectors Physical

rehabilitation : culture/national and world heritage, health, education Physical rehabilitation: government offices, public facilities Economic

sectors Financial stimulation, and regulatory support : economic sector in general Financial stimulation and regulatory support : SME

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Total

Damages and Losses (IDR trillion) Government Financed (IDR trillion) %

Housing

15.3

7,0

46%/60%

Social Sector

4

2,8

70%/24%

Productive Sector

9.0

1,3

14%/11%

Infrastructure

0.6

0,4

60%/3%

Cross-Sector

0.3

0,2

66%/2%

TOTAL

29.2

11,7

40%/100%

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Prioritization for housing reconstruction and preparation of earthquake resistance building guideline Consolidation and socialization to the affected community Fund Channeling and housing reconstruction Administrative

arrangement for fund channeling Establishment of Community Group 1 2 3 4 5

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1. The Government adopted a community-driven development approach for

house reconstruction: one of the largest community-based housing projects in

the world: total number of heavily damaged or destroyed houses = 177,469 for Yogyakarta and = 104,084 for Central Java

2. The government assistance for constructing seismic resistant core housing units of 36 sq. meters: construction of sound foundations, frames, and roof;

and technical support and community education for incorporating improved seismic standards in reconstruction and the local government issues building permits free of charge

3. The provincial government of Yogyakarta decided to distribute funds through a priority-based, phased approach, which completed prioritized houses first

<<<>>> The provincial government of Central Java, adopted an equity-based approach whereby funds were distributed simultaneously to all beneficiaries in multiple phases.

4. One year after the earthquake, more than 140,000 houses had either been completed or were under construction; communities realized that good

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In reference to Bappenas’ 2 years evaluation on rehabilitation and reconstruction, funding gap FY 2008 identified on the are a as following :

Funding Needs Funding Available Funding Gap

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1. The National Coordinating Board for the Management of Disaster (BAKORNAS PB), along with provincial and local authorities took a lead role in coordinating emergency response mechanisms on the ground and work together with the UN’s Inter-Agency Standing Committee (IASC), and non-UN Agencies

Immediate requirements after the disaster: shelter support, water and

sanitation, health and nutrition, child protection and education, emergency telecommunication, logistics, early recovery, and coordination

2. Very different donor response compared with the Aceh 2004 tsunami

a) The interim support prior to the start-up reconstruction diminished by early 2007.

b) The number of remaining international agencies thereafter small: ie UNDP, GTZ, JICA, AUSAID followed by some major donors joining the Java

Reconstruction Fund.

c) The total donor assistance for Yogyakarta and Central Java approx. 15% of total IDR 7.9 trillion allocated funding by the end of FY 2008.

3. Contrasting funding situation:

a) Multi Donor Fund Aceh-Nias: $ 676.08 million in commitments b) Java Reconstruction Fund: $ 94,76 million in commitments

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1. The JRF – using a governance structure similar to the Aceh-Nias MDF

--governed by a Steering Committee responsible for:

a) endorsing overall priorities

b) endorsing project financing proposals c) reviewing fund progress

d) ensuring coherence and collaboration with activities funded by the government’s

action plan

e) the results framework

2. The Steering Committee also serves as a forum for policy dialogue with the

government on issues relating to the reconstruction and development efforts

3. Members of the Steering Committee are:

a) a representative from the National Coordinating Team, formed to coordinate and

implement the reconstruction efforts in Yogyakarta and Central Java

b) The contributing donors to the JRF c) The World Bank as trustee

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1. From JRF’s total funds of US$ 79.9 million, to date 66.7 million has been

committed to reconstruct housing and community infrastructure projects. The remaining funds are planned to finance projects restoring livelihoods.

2. Transitional Housing: The JFR aimed to provide safe and durable

transitional housing while permanent houses were rebuilt; thereby promoting early resumption of household activities.

3. Permanent Housing and Community Infrastrucure: The JFR rebuild 15,153

earthquake-resistant houses and community infrastructure, and

implement disaster preparedness and mitigation investments in 100

villages, using a community-driven approach to planning, prioritization, and implementation.

4. Livelihoods: The Restoring Livelihoods Program plans to provide livelihood

recovery in the affected areas in Yogya and Central Java based on the required gaps identified during a livelihood assessment in April 2007.

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Pledges: Seven donors committed and disbursed a total of $94.06 million Source $ million 1 European Commission 51.17 2 Government of the Netherlands 12.00 3 Government of the United Kingdom 10.77 4 Asian Development Bank 10.00 5 Government of Canada 6.53 6 Government of Finland 1.99 7 Government of Denmark 1.60 Total Contributions 94.06

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1. Overall GoI reconstruction efforts delivered more than 270,000 houses in 18

months – this is an achievement unprecedented worldwide

2. In accordance to TTN’s evaluation; 80% housing construction have met the

seismic resistant standard

3. Retrofitting to the unqualified standard to be implemented through the sector

program

4. The CDD approach generates community contribution in many forms: capital,

work force, building material and equipment

5. One of the major contributing factors of success – giving the implementation

task to the provincial government of Yogyakarta and Central Java

6. Although inferior in reconstruction fund supports, both provinces managed to

recover the function of basic services, and shifting paradigm from disaster response to prevention

7. Both province promptly adopted the Law 24/2007 on Disaster Management to

reform their local development policy and institutional framework for disaster management

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YOGYAKARTA & CENTRAL JAVA

1. The impact of earthquake and tsunami received

extensive media coverage and drew the attention of international assistance

2. The local government function incapacitated by

the massive impact of tsunami

3. The central government set up BRR to implement

the rehabilitation and reconstruction

4. APBN projects implemented through BRR, with

participation of the local government

5. Donor projects coordinated and monitored by

BRR

6. Housing reconstruction implemented through

mixed approach (contractors and CDD)

7. DRR approach in the initial recognition stage

8. Except the MDF, the Implementing Agency BRR

established RANTF to collect donations

9. BRR mandate expired on April 2009

1. The impact of earthquake only received

“standard” media coverage and lesser attention when the emergency response expired

2. The local government still fully functional

aftermath the disaster

3. The central government entrusted the task for

rehabilitation and reconstruction to the provincial government

4. APBN (national) projects implemented through

the line ministries, APBD (provincial) projects through the local sector agencies

5. Donor projects coordinated by the central

government and monitored by the local government

6. Housing reconstruction fully adopted the CDD

approach

7. DRR approach mainstreamed into development

framework

8. Except the JRF governs by the central agency and

donors, there is no other trust fund established by the central government

9. The Tim Keppres 9/2006 mandate expired on

April 2008

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YOGYAKARTA & CENTRAL JAVA

1. Prior to BRR’s departure April 2009, the

central government made transitional

arrangement through Perpres 47/2008 and Perpres 3/2009

2. The central agencies took over the remaining

BRR responsibility FY 2009 for reconstruction through the PMU-RRI (led by MPW) and other sector by relevant line ministries

3. The asset transfer managed through the Tim

Likuidasi at the MoF

4. Bappenas facilitated Bappeda Aceh and North

Sumatera to prepare the Action Plan for Development Continuation at both affected provinces until 2012

1. The handing-over mechanism from Tim Keppres

9/2006 to the central and local government was less complicated

2. The provincial and district government at both

provinces carry on development activities in FY 2008 through regular development processes and mechanism

3. Asset transfer managed through regular process

at the Ministry of Finance

4. Both provinces established Local DM Agency and

provide DRR feed back for the local development framework

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1) Law No 24 year 2007 on Disaster Management 2) Law No 26 year 2007 on Spatial Planning

3) Law No 27year 2007 on Small Islands and Coastal Management 4) Government Regulation No 21/2008 on DM Operations,

5) Government Regulation No 22/2008 on Funding & Management of Disaster Assistance,

6) Government Regulation No 23/2008 on Participation of International Institutions and Foreign Non-Government Institution in DM

7) Government Regulation No 26 / 2008 on National Spatial Planning 8) Presidential Regulation No 8 / 2008 on the establishment of BNPB

9) Ministry of Home Affairs Regulation No 46/2008 on BPBD Organization and Works Mechanism

10)Head of BNPB Regulation No 3/ 2008 on the establishment of BPBD

1) Establishment of National DM Agency (BNPB)

2) Establishment of Local DM Agency (BPBD) in a number of provincial and district/city levels

3) Establishment on National Platform on DRR 4) Establishment of Mitigation Forum

REGULATORY AND INSTITUTIONAL REFORM ON DM

REGULATORY AND INSTITUTIONAL REFORM ON DM

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Damages Losses Human Effects Recovery Needs Post-Disaster DRR Needs Early Recovery Needs Rehabilitation Reconstruction Long-term Recovery Recovery Financing 1. Nat’l Budget 2. Local Budget 1. Donors 2. Communities Post-Disaster Risk Assessment DaLA &  Humanitarian  Relief Needs Ass’t Needs  Identification Recovery  Action Plan Recovery  Financing Plan Post‐Disaster Needs Assessment

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1. The simplicity of Yogyakarta and Central Java recovery framework has been

replicated (with locality modification) at post earthquake in Bengkulu-West Sumatera (2007), and recently post earthquake in West Java-Central Java (2009) and West Sumatera (2009)

2. The existing public funding regulations and mechanisms does not allow a quick

response to post disaster needs, except from the restricted “on-call” resources managed by the National Disaster Management Agency

3. Immediately after humanitarian relief, an interim intervention is required to

address the on-going crisis for the provision of transitional shelter, water and sanitation, temporary health and education facilities, food allowance,

protection etc. to the affected communities

4. To fill-out the gap for interim intervention and scarcity of fund for longer term

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A national post disaster reconstruction fund may be an alternative mechanism to address current and future disaster response in Indonesia; it should have the following features:

1. Provide flexible financing instrument for systematic response to disaster,

preferably for longer-term and future use if desired

2. Have a streamlined approval process through flexibility in preparation, use

of emergency and early recovery procurement procedures and policy for rapid response to crisis and emergency

3. Have a focus on financing critical post disaster needs ie: housing,

community infrastructure, livelihoods, disaster risk reduction, technical assistance for quality assurance, monitoring and evaluation

4. Government-led with appropriate roles for the participating donors, when

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References

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