EUR 100 Million AFD Loan to increase Indonesia’s natural disaster risk resilience [id]
Jakarta, 28 July 2021. – Mr. Luky Alfirman Indonesia Director-General of Budget Financing and Risk Management and Mrs. Sophie Chappellet, AFD Indonesia deputy director, signed a loan agreement of EUR 100 Million in the presence of Mr. Olivier Chambard, the French Ambassador for Indonesia and Timor Leste, as a part of Disaster Resilience Management (DREAM) Program.
Indonesia is one of the most disaster-prone countries in the world (floods, earthquakes, landslides, volcano, wildfire, etc.). Furthermore, the ongoing climate change will significantly increase the risks, particularly concerning floods, which are already the most frequent and costly disaster. In response to these challenges, AFD joined JICA for financing Phase 2 of the DREAM Program.
“This project gives shape to a French-Japanese partnership in Indonesia and in the Indo-Pacific region. A region of utmost importance in all aspects in which Indonesia is a key player" said Olivier Chambard, the French Ambassador in Indonesia.
In line with the Sendai framework, the program will focus on four key areas : (i) strengthening the government’s Disaster Risk Reduction (DDR) policies and Disaster Management Action Plan ; (ii) increasing the promotion of understanding disaster risks ; (iii) promoting the investment in DDR for resilience through a strategic plan in the Ministry of Public Works and Housing ; (iv) enhancing to build back better in recovery rehabilitation and reconstruction.
The resilience of the economy is the very objective of the public policy supported with this financing. By supporting risk management preparedness measures that will be integrated into land-use planning policies, in particular, the program will enable a sustainable reduction of disaster-caused damages in the long term. More specifically, the program aims to strengthen natural disaster risk management, of which around 80% are related to water, weather, and climate. It, therefore, contributes directly to improve Indonesia’s resilience to climate change, including through an uncertainty management approach inherent to the DRR approach.
“In addition to this policy-based loan that aims to help the Government of Indonesia to strengthen its disaster and climate resilience, in June 2021, AFD has started the technical assistance to reinforce the inclusion of gender equality in DDR policies at the national and local level in Indonesia” said AFD Indonesia deputy director Sophie Chappellet. “This additional support will assess the inclusion of gender equality in the policy actions of the program.”
AFD is an inclusive public financial institution and the main actor in France’s development policy. It makes commitments to projects that genuinely improve the everyday lives of people, in developing and emerging countries and in the French overseas territories.
AFD works in many sectors – energy, health, biodiversity, water, digital technologies, training – and supports the transition to a safer, more equitable and more sustainable world : a world in common. Its action is fully in line with the Sustainable Development Goals (SDGs).
Through its network of 85 agencies, AFD operates in 109 countries and is currently supporting over 3,600 development projects.
AFD started its operations in Indonesia in 2007 with a mandate focusing on the fight against climate change. Since then, it has mobilized more than € 2 bn of financing in Indonesia and aims at contributing to the achievement of the Sustainable Development Goals (SDGs) and to preserve common goods.