National Development Planning Agency Republic of Indonesia MAINSTREAMING Disaster risk reduction IN DEVELOPMENT PLANNING AND BUDGETING SYSTEM: CASE OF INDONESIA Dr. Suprayoga Hadi (suprayoga@bappenas.go.id) Director for Special Area and Disadvantaged Region, National Development Planning Agency (BAPPENAS), Republic of Indonesia National Project Director of Safer Communities through Disaster Risk Reduction in Development (SCDRR), a cooperation between Government of Indonesia and UNDP 2nd Session of Global Platform for Disaster Risk Reduction Geneva, Switzerland, 16-19 June 2009

Indonesia as a Disaster Prone Country With Indonesia’s more than 18,000 islands along the Pacific “ring of fire” of active volcanoes and tectonic faults, the recent disaster is a reminder of the natural perils facing this expansive archipelago Consist of approx. 224 million inhabitants, disproportionately distributed, comprises a mix ethnicities, community groups, religious denominations, customs and traditions Flood and landslides also very common in the forest fringe areas in the rainy season with number of causalities and damaged settlements (N Sumatra, Kalimantan, Central and East Java, and Sulawesi) Most of the main river banks are crowded with low-income squatter with high population density, increasing uncontrolled sedimentation 383 out of 483 districts/cities are disaster prone areas, for the reason of high number of population, high density areas with unevenly population distribution, high income disparity, increasing percentage of building coverage at urban and settlement area, decreasing water and sanitation quality Early warning system is not ready available and ready to lowering the risk and impact in the prone areas of disasters, such as earthquake, landslides, and drought Implementation of spatial plan for land use management were somewhat inconsistent and contributed to the high risk of natural disaster . The policy, legal or regulatory framework is not fully in place that makes disaster risk reduction a normal part of the decentralized, local level development process.

Issues on Natural Disaster in Indonesia 130 Active volcanoes  potency to volcanic hazards Recent Earthquake in Indonesia Yogyakarta-Central Java, June 2006 Bengkulu-West Sumatera, September 2007 Gorontalo-Central Sulawesi, December 2008 West Papua, January 2009 Tsunami Recent tsunami in Indonesia Year Location No of casualty (people) 1992 Flores Tsunami 1,950 1994 East Java Tsunami 238 1996 Irian Jaya Tsunami 110 2004 Indian Ocean Tsunami 283,000 2006 West Java Tsunami 645 Floods: Natural Factor (topography, high tide, rainfall) Man-made Factor (change in land use, squatter area in river banks, decrease in river capacities affected by the pile of garbage and lack of maintenance, increase of sedimentation rate, etc)

Disaster Data affected by Global Climate Change in Indonesia (1998 – 2007) Source: DIBI, 2009

Regulatory and Institutional Reform on DRR and Climate Change Law No 24 year 2007 on Disaster Management Law No 26 year 2007 on Spatial Planning Law No 27year 2007 on Small Islands and Coastal Management Government Regulation (GR) No 21/2008 on DM Operations, GR No 22/2008 on Funding & Management of Disaster Assistance, GR No 23/2008 on Participation of International Institutions and Foreign Non-Government Institution in DM GR No 26 / 2008 on National Spatial Planning Presidential Regulation No 8 / 2008 on NDMA (BNPB) Presidential Regulation Nr 46 / 2008 on National Council for Climate Change Ministry of Home Affairs Regulation No 46/2008 on BPBD Organization and Works Mechanism Head of BNPB Regulation No 3/ 2008 on BPBD Regulatory Framework Institutional Framework Establishment of BNPB Establishment of BPBD in a number of provincial and district / city levels Establishment on National Platform on DRR Establishment of National Council for Climate Change Establishment of Mitigation Forum (led by Min of Marine & Fisheries)

Mainstreaming DRR and Climate Change into Development Planning System Long-term Development Planning (RPJP) 2005 – 2025: RPJP 2005 – 2025 has identified CC as a critical challenge to Indonesia. Under the Development Direction: Terwujudnya Indonesia yang Asri dan Lestari (Everlasting Indonesia), the Plan highlights the various disasters caused by extreme climatic events in Indonesia, including the recent floods and droughts that have brought about heavy losses to national economy Mainstreaming CC and DRR into RPJMN 2005 – 2009 : Natural Resources Protection and Conservation, with main activities including : Review of policies on natural resource protection and conservation Protection of natural resources against uncontrolled exploitation Protection against forest fires Management and protection of biodiversity against extinction, on land, coasts and sea. Partnership building with universities, local communities, NGO and private sector for the protection and conservation of natural resources Spatial planning and zoning for the protection of natural resources, especially in areas prone to tectonic earthquakes, tsunami, floods, drought and other hazards. Program to Develop Capacity in Natural Resources and Environmental Management Program to Improve Quality and Access of Information on Natural Resources and Environment

Mainstreaming DRR and Climate Change into Development Priority in 2007-2009 Policy National Priority Focus Presidential Regulation No. 19 / 2006 on Annual Government Work Plan (RKP)for 2007 Priority VII: Disaster Mitigation and Management Focus 3: Institutional Strengthening for the Disaster Prevention and Management at the National and Local Level Focus 4: Disaster Prevention and Disaster risk reduction Presidential Regulation No. 18 / 2007 on Annual Government Work Plan (RKP)for 2008 Priority VIII: Disaster Management, Disaster Risk Reduction, and Improvement of Contagious Disease Eradication Focus 2: Elaboration of the national action plan for disaster risk reduction Focus 3: Development of institutional and human resource capacity in disaster mitigation and early warning system Focus 4: National and local spatial planning based on disaster risk reduction Presidential Regulation No. 38 / 2008 on Annual Government Work Plan (RPK) for 2009 Priority II: Acceleration of Economic Development through Fortification of Economic Resilience Supported by Agriculture Development Focus 5: Strengthening Capacity in Global Climate Change Mitigation and Adaptation

GoI Current Policies on DM LAW on DM No. 24 / 2007 Changing paradigm in DM: National and Local Plan for DM National and Local Action Plan for DRR Funding Arrangement for DM: - National Budget - Local Budget - Private sectors and/or community - International Donors and NGOs PP 21/2008 on DM Arrangement PP 22/2008 on DM Financing PP 21/2008 on DM External Supports Presidential Regulation (Perpres) No 8 / 2008 on the establishment of National Disaster Management Agency (BNPB) Ministry of Home Affairs Decree (Permendagri) No 46/2008 on the establishment of Local Disaster Management Board (BPBD)

Integration of DM Plan & NAP-DRR into Dev’t Plan Long –term Development Plan (RPJP) 2005 - 2025 Initiative Rights from Councils Involve multi stakeholders the preparation of the plan Involve multi stakeholders in DRR activity DM Law 24/2007 National Action Plan for DRR (NAP-DRR) (2006 – 2009) DM Plan 2010-2014 & NAP-DRR 2010-2012 Mid–term Development Plan (RPJM)2010- 2014 Government Annual Plans (RKPs) 2007, 2008 & 2009 Government Annual Plans (RKPs) 2010, 2011, etc

Policies on DRR Financing PP 22/2008 on DM Financing Funding Resources : APBN (Nat’l budget) APBD (local budget) Community Emergency Response Pre-Disaster Post Disaster In situation of non-occurrence of disaster: Facilitation of DM Planning formulation DRR Programming Disaster prevention programming Integration of development planning with DM planning Facilitation of implementation and enforcement of spatial planning Formulation of DR Analysis Implementation of DM Education and Training Formulation of technical standards for DM In situation of potential occurrence of disaster: Preparedness activity Development of Early Warning System Disaster mitigation activities

Comprehensive Planning and Funding Arrangements for DRR in Indonesia Preparedness / Risk Reduction (Pre-disaster) Developing Early Warning System (EWS) in prone areas (including dissemination EWS to community) Community awareness for disaster preparedness Capacity building to institutions for disaster management (coordination & immediate response) Line Ministries/ Sectoral Budgets Mapping prone areas (earthquake, land sliding, flood, volcanoes, weather disaster) Responsible parties

Position of NAP-DRR within the Planning and Budgeting Process Nat’l Sectoral Medium-term Plan Sectoral Annual Work Plan Sectoral Budgetin g Plan Detail of National Budget Government Central NAP-DRR National Long-term Plan National Medium-term Plan Gov’t Annual Work Plan Annual Budget Plan National Annual Budget Prov/Local Long-term Plan Prov/LocalMedium-term Plan LG Annual Work Plan Prov/Local Annual Budget Plan Prov/Loc al Annual Budget Provincial/Local Government LAP-DRR Prov/Local Sectoral Med-term Plan LG sectoral Annual Work Plan Rprov/Local Sectoral Budget Plan Detail of Prov/Local Budget

Framework on DM Planning Coordination LONG-TERM DEVELOPMENT PLAN (RPJP – RTRW) MID-TERM DEVELOPMENT PLAN (RPJM – RPB) SECTORAL STRATEGIC PLAN DRR ACTION PLAN ANNUAL GOVERNMENT WORK PLAN RPJP NATIONAL RPJM NATIONAL RKP NATIONAL RENSTRA K/L NATIONAL RTRW NATIONAL NATIONAL DM PLAN NAP DRR RENJA K/L RPJP PROVINCE RPJM PROVINCE RKPD PROV PROVINCIAL RENSTRA SKPD PROV RTRW PROVINCE DM PLAN PROVINCE LAP DRR PROV RENJA SKPD PRO RPJM DISTRICT RPJP DISTRICT/ CITY RKPD CITY / DISTRICTT RENSTRA SKPD K/K DISTRICT LAP DRR CITY/ DISTRICT RTRW DISTRICT / CITY DM PLAN DISTRICT / CITY RENJA SKPD K/K 13

DRR related Budget Allocation Disaster Management and DRR related Budget Allocation in Gov’t Annual Work Plan 2007 & 2008 No Focus Budget 2007 (Rp Billion) Budget 2008 1 Rehabilitation and Reconstruction for post-tsunami in NAD Province dan Nias North Sumatera 9.710,6 6.727,2 2 Rehabilitation and Reconstruction for post disaster in Alor-Nabire, DI Yogyakarta and Central Java, and other disaster areas 287,8 648,2 3 Institutional Strengthening in Disaster Management at central and local levels (Early Warning System and mitigation) 49,8 1.028,7 4 Disaster Risk Reduction 94,0 127,3 5 Capacity Building and Community Preparedness in Disaster Management 78,0 6 DRR Mainstreaming in spatial plan 277,0 7 Avian Flu Eradication 604,3 Total 10.220,1 9.412,7 DRR related Budget Allocation 221,8 1.433,0

Disaster Management and DRR related Budget Allocation in Annual Work Plan 2009 No Program Budget (Rp Billion) Line Ministry 1 Rehabilitation and Reconstruction post tsunami in NAD Province and Nias Island 969,42 MoPW, MOHA, MoT, Kemeng PDT 2 Development Program for HRD in Meteorology and Geophysical Sector 100,15 BMG 3 Research and Development Program 5 LAPAN 4 Conservation Program for Water Resources 17 Bakosurtanal Diffusion and Utilization of Technology & Science 50 Ministry of Research and Technology 6 Health Development Program 600 Ministry of Health 7 Capacity Development Program for Research and Technology in Production System 15 BPPT 8 Assistance Program for Social Sector 519,03 Ministry of Social Affairs, BPLS 9 Recovery Program for disaster affected areas 83,25 Bakornas PB Total 2.358,85

Disaster Management and DRR Financing in Indonesia 2007-2009 Based on the DM Law and Government Regulation No 22 / 2008, the DRR financing resources are from: Government (National & Local) Community / Private Donors The Government allocates the budget based on the RPJM and RKP (Government Annual Works Plan) as indicated on the previous slides. The specific national budget for climate change was allocated in the RKP 2009 (in Priority no 2 – Focus 5), while in the past, the government activities targeting for CC were embedded into regular development programs with no specific national budget allocated to CC. The Climate change financial scheme will apply the rules and procedures under UNFCCC and ODA financing mechanism, and aligns with GOI general financing policies. For external funding, Indonesia prioritizes grant utilization to finance CC programming which is from bilateral or multilateral donors

DRR Financing in Government Budget 2007-2009 No RKP Priority Activity Budget (IDR, Million) 1 2007 DRR , incl. Capacity building and community preparedness for DM 221.80 2 2008 Implementation of NAP DRR; Institutional strengthening in DM (EWS and disaster mitigation); and DRR mainstreaming into spatial planning 1,433.00 3 2009 Focus 5: Strengthening and development in Global CC Mitigation and Adaptation (undertaken by various line ministries, such as Ministry of Agriculture, Ministry of Marine and Fisheries, Ministry of PW, Ministry of Forestry, State Ministry of Environment, BMKG, MoHA, Bakosurtanal & BNPB) 1,736.40

Comparison of Program Proposal in the National Action Plan on Disaster Risk Reduction Against Government Allocation 2007 - 2009 IDR. Million Data compilation as per Feb. 2009

Non Government Budget Multilateral and Bilateral Loans/Grants on DRR in supporting: 1. Institutional and Regulatory development at national and local levels; 2. Revitalization of Agriculture, Forestry and Rural Areas 3. Conservation critical upstream watershed areas 3. Poverty reduction programs 4. Community Development Programs (livelihoods, settlement infrastructure program) 5. Development and strengthening on Early Warning System (including strengthening multi sector and multi stakeholder coordination and cooperation within early warning chain) 6. Infrastructure development (incl. regulation and building standards) 7. Strengthening BMG on Climate and Weather Services Capacity 8. DRR Education and Training Program 9. Raising Public Awareness

Comparison of Program Proposal in the National Action Plan on Disaster Risk Reduction Against Donor and NGO’s 2007 - 2009 IDR. Million Note: Data collection Jan - Feb 2009 Most of the programs are multi years. The budget allocation is recorded at the first year of the program

Donors Contribution to DM System Pre-disaster phase: strengthen local and national capacities, to effectively prevent, mitigate, prepare for, respond to and recover from disasters; support and promote the effective implementation of legal and regulatory instruments for disaster risk reduction and disaster management and support dialogue and coordination between agencies and institutions at all levels to prepare for effective disaster risk management. During disaster making use of disaster response capacities, and taking into account the responsibilities assigned under the ongoing humanitarian reform process and where national capacities are exceeded support Government efforts to provide emergency humanitarian assistance to disaster affected populations conduct needs assessments share information and assist Government in coordination of the disaster response Post-disaster phase making use of pre-existing frameworks for cooperation, and taking into account the Millennium Development Goals and the Hyogo Framework for Action and support national efforts to help communities effectively recover from the impact of disaster and to promote sustainable development

Lessons Learned Shifting the paradigm mandated in the DM law No 24/2007 enhances the participation form non-government multi stakeholders, mainly international community and NGOs in the DM and DRR activities; Indonesia experiences in recent disasters (Aceh & Yogya) implies to: generate government in the acceleration of the finalization and implementation of DM and DRR regulatory and institutional frameworks; enhance the awareness of people in the importance of DRR; attract international communities in supporting government in the promoting DRR; Commitment and support from international communities and donors significantly provide advocacy policy frameworks and generate the implementation of mainstreaming DRR into sustainable development, such as Program SCDRR supported by DFID and UNDP, GFDRR by the World Bank, AusAID, JICA etc.

CHALLENGES and WAY FORWARD Develop the derivation from the DM Law in line with the mainstreaming DRR into sustainable development; Integrate and synergize strategies adopted by each sectors into a holistic approach of DRR in the development; Strengthen capacity of government institutions and apparatus in the DM and DRR aspects; Improve public awareness through campaign, simulation drill, etc Introduce DRR Sensitivity Planning Approach as the bottom up development planning and budgeting approach starting at village levels; Formulate policy recommendation and strategy for the implementation of CBDRM, that currently implemented fragmentary by NGOs at sub-district and village levels; Shift the international donors and community on the DRR implementation from ‘favorable areas’ (Aceh & Yogya) to other prone disaster areas; Formulate sustainable tools to link from rehabilitation and reconstruction stage to DRR and mitigation efforts, as well as integrate DRR and Climate Change (NAP-DRR and NAPA).

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