*Quoted from detik.com
Vice President of Indonesia, Mr. Jusuf Kalla (JK) welcomed the insurance discourse for natural disasters. This insurance can reduce the risk of state losses due to the disaster.
“The risk is how to manage disaster management and how fiscal risks rather than disasters. We certainly talk about and how the solution is. One solution is of course to prepare and provide awareness, and implement what we can do, such as disaster insurance,” JK said at the Bali International Convention Center, Nusa Dua, Wednesday (10/10/2018).
According to him, it is not easy to convince the public and the government that state and community assets are protected if it is affected by a disaster. During this time state assets were made without fiscal risk protection due to disasters.
“If the bridge is damaged, it is damaged, replaced again after a disaster. If the government building is damaged, yes, just change it. Everything becomes the burden of the state budget,” he said.
The government, continued JK, does not want to make disaster management a burden of the state budget. The government also does not want to continuously expect foreign assistance for disaster management.
“But also how is community participation, how can we guarantee in the long term, how can state assets be insured,” he said.
During this time, continued JK, there is no single rule on how assets of affected countries can be insured. For this reason, there needs to be a way to convince the public to always see the future of the risk of disasters.
“The last experience in Central Sulawesi that just happened last week was the earthquake and tsunami, there were 2,000 schools that were completely destroyed, so many bridges and so many government buildings. In addition, of course the houses of the community which reached 60 thousand houses must be reconstructed again. This all requires a large budget,” he explained.
JK was the speaker at the high-level dialogue on disaster risk financing and insurance in Indonesia with the theme ‘National Strategy for Building Fiscal Resilience’.