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ADFIAP Advances Indonesia’s Leadership in Pre-Disaster Finance Through High-Level Mission

ADFIAP Advances Indonesia’s Leadership in Pre-Disaster Finance Through High-Level Mission

JAKARTA, INDONESIA – ADFIAP has completed a strategic mission in Indonesia, reinforcing its regional efforts to accelerate pre-disaster Disaster Risk Reduction (DRR) and climate-adaptation financing. Held from February 2–6, 2026, the mission is a core component of the ADFIAP–JERI study, supported by Japan’s Ministry of Economy, Trade and Industry (METI), to shape a scalable market for pre-disaster solutions across the Asia‑Pacific.

Leadership and Stakeholder Engagement

The Indonesia mission was led by ADFIAP Secretary General Mr. Enrique Florencio, Head of Business Development and Partnerships Mr. John Alianza, and Senior Research Assistant Wendy Z. Capulla. The team engaged key institutions across government, finance, and research to assess Indonesia’s readiness to shift from reactive disaster spending to proactive resilience investment.

Key engagements included:

  • Development Finance: PT Sarana Multi Infrastruktur (PT SMI), President Director Reynaldi Hermansjah, with assistance from Mr. Fakhrul Aufa, Vice President for Blended Finance Partnership, who provided critical insights into infrastructure financing and facilitated stakeholder coordination.
  • Government & Policy: The Ministry of Finance (MoF) and the Indonesian Environment Fund (BPDLH/IEF) discussed fiscal strategies and the evolving landscape of disaster-related public expenditure.
  • Research & Innovation: The National Research and Innovation Agency (BRIN) shared scientific perspectives on climate, population resilience, and evidence-based policymaking.

Critical Findings: A System Still Oriented Toward Response

The mission underscored a persistent structural challenge: despite growing awareness of the value of prevention, Indonesia’s disaster management ecosystem remains heavily weighted toward post-disaster response.

Key insights include:

  1. Institutional Fragmentation: Pre-disaster initiatives remain siloed, with progress often dependent on strong top-level directives rather than systemic coordination.
  2. Pipeline Gaps: Few active projects focus on prevention, as pre-DRR investments are often deprioritized in favor of more immediate social and economic needs.
  3. Economic Justification Needs: While the Ministry of Finance supports pre-disaster approaches in principle, stronger technical guidance, standardized processes, and economic valuation models are needed to justify investment decisions.
  4. Recent Catalysts: Flooding and landslides in Sumatra have renewed attention on prevention, but sustained effort is required to translate this into a robust, long-term project pipeline.

Pathways to Strengthening Resilience

The study highlights that effective pre-disaster programs require multi-year horizons—typically 3–5 years—to measure impact and build institutional momentum. Technology-based solutions, such as early warning systems, must be paired with behavioral change, community trust, and clear operational protocols to succeed.

Next Steps

Findings from Indonesia will be integrated with results from parallel missions in the Philippines, Vietnam, and Fiji. This comparative analysis will inform the final recommendations of the ADFIAP–JERI study, positioning ADFIAP as a regional platform to advance pre-disaster financing and enable APEC economies to scale resilient, prevention-focused solutions.