{
  "id": 8337305,
  "title": "Analysis: Indonesia’s disaster budget faces a cost-benefit test",
  "url": "https://urgent.news/2026/09/19/analysis-indonesias-disaster-budget-faces-a-cost-benefit-test",
  "topic": "world",
  "section": "World",
  "published": "2026-09-19T00:00:03.000Z",
  "source": {
    "name": "The Jakarta Post",
    "slug": "the-jakarta-post",
    "url": "https://www.thejakartapost.com/opinion/2026/09/19/analysis-indonesias-disaster-budget-faces-a-cost-benefit-test.html"
  },
  "original_language": "en",
  "account": "Indonesia confronts a fiscal conundrum as it simultaneously slashes disaster mitigation spending while grappling with a series of catastrophic events. President Prabowo Subianto acknowledged that disasters are an unavoidable aspect of life in the archipelago, yet his administration has dramatically reduced the National Disaster Mitigation Agency’s (BNPB) budget to Rp 491 billion (US$28 million) for the current fiscal year. This drastic cut is raising a critical question: How much can Indonesia afford to save on disaster preparedness?\n\nThe reality of this fiscal decision has already been felt. In August, a magnitude-7.7 earthquake off Flores Island caused 105 deaths, 1,678 injuries, and displaced over 179,000 residents. Property damage included nearly 78,000 homes, 118 health facilities, 1,378 schools, and numerous government buildings. The economic fallout from this disaster will far exceed the emergency relief costs, as rebuilding infrastructure, restoring services, and aiding affected households and businesses will be essential.\n\nThe trajectory of the BNPB’s budget reveals a troubling trend. Its allocation peaked at Rp 11.78 trillion in 2020, during the pandemic, but has since plummeted to the current Rp 491 billion and even lower in previous years. While the exceptional 2020 figure cannot be considered typical, the rapid descent in recent years suggests that fiscal adjustments may be reaching an untenable limit. Cutting preventive spending does not eliminate disaster risk; it merely transfers the potential financial burden to the future when the government may have limited options other than spending heavily on emergency response and reconstruction.\n\nThis fiscal strategy also raises concerns about investment climate. The Chinese Chamber of Commerce in Indonesia expressed concern over the government’s handling of the floods and landslides in Sumatra, including the revocation of a foreign-backed hydropower project permit due to environmental violations. This case highlights the importance of proper risk assessment, regulation, and planning, not just for physical infrastructure but also for determining responsibility after a disaster strikes. Inadequate preventive measures can lead to uncertainty for both investors and the government, further complicating Indonesia’s ability to manage disaster-related fiscal challenges.",
  "summary": "Indonesia faces an unfortunate fiscal paradox: Just as the government has cut disaster-mitigation funding to the bone, disasters have struck with unforgiving regularity. President Prabowo Subianto himself has acknowledged that disasters are part and parcel of life in the archipelago. Yet his administration has slashed the National Disaster Mitigation Agency’s (BNPB) budget to just Rp 491 billion…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Phys.org",
        "title": "When disaster crosses borders, Indonesia's credibility is tested twice",
        "url": "https://urgent.news/2026/09/18/when-disaster-crosses-borders-indonesias-credibility-is-tested-twice",
        "published": "2026-09-18T14:40:07.000Z"
      },
      {
        "outlet": "The Jakarta Post Academia",
        "title": "Analysis: Indonesia’s disaster budget faces a cost-benefit test",
        "url": "https://urgent.news/2026/09/19/analysis-indonesias-disaster-budget-faces-a-cost-benefit-test-8476627",
        "published": "2026-09-19T00:00:03.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}