Jakarta, Indonesia, December 12th, 2018 –  The Federal Republic of Germany, through its KfW Development Bank, on Wednesday signed  a financing agreement with United Nations for Development Programme (UNDP) in Indonesia to support communities in Central Sulawesi and Nusa Tenggara Barat (NTB) to recover from the impact of the 2018 disasters and become more resilient to withstand future shocks

Under this agreement, KfW on behalf of the German Government will allocate € 25 million (approximately US $28.4 million) to rebuild critical infrastructure facilities in Central Sulawesi and NTB. UNDP will manage this multi-year initiative, which runs for 2019-2022 in close collaboration with BAPPENAS, BNPB, and Provincial Governments, and in alignment with the Reconstruction Master Plan and Plan of Action.

“I was shocked by the many losses and severe damages I witnessed on my last visit to Sulawesi. I am therefore very proud of this important project, which is also a great example of the solidarity between our countries. I am looking forward to quick and visible results.” Said Dr. Peter Schoof, the Ambassador of the Federal Republic of Germany to Indonesia, ASEAN and Timor Leste.

In August 2018, Lombok island was hit by a 7.0 magnitude earthquake, killing 564 people, and displacing 400,000 others. The quake also damaged more than 70,000 houses. The following month, a 7.4 magnitude earthquake and a tsunami hit Palu and surrounding areas, killing over 2,000 people, and displacing more than 173,000 people. The disasters also damaged 68,000 houses, 176 health facilities including two major hospitals and  more than 1500 education buildings.

UNDP Indonesia Country Director, Mr. Christophe Bahuet thanked the Government of Germany for the financial contribution provided to UNDP, which will help rebuild infrastructure and support communities in disaster-stricken areas.

“As we enter the recovery and reconstruction phases, the funding from KfW Development Bank will provide much-needed resources to reconstruction process and restoration of provision public infrastructure, like health, education, solid waste management. It will also help communities restart their economic activities and become more resilient to future shocks, “said Mr Bahuet.  

He added that the Reconstruction Master Plan and Plan of Action, which are being finalized by the Government of Indonesia, will guide the implementation of the project.

Along with other UN agencies, UNDP has been implementing its rapid disaster relief program to support recovery efforts in the aftermath of 2018 disasters, with some of the funding coming from UNDP’s own resources and the UN Central Emergency Response Fund. Central to the programme is UNDP’s cash-for-work initiative to clear debris of quake-hit building, involving hundreds of quake survivors in Palu.

Media contacts
UNDP Indonesia Communication Specialist, Tomi Soetjipto, suryo.tomi@undp.org
KfW Bankengruppe: Dr. Charis Pöthig: charis.poethig@kfw.de