Public Disclosure Authorized

The World Bank Implementation Status & Results Report

Indonesia Disaster Risk Finance & Insurance (P173249)

Indonesia Disaster Risk Finance & Insurance (P173249)

EAST ASIA AND PACIFIC | Indonesia | Finance, Competitiveness and Innovation Global Practice |
IBRD/IDA | Investment Project Financing | FY 2021 | Seq No: 1 | ARCHIVED on 01-Jun-2021 | ISR46798 |

Implementing Agencies: Ministry of Finance, Republic of Indonesia

Public Disclosure Authorized

Key Dates

Key Project Dates

Bank Approval Date: 21-Jan-2021 Effectiveness Date: --

Planned Mid Term Review Date: -- Actual Mid-Term Review Date:
Original Closing Date: 29-Mar-2024 Revised Closing Date: 29-Mar-2024
pdoTable

Project Development Objectives

Project Development Objective (from Project Appraisal Document)

The Project Development Objective is to strengthen the financial and fiscal resilience of the Borrower to natural disasters and health-related shocks.
Public Disclosure Authorized

Has the Project Development Objective been changed since Board Approval of the Project Objective?
No

Components Table

Name
Establishing and operationalizing the PFB:(Cost $280.00 M)
Improving Preparedness for More Effective Disaster Response Across Government Agencies:(Cost $220.00
M)
Strengthening PFB capacity and systems to effectively support risk financing and disaster response:(Cost
$10.00 M)

Overall Ratings

Name Previous Rating Current Rating

Public Disclosure Authorized

Progress towards achievement of PDO -- Satisfactory

Overall Implementation Progress (IP) -- Moderately Satisfactory
Overall Risk Rating -- Substantial

Implementation Status and Key Decisions

The project has been approved on January 21, 2021. Its effectiveness deadline is on June 15, 2021 subject to the completion of two pending
effectiveness conditions, consisting of (i) the adoption of the Project Operations Manual and (ii) the issuance of the Minister of Finance regulation to
officially appoint the unit within MOF that will manage the pooling fund.

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Risks

Systematic Operations Risk-rating Tool

Risk Category Rating at Approval Previous Rating Current Rating

Political and Governance Moderate -- Moderate

Macroeconomic Substantial -- Substantial
Sector Strategies and Policies Moderate -- Moderate
Technical Design of Project or Program Substantial -- Substantial
Institutional Capacity for Implementation and
Substantial -- Substantial
Sustainability
Fiduciary Substantial -- Substantial
Environment and Social High -- High
Stakeholders Moderate -- Moderate
Other -- -- --
Overall Substantial -- Substantial

Results

PDO Indicators by Objectives / Outcomes

Strengthen the financial and fiscal resilience of GoI to natural disasters and health-related shocks

IN00995810
►Pre-arranged resources available for response and recovery to disasters, and climate and health shocks increased (Text, Custom, PBC)

Baseline Actual (Previous) Actual (Current) End Target

IDR 4 trillion (2020 IDR 4 trillion (2020
Value allocation to reserve -- allocation to reserve 100 % increase
fund) fund)
Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024
This will measure the total pre-arranged resources for disaster response and recovery, including current
Comments: year budget allocation to the PFB, carried over cash in the PFB, budget allocation to the disaster reserve
fund (budget line), and total coverage from any financial instrument backstopping the PFB.
IN00995811
►Financial disbursements made by the pooling fund within agreed timelines after an event (Text, Custom, PBC)

Baseline Actual (Previous) Actual (Current) End Target

0 (Pooling fund not 0 (Pooling fund not 80% payments made
Value --
established) established) on time

Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

This will measure that the PFB disburses funds efficiently in time with pre-agreed timelines of the various
Comments:
financing modalities

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IN00995812
►Institutional capacity for efficient financing of disaster, climate risk, and health shock related expenditures increased (Text, Custom, PBC)

Baseline Actual (Previous) Actual (Current) End Target

A dedicated
No pre-arranged mechanism
No pre-arranged funding
funding mechanism established with at
mechanism linked to pre-
Value -- linked to pre-arranged least 4 programs in
arranged disbursement
disbursement place to support
programs established
programs established disaster preparedness
and response
Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

This will measure the key institutional reform of establishing a dedicated mechanim for improved financial
Comments:
planning for disaster financing

Overall Comments PDO

The project has not become effective yet. Hence the baseline levels still apply.

Intermediate Results Indicators by Components

Establishing and Capitalizing the Pooling Fund Bencana

IN00995813
►Pooling Fund established and operational (Yes/No, Custom, PBC)

Baseline Actual (Previous) Actual (Current) End Target

Value No -- No Yes

Date 01-Jan-2021 -- 18-May-2021 31-Jan-2022

The required government regulation to establish the pooling fund (PerPres, PMK) has been adopted and
Comments:
key staff appointed
IN00995815
►Risk financing strategy for pooling fund adopted and updated annually (Text, Custom, PBC)

Baseline Actual (Previous) Actual (Current) End Target

No risk financing Risk financing strategy
Value No risk financing strategy --
strategy adopted

Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

The pooling fund has prepared and adopted a risk financing strategy to protect itself against severe
Comments:
events, and updates this strategy every year as part of the Annual Budget Plan.
IN00995818
►Sovereign risk financing instrument undergone external technical review and put in place in line with risk financing strategy (Text, Custom)

Baseline Actual (Previous) Actual (Current) End Target

At least one
Value No instrument in place -- No instrument in place instrument reviewed.

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Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

This indicator measures that the PFB has carried out technical preparation to put in place additional
external risk financing instrument to leverage its budget allocation for more efficient post-disaster resource
Comments:
mobilization. As the PFB is exploring external risk financing instruments it is critical that it receives
appropriate external technical advice on instruments under consideration.
IN00995821
►Annual audits of pooling fund completed and recommendations implemented (Text, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Audit completed every
No (PFB does not year and key
Value No (PFB does not exist) --
exist) recommendations
implemented
Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

This indicator measures that the pooling fund is managed to highest fiduciary standards and implements
Comments:
the most important recommendations from the annual internal audit.
IN00995823
►Pooling fund annual reports prepared and published (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 -- 0.00 3.00

Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

This indicator measures that the pooling is operating transparently making key information about its
Comments: performance publicly available. The PFB should have published at least 3 annual reports by the end of the
project.
IN00995825
►Percentage of management staff appointed in the PFB that are female (Text, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value No staff appointed. -- No staff appointed. 20%

Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

This indicator measures how many women are appointed to PFB management positions to increase
Comments:
overall representation of women in the PFB management.

Improving Preparedness for More Effective Disaster Response Across Government Agencies

IN00995816
►Pooling Fund establishes agreements with government ministries/agencies to support more effective disaster preparedness and response
(Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 -- 0.00 3.00

Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

In order to support faster disaster response, the pooling fund has to agree on the appropriate operating
Comments: procedures with beneficiary agencies. This indicator measures that the pooling fund is establishing
agreements with at least 3 beneficiary agencies by the end of the project implementation period.
IN00995819

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►Pooling fund adopts rules for co-financing from subnational governments (Yes/No, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value No -- No Yes

Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

This indicator measures finalization of the co-financing rules for subnational governments to set out how
much different SNGs are required to contribute to the PFB as a key funding source. The mandate for this
Comments:
will be included in the presidential regulation. The required additional regulation will be completed during
implementation.

Strengthen pooling fund capacity and systems to effectively support risk financing and disaster resp

IN00995814
►Disaster damage and loss reporting system for state assets established (Yes/No, Custom, PBC)

Baseline Actual (Previous) Actual (Current) End Target

Value No -- No Yes

Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

This indicator will verify that PFB has established a system to support more informed allocation of post-
Comments:
disaster financing through the establishment of a platform that supports damage and loss reporting.
IN00995817
►Claims management system developed and used for post-disaster resource allocation (Yes/No, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value No -- No Yes

Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

This indicator will verify that PFB has established a system to support more informed disbursement of
Comments: post-disaster financing through the establishment of a platform that supports management and tracking of
allocations from the PFB.
IN00995820
►PFB has appointed a broker or intermediary to support the placement of a a risk transfer product (Yes/No, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value No -- No Yes

Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

The implementation and use of a claims management system is validated through reports on financial
Comments:
data reconciled through the system.
IN00995822
►PFB has necessary resources in place as required by the ESMS (Yes/No, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value No -- No Yes

Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

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A strong system to monitor and implement environmental and social standards is critical for the operation
of the pooling fund, even beyond the World Bank funded expenditures. This indicator will measure that the
Comments:
PFB has appointed the necessary positions as set out in the ESMS to be prepared and adopted by the
PFB.
IN00995824
►Staff in ministries eligible to access funding from the PFB demonstrate increased capacity in making informed decisions on risk financing
(Text, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Staff in at least 3
No ministries have No ministries have ministries have been
Value received training from the -- received training from trained by the PFB and
PFB the PFB show increased
understanding of DRFI
Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024
The PFB will invest in training and capacity building on DRF across the government. This indicator will
track progress towards the implementation of an effective capacity building program to enhance
Comments:
understanding of DRF within line ministries eligible to receive PFB support. The target measures the
number of ministries that have received and where staff show increased capacity.
IN00995826
►Evaluations and/or Beneficiary Surveys are carried out to enhance quality of design and implementation of the PFB over the lifetime of the
project (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 -- 0.00 3.00

Date 01-Jan-2021 -- 18-May-2021 29-Mar-2024

Monitoring and evaluations is critical to ensure the PFB learns from its early experiences and keeps
Comments: improving over the years. This indicator verifies that the PFB will invest in and implement evaluations and
learning activities.

Performance-Based Conditions

IN00995827
►PBC 1 Pooling Fund established and operational (Yes/No, Intermediate Outcome, 80,000,000.00, 12.75%)

Baseline Actual (Previous) Actual (Current) year 3

Value No -- No --

Date -- -- 18-May-2021 --

IN00995828
►PBC 2 Pre-arranged resources available for response and recovery to disasters, and climate and health shocks increased (Text,
Outcome, 80,000,000.00, 11.76%)

Baseline Actual (Previous) Actual (Current) year 3

IDR 4 trillion (2020 IDR 4 trillion (2020
Value -- --
allocation to reserve fund) allocation to reserve fund)

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Date -- -- 18-May-2021 --

IN00995829
►PBC 3 Risk financing strategy for pooling fund adopted and updated annually (Text, Intermediate Outcome, 70,000,000.00, 13.73%)

Baseline Actual (Previous) Actual (Current) year 3

Value No risk financing strategy -- No risk financing strategy --

Date -- -- 18-May-2021 --

IN00995830
►PBC 4 Disaster damage and loss reporting system for state assets established (Yes/No, Intermediate Outcome, 50,000,000.00, 9.80%)

Baseline Actual (Previous) Actual (Current) year 3

Value No -- No --

Date -- -- 18-May-2021 --

IN00995831
►PBC 5 Institutional capacity for efficient financing of disaster, climate risk, and health shock related expenditures increased (Text,
Intermediate Outcome, 60,000,000.00, 9.80%)

Baseline Actual (Previous) Actual (Current) year 3

No pre-arranged funding No pre-arranged funding
mechanism linked to pre- mechanism linked to pre-
Value -- --
arranged disbursement arranged disbursement
programs established programs established
Date -- -- 18-May-2021 --

IN00995832
►PBC 6 Support the central government disaster preparedness and early action (Text, Intermediate Outcome, 40,000,000.00, 0.00%)

Baseline Actual (Previous) Actual (Current) year 3

Value PFB Not established. -- PFB not established In the first 12-month
period following the
adoption of the
program (referred to
in PBC6 - Year 2),
MOF, through the
BLU, has approved
and disbursed 80%

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of payments on time
as set out in the
adopted program
Date -- -- 18-May-2021 --

IN00995833
►PBC 7 Financial disbursements made by the pooling fund within agreed timelines after an event (Text, Intermediate Outcome,
40,000,000.00, 5.88%)

Baseline Actual (Previous) Actual (Current) year 3

0 (Pooling fund not 0 (Pooling fund not
Value -- --
established) established)

Date -- -- 18-May-2021 --

IN00995834
►PBC 8 Financial disbursements made by the pooling fund within agreed timelines after an event (Text, Outcome, 40,000,000.00, 5.88%)

Baseline Actual (Previous) Actual (Current) year 3

0 (Pooling fund not 0 (Pooling fund not
Value -- --
established) established)

Date -- -- 18-May-2021 --

IN00995835
►PBC 9 Financial disbursements made by the pooling fund within agreed timelines after an event (Text, Intermediate Outcome,
40,000,000.00, 5.88%)

Baseline Actual (Previous) Actual (Current) year 3

0 (Pooling fund not 0 (Pooling fund not
Value -- --
established) established)

Date -- -- 18-May-2021 --

Data on Financial Performance

Disbursements (by loan)

Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed

Not
P173249 IBRD-91970 USD 500.00 500.00 0.00 0.00 500.00 0%
Effective

Key Dates (by loan)

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Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date

Not
P173249 IBRD-91970 21-Jan-2021 17-Mar-2021 -- 29-Mar-2024 29-Mar-2024
Effective

Cumulative Disbursements

PBC Disbursement

Achievement Disbursed amount in Disbursement %

PBC ID PBC Type Description Coc PBC Amount
Status Coc for PBC

Restructuring History

There has been no restructuring to date.

Related Project(s)

There are no related projects.

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