BPDLH introduces PFB, the world's first disaster financing innovation

Jakarta – The Environmental Fund Management Agency (BPDLH) under the Ministry of Finance introduces the world’s first disaster financing innovation called Pooling Fund Disaster (PFB). This scheme is designed to strengthen the national disaster management financing system through an approach that integrates the collection, development and distribution of funds. Director of BPDLH, Joko Tri Haryanto explained that PFB was present in response to the limitations of conventional funding dependent on the State Budget (APBN) and the Regional Income and Expenditure Budget (APBD). According to him, this program is a sustainable financing innovation to provide timely, effective and sufficient funds. “This innovation does not exist in any country. Indonesia dares to take concrete steps by uniting all aspects in one ecosystem, namely the collection, development and distribution of funds to strengthen disaster management, accompanying distribution for protection by disaster insurance and other insurance objects,” Joko said in a written statement, Thursday (18/9/2025). Browse to continue with the content Joko added, PFB not only supports the strengthening of countermeasures in all stages of disasters, but also provides protection through risk transfer, one of which is with the State Property Insurance Scheme (ABMN). This insurance is important to expand the extent of financial protection if the disaster causes damage to state/regional assets and economic losses. Furthermore, Joko emphasized that PFB did not replace existing financing mechanisms, but rather available options, such as ready -to -use funds, rehabilitation and reconstruction allowances, and unexpected help. In practice, BPDLH prepares a pattern of collaboration with local governments with disaster insurance schemes involving the private sector to strengthen PFB as a program with regional support. In addition, PFB also opens opportunities for private sector contributions through the Corporate Social Responsibility (CSR) program. According to Joko, this mechanism makes more directed because it is directly aimed at the need for a disaster to increase the country’s resilience to climate change and ram risk. The innovation delivered at the ASIA disaster management and civil protection conference (ADEXCO) 2025 at Jiexpo Kemayoran, Jakarta, on September 10-13, 2025, was formed based on the presidential regulation number 75 of 2021, BNPB Regulation No. 1 of 2024, Minister of Finance No. 28 of 2025 and the Minister of Financing Regulation No. 43 of 2025. Strategy to regulate the National Desaster Funde. system. In 2025, PFB funds will be allocated for activities before the disaster, such as raising preparedness in the health sector, adaptable social protection, as well as helping the regions represent the minimum service standards for disaster management of technical and administrative aspects. Also watch video: Indonesia targets 80 million US dollars to reduce emission (PRF/EGA)