Official Bank Sites Related Information June 9, 2006— The damage from the May 27 earthquake in Yogyakarta and Central Java is much greater than earlier thought. The World Bank’s Country Director for Indonesia, Andrew Steer, notes the scale of this damage is for two reasons: the affected area is one of the most densely populated rural areas in the world, with over 1600 people per square kilometer; and most houses and buildings were made of simple construction, with little modern reinforcement. The earthquake, which struck in the early morning hours, exacted a tragic human toll, with 5,800 dead and another 50,000 people injured. But it was the loss of housing was most striking, Steer says. “It appears that over 150,000 homes were totally or largely destroyed. This is a greater number than was destroyed in Aceh by the tsunami.” Pakistan Earthquake Assistance
New funding for Pakistan for reconstruction after the 2005 earthquake. Read more >> “The Government is doing a very good job in managing the immediate relief phase, and there is very strong momentum to move immediately to reconstruction”, Steer says. Thus
a team of Government of Indonesia and international specialists has been intensively analyzing the costs of rebuilding the destroyed physical assets, such as houses, schools, shops and factories, and the expected lost income from these lost assets. The Government asked the World Bank to coordinate an international technical team to assist on the assessment. Also on the team are experts from the Asian Development Bank, the United Nations and the Australian, Japanese, German, and British governments. Their results will be complete in time for the annual Consultative Group meeting between the Government and the international community on June 14.
“Given the magnitude of the damage, it is vital that the international community supports the reconstruction effort,” Steer says. “It is likely the cost of reconstruction will be broadly comparable with the Gujerat earthquake of 2001, and almost the scale of the Pakistan earthquake last year” he says. “Further, this area is not only very densely populated, but also relatively poor, with average per capita incomes well below the national average.” He says the affected area, in the traditional heartland of Java, has a very rich social fabric, and a long tradition of mutual self help. The Government has already decided the rebuilding program should be driven by local communities, and that cash grants should be made to these community groups. 
A large number of schools have been damaged beyond repair. Children are not allowed inside these structures any more; yet many are still going to school, spending their day in makeshift rooms or out in the open. It's exams time, so teachers and parents are encouraging students to continue attending school to the end of the semester, also to bring some sense of normalcy to the situation. “We very much support this decision,” Steer says. “This approach has been found to work very well in Aceh and elsewhere, and is particularly well suited to this part of Java.” He says that alternative designs for housing reconstruction programs are already being prepared in detail. The schedule is highly accelerated. Under one popular design, groups of homeowners would receive cash, technical advice from facilitators, and an accountability framework. This would be similar to the highly successful Government/World Bank/Multi-donor Fund program in Aceh, which is now delivering houses at a rapid pace.
A team of 500 professional facilitators under the Bank-supported community driven Kecamatan Development Program and Urban Poverty Program have been working in the affected areas in Yogyakarta and Central Java, and going house to house in an effort to assess damages and help design reconstruction options. “What is clear is that this earthquake took a huge toll, but modern buildings – those buildings built to modern standards to withstand earthquakes – have actually survived very well. There are very few bridges, for example, that were destroyed, but tens of thousands of more rudimentary houses, restaurants and shops have simply collapsed.” He says the absence of building codes – and the requirement that all homes be built to a standard that’s earthquake proof – was behind the high number of houses destroyed as they simply could not withstand an earthquake of this size. Steer says it’s an event which has now raised a difficult choice for the Government of Indonesia as it prepares for the reconstruction phase. 
KDP office in Klaten that is shared with an NGO called "Bina Swadaya." The latter is running a drive to buy food, water and tents to help the victims. These NGOs have been doing wonders with very little. “On the one hand, there is a desire to provide money immediately to householders so they can rebuild as quickly possible. On the other hand, if the houses are to be earthquake proof, it will require supervision, some extra time, and a little more money. “One of the things we are discussing with the Government of Indonesia is the precise time line of both options.” Steer says the Bank is recommending the second option – because of its experience in Aceh and in other earthquake situations. And he says that option would help ensure that the houses built could withstand any future earthquakes. He says the Bank, at the request of Indonesia, is also restructuring seven of its existing projects in the country. It’s a move which will provide about US$50 to $60 million to support community driven housing, infrastructure, rural water, and health care rehabilitation. And with the housing program alone likely to cost well over US$500 million, Steer says grant financing will be sought from donors at a meeting next week. “Next week there is the annual Consultative Group for Indonesia meeting between the government and donors and we would propose to have the needs on the table at that time, so donors can begin to make decisions on how they want to help.” Steer says the Bank’s experience in Aceh in managing a multi donor trust fund has also highlighted the need for co-ordination within the donor community. “You don’t necessarily want 50 different agencies involved in housing programs, with different systems and different mechanisms. Here, the Government has really decided that the local communities, which are extremely strong, should be in charge and the funding should be channeled through them in a coordinated fashion,” he says. |
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