Tsunami and Earthquake Reconstruction Homepage 

Damages and losses
Only two weeks after the disaster, the World Bank (together with the ADB) led a team of experts from various international development partners in assisting the Government of Indonesia in the preparation of a full assessment of the earthquake damage and losses.This was a precursor to determining the overall needs for the coming phase of rehabilitation and reconstruction.

The resulting damage and losses assessment indicates that the 27 May earthquake ranks among the most costly natural disasters in the developing world over the past ten years.  The total damage and losses caused by the earthquake are estimated to be around Rp 29.1 trillion, or US$3.1 billion. Total damage and losses are significantly higher than those caused by the tsunami in Sri Lanka, India and Thailand, and are similar in scale to the earthquakes in Gujarat (2001) and Pakistan (2005).

The damage was very heavily concentrated on housing and private-sector buildings. Private homes were the hardest hit, accounting for more than half of the total damage and losses (Rp 15.3 trillion). Private-sector buildings and productive assets also suffered heavy damage (estimated at Rp 9 trillion) and are expected to lose significant future revenues. Damage to the social sectors, particularly health and education, are estimated at Rp 4 trillion. All other sectors, particularly infrastructure, had comparatively smaller levels of damage and losses.

Reconstruction monitoring
In the months following the earthquake, the government and international community began to implement reconstruction programs to rebuild the earthquake-affected areas. As of the end of February 2007, it is estimated that US$818 million (Rp 7.6 trillion) had been allocated for the reconstruction process, The central government is the dominant player in this overall reconstruction program, providing almost 76 percent of the funding. The World Bank/JRF is the second-largest player with about 13 percent of the current reconstruction portfolio (see Chart 1).

Chart 1  Total financing (allocated and committed) by source of funds

Click here to see bigger version of Chart 1
The current financial status of the reconstruction program is about 33% of the damage value assessed. The housing sector has received almost two third of the existing reconstruction financing (the estimated financing is only for permanent house reconstruction only and excluding expenditures for temporary shelter), while the livelihoods have yet to received significant funding, However, it has to be noted also that the estimated total financing for livelihood sector may be under-estimated due to insufficient data, and the availability of private financing which have not properly recorded  (see Chart 2).
The gap between value of damages and the total financing however does not necessarily indicate a shortfall in funds, due to the some reasons following:

1. Differences in unit cost: during the damage assessment, the unit cost used for valuation is the replacement cost of rebuilding using a proper standard of quality, whereas agencies involved in the reconstruction may decide to use different standard, More often it constitutes a basic minimum standard, for their rebuilding effort. This was particularly illustrated in housing reconstruction where damage was assessed based on a 54m2 house, whereas most agencies involved in the reconstruction built houses in the range of 21m2 to 36m2.
   
   
2. Revision in number of damaged units: the preliminary damage and loss assessment was undertaken during the early phase after the disaster when there was little opportunity to validate the data. Subsequent development shows that the number of damaged unit may be revised significantly downwards. This is happening most obviously in the housing sector but also in the other sectors, such as health.
   
   
3. Data limitations: due to some difficulties in collecting actual data from a large number of agencies, the financing figures for some sectors and projects were estimated using various assumptions. In the health sector, since only physical progress data was available for Yogyakarta province, the estimated losses for this sector were based on a unit cost/m2 for the area of known physical damage. Furthermore, some underreporting may happened in the livelihood sector where smaller agencies have had difficulty in providing information. The estimates have also not yet incorporating the 2007 allocation from local and provincial government budget. However, the estimates will continually be updated as new data becomes available.
   
   
4. Self financing: the data collected could not perfectly capture the extent of self financing by the affected people, either through their personal resources or through private mode of financing such as bank loan. The extent of financing may have been quite significant for the industry and enterprises sub sector and to some extent in the culture and religion sub sector.

Chart 2.  Damage Assessment vs. total financing (allocated and committed)

Click here to see bigger version of Chart 2

Data & analysis

Summary of allocated funds

The attached table shows the amount of funds allocated by the central, provincial and district Governments, as well as donors and non-government organizations across different sectors. Click the link below the table to download the 3kb excel sheet:



click here to download original excel sheet (3kbs)

Summary of needs, projects, and gaps

The attached table shows the comparison in the amount of funds allocated and committed to the reconstruction effort with the assessment in the cost of damages and losses across different sectors:

click here to download original excel sheet (3kbs)

 

This report presents a preliminary assessment of the damage and losses caused by the earthquake. The assessment used the international standard methodology for measuring disasters, and draws upon some of the best experts in the world. The report provides the Government and the international community a clearer understanding of the impact of the disaster, and a basis for designing reconstruction and recovery programs.

Executive Summary: English(310kb pdf) | Bahasa(304kb pdf)

Full Report(5.78mb pdf)

This report was prepared by a joint team of the Government of Indonesia coordinated by the National Development Planning Agency (BAPPENAS) together with the Yogyakarta and Central Java Provincial Development Planning Agencies (BAPEDAs) and the international community, including The World Bank, ADB, GTZ, JBIC, JICA, ILO, UNDP, IFRC, Asia Foundation and UN Habitat, with the significant participation of and contributions by many other government and donor agencies.