When COVID-19 hit, governments around the world scrambled to redirect budgets, launch emergency packages, and find ways to save both lives and economies. Indonesia was no exception. Yet this global crisis revealed something more fundamental: our disaster budgeting systems were not designed to respond swiftly or equitably.
In Indonesia, like many developing countries, budget allocations for disasters are traditionally rigid, reactive, and plagued by delays. Funds often move too slowly, with layers of bureaucracy that hold back timely response. When disaster strikes—whether a flood in Central Java, an earthquake in West Sumatra, or a pandemic—response time can mean the difference between resilience and collapse.
COVID-19 forced governments to become more flexible. The Indonesian government introduced large-scale stimulus programs, reallocated sectoral budgets, and created emergency schemes like the National Economic Recovery (PEN) program. These interventions were critical to cushion the blow of the pandemic. However, these measures, while necessary, were ad hoc, often improvised under pressure, and not rooted in a long-term system of fiscal resilience. We need something better: an adaptive budgeting system that works before, during, and after a crisis.
Globally, countries are shifting from reactive disaster budgeting to proactive and adaptive models. These systems use data to predict needs, integrate real-time monitoring, and allow for automatic fund reallocation. In some cases, governments are even using algorithmic models to optimize resource distribution. Such innovations ensure not only faster response but also fairer outcomes, especially for vulnerable groups who often bear the brunt of delayed assistance.
Indonesia can and should learn from these global shifts. For instance, Japan's emergency fund for community-based suicide prevention has helped lower mental health-related mortality through targeted, decentralized support. In West Africa, the World Bank’s REDISSE program has helped improve real-time disease surveillance, integrating fiscal support with early-warning systems. These examples show that emergency budgets can be both responsive and accountable.
In Indonesia, the COVID-19 pandemic revealed gaps in coordination between central and local governments. Budget absorption at the local level was uneven, partly due to unclear guidelines and insufficient flexibility in fund reallocation. As a result, critical programs such as social assistance and vaccine distribution experienced delays. A more adaptive system would include predefined triggers for fund mobilization, use regional disaster risk indexes for planning, and ensure that local governments have the authority and capacity to act quickly.
Moreover, the shift isn’t just about using more technology. It’s about improving governance and transparency. Real-time dashboards showing disaster spending, as piloted in countries like Chile and South Korea, can help track fund use and reduce leakages. These tools also empower citizens and civil society to participate in oversight, which ultimately strengthens trust in government.
Another important element is equity. Too often, disaster budgets favor urban areas or politically connected regions, leaving rural, remote, or marginalized communities behind. Adaptive budgeting must be inclusive. It should prioritize areas with high vulnerability indicators and involve local communities in planning. Civil society organizations and local NGOs have long experience managing crisis response and can complement government action.
The private sector, too, should be engaged not only as donors, but as partners in logistics, data, and innovation. Public-private partnerships (PPPs) in health, infrastructure, and education have shown promising results in disaster preparedness. For example, in the Philippines, PPPs enabled faster construction of typhoon-resilient schools. Indonesia could adopt similar approaches to strengthen its resilience.
Adaptive disaster budgeting should also be embedded in broader development planning. It must be linked with climate resilience strategies, health emergency preparedness, and poverty alleviation programs. The goal is not just to react to the next crisis but to build a society that can withstand it. This requires aligning fiscal policy with risk management, development goals, and human security.
Disasters will come-from pandemics to climate-induced crises like droughts, floods, and forest fires. Indonesia's fiscal system must be ready not only to respond, but to anticipate. Adaptive disaster budgeting isn’t a luxury; it’s a necessity. It is the bridge between short-term emergency response and long-term resilience.
The time to act is now. As we rebuild from COVID-19 and prepare for future shocks, Indonesia has an opportunity to reimagine its disaster budgeting system. Let’s move from panic-driven responses to systems built on preparedness, equity, and resilience.
If we want to protect lives, preserve development gains, and ensure no one is left behind in the next crisis, we must invest in smarter, fairer, and faster public budgeting today.
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