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At the 15th meeting of the Consultative Group on Indonesia (CGI) held
on 14 June 2006 following the earthquake, a jointly produced preliminary
Damage and Loss Assessment of the Yogyakarta and Central Java earthquake
was presented. At the meeting, the minister of finance called upon
the donors to mobilize donor support through a multi-donor trust fund,
similar to the Multi-Donor Fund for Aceh and Nias (MDF). The aim of
this strategy was to build on the positive experience and comparative
advantages of the MDF, such as: the ability to rapidly develop, finance
and implement projects; coordinate international resources around
common objectives; avoid duplication of effort; and create synergies
and reduce transaction costs for both donors and the recipient. In
particular, the Indonesian government appreciates the flexibility
of funds inherent to such an approach as these funds can be used to
complement its own resources through financing of reconstruction and
development activities both on and off-budget.
At the CGI meeting and during the weeks following, six donors: the
European Commission, the Governments of Netherlands, United Kingdom,
Canada, Denmark, and Finland, pledged to assist in rebuilding the
earthquake and tsunami-affected areas of Yogyakarta, Central Java
and West Java. All six donors decided to channel the funds through
the Java Reconstruction Fund (JRF), a multi-donor trust fund established
to coordinate the funds to support the government’s post-disaster
recovery program.
In October 2006, the Java Reconstruction Fund (JRF) commenced operations
with the mandate to support the rehabilitation and reconstruction
of housing and livelihoods.
Yogyakarta and Central Java Earthquake
On May 27, 2006, a 6.2 Richter earthquake killed more than 5,700 and
injured almost 50,000 people in Yogyakarta and Central Java. The total
damage and losses have been assessed at US$ 3.1 billion. More than
300,000 houses were destroyed or heavily damaged.
West Java Tsunami
On July 17, 2006, along the south coast of West Java, another earthquake
measured at 7.7 Richter caused a tsunami killing at least 660 people,
323 people are still missing and more than 51,500 displaced. It caused
extensive damage at the West Java beach of Pangandaran.
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