ADB Approves $500 Million Loan for Disaster Recovery in Indonesia

The Asian Development Bank (ADB) has approved a $500 million emergency assistance loan to support the Government of Indonesia’s recovery and rehabilitation of Lombok and Central Sulawesi after recent disasters claimed thousands of lives and destroyed infrastructure, property, and livelihoods.

The loan will provide immediate funding for the government’s recovery and rehabilitation action plans, targeting urgent needs such as temporary shelters, social protection and social services, as well as economic recovery through cash assistance, credit schemes, and skills improvement programs.

The loan, named Emergency Assistance for Recovery and Rehabilitation from Recent Disasters, is part of ADB’s response to two recent disasters that hit Indonesia including a magnitude 7.0 earthquake that struck Lombok, West Nusa Tenggara province in August, and a magnitude 7.4 earthquake that struck Central Sulawesi province in September. These disasters claimed the lives of more than 2,600 people, injured some 18,000 people, and displaced more than half a million. Housing and public infrastructure have suffered extensive damage. The impact of the Central Sulawesi disaster has been particularly severe as the earthquake caused landslides, tsunami, and liquefaction, a condition where the ground itself loses stability and takes on liquid properties. Initial assessments suggest over $2.2 billion in damage and losses in the affected provinces.

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