Indonesia: Appeal No. MAAID002 Programme Update No. 02

Situation Report
Originally published


This report covers the period 1 July to 31 December 2008.

In brief

Programme purpose: The purpose of the International Federation programme is to support the institutional capacity building of the Indonesian Red Cross (Palang Merah Indonesia/PMI) and facilitate a coordinated approach of the International Red Cross and Red Crescent Movement to supporting PMI's programmes in Indonesia.

Programme summary:

The International Federation continues to support PMI in its effort to achieve its goal to become the leading neutral organization able to provide support and assistance to vulnerable communities. As part of its support over the last five months, the International Federation assisted PMI in increasing its response capacity through the provision of relief item stocks and the establishment of central and regional warehouses.

With the funding received from the Australian government, particularly for the implementation of activities under Goal 3, the International Federation started an ongoing process to plan the allocation of funding and to carry out activities for the remaining period in 2008. A few start-up activities were implemented, however, due to the national annual meeting and the volunteer gathering, PMI's resources were primarily dedicated to the preparation of both events. Progress in other programme activities has thus been slow during this period.

Financial situation: The total budget for 2008 is now revised to CHF 671,000 (USD 562,712 or EUR 428,215), of which 314 per cent is covered. Expenditure for January-October stands at 38 per cent.

See also the Tsunami Emergency and Recovery Revised Plan and Budget 2005-2010 and the Yogyakarta Revised Plan of Action.

Beneficiaries: The International Federation country office's primary support is towards the capacity building of the PMI; hence, the main direct beneficiary is the PMI governance and management. Our partners: Within the Red Cross Red Crescent Movement, the International Committee of the Red Cross (ICRC), the Danish Red Cross and the Netherlands Red Cross continue to be the main partners of the Indonesian national society, providing support to PMI's longer-term non-tsunami programmes. An increasing transition is taking place, shifting the Movement's attention from tsunami recovery to a more nationwide focus. Some partner national societies have expressed interest and started initial discussions with PMI on possible support for development programmes. Additionally, the International Federation and PMI continue to enjoy cooperation with the Indonesian government at technical level as well as with several United Nations-based agencies, national and international nongovernmental organizations.

On behalf of PMI, the International Federation would like to thank all partners for their support of this appeal.


The global financial crisis has also impacted Indonesia at certain levels. While some experts say that Indonesia has now a stronger capacity to deal with the crisis, the impact is still evident in many aspects. The stock market touched its lowest level since 1998 while the local currency weakened against the US dollar and the prices of agricultural commodities have significantly decreased. Many companies are suffering from the crisis and facing possible bankruptcy, or have been forced to undertake massive staff layoffs. This leads to the increase of the unemployment rate as well as community vulnerability.

Social tension arose when the government of Indonesia, through four of its ministries, issued a policy allowing companies to set their own level of regional minimum salary based on their capacity. Workers from many areas in Indonesia raised massive protests against this policy, and to avoid further tension, some local governments decided not to implement the policy. Responding to the current condition, the International Federation of Red Cross and Red Crescent Societies (International Federation) together with the host national society, Indonesian Red Cross (Palang Merah Indonesia - PMI), continue to monitor the social economic situation.

During the period of July to November 2008, some areas in Indonesia were hit by various disasters. Earthquakes jolted the provinces of West Sumatra, South Sumatra, North Maluku, Gorontalo and Bengkulu; East Kalimantan experienced flooding while West Java was hit by floods, flash floods and landslides. To respond to these emergencies, PMI at branch levels deployed its disaster response teams (satuan penanggulangan bencana/SATGANA), delivered relief items and established field kitchens in some affected areas.

The financial crisis and constant disasters raise the existing need to build PMI's capacity for response and to empower the local community to reduce the impact of challenging situations.