Indonesia

National Government Handed Over Grant for Rehabilitation and Reconstruction

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JAKARTA - In the fiscal year 2015, 120 local governments at province, district, and municipality level accepted the grant for rehabilitation and reconstruction. Assisting the grant was based on scales of priority and the availability of national budget allocation for rehabilitation and reconstruction. Budget allocation amount Rp 1,5 trillions would be provided to the affected local governments that experienced massive disasters and affected multi sectors.

Budget allocation was prioritized for accomplishing shelters to affected people after earthquake and tsunami Mentawai 2010, earthquake in Aceh Tengah and Bener Meriah 2011, flood and landslide North Sulawesi 2014, volcano eruption Sinabung and other natural disasters at local level. Using of allocated budget was specialized for damaged infrastructures so that damages and losses would not increase.

In related with the grant, National Government had revised a mechanism on the grant provision on rehabilitation and reconstruction. Handing over the grant was based on the Law Number 24 Year 2007 on Disaster Management, the Law Number 3 Year 2015, the Government Regulation Number 2 Year 2012 on Grant to the Locals. This regulation was followed up with legalizing regulation of Ministry of Finance (Peraturan Menteri Keuangan Nomor 162 Tahun 2015) on grant mechanism from national government to locals in term of financing rehabilitation and reconstruction post disaster. The minister of finance had just signed the regulation on last August 21, 2015.

In related with the context, National Disaster Managemet Authority (BNPB) organized a coordination meeting on handing over a determination letter of grant or Surat Penetapan Pemberian Hibah (SPPH) for financing rehabilitation and reconstruction on Tuesday (22/9) in Jakarta. Directorate General of Financial Balance, Ministry of Finance Dr. Boediarso Teguh Widodo, M.E. said that distribution of the grant would be given at once.

"The challenge of the grant was accelleration and the usage because of time limitation for 12 months after the grant was transfered to the local account", said Boediarso.

Meanwhile, Primary Secretary BNPB Dody Ruswandi said that acceptance of SPPH would be followed up with signing an agreement on the grants between head of local government with the Directorate General of Financial Balance in the near future.