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ADB Strengthens Flood Management in Indonesia with $250 Million Loan – EQ

ADB Strengthens Flood Management in Indonesia with $250 Million Loan – EQ


In Short : The Asian Development Bank (ADB) is reinforcing flood management efforts in Indonesia through a $250 million loan. This financial support is expected to contribute to infrastructure and initiatives aimed at mitigating the impact of floods, enhancing resilience, and protecting communities in the region.

In Detail : MANILA, PHILIPPINES : The Asian Development Bank (ADB) has approved a $250 million loan, including $10 million from the United Kingdom–ASEAN Catalytic Green Finance Facility (UK–AGCF) Trust Fund, to improve Indonesia’s flood management capacity. The Flood Management in North Java Project will reduce the flood risk in the northern coastal area of Java Island and strengthen the local community’s socioeconomic resilience.

With an increasing population and assets in low-lying areas, Indonesia and particularly the northern coastal area of Java Island—a strategic economic corridor—is highly vulnerable to flooding and climate change.

Through the project, ADB aims to operationalize flood risk management in the Cimanuk-Cisanggarung (CimanCis) river basin territory in West Java and Seluna, Central Java. It will help reduce the risk of flooding to 485,000 people, of which 200,000 are poor and vulnerable, as well as damages to crops and assets. The project will also help reduce the exposure of economic centers to flood risks and traffic disruptions on the main road connecting Jakarta to East Java, ultimately benefiting the local and national economies.

“Floods disrupt economic activities, exacerbate economic inequalities, and disproportionately affect vulnerable people, including women,” said ADB Country Director for Indonesia Jiro Tominaga. “ADB remains committed to strengthening Indonesia’s capacity to address climate change in a gender-sensitive manner.”

The project aims to assist local governments in integrating flood risk management principles into their plans and improving the climate resilience of flood protection infrastructure. It will introduce advanced technologies and systems, satellite-based technology, hydrometeorological sensors, and flood forecasting and early warning systems to better predict and monitor flood risks. Additionally, the project will focus on empowering women by enhancing their skills to operate these systems and advocating for their active involvement in flood risk management planning.

The project is aligned with Indonesia’s National Medium-Term Development Plan, 2020–2024: strengthening infrastructure to support economic development and basic services and enhancing disaster resilience. It will support the implementation of the updated nationally determined contribution. It also aligns with pathway 3 (strengthening resilience) of ADB’s country partnership strategy—a document that outlines the bank’s strategy and priorities—for Indonesia, 2020–2024.

The UK–ACGF provides concessional loans to support developing member countries in Southeast Asia to transition to low-carbon and climate-resilient development pathways. The UK–ACGF is a trust fund established in March 2023 under the ACGF, a facility of the ASEAN Infrastructure Fund.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Anand Gupta Editor - EQ Int'l Media Network