Indonesia launches ARISE to strengthen regional fiscal resilience

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2 hours ago

Jakarta (ANTARA) – Indonesian government has launched an integrated system, namely the Adaptive Regional Integrated System for Fiscal Resilience (ARISE), to identify and anticipate the impact of disasters on regional economic and fiscal risks.

The launch on Monday (Aug, 31) was carried out by the Finance Ministry’s Directorate General of Fiscal Balance (DJPK) in collaboration with the United Nations Office for Disaster Risk Reduction (UNDRR) and the Bandung Institute of Technology (ITB).

Acting Director General of Fiscal Balance Nufransa Wira Sakti said in Jakarta on Tuesday that disasters could put fiscal pressure by reducing regional revenues and increasing expenditure needs.

Consequently, the government views disaster risk management as something that must be carried out in a measured and proactive manner, rather than merely as a post-disaster response.

“We need to shift the paradigm from post-disaster response to pre-disaster planning, and from financing losses to managing risks,” Sakti said.

ARISE is designed to provide comprehensive information on hazards, exposure, vulnerability, potential economic losses, and fiscal impacts.

This enables regional governments to strengthen mitigation planning, financing preparedness, and risk transfer strategies before disasters occur.

“For the central government, ARISE serves as an evidence-based policy foundation for improving the transfers to regions (TKD) policy and regional financial management,” he added.

The initial implementation of ARISE was carried out in Bali Province.

Subsequently, the government, together with the UNDRR and ITB, is committed to expanding the system to four other provinces, including Aceh, DKI Jakarta, East Nusa Tenggara, and Central Sulawesi.

In the long term, ARISE is expected to cover all provinces in Indonesia to strengthen regional capacity to anticipate the fiscal impacts of disasters.

The government hopes that ARISE will serve as an initial step toward strengthening regional fiscal resilience against shocks caused by disasters and climate change while simultaneously safeguarding the sustainability of national development.