Analysis: Indonesia’s disaster budget faces a cost-benefit test

Indonesia faces an unfortunate fiscal paradox: Just as the government has cut disaster-mitigation funding to the bone, disasters have struck with unforgiving regularity. President Prabowo Subianto himself has acknowledged that disasters are part and parcel of life in the archipelago. Yet his administration has slashed the National Disaster Mitigation Agency’s (BNPB) budget to just Rp 491 billion (US$28 million) this year, raising a fundamental question: How much can Indonesia afford to save on preparing for disasters?