ADB Strengthens Flood Management in Indonesia with US$250 Million Loan

The Asian Development Bank (ADB) has approved a US$250 million loan, including US$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, 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.