MoF Launches ARISE to Anticipate Disaster Impact on Local Taxation

JAKARTA, DDTCNews – The Directorate General of Fiscal Balance (Direktorat Jenderal Perimbangan Keuangan/DJPK in Indonesian) of the Ministry of Finance (MoF), in collaboration with the United Nations Office for Disaster Risk Reduction (UNDRR) and the Bandung Institute of Technology (Institut Teknologi Bandung/ITB in Indonesian), has launched the adaptive regional integrated system for fiscal resilience (ARISE).

Director General of Fiscal Balance Nufransa Acting Official, Wira Sakti, said ARISE is designed to provide comprehensive information on hazards, exposure, vulnerability as well as economic losses and fiscal impacts resulting from disasters.

"As such, local governments can strengthen mitigation planning, financing preparedness and risk transfer strategies before a disaster occurs," he said in an official statement on Tuesday (1/9/2026).

Technically, ARISE is a decision-support system that integrates 2 types of analysis: disaster risk modelling and estimation of the impact of disasters on the local economy and local taxation.

For the central government, Nufransa continued, ARISE can serve as one of the evidence-based policy foundations for refining the transfers to regions (transfer ke daerah/TKD in Indonesian) policy and local financial management.

According to him, disasters frequently exert fiscal pressure from 2 directions: a decline in local revenue and an increase in expenditure requirements. Disaster risk management must therefore be carried out in a measured and proactive manner, not merely as a response after a disaster has occurred.

"We need to shift the paradigm from post-disaster response to pre-disaster planning, and from financing losses to managing risks," he claimed.

ARISE was officially launched on Monday (31/8/2026) and is being implemented first in the Province of Bali. The MoF, UNDRR and ITB will subsequently expand the rollout of the system to 4 other provinces: Aceh, DKI Jakarta, East Nusa Tenggara (Nusa Tenggara Timur/NTT in Indonesian) and Central Sulawesi.

In the long term, ARISE is expected to be implemented across all provinces in Indonesia to strengthen local governments' capacity to anticipate the fiscal impacts of disasters.

The inter-agency collaboration in launching ARISE is expected to serve as a foundation for building a proactive, data-driven and sustainable disaster fiscal risk management ecosystem.

The government hopes that ARISE will be an initial step towards strengthening local fiscal resilience in the face of disaster shocks and climate change, whilst safeguarding the sustainability of national development. (dik)