Press Release: IFC and MAIPARK Support Rural Indonesian Banks in Earthquake-Prone Areas
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Yogyakarta, Indonesia, October 29, 2018 — IFC, a member of the World Bank Group, and PT. Reasuransi MAIPARK Indonesia, a special-risk reinsurance company, today hosted an event to present Earthquake Index Insurance (EQII) policies to three rural banks in Yogyakarta. The aim is to protect banks providing loans to individuals and micro, small, and medium enterprises from losses following earthquakes.
More than 12 million Indonesians live and work in earthquake-prone zones, with economic exposure reaching an estimated $80 billion. These risks are especially high in Java, Sumatra, and Sulawesi, where the worst-hit banks have lost between 15 and 35 percent of income following past earthquakes. These losses erode banks’ capital reserves and compromise their ability to lend.
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