According to the National Disaster Mitigation Agency (BNPB), Indonesia suffered Rp 7.1 trillion (approximately US$781 million) in financial losses caused by the Mount Merapi eruptions last year affecting Central Java and Yogyakarta.
The losses were not only in the form of destroyed property, but also in the form of potential income losses, such as a decline in hotel occupancy rates and flights arriving at Yogyakarta’s Adisucipto Airport.
“The calculation of the losses was based on various aspects, not only how many hectares need to be compensated. That would be misleading,” Syamsul said, after a visit to victims of lahar floods in Jumoyo village in the Central Java town of Magelang.
“We’ve totaled them up and the financial losses reached Rp 7.1 trillion, but we haven’t calculated losses caused by the impacts of lahar floods because disaster relief efforts there are still ongoing.”
He added that the government would cover all financial losses.
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