In the Spotlight | Featuring: Yogi Rahmayanti - Driving Impact in Policy and Practice

When it comes to blending professional expertise with personal values, Yogi Rahmayanti (Director of the Center for Regional and Bilateral Policy at Indonesia’s Ministry of Finance), stands as a shining example. With over two decades of service in public financial management, Ibu Yogi’s career reflects a deep commitment to efficiency, innovation, and resilience. Her work spans critical areas such as disaster risk financing (DRF), budget optimization, and fostering collaboration across sectors—all pivotal in strengthening Indonesia’s fiscal stability. This conversation with Ibu Yogi offers a unique window into her professional journey, her vision for Indonesia’s DRF strategy, and how her personal and professional values mutually reinforce each other. Let’s dive into this story of a woman driving impact, both in policy and in practice.

Q: Please tell us a little bit about yourself and your professional journey.

A: I've been working for the Indonesian Ministry of Finance for more than two decades. I started right after graduating from a specialized college under the Ministry. My first assignment was with the State Financial and Accounting Agency, which later merged into what we now know as Directorate General of Treasury. My work primarily revolved around budgeting, treasury, and public financial management. From 2012 to 2015, I was involved in the Indonesian Spending Review. That experience helped me understand the critical importance of budget planning, management, and efficiency. In the first year of the spending review, we identified and recommended budget savings of around USD 3 billion from the budget baseline, which is an achievement I am very proud of.

Later, I worked on supervising the financial management of public service agencies. From 2019 to 2022, I served as Deputy Chief of Staff in the Office of the Minister before transitioning to my current role. Throughout my career, I’ve maintained a strong focus on public sector efficiency and international finance.

Q: How do you view disaster finance, and how has it been related to your previous work?

A: For me, disaster risk finance (DRF) is about ensuring financial readiness and the ability to protect people from the impacts of disasters while covering losses effectively. It involves developing strategies to enable timely funding without compromising fiscal stability or development goals. This means having a comprehensive plan to provide timely financial protection for everyone—homeowners, small and medium-sized enterprises, and the most vulnerable.

DRF isn’t just about managing fiscal budgets; it’s also about fostering resilience and raising public awareness. It should support risk transfer mechanisms and social protection systems to ensure that financing reaches those who need it most during disasters.

Q: Indonesia has been a global leader in DRF. Can you tell us more about the country’s journey in this area, your vision, and your role in advancing it?

A: Indonesia launched its Disaster Risk Financing and Insurance (DRFI) strategy in 2018 to address the limited fiscal capacity for disaster funding. The strategy aims to reduce the national budget burden, diversify financial instruments, and transfer risk through insurance mechanisms.

A key component of this strategy is the Pooling Fund Bencana (PFB), which is currently in the preparatory phase. The PFB will bring together stakeholders from local governments, the private sector, and communities to ensure efficient disaster management funding. With an initial allocation of USD 500 million, our priority is to ensure its sustainability through effective strategies for fund collection, accumulation, and disbursement.

Operationalizing the PFB is an immediate priority, and we aim for it to become the cornerstone of Indonesia’s DRFI strategy. The vision is to establish a coordinated approach involving local authorities, the insurance industry, and community representatives to better absorb financial shocks from disasters.

Q: Could you elaborate on the challenges Indonesia faces in setting up the PFB and some of the key achievements so far?

A: One of the main challenges is the heavy reliance on government budgets at both the national and local levels, which makes funding inflexible and reactive. Before the DRFI strategy, Indonesia lacked a sovereign-level risk transfer mechanism, relying instead on budget retention rather than proactive risk transfer. The DRFI strategy underscores the need for diverse financing instruments, including state and local budgets, public asset insurance, microinsurance, and donor contributions. While regulations such as Presidential Regulation No. 75 of 2021 are in place, aligning the efforts of various stakeholders—including national ministries, local governments, the private sector, and development partners—remains a complex task. Our achievements include establishing the PFB with an initial fund of USD 500 million and promoting risk transfer mechanisms like public asset insurance with co-financing from the PFB.

Q: Collaboration seems key to the success of disaster finance. Who are the major stakeholders involved in advancing this work in Indonesia?

A: Within the government, key stakeholders include national ministries such as the National Disaster Management Agency, the Ministry of National Development Planning, the Ministry of Home Affairs, and others like the Ministries of Health and Social Affairs, all of which play critical roles in disaster-related initiatives. Private sector partners, particularly those in the insurance industry, are essential for promoting risk transfer mechanisms. Academia provides valuable research and insights that help shape and improve the DRFI strategy. International development partners, especially the World Bank, have been instrumental in supporting our financing efforts and capacity building for DRF.

Q: Can you please tell us a little about your passions, hobbies, and what motivates you outside of work?

A: I am deeply passionate about environmental issues. I am very mindful of my personal impact on the environment and actively try to reduce it. For instance, I embrace slow fashion and avoid buying fast fashion products. I also work on reducing household waste and have even tried composting. I believe that climate change will exacerbate the frequency and severity of disasters, so raising awareness about sustainability and keeping our planet safe is vital. I’m also passionate about wellness and maintaining a work-life balance through activities like regular exercise. These pursuits keep me grounded and energized.

Q: Lastly, if there’s one key message you’d like to leave with our readers today, what would it be?

A: There’s a famous quote by Benjamin Franklin that says, “By failing to prepare, you are preparing to fail.” This resonates strongly with DRF because effective preparation can significantly mitigate disaster impacts and enhance our ability to respond. Preparation is not only crucial for DRF but also for success in every aspect of life.

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