Some of the World Bank loan would be directed towards 150,000 families affected by the earthquakes and tsunami that hit Lombok and Sulawesi islands. Indonesia is still reeling from the quakes that killed 2,000 people.
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The World Bank announced Sunday it would provide up to $1 billion (€860 million) in loans to the Indonesian government to help relief and reconstruction efforts in areas hit by recent earthquakes and a tsunami.
Kristalina Georgieva, the bank's CEO, unveiled the funds in Bali during its annual meeting.
"Disasters will continue to hit, and with climate change there will be more," said Georgieva, who earlier visited Palu City, which was hit by a 7.5-magnitude quake and a resulting tsunami last month.
"The best memorial we can build for the victims of disaster is to build better, so next time when a disaster hits, fewer people are affected, fewer lives are lost, and there is less damage," she added.
Indonesia sits on one of the most tectonically active parts of the world, and is prone to earthquakes as well as occasional tsunamis and volcanic eruptions.
On Saturday, torrential rains triggered flash floods and landslides on the island of Sumatra, killing 27 people, including a dozen school children.
Rescue teams called off the search for the dead after scouring the rubble for a fortnight. As many as 5,000 more people are presumed dead.
Aid groups say it could take up to two years to resettle the displaced people. There is also a shortage of clean drinking water and medical supplies in the disaster-hit areas.
Indonesia has traditionally shied away from accepting outside help in the wake of disasters. Foreign organizations were not permitted to come and help after an earthquake struck the island of Lombok earlier this year.
Indonesia tsunami and earthquake devastate Sulawesi island
Authorities have ended a search for more than 5,000 people still missing, leaving their whereabouts a mystery. Indonesia is grappling with widespread destruction after an earthquake and tsunami struck Sulawesi Island.
Image: Reuters/H. Mubarak
A bridge washed away
On Friday, September 28, a massive tidal wave unleashed by a 7.5-magnitude quake slammed into the Indonesian city of Palu located on Sulawesi island. The impact washed away Palu's 300-meter (328 yard) double-arched bridge, plunging cars into the water.
Image: Getty Images/C. Court
A deadly geophysical coincidence
This satellite image from October 1 shows how Palu is built on lowlands at the end of a narrow bay. Scientists say the shape of the bay amplified the size and power of the waves by forcing the water into a narrow and shallow channel. The earthquake's epicenter was also located close to shore, making the waves more powerful and leaving little time for warning.
Image: Reuters/Planet Labs Inc
A flooded mosque
The wave hit Palu, a city with a population of 380,000, on Friday evening as Muslim worshippers were gathering for evening prayers in local mosques. Authorities said that many others were caught on the beach while preparing a festival which was set to start later in the day.
Image: BNPB
Hospitals overwhelmed
With local hospitals crowded by hundreds of wounded, doctors were forced to treat the injured outside. Komang Adi Sujendra, director of a Palu hospital, urged assistance. "We need all the help we can get," he said. "We need field hospitals, medical workers, medicines and blankets."
Image: Getty Images/AFP/M. Rifki
Burying the dead
On October 2, the official death toll of the tsunami and quake reached over 1,200. Authorities expect that number to rise as more people remain trapped. On October 1, the national disaster agency told AP that over 150 bodies were buried in a mass grave, with the burial operations ongoing. Indonesia is a majority-Muslim nation, and religious custom calls for burial soon after death.
Image: DW/Nurdin Amir
Trapped below the rubble
The tsunami carried sand, mud and debris inland. Roads were blocked and communications disrupted with other cities. Rescue efforts in remote areas around Palu was hampered by the extent of damage to infrastructure. More heavy equipment was also needed.
Image: Reuters/Antara Foto
'Liquified' earth
The heavy earthquake caused sand and silt saturated by water to take on liquid characteristics in a process known as liquefaction. The national rescue agency said that over 1,700 houses in the Palu area were wiped out by liquefied soil.
Image: Reuters/I. Puta
President Widodo pledges to rebuild
Authorities managed to open the local airport a day after the tsunami, allowing the Indonesian mlitary to start delivering aid. The country's President Joko Widodo (r) visited the island and pledged to rebuild the city. The Associated Press reported that Widodo has authorized international help. The EU and 10 countries including the US, Australia and China have offered assistance.
Image: Biro Pers Setpers
Looters risk life and limb
Indonesian media showed images of survivors entering the heavily damaged malls and supermarkets to loot supplies, despite the risk of building collapse. Some Palu residents started returning to their homes to salvage usable items. German news agency dpa reported on October 2 that police arrested 45 people in Palu for looting.
Image: Reuters/DRONE PILOT TEZAR KODONGAN
Queuing for fuel
The earthquake and tsunami knocked out power to the island and left many residents without access to clean water and medical supplies. Some of them descended on gas stations to pump out fuel by hand for their generators.
Image: DW/N. Amir
Foreign aid
President Widodo has opened the door to foreign aid organizations as 200,000 people remain in desperate need of food, water and medicine. International Search and Rescue (ISAR) Germany has sent personnel to assist authorities.
Image: picture-alliance/dpa/S. Heine
Search called off
On October 11, authorities called off the search for missing people, leaving the whereabouts of around 5,000 people a mystery. Experts believe that many of the missing are buried underground after entire villages were swallowed by "liquid earth." To commemorate the missing, parks and monuments are planned for Balaroa, Petobo and Jono Oge, considered the worst-hit areas of the island.