The funding was directed to the International Federation of the Red Cross Emergency Appeal, according to local media.
"As a near neighbor and close friend of Indonesia, New Zealand understands the dreadful aftermath of this tsunami which compounds a number of significant disasters that have impacted Indonesia in recent months," Peters said in a statement.
Over the last six months, Indonesia has suffered three significant events, the Lombok earthquakes in July and August, the Sulawesi earthquake and tsunami in September and the Sunda Strait tsunami on Dec. 22.
This Red Cross Emergency Appeal is considered as an overarching appeal to support the Indonesian Red Cross to deliver assistance and support to the most vulnerable communities affected by these disasters, and to help these communities be better prepared for similar disasters that may happen in the future, Peters said.
This support will allow the Indonesian Red Cross, which is working alongside the Indonesian government, to deliver essential humanitarian assistance to an estimated 167,000 people affected by this latest tsunami over the next 30 months, he added.