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AbsractThis research traces the post-disaster economic recoveries in Yogyakarta Special Province in Indonesia. It oversee how economic recovery in post-natural disasters, earthquake in 2006 and volcano eruption in 2010, by reviewing and comparing its GDP and other macroeconomic indicators. The data used in the research ranged from 2005 before the earthquake until 2012 after the eruption. The research also analyzes the policies implemented by central bank regarding non-performing loan of the disaster victim, policies of government regarding reconstruction and rebuilding of public facilities, and other supports during the aftermath. The result suggests that central bank policy, government interventions and cultural background of the disaster victims paid important roles in awakening and strengthening the recovery. These three factors alongside with others have been the sources of fast recovery in economic activities in the aftermath of disasters. This empirical result suggests that government failure in post-disaster recovery was not generally phenomenon and can be reduced.
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Post-Disaster Economic Recovery in
Yogyakarta, IndonesiaYuli Andriansyah
YOGYAKARTA
City of CultureThe Keraton
City of TourismRamayana Ballet at Prambanan
City of StudentsCampus Activities
…also potent to disasters risk
LITERATURE REVIEW
• Stewart, Kolluru, and Smith (2009) • social and economic networks were important in mitigation of disaster• governmental offices needs to identify and hold as many as possible public
and private lines of communication and network to make mitigation work
• Kusumasari, Alam, and Siddiqui (2010) • the role of local government dealing with disaster management• some capabilities required by local government in the aftermath of disasters
namely ability to assess the damage, to cleanse the wreckages, and supporting the victims
• Pande (2006) • local initiative was important in creating more participation to manage
hazard and disasters.
LITERATURE REVIEW
• Okuyama, Hewings and Sonis (1999 in van der Veen, 2004) • planning and phasing in the aftermath of disasters are important to
guarantee the smoothness of recovery process• focusing in key economic factor so that economic recovery as a whole can
work.
• Okuyama (2009) • manufacturing and services sectors were the most effected one compared to
others for their high relation in many cases.• Padli, Habibullah, and Baharom’s (2010)
• the importance of economic performance in dealing with the aftermath of disasters• wealthier societies in well developed countries tend to be more prepared to
the disasters
METHODOLOGY
• Data: macroeconomic indicator 2005 - 2012 i.e. Regional Gross Domestic Product (RGDP), inflation, and local government budget• Sources: Statistics Indonesia and Bank Indonesia (Yogyakarta). • Method: descriptive analysis and discussion of performances by local
government and monetary authority as well as other local institutions regarding their efforts to mitigate the disaster effects.
RESULTS AND DISCUSSION
• The Yogyakarta earthquake 2006 occurred in May 26 which based on quarterly economic growth marked by 2006:Q2 •Merapi eruption 2010 occurred in October and November
which marked by 2010:Q4• in term of economic recovery Yogyakarta did well in both earthquake
2006 and eruption 2010. • Macroeconomic indicator presented indicates that recovery went
well during the aftermath
Quarterly Economic Growth of Yogyakarta(y-o-y), 2005:Q3-2012:Q4
Quarterly Economic Growth of Yogyakarta(m-t-m), 2005:Q3-2012:Q4
What makes recovery went well?
Anthropology and Religion: Way of Life and Values
•Zamroni (2011) • Javanese people emphasize harmony, peace and comfort
•Maarif, Pramono, Kinseng, and Sunarti (2012) • people face duality to the mountain: as giver of life and as
taker of it•Christia (2012) • people do not see the eruption as a side of dis-aster only,
but the view it as blessing in other side
Government:National and Local
•Fast response in the middle of disaster and in the aftermath• Local coordination•Rebuilding and relocation•Andayani (2011) • the cash for work program for disaster victim
Monetary Policies:Central Bank• Bank Indonesia (2006a)
• Regulation on Special Treatment on Bank Loan Post Natural Disaster in Yogyakarta Special Region and Areas Surroundings in Central Java Province. Bank Indonesia, Jakarta.
• Bank Indonesia (2006b)• Regulation on Special Treatment on Bank Loan in Specific Disaster-Effected
Area in Indonesia. Bank Indonesia, Jakarta.
• Bank Indonesia (2006c)• financial support namely liquidity credit with annual interest 5.5% or lower
than common interest in the market• Bank Indonesia (2009)
• Regulation on Revision on Bank In-donesia Regulation No. 8/15/PBI/2006 on Spe-cial Treatment on Bank Loan in Specific Disas-ter-Effected Area in Indonesia. Bank Indonesia, Jakarta.
CONCLUSION
• The economic recovery in post-disaster in Yogyakarta has performed well because of many factors • local government roles, • people’s perception of disasters, • monetary policies conducted by central bank
• The recovery indicated the importance of development quality to ensure standard of education, economic life and social activities which were proven helpful in the awakening in the aftermath of disasters.• Limitations and further study• additional data on macroeconomic indicators related to economic recoveries
covering wider aspects of victims’ life; • enrichment in modes of analysis; • inclusion of others natural disasters effected areas in Indonesia; • comparison with other cases of different cultures.
