Post-Disaster Economic Recovery in Yogyakarta, Indonesia

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.