Natural Disasters Impact on Village Development in Indonesia: An Econometric Study

Faradiba, Faradiba (2024) Natural Disasters Impact on Village Development in Indonesia: An Econometric Study. South Asian Journal of Social Studies and Economics, 21 (2). pp. 48-56. ISSN 2581-821X

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Abstract

Disasters have a negative impact on various aspects, including regional development. The impact of natural disasters can be in the form of material loss or loss of life. Indonesia has quite a large potential for natural disasters, because it is surrounded by several oceans and there are several mountains that are still active. Based on this background, this research aims to determine the impact of natural disasters on the development of rural areas. The data used in this research comes from Podes 2021 data and the 2022 and 2023 Developing Village Index. The method used in this research is multiple linear regression. The results of this research indicate that natural disasters have a negative impact on economic aspects and lead to village development. Of the three independent variables in this study, it is known that volcanic eruptions and drought (land) have the deepest significant negative impact, both 1 year after the event and 2 years after the event. Villages are areas that are very vulnerable to natural disasters, besides that development in rural areas tends to accelerate relatively slowly. For this reason, an extra role is needed from the government to carry out evacuations when a disaster occurs, and also carry out mitigation from the start in order to minimize the negative impacts caused. Handling natural disasters in rural areas can be carried out on a priority scale, so that people's basic needs can be met immediately. Keywords: Social development; community's economic welfare; medical services; sustainable Investment.

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