Measuring the economic value of disaster mitigation on quality of life in Indonesia

Abstract

When photographed from a disaster map, Indonesia is the ring of fire. Almost the entire Indonesian archipelago is prone to disasters. This portrait should not be worried if an inherent and coherent disaster management effort can be carried out. This paper wants to provide empirical calculations (the economic value) on the role of disaster mitigation on the quality of life. Disaster mitigation is one form of amenities offered by the local governments. In addition, disaster mitigation is one of the components forming the quality of life. This paper involves some capital cities in Indonesia. The study shows that people have willingness to receive compensation between Rp 0.981 million per year and Rp. 1.009 million per year for disaster mitigation factors, or we can say that the willingness to receive compensation between Rp. 81 thousand per month and Rp. 84 thousand per month for disaster mitigation factors.