Disasters affect 50 percent of the country’s economy

Disasters affect 50 percent of the country's economyThe World Bank: A nearly 50 percent disaster affects the economy of the country

The presence of disasters creates a variety of impacts. This can be seen from the long-term and short-term impacts. Short-term impacts are loss of national income, fiscal deficit and trade deficit. While the long term course is the prospect of development itself.

Relevance of damage and loss to needs, post-disaster activities have two programs, first, reconstruction program, such as replacing damaged physical assets. Second, the economic recovery program, which is recovering revenues, public services and production activities and losses, is used as the basis for calculating the need for economic recovery.

This was stated by World Bank representative Iwan Gunawan in Expert Discussion on Peat Protection and Economic Development, at the Mercure Hotel, Cikini, Wednesday (27/12).

Iwan said that, from the disaster, almost 50% affect the economy of the country. From July to October 2015, losses from forest fires that occurred reached Rp 221 trillion.

Iwan also added that the biggest losses and damages come from the forestry, plantation and agriculture industries. In addition there is also the tourism industry, transportation and health.

"If we see the big thing is from forestry and plantation and agriculture, and there is a disturbed trade, tourism, transportation, etc. And there is still minimal concern about health," said Iwan.

"Is it disrupting the economic sector?" Almost 50 percent of it is in what has been in the forestry and plantation industries, "he continued.

The forest area burned at that time was about 2.6 million hectares. Burning areas include Riau, Jambi, South Sumatra, Papua, Central Kalimantan, West Kalimantan and East Kalimantan.

Some aspects of the peat land management strategy, according to Iwan, are aimed at conservation, agricultural development and utilization of lestasri. It also needs a vision of development in low-lying areas, institutional responsibility, and priority on peatlands. [hrs]

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