The Impact of Economic Recovery Budget and Innovative Disaster Financing Schemes on Indonesia's Sustainability of Disaster-Affected Businesses

Mukhdasir; Syaifuddin Yana; Nelly; Radhiana; Cut Rusmina

doi:10.56225/finbe.v3i1.326

Authors

Mukhdasir Department of Management, Faculty of Economics, Universitas Serambi Mekkah, Lueng Bata, 23245 Kota Banda Aceh, Aceh, Indonesia
Syaifuddin Yana Department of Management, Faculty of Economics, Universitas Serambi Mekkah, Lueng Bata, 23245 Kota Banda Aceh, Aceh, Indonesia
Nelly Department of Management, Faculty of Economics, Universitas Serambi Mekkah, Lueng Bata, 23245 Kota Banda Aceh, Aceh, Indonesia
Radhiana Department of Management, Faculty of Economics, Universitas Serambi Mekkah, Lueng Bata, 23245 Kota Banda Aceh, Aceh, Indonesia
Cut Rusmina Department of Management, Faculty of Economics, Universitas Serambi Mekkah, Lueng Bata, 23245 Kota Banda Aceh, Aceh, Indonesia

DOI:

https://doi.org/10.56225/finbe.v3i1.326

Keywords:

Economic Recovery Budget, Innovative Disaster Financing, Sustainability, Disaster Affected Businesses, MSMEs growth

Abstract

This study investigates the impact of implementing an economic recovery budget and innovative disaster financing schemes on Indonesia's disaster-affected businesses' sustainability. Indonesia is one of the countries that has many areas with high risk of natural disasters. Business resilience is crucial so that business institutions can immediately recover after a disaster; some efforts that can be made include the availability of an adequate economic recovery budget and innovative disaster impact financing schemes to adjust to the needs of disaster-affected businesses so that disaster-affected businesses recover quickly. This research was designed using quantitative analysis with a survey through a questionnaire. This study involved 180 MSE actors with sampling techniques using probability sampling. Data analysis was done using multiple linear regression analysis with the help of IBM Statistical software SPSS. The results found that the economic recovery budget significantly affects the sustainability of disaster-affected businesses in Indonesia. Then, the Innovative Disaster Financing Scheme significantly affects the sustainability of disaster-affected businesses in Indonesia. In addition, this study also found that the Innovative Disaster Financing scheme has the greatest effect on the sustainability of disaster-affected businesses in Indonesia. In conclusion, this study successfully investigated the impact of implementing the economic recovery budget and the effect of the innovative disaster financing scheme, which is 18.8 percent, which can contribute to increasing the sustainability of disaster-affected businesses in Indonesia.

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