LIVE RECOVERY AFTER POST EARTHQUAKE AND TSUNAMI: ECONOMIC

REVIEW (CASE STUDIES OF EARTHQUAKES AND TSUNAMI IN JAPAN AND

INDONESIA)

Zenita Kurniasari, S.E., M.M.

Sekolah Tinggi Teknologi Kedirgantaraan
zenita.kurniasari@sttkd.ac.id

Kartika Fajar Nieamah, S.S., M.Sc.

Sekolah Tinggi Teknologi Kedirgantaraan
kartika.fajar@sttkd.ac.id

Wahyuni Fajar Arum, S.Pd., M.Pd.

Sekolah Tinggi Teknologi Kedirgantaraan
Wahyuni.fajar@sttkd.ac.id

ABSTRACT
Natural disaster is a natural event that often gives such impact on the living things
populations. The purpose of this research is to determine whether the occurrence of earthquake
and tsunami has the potential to cause economic loss, thus, mitigation measures can be taken as
an effort to reduce these losses.
The method used in this research is quantitative. The data used are primary data from
questionnaires, and secondary data were gained from various literatures. Data analysis was
performed using Microsoft Excel.
Based on the data analysis that has been conducted, the results show that earthquake and
tsunami have a relation to the economy. All respondents agreed that earthquake and tsunami
caused disruption to the public facilities operation. All respondents also agreed that the detriment
after the earthquake and tsunami had an effect on fulfillment of needs and economic activities.
This answer affirms that the damage of various facilities and production resources caused the
increasing of limited satisfaction tools and scarcity arises, then resulting in economic problems.

INTRODUCTION earthquakes and tsunamis. Indonesia is one

Natural disasters, are natural events
that often gives such impact on the living
things populations. Furthermore, natural
disasters often have multi-dimensional
impacts. Natural disasters that occur are
including floods, volcanic eruptions, storms,
of the countries that has a high level of
vulnerability to natural disasters, especially
for earthquakes and tsunamis. Earthquakes
often occur in Indonesia because Indonesia
is located between three plates, which are
Eurasia, the Pacific and Indo-Australia. The
shifting and the movement of these plates
lead to tectonic earthquakes. Most parts of
Indonesia are susceptible to earthquakes,
including Aceh, North Sumatra, West
Sumatra, Bengkulu, Lampung, West Java,
Central Java, Yogyakarta, East Java, Bali,
Nusa Tenggara, Sulawesi, Maluku, North
Maluku to Papua. (Nailufar, 2020)[1]
One of the real impacts of natural
disasters is the disruption in the economy.
The loss of production sources, both raw
materials, human power, the damaged
infrastructure and then lead to relay effect
on the loss of Gross Domestic Product
(GDP). Brata et al. (2018) [2] also said that
human and social capital are important in
explaining variation in economic growth.
Natural shocks or disasters such as
earthquakes will affect the composition of
the factors of production and then it will
give negative affect on economic growth.
The results of this research conducted by the
Global Earthquake Model Foundation,
which mapped which countries in the world
had the greatest potential to experience
earthquakes and calculated how fragile
houses, schools, workplaces were, how
compact the earthquake-prone areas were,
and how many potential death, potential
damage and economic loss put Indonesia in
fifth place after China, Japan, Iran and the
Philippines in the list of countries at risk of
experiencing the highest losses from
earthquakes (Andisari, 2018)[3]
Aceh, and Palu are areas in
Indonesia that have experienced a quite
powerful tectonic earthquake and also
followed by a tsunami. The earthquake and
tsunami in Aceh that occurred caused
approximately 500,000 lives lost. Dozens of
buildings were destroyed, especially in
Meulaboh and Banda Aceh. In Banda Aceh,
about 50% of all buildings damaged by the
tsunami (Hermansyah, 2017). Sri Mulyani,
as the Head of Bapenas at that time,
revealed that the estimated loss because of
the earthquake and tsunami waves in
Nanggroe Aceh Darussalam and North
Sumatra reached US $ 4-4.5 billion. The
calculation of losses and damages is still
temporary based on field surveys. Damage
data includes the destruction of physical
buildings in the affected areas. "These losses
is also including potential income lost due to
damage," said Sri Mulyani in a seminar on
planning for rehabilitation and
reconstruction of Aceh and North Sumatra
people (BAPENAS, etc., 2006)
A major earthquake disaster also
happened in Yogyakarta on Saturday, May
27, 2006, measuring 5.9 on the Richter
scale, a type of destructive earthquake with a
damage scale of 7 MMI (Modified Mercally
Intensity). The explosive power of energy is
equivalent to 40 kilo tons of TNT or equal to
twice of the explosion from the Hiroshima
bomb (BBC, 2018). Based on the data
gained, the death casualties from this
earthquake reached 5,700 people, injured
more than 40,000 to 60,000 people,
destroyed hundreds of thousands of homes
and livelihoods. The calculation of losses
due to this earthquake, without
strengthening the damage to small
companies, schools and clinics is estimated
at Rp. 29.1 trillion (US $ 3.1 billion)
(BAPENAS, etc., 2006).
At a different time and place, on
March 11, 2011 an earthquake happened in
Japan in the Tohoku region which was also
accompanied by a tsunami. The earthquake
was measured 9.0 SR and a 10-meter
tsunami which destroyed Tohoku city.
Based on Japanese government data as of
March 2012, there were tens of thousands of
dead casualties and damage to various
public facilities such as railroads, nuclear
reactors also triggering radioactive radiation
threat. As a result, industrial production has
decreased and the contribution of the
tourism industry in Japan has decreased
(Miana.S & Subagio.D, 2012).
 Based on the previous explanation,
the problem that will be examined in this
study are the effect of the earthquake on the
affected areas and the earthquake and
tsunami disaster mitigation system in the
economic sector. The specific objective of
this research is to produce an appropriate
mitigation system for natural disasters like
earthquakes to potential tsunamis in
Indonesia by studying the mitigation
systems in Japan. The urgency of this
research is the importance of finding the
right earthquake and tsunami mitigation
system for Indonesia so that it can reduce
detriment, especially in the economic sector.

LITERATURE REVIEW

Earthquake

Earthquake is a phenomenon when

the earth is shaking due to the sudden
movement/shifting of the rock layers on the
earth's crust due to the movement of tectonic
plates. Earthquakes that are caused by
tectonic plate movement activity are called
tectonic earthquakes (Sunarjo et al., 2012).
Besides being caused by plate movement,
earthquakes can also happen as a result of
volcanic activity which is known as volcanic
earthquakes. The sudden movement of the
rock layers inside the earth produces energy
that is emitted in all directions in the form of
earthquake waves or seismic waves. When
these waves reach the surface of the earth,
the vibrations can damage everything on the
surface of the earth such as buildings and
other infrastructure so that it can cause
casualties and property losses (Sunarjo.dkk,
2012)
Figure 2.1 the shift in the earth's crust emit
earthquake wave radiation that cause quake and
changes in rock structure on the surface (Source:
Yagi, IISEE, 2006 in Sunarjo.dkk, 2012)
If based on the causes of their
occurrence, earthquakes can be grouped
into: tectonic, volcanic, debris, meteor falls
and man-made earthquakes (Sunarjo.dkk,
2012). Tectonic earthquakes are earthquakes
caused by the release of elastic energy
stored in tectonic plates. Because of the
dynamics that take place in the Earth's
mantle layer, the Earth's tectonic plates
continue receiving energy from this layer.
Tectonic plates are rocks that are elastic, so
that the energy received from the mantle
layer is stored in the form of elastic energy.
If the energy received exceeds the elasticity
limit of the tectonic plate, the energy will be
released in the form of plastic deformation
and elastic waves. Areas that release elastic
energy are generally weak areas so that
these areas will experience plastic
deformation, while areas far from the source
will experience elastic deformation in the
form of seismic waves. With the occurrence
of plastic deformation around the source of
the earthquake, a phenomenon that can be
observed in the long term is the movement
of tectonic plates with the following types of
movement: the submergence between the
oceanic plate and the continental plate, the
collision between the two continental plates,
and the movement of the oceanic plate away
from one another, also the movement of the
plates that shift each other. Because of the
uneven edges of the plates, if they scrape
together, it will cause friction. This friction
then releases the earthquake shock energy
(Sunarjo.dkk, 2012).
Next, volcanic earthquakes are
earthquakes caused by volcanic activity.
Magma in the pocket under the mountain is
under pressure and releases its energy
suddenly, causing ground vibrations. In
addition, the release of stress energy also
causes the slow movement of magma.
Earthquake tectonic activity can trigger
volcanic earthquake activity. The rise of
magma to the surface can be triggered by a
shift in tectonic plates in Earth faults.
Usually this happens at the tectonic plate
boundaries which are convergent (pressing
each other). But in volcanic earthquakes, the
quake effect is more caused by magma
pressure, while in tectonic earthquakes the
direct quake effect is caused by the collision
of two tectonic plates. If the tectonic plates
involved are continental plates with oceanic
plates, there will be deformation on the
seabed which will cause a tsunami because
the plate boundaries are generally on the
seabed. Collapse earthquake is a local
earthquake that occurs when a cave in a
karst rock area or a mining site collapses.
Meanwhile, a meteor fall earthquake is an
earthquake that is caused by a meteorite fall
or celestial body to the earth's surface.
Earthquakes that are caused by human
activity, is an earthquake that is caused by
actions carried out by humans such as
detonating dynamite, nuclear, bomb blasts,
or hammers that are hit to the surface
(Sunarjo.dkk, 2012)
Tsunami
Tsunami comes from the Japanese
language (Hiragana), namely tsu which
means wave and nami which means port.
Tsunamis can then be defined as large
waves that occur due to changes in the ocean
floor as a result of volcanic eruptions in the
sea or underwater landslides or underwater
earthquakes (Sunarjo.dkk, 2012).
Tsunamis can occur as natural
phenomena that sometimes follow
earthquakes. If the earthquake that occurs is
caused by the movement or shift of the
continental plate with the oceanic plate,
there will be deformation on the seabed
which will then cause a tsunami because the
plate boundaries are generally on the seabed
(Sunarjo.dkk, 2012).
Mitigation
Law No. 24 of 2007, Chapter I
General Provisions, Article 1 number 9 (PP
No. 21 of 2008, Chapter I General
Provisions, Article 1 point 6, defines
mitigation as a series of efforts to reduce
disaster risk, through physical development
or awareness and increased the ability to
encounter the disaster threats In general,
mitigation can be defined as reduction,
prevention or it can be said as the process of
seeking for various preventive actions to
minimize negative impacts on geological
natural disasters (Noor, 2014).
Sunarjo.dkk (2012) states that
disaster mitigation, especially in this case is
an earthquake, can be carried out before an
earthquake, during an earthquake, after an
earthquake and preparedness. Noor (2014)
also states that in general disaster mitigation
can be done in four ways, consisting of:
a. Establish and strengthen regional
development and land use planning,
 planning of building supervision
which suitable with dangerous
zoning and building regulations
b. Carry out training for communities
and institutional representatives
c. Build and enhance disaster risk
management capacities at the local
and national levels
d. Sustainable resource management
such as watershed management and
infrastructure improvement
Economy
Economics or economy in many
economic literature has been said to come
from Greek, namely from the word Oikos
which means family, household and Nomos
which means regulation, rule of law.
Economics then can be defined as the study
of human behavior in choosing and creating
prosperity. The core of economic problems
is an imbalance between unlimited human
needs and limited number of satisfying
needs tools. This problem then causes
scarcity (Ingg: scarcity in Basuki, A.T and
Prowoto, N).
Economic activities can be defined
as the activities of a person or a company or
society to produce goods and services or
consume these goods and services (Basuki,
A.T and Prowoto, N).
Next, in relation to do economic activities,
several problems may arise (Basuki, A.T
and Prowoto, N)., which are:
a. The scarcity problem, where this problem
arises because of an imbalance between
people's needs and the production factors
used to produce various goods, therefore
not all people who need get what they
want, so people have to make choices
b. Community needs, is the desire of the
community to consume goods and
services. This need can be supplied from
within and outside the country.
Community needs are divided into two,
which are the needs that are not
accompanied by purchasing power and
needs that are accompanied by
purchasing power which are then called
effective demand.
METHOD, DATA AND ANALYSIS
Research on the impact of the
economy after the earthquake and the
potential for a tsunami in the Tokyo and
Bantul areas was conducted using
quantitative descriptive methods. The
quantitative research method is a research
method based on the philosophy of
positivity, used to research on certain
populations or samples, the sampling
technique is carried out randomly, data
collection uses research instruments, the
data analysis is in the form of quantitative.
Sources of data in this study use
primary data and secondary data. Secondary
data were obtained through data in literacy
studies, while primary data were obtained
through questionnaires where the
questionnaire sample was selected using the
non-probably sampling method using
purposive sampling technique, where
samples were obtained based on
characteristics. This technique was chosen
because the population and sample taken
have certain characteristics which include:
1. People who have experienced an
earthquake and a potential tsunami in the
Tokyo or Bantul area.
2. ≥ 17 years old.
Other primary data were gained through
interviews conducted with 3 sources that
were used to strengthen the research results
in terms of the impact of the earthquake,
especially in terms of the economy and
disaster mitigation in Japan for the Tokyo
and Indonesia (Yogyakarta) regions.
Data analysis was conducted with
the help of Microsoft Excel by recapitulating
the answers from the questionnaires that had
been distributed. The next step is to draw
conclusions from the most dominant answer.
After the conclusion is found, it will be
strengthened by the results of interviews and
literacy studies.
RESULTS AND DISCUSSION
Natural disasters often cause impacts
such as loss of population, damage to public
facilities and infrastructure, damage to
production facilities and production
resources which then result in economic
problems, both for individuals, an economic
entity to the scope of the state. Based on this
view, a series of efforts to reduce damage
need to be pursued in order to minimize
losses.
In relation to research on the impact
of the earthquake and tsunami in Japan and
Indonesia from this economic review, based
on the results of questionnaires that have
been distributed to samples from two
regions, namely Japan and Indonesia, it
shows that there is an influence between the
occurrence of an earthquake and tsunami on
the economy. All respondents agreed that
the earthquake and tsunami caused
disruption to the operation of public
facilities. All respondents also agreed that
the losses after the earthquake and tsunami
had an effect on fulfillment of needs and
economic activities. This answer affirms that
the damage of various facilities and
production resources caused the increasing
of limited satisfaction tools and scarcity
arises, then resulting in economic problems.
The earthquake and tsunami in Japan
(Tohoku) on March 11, 2011 with a
magnitude of 9.0 SR and a tsunami as high
as 10 meters, based on Japanese government
data as of March 2012, recorded tens of
thousands of casualties and damage to
various public facilities such as railroads,
reactors nuclear and trigger the threat of
radioactive radiation. The result is that
industrial production has decreased and the
contribution of the tourism industry in Japan
has decreased (BBC, 2018). Another source,
the Japanese Police, stated that the
earthquake had killed 12,431 people and
15,153 people were missing, then 163,000
people had to be displaced, 46,027 buildings
were damaged, swept away by the tsunami ,
or burned down, 164,059 houses in the
northern region of Japan were not electrified
by the Tohoku Electric Power Co., 170,000
houses in eight prefectures with water
shortages according to the Ministry of
Health, and from an economic point of view
the Japanese government revealed losses
due to the earthquake and tsunami
amounting to 16-25 trillion yen or around
IDR 2,536 trillion, which is the largest loss
due to natural disasters in history (Asegaf,
2011).
Meanwhile for the earthquake in
Indonesia in this case the earthquake in
Yogyakarta, from a national point of view,
the loss of economic activity in the affected
area only has small. Before the 11th
earthquake the affected districts / cities
contributed around 2.2% to national GDP
and, out of all five experienced low damage
and losses. The two worst affected districts
are Bantul and Klaten, which contribute
around 0.4% of the national GDP. The main
impact on the national economy is likely
coming from the costs of the reconstruction
effort and its implications for central
government finances (Joint Report of
BAPPENAS, Yogyakarta Provincial and
Regional Governments, Central Java
Provincial and Regional Governments, and
International Partners, 2006). Next, in
regional and individual scope the most
severe impacts were including the
manufacturing, energy, water and sanitation,
and services industries. This is then
estimated to have contributed to the loss of
approximately 130,000 jobs, which
represents about 4% of the total pre-
earthquake workforce in the earthquake-
affected areas. As the result, the
unemployment rate is estimated to increase
from 7% to around 11% after the earthquake
(Joint report BAPPENAS, Provincial and
Regional Governments of D.I. Yogyakarta,
Provincial and Regional Governments of
Central Java, and Mitra International, 2006).
Elnashai, A et al (2006) in their report also
said there are affected area because of
earthquake with prosentase 16% agriculture
and 26% industry. Tourism also affected
with prosentase almost 18%.
Earthquake Disaster Mitigation in Japan
and Indonesia
Seeing the big impact of both
physical and economic losses arising from
the earthquake and tsunami that may have
followed, it is necessary to have a series of
efforts to reduce the impact of disaster risks,
both through physical development and
awareness and increased ability to encounter
the threat of disasters that occur which is
then called mitigation. The main objective
of mitigation is to reduce the risk of death
and injury to the affected population, while
the secondary objective is to reduce the
damage and economic losses occured as a
result of disasters to public sector
infrastructure and reduce private sector
losses to the extent that these are possible to
influence society as a whole (Coburn. AW,
et al, 1994). A series of mitigation strategy
which including economic value, several
technical measures, spatial planning, social
inputs, and management will be required to
produce effective disaster mitigation
(Coburn.A.W, et al, 1994).
No country is as prepared as Japan in
encountering the disaster. This expression is
not without cause. The 1,500 average
earthquake shocks per year experienced by
Japan demand that State of Sakura have a
comprehensive mitigation system to
minimize the impact of an earthquake which
is not impossible to be followed by a
tsunami wave. The various efforts that were
then made by Japan were that from an
economic perspective, the Japanese
government had budgeted more than U $ D
2 billion for disaster mitigation and
preparedness. This amount is more than the
total annual government profits of half of
the world's nations (Coburn.A.W, et al,
1994). Funding for mitigation means
investing in the economy, but the opposite is
a loss if the infrastructure that has been built
is damaged due to a disaster. Realizing this,
several things were then done by Japan,
including after among others, after the 2011
Tohoku Earthquake as a disaster mitigation
measure as stated by Nato Tada, an expert in
Disaster Prevention, Japan International
Corporation Agency at a Press Conference
at Graha BNPB, East Jakarta, quoted from
gatra.com, among others:
1. The Japanese government is serious
about improving by making an
estimate of the level of potential
disaster impacts followed by the
formulation of a law that targets the
reduction of the risk of victims
within the next 10 years.
2. The targeting of earthquake
resistant houses across Japan has
reached 90% by 2020
3. Relocation of vital buildings to
higher ground in order to avoid the
possibility of tsunami and
constructing shelters, such as a 22
meter high tower with a capacity of
more than 230 people.
4. Socialization of disaster response to
the community which is conducted
massively for a quite long time so
that people are aware of potential
disasters

Source: journal.sociolla.com
5. Collecting data to each head of the
family, including persons with
disabilities in the family, how many
people can be assisted to the closest
efficiency route.
Several other things that were then done by
Japan in relation to disaster mitigation
quoted from journal.sociolla.com are:
1.Preparation of the survival kit
2.Trains with earthquake gear sensors
Source: journal.sociolla.com
3. Earthquake warnings via cell phones
and television broadcasts
Apart from Japan, Indonesia as a
country that is prone to earthquakes and
potential tsunamis also has a disaster
mitigation system. These are the disaster
prevention and mitigation efforts in
Indonesia (Disaster Management Renas,
2014):
1. Optimizing public awareness strategies
to develop community participation in
implementing disaster prevention and
mitigation
2. Developing applied research with a
structured framework and aiming at
increasing the cost-benefit ratio and
always consider the process of
adapting indigenous knowledge in the
community using the research results
3. Spatial and land management in most
of the national priority areas based on
the management plan for water, land
and forest resources in accordance
with the results of disaster risk studies
and Regional Strategic Environmental
Studies
CONCLUSION
1. The earthquake and the potential of
tsunami that occurred in Japan and
Indonesia also had an impact on the
economy, both in the national scope and
on the individual
2. Japan and Indonesia, which are countries
with the potential for earthquakes and
tsunamis with high intensity, require
both countries to have a good disaster
mitigation system to minimize losses,
where it is realized that adequate
budgeting for disaster mitigation is the
same as investment. Preventive
measures need to be taken, such as
providing a legal protection and issuing
a law on buildings and environmental
management to minimize casualties and
economic losses due to damage and loss
of production resources.
SUGGESTION
Indonesia already has a good design
in terms of disaster mitigation, but some
things that we can learn from Japan include
regulations on building regulations and
raising awareness in the community that
Indonesia is in a disaster-prone area,
especially in this case is earthquakes and the
potential followed by a tsunami.
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