ANALYSIS OF CALCULATION AND BUDGET ALLOCATION METHODS OF NATURAL DISASTERS
Abstract
Abstract
Indonesia is the most prone country to natural disasters in the world. During the period between 2017 - june 2018 the number of disasters in Indonesia reached 4,006 events. Governments are required to play an active role in addressing the disaster in Indonesia, but the government budget for disaster relief is very limited. This paper tries to explain: Factors in determining losses due to natural disasters; Difficulty in calculating losses due to natural disasters; Budget allocation to overcome the natural disasters and funding to reduce the burden on the state budget. This paper was formulated using the methodology of literature review and conceptual framework. Based on the identification of the problem, the conceptual framework was formulated to overcome the problems. Based on studies, we conclude that: Calculating losses from natural disasters is a difficult task and must be done by specialist person. Overestimation in the calculation of losses from natural disasters often occur and this condition makes over pressure in state budget; There is an irony in which after a disaster creates an increase in tax revenues and additional workers but this condition must be managed so natural disaster's victim get benefit from It, budget allocation to overcome disaster in Indonesia is very limited, overlapping, inefektif, inefisiensi and the costs of coordination in budgeting often occur. These are the weak point in the budgeting of the disaster in Indonesia that must be improved from time to time. Due to the lack of state budget for natural disaster, Indonesia also needed an alternative source of funding disaster.