Environmental and Natural Disaster Resilience of Indonesia

This study aims at analyzing the resilience of Indonesia from two aspects: one is was natural disaster and the other  is environmental protection. Therefore the study comprises two parts. The first aims at analyzing Palangkaraya City in Central Kalimantan Province by constructing apartial and a general equilibrium models; hence the existence of illegal settlements can  be explained systematically. The models demonstrates a new attempt in city analysis by introducing the expected flood damage rate on households’ assets. Furthermore, a numerical simulation shows a new finding, namely, that the bid rent by representative low-income households in flood-prone areas  canreceive higher than the bid rent by the representative high-income households. The second part examines (1) the provision of public goods such as road construction on the Maros–Watampone Road, and (2) the urban economics of Makassar City. In this second part, the analytic hierarchy process is  applied to design efficiency with respect to selecting the best type of road construction in a conservation area. As a result, the elevated bridge is  determined to be the most suitable type of construction, followed by cut-and-fill and the tunnel system. The second research approach uses a computable general equilibrium (CGE) model that adds environmental objectives to urban economic objectives in Makassar City. The model examines  the impact of the carbon tax based on the 2006 input–output table for Makassar City. The results of all simulations of the CGE model indicates that a carbon tax can reduce the volume of CO₂ emissions by 8 %.

Yuzuru Miyata is Professor of Graduate School of Engineering, Toyohashi University of Technology, Japan. Prof. Miyata focuses on the environmental economics and the spatial economics, including the spatial computable general equilibrium model, the new economic geography model and the new urban economic model. Prof. Miyata was the past councilor of the Regional Science Association International (RSAI) and the vice President of the Japan Section of the RSAI (JSRSAI). 

Hiroyuki Shibusawa is Associate Professor of Graduate School of Engineering, Toyohashi University of Technology, Japan. Dr. Shibusawa focuses on spatial modellings and simulations, including the input-output model, the computable general equilibrium model, and the econometric model.  Dr. Shibusawa is the current executive secretary of the Pacific Regional Science Conference Organizations (PRSCO) and the past executive secretary of the Japan Section of the RSAI (JSRSAI). 

Indrawan Permana is Professor of Department of Architecture, Faculty of Engineering, Palangka Raya University, Indonesia. Dr. Indrawan Permana focuses on urban spatial modeling, including the new urban-rural-environment interaction model and urban housing modeling.  Dr. Indrawan Permana is the current member of Indonesia Architect Association (IAI) and was serving as the head of department in Palangka Raya University. 

Any Wahyuni is government official at Directorate General of Highways - Ministry of Public Works and Housing of Indonesia, Indonesia. Dr. Any Wahyuni is focuses on planning and monitoring of roads and bridges construction on government projects. Dr. Any Wahyuni is the current work at Agency of Implementation of National Road XIII Makassar, Indonesia.

This study aims at analyzing the resilience of Indonesia from two aspects: one is was natural disaster and the other is environmental protection. Therefore the study comprises two parts. The first aims at analyzing Palangkaraya City in Central Kalimantan Province by constructing apartial and a general equilibrium models; hence the existence of illegal settlements can be explained systematically. The models demonstrates a new attempt in city analysis by introducing the expected flood damage rate on households' assets. Furthermore, a numerical simulation shows a new finding, namely, that the bid rent by representative low-income households in flood-prone areas canreceive higher than the bid rent by the representative high-income households. The second part examines (1) the provision of public goods such as road construction on the Maros-Watampone Road, and (2) the urban economics of Makassar City. In this second part, the analytic hierarchy process is applied to design efficiency with respect to selecting the best type of road construction in a conservation area. As a result, the elevated bridge is determined to be the most suitable type of construction, followed by cut-and-fill and the tunnel system. The second research approach uses a computable general equilibrium (CGE) model that adds environmental objectives to urban economic objectives in Makassar City. The model examines the impact of the carbon tax based on the 2006 input-output table for Makassar City. The results of all simulations of the CGE model indicates that a carbon tax can reduce the volume of CO2 emissions by 8 %.

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