Indonesia is likened to a supermarket of disasters, because all types of disaster threats have the potential to occur in this country and most of its areas have the potential for disaster threats. Likewise, the Magelang Regency area, Central Java Province, is not free from various disaster threats with various levels of threat. The threat of the eruption of Mount Merapi which is then followed by a secondary threat in the form of cold lava floods or rain lava is one of the highest threats in the Magelang Regency area compared to other potential disaster threats. Every disaster event anywhere will have an impact on damage and losses according to the level of disaster threat and also the vulnerability and capacity of the community and government. Likewise, the existence of MSMEs in the midst of society is also depressed by the occurrence of disasters.
Reflecting on the Yogyakarta earthquake disaster in 2006, which showed that at the time of the disaster, around 650,000 people lost their jobs, and 90% of them worked in SMEs. Workers and SME owners suffered damage to workplaces and assets, loss of raw materials, and cessation of production and had an impact on long-term worker losses. For some time after the disaster, the SME sector had obstacles in continuing its business, so that the business process did not run. As a result, six years later it was discovered that there were around 20,000 small and medium enterprises that had left bad debts that had to be written off at Bank Indonesia with a total value of more than four million pounds. Furthermore, the eruption of Mount Merapi in 2010, especially for the Magelang district area, had a fairly severe impact on micro, small and medium enterprises.
As written by voaindonesia.com, damage to salak plants in Magelang Regency reached 80% of all salak plants, where the most was in the Srumbung District. Meanwhile, litbang.pertanian.go.id/buku/Erupsi-Gunung-Merapi/Bab-I/1.8.pdf, wrote that according to information from the Magelang Regency Agriculture Service, of the 2,800 ha of existing salak plants, an estimated 1,974 ha were damaged, while 1,969 ha could still be rehabilitated by pruning, so that the selection could be faster. Due to the damage to salak plants due to the Merapi eruption, the loss of salak farming businesses was IDR 585 million/ha, so that the loss reached IDR 1.15 T.
Meanwhile, the total loss due to the eruption of Mount Merapi in 2010 reached 2.866 trillion rupiah. Of the five sectors, it turned out that the greatest loss was in the economic sector, which included losses for MSMEs. Specifically, the direct loss from the MSME side was Rp 3.42 billion and the indirect loss reached Rp 8 billion. Meanwhile, the market closure due to the eruption of Merapi reached Rp 239.33 billion.
As a result of the cessation of production due to the incident, business actors have to run out of savings or business capital, some of them even have to sell assets they own or seek loans to meet their family's needs while they are not yet able to produce. The activities carried out before their main business can produce cannot fully meet their daily needs. With such conditions, they have difficulty in being able to start production again, besides their business capital has run out, they also have loan obligations that they must pay. However, the longer they stop their business, the more money is needed to finance their daily lives, the more assets they have to sell to meet their family's needs, the more loans they have.
By seeing the magnitude of the impact of disasters on the sustainability of micro, small and medium enterprises, efforts have been made to build the resilience of MSMEs in Magelang Regency. During a period of 5 months, starting from February 2015 to June 2015, documents for the Individual Business Continuity Plan (RKU) and the Regional Business Continuity Plan (RKUK) for the production of Salak and Slondok have been prepared. In addition, a network has also been built between parties, both from MSME actors themselves, local governments and the private sector who then built a commitment to work together to build the resilience and sustainability of MSMEs according to their respective capacities. Then in the replication program to build the resilience of MSMEs against the threat of disasters, a business continuity plan has also been prepared for the village transportation crew on the Muntilan - Talun and Tlatar routes as well as a business continuity plan for Talun market lesehan traders.
In Law Number 24 of 2007 concerning Disaster Management, Article 28 states that business institutions have the opportunity to organize disaster management, either individually or together with other parties. Then in Article 29 it is stated that business institutions adjust their activities to disaster management policies, are obliged to submit reports to the government and/or agencies tasked with disaster management and inform the public transparently and are obliged to respect the principles of humanity in carrying out their economic functions in disaster management. In relation to the role of business institutions in disaster management, a network has been built between small businesses and other parties to jointly build the resilience of micro, small and medium businesses against the threat of disaster.
In building the resilience of MSMEs against the threat of disasters, of course, it cannot be separated from the government's responsibility. By investing, namely by making efforts to reduce the risk of disasters for MSMEs, there will be little cost that will be incurred during the emergency response period or the need for recovery if a disaster occurs. For this reason, a commitment is needed from policy makers, both executive and legislative, to create policies that support the resilience of MSMEs. This policy is highly expected to be the basis for answering the problems that have so far been felt by MSME actors.
The full version of this public dialogue material can be downloaded at the link below;
https://drive.google.com/file/d/0BwHr8XOOUlcEZ3RvVUZSeHB3UVU/view?usp=sharing
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