6 Engagement of Small and Medium-Sized Manufacturing Enterprises …
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to article 16, paragraph 3 preparedness activities shall be the responsibility of the
national and regional government, but the implementation should be jointly undertaken with the communities and business institutions
2 (Government of Indonesia
2007). Moreover, business institutions are encouraged to implement disaster management plans regularly on their own and in cooperation with other institutions (article
28 law 24/2007). Business institutions are also supposed to support the governmental
disaster management policy as a form of corporate social responsibility (article 29)
(Government of Indonesia 2007). This legal obligation formally applies for all firms.
In reality, it is above all large, state-owned, and multi-national firms engage in disaster
risk reduction (cf. Rembeth 2015). Our own research also found, for instance, that
large domestic and multi-national firms financed and executed a large-scale pumping
system and a drainage canal in one of Jakarta’s largest industrial areas in Cakung
(cf. Neise et al. 2017).
A major shortcoming concerns the potential of public-private partnerships.
Respondents from public authorities explained that local regulations forbid a cofunding of large-scale adaptation measures from the public and the private sector
(Interviews Bappeda DKI Jakarta 2017; Public Works DKI Jakarta 2017). Hence,
public-private partnerships regarding flood risk reduction are not existing. However,
within the realms of Corporate Social Responsibility (CSR), companies can finance
large adaptation measures themselves, or the government can force companies to
build infrastructure to compensate for obtaining a building permit (Interview Public
Works DKI Jakarta 2017).
SMEs’ Engagement on Flood Governance
This section presents empirical results on whether SMEs benefit from adaptation
activities supported by governmental authorities and/or the management of the industrial park where many firms are tenants. We demonstrate that flood governance is
often poorly established, hampering effective flood risk reduction for SMEs.
Regarding the support of the government, an ambivalent picture can be drawn.
Both in Jakarta and Semarang, a few enterprises benefit from large-scale adaptation
measures, such as an enlarged flood canal or a water basin built by the government.
However, only enterprises in the vicinity experience fewer flooding. Many enterprises stated that they miss any action by the government alleviating their flood
exposure (e.g., JM-4; JS-3; JS-14; SM-5; SM-9; SS-1; SS-11). Besides the few large
infrastructure projects on flood mitigation, the government in Jakarta and Semarang
typically elevated the main roads due to the ongoing land subsidence. Consequently,
the enterprises need to uplift their plant level likewise in order to prevent that the
rainwater flows into their property (e.g., JS-2; JS-10; SM-7; SM-11; SS-9). The
2 The law 24/2007 defines business institution as any legal institution including state-owned enterprises, regional-owned enterprises, cooperatives, or private enterprises domicile within the territory
of the Republic of Indonesia (Government of Indonesia 2007).
111
to article 16, paragraph 3 preparedness activities shall be the responsibility of the
national and regional government, but the implementation should be jointly undertaken with the communities and business institutions
2 (Government of Indonesia
2007). Moreover, business institutions are encouraged to implement disaster management plans regularly on their own and in cooperation with other institutions (article
28 law 24/2007). Business institutions are also supposed to support the governmental
disaster management policy as a form of corporate social responsibility (article 29)
(Government of Indonesia 2007). This legal obligation formally applies for all firms.
In reality, it is above all large, state-owned, and multi-national firms engage in disaster
risk reduction (cf. Rembeth 2015). Our own research also found, for instance, that
large domestic and multi-national firms financed and executed a large-scale pumping
system and a drainage canal in one of Jakarta’s largest industrial areas in Cakung
(cf. Neise et al. 2017).
A major shortcoming concerns the potential of public-private partnerships.
Respondents from public authorities explained that local regulations forbid a cofunding of large-scale adaptation measures from the public and the private sector
(Interviews Bappeda DKI Jakarta 2017; Public Works DKI Jakarta 2017). Hence,
public-private partnerships regarding flood risk reduction are not existing. However,
within the realms of Corporate Social Responsibility (CSR), companies can finance
large adaptation measures themselves, or the government can force companies to
build infrastructure to compensate for obtaining a building permit (Interview Public
Works DKI Jakarta 2017).
SMEs’ Engagement on Flood Governance
This section presents empirical results on whether SMEs benefit from adaptation
activities supported by governmental authorities and/or the management of the industrial park where many firms are tenants. We demonstrate that flood governance is
often poorly established, hampering effective flood risk reduction for SMEs.
Regarding the support of the government, an ambivalent picture can be drawn.
Both in Jakarta and Semarang, a few enterprises benefit from large-scale adaptation
measures, such as an enlarged flood canal or a water basin built by the government.
However, only enterprises in the vicinity experience fewer flooding. Many enterprises stated that they miss any action by the government alleviating their flood
exposure (e.g., JM-4; JS-3; JS-14; SM-5; SM-9; SS-1; SS-11). Besides the few large
infrastructure projects on flood mitigation, the government in Jakarta and Semarang
typically elevated the main roads due to the ongoing land subsidence. Consequently,
the enterprises need to uplift their plant level likewise in order to prevent that the
rainwater flows into their property (e.g., JS-2; JS-10; SM-7; SM-11; SS-9). The
2 The law 24/2007 defines business institution as any legal institution including state-owned enterprises, regional-owned enterprises, cooperatives, or private enterprises domicile within the territory
of the Republic of Indonesia (Government of Indonesia 2007).