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"ABSTRACTThe budget spending in the Regional Government Budget (APBD) is one of the indicators of the success of the regional development. DKI Jakarta Province APBD spending is seen to be sub optimal, with the average of 75.79% in the last 5 years (2012-2016), below the 95% target set out by the Minister of Finance. As such, a study is required to review why it happens and what factors need to be addressed to optimize the DKI Jakarta Province APBD spending. The previous study conducted to analyze the low spending in the Ministries/Institutions and Regional Government in general. This study is conducted to understand the sustainability of the budget spending and to identify the types of spending that might be the driver to optimize the DKI Jakarta Province APBD spending, enabling the province realized its development target and directly providing a desirable impact the public and the business world, increase their trust to the government and in turn will push the DKI Jakarta economic growth. This study uses Multidimensional Scaling (MDS) with a secondary data from The Regional Government Financial Report (LKPD) of DKI Jakarta Province for the year of 2012 to 2016 and the End of Term Accountability Report (LKPJ AMJ) of DKI Jakarta Province of the Year 2013 to 2017 (2016). The result of this study shows that the average DKI Jakarta Province APBD spending of the last five years (2012-2016) is 47.64 or fall under the category of less sustainable, whereas the spending items causing the unfavorable result are the social benefits, grants, land acquisitions and buildings and structures spending. As such, it is recommended that the DKI Jakarta Provincial Government establishes a more measurable policy on planning, budgeting and execution and to increase the competence of its apparatus."

"Indonesia is famous as a country prone to natural disasters, and its threat continues to increase over time. On the other hand, most of the regions in Indonesia are vulnerable to many kinds of natural disaster. Thus, the damage caused by the natural disasters become extensive, and making the recovery costs enormous. Most of the time, local governments that experience adversities are unable to bear the costs of natural disaster recovery.  Though most of the local government realized that they needed to expend more on natural disaster mitigation, most of them are not allocating their budget as recommended. The main reason is that there are other expenditures that are more important to be allocated rather than to something that might not happening. But if we put the region on a hypothetical condition of disaster certainty, then the damage that needed to be recovered will be enourmous. In order to see the recovery cost needed, we simulate hypothetical natural disasters on each year from 2019-2023. We estimate the value of the regions and the natural disaster risks of each regions, and estimated the recovery costs.We found that almost all local governments are incapable on handling recovery costs for major natural disaster such as earthquake and tsunami, and most of local governments are incapable on handling recovery costs for the least hazardous yet frequently occuring natural disasters such as flood and drough. Eventhough they allocating the budget for natural disaster mitigation as recommended, most of them still unable to handle the recovery. Therefore, most of the regions are very vulnerable of natural disaster in the future, and most local governments are incapable of handling the recovery by themselves.

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Indonesia terkenal sebagai negara yang rawan bencana alam, dan ancamannya terus meningkat dari waktu ke waktu. Selain itu, sebagian besar wilayah di Indonesia rentan terhadap berbagai jenis bencana alam. Dengan demikian, kerusakan yang disebabkan oleh bencana alam menjadi luas, dan membuat biaya pemulihan sangat besar. Pada umumnya, pemerintah daerah yang mengalami kesulitan tidak mampu menanggung biaya pemulihan bencana alam. Meskipun sebagian besar pemerintah daerah menyadari bahwa mereka perlu mengeluarkan lebih banyak untuk mitigasi bencana alam, kebanyakan dari mereka tidak mengalokasikan anggaran mereka seperti yang direkomendasikan. Alasan utamanya adalah bahwa ada pengeluaran lain yang lebih penting untuk dialokasikan daripada untuk sesuatu yang mungkin tidak terjadi. Tetapi jika kita menempatkan daerah tersebut pada kondisi kepastian bencana, maka kerusakan yang perlu dipulihkan akan sangat besar. Untuk melihat biaya pemulihan yang diperlukan, kami mensimulasikan bencana-bencana alam hipotetikal pada setiap tahun dari 2019 - 2023. Kami memperkirakan nilai daerah dan risiko bencana alam masing-masing daerah, dan memperkirakan biaya pemulihan.Kami menemukan bahwa hampir semua pemerintah daerah tidak mampu menangani biaya pemulihan untuk bencana alam besar seperti gempa bumi dan tsunami, dan sebagian besar pemerintah daerah tidak mampu menangani biaya pemulihan untuk bencana alam yang tidak terlalu parah namun sering terjadi seperti banjir dan kekeringan. Walaupun mereka mengalokasikan anggaran untuk mitigasi bencana alam seperti yang direkomendasikan, kebanyakan dari mereka masih tidak mampu menangani pemulihan. Oleh karena itu, sebagian besar daerah sangat rentan terhadap bencana alam di masa depan, dan sebagian besar pemerintah daerah tidak mampu menangani pemulihan sendiri."