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Vol 37 No 2 (2022): May

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Submitted
Mar 29, 2021
Accepted
Apr 6, 2022
Published
May 24, 2022
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The Effect of Financial Compensation for Farmland Acquisition on Household Welfare: The Yogyakarta International Airport Development Case

https://doi.org/10.22146/jieb.v37i2.1499
Yudha Purbawa
yudh016@brin.go.id
Research Center for Behavioral and Circular Economics, National Research and Innovation Agency (BRIN)

Corresponding Author(s) : Yudha Purbawa

yudh016@brin.go.id

Journal of Indonesian Economy and Business, Vol 37 No 2 (2022): May

Abstract

Background Problems: Land acquisition is a major issue in development policy, and compensation is often described as being inadequate; meanwhile, adequate compensation is the key element of fairness. Main Objectives: The objective of this study is to examine the impact on household welfare of financial compensation for farmland acquisition for new airport development. Novelty: This study utilizes land acquisition for the new Yogyakarta International Airport (YIA) because this area provides a reasonable case for evaluation. Research Methods: A quasi-experimental design is used to draw a causal relationship. A questionnaire survey has been conducted with 452 households, consisting of 207 households in the treatment group and 245 households in the control group. Finding/Results: On average, the financial compensation for the farmland acquired for the new airport development increased a household’s total annual income by as much as 32.06%, especially the income that was generated from self-owned business and farmland activity, and it also increased their total annual expenditures by as much as 26.55%, especially those related to food, energy (LPG and fuel), vehicles, internet and phone, religion, social relationships, and insurance. Conclusion: This study highlights that financial compensation for farmland acquisition for tertiary industry, specifically a new airport development, has a positive impact on both the total annual income and the total annual expenditures.

Keywords

financial compensation farmland acquisition household welfare
Purbawa, Y. (2022). The Effect of Financial Compensation for Farmland Acquisition on Household Welfare: The Yogyakarta International Airport Development Case. Journal of Indonesian Economy and Business, 37(2), 188-200. https://doi.org/10.22146/jieb.v37i2.1499
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