The Effect of Financial Compensation for Farmland Acquisition on Household Welfare: The Yogyakarta International Airport Development Case

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 finan...

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Main Author: Yudha Purbawa
Format: Article
Language:English
Published: Universitas Gadjah Mada 2022-05-01
Series:Journal of Indonesian Economy and Business
Subjects:
Online Access:https://journal.ugm.ac.id/v3/jieb/article/view/1499
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author Yudha Purbawa
author_facet Yudha Purbawa
author_sort Yudha Purbawa
collection DOAJ
description 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.
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spelling doaj.art-9a818ed7fded4f46a8ef4335747065052023-11-15T08:57:43ZengUniversitas Gadjah MadaJournal of Indonesian Economy and Business2085-82722338-58472022-05-0137210.22146/jieb.v37i2.1499The Effect of Financial Compensation for Farmland Acquisition on Household Welfare: The Yogyakarta International Airport Development CaseYudha Purbawa0Research Center for Behavioral and Circular Economics, National Research and Innovation Agency (BRIN) 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. https://journal.ugm.ac.id/v3/jieb/article/view/1499financial compensationfarmland acquisitionhousehold welfare
spellingShingle Yudha Purbawa
The Effect of Financial Compensation for Farmland Acquisition on Household Welfare: The Yogyakarta International Airport Development Case
Journal of Indonesian Economy and Business
financial compensation
farmland acquisition
household welfare
title The Effect of Financial Compensation for Farmland Acquisition on Household Welfare: The Yogyakarta International Airport Development Case
title_full The Effect of Financial Compensation for Farmland Acquisition on Household Welfare: The Yogyakarta International Airport Development Case
title_fullStr The Effect of Financial Compensation for Farmland Acquisition on Household Welfare: The Yogyakarta International Airport Development Case
title_full_unstemmed The Effect of Financial Compensation for Farmland Acquisition on Household Welfare: The Yogyakarta International Airport Development Case
title_short The Effect of Financial Compensation for Farmland Acquisition on Household Welfare: The Yogyakarta International Airport Development Case
title_sort effect of financial compensation for farmland acquisition on household welfare the yogyakarta international airport development case
topic financial compensation
farmland acquisition
household welfare
url https://journal.ugm.ac.id/v3/jieb/article/view/1499
work_keys_str_mv AT yudhapurbawa theeffectoffinancialcompensationforfarmlandacquisitiononhouseholdwelfaretheyogyakartainternationalairportdevelopmentcase
AT yudhapurbawa effectoffinancialcompensationforfarmlandacquisitiononhouseholdwelfaretheyogyakartainternationalairportdevelopmentcase