The influence of natural disaster regional information on investment flows in Aceh

Abstract

This research explores the impact of information on disaster areas on Foreign Direct Investment (FDI) in Aceh. This study aims to explain the relationship between information on disaster areas and FDI decisions to increase understanding of the factors influencing investment opportunities in Aceh. This study used qualitative methods to examine the relationship between information on disaster-prone areas and foreign investment. Qualitative analysis involves the relationship between the provision of information on disaster areas and the level of foreign investment in Aceh. Preliminary results indicate that the availability and accuracy of information on disaster areas has a major impact on foreign investors' risk perceptions and evaluations. Provision of timely and transparent information on disaster risks, mitigation measures, and government response strategies was observed to have a positive impact on investor confidence. Conversely, limited access to reliable information or perceptions of inadequate disaster preparedness may discourage potential investors from engaging in investment activities. The results showed that the level of information on disaster areas in Aceh was not satisfactory and tended to affect the level of investment in Aceh Province. Aceh has very limited resources and information compared to other provinces. The level of investment in Aceh is also not very high compared to other provinces which have also experienced major disasters. It is necessary to increase the provision of information on disaster areas and the integration between the disaster management office and the investment service also needs to be improved.