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Natural Disaster Risk Assessment and Area Business Continuity Plan Formulation for Industrial Agglomerated Areas in the ASEAN Region

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Natural Disaster Risk Assessment and Area Business Continuity Plan Formulation for Industrial Agglomerated Areas in the ASEAN Region Natural Disaster Risk Assessment and Area Business Continuity Plan Formulation for Industrial Agglomerated Areas in the ASEAN Region Risk Profile Report - Bekasi and Karawang of Indonesia - February 2015 AHA CENTRE Japan International Cooperation Agency OYO International Corporation Mitsubishi Research Institute, Inc. CTI Engineering International Co., Ltd. Outline of the Pilot Area Country name Indonesia Pilot areas Industrial clusters and surrounding areas in Karawang Regency, Bekasi Regency and Bekasi City Location of pilot Pilot areas are located in the east of Jakarta. Industrial clusters are scattered across areas Bekasi Regency, Karawang Regency and Bekasi City. There are 12 industrial parks. (The approximate area where industrial parks are scattered is indicated by a red broken line.) Jakarta Industrial clusters Local Local government of Indonesia consists of two levels: the higher level is Provinces administrative (Provinsi), under which Regencies (Kabupaten) and Cities (Kota) are placed as the agencies in pilot second level. Regencies and Cities, in particular, are independent administrative areas organizations, unlike in Japan where Prefectures (Regencies) encompass Cities. Area and Local administrative Area (km2) Population* population of pilot agencies areas Karawang Regency Bekasi Regency Bekasi City West Java Province * As of 2000, partially as of 2005 Natural conditions Tropical rainforest climate with rainy and dry seasons. The risk of flooding increases of pilot areas in some parts of the areas during the rainy season. Hazards Four rivers (Citarum, Cibeet, Cikarang and Bekasi) flow across the pilot areas. The (disasters) in pilot Cibeet River converges with the Citarum River in Karawang. The Cikarang River areas: converges with the Bekasi River. Therefore, there are two water systems: the Citarum Flood River system and the Cikaran-Bekasi River system. There are vulnerable areas where flooding occurs frequently. The areas with high risk of floods are: ・ regions lower than the point where the Citarum River meets the Cibeet River; ・ flood-prone areas of the Bekasi River; and ・ flood-prone areas of the Cikaran River. i The industrial parks in Bekasi and Karawang are located relatively high above the sea level with less direct risk of flooding. However, there are flood-prone areas in the surrounding areas, where social infrastructures and local communities are vulnerable to floods. As a result, distribution systems, employees, etc. would be directly affected, and industrial parks would not be able to avoid indirect damage. Hazards The Sunda Trench extends east and west in the area south of the island of Java. Along (disasters) in pilot the trench, the Indo-Australian plate dives under the Eurasian plate, which causes areas: earthquake activity similar to that in Japan. However, pilot areas would not be heavily Earthquake damaged by a huge earthquake occurring in the Sunda Trench since the areas are located in the area north of the island of Java, far away from the seismic center. That is why no seismic disasters with many casualties in Bekasi and Karawang have been recorded in the disaster database since the 20th century. However in the central mountain range of West Java Province, two inland earthquakes occurred in 1975 and 2005, which killed two persons, one in each case. Moreover, another earthquake occurred in the 19th century, which killed 7 people in the north of West Java Province. Hazards No tsunamis with casualties in the surrounding regions of pilot areas have been (disasters) in pilot recorded in the disaster database. Earthquakes occurring at trenches generate tsunamis areas: and cause damage in the area south of the island of Java. Tsunamis would thus pass the Tsunami Sunda Channel before reaching Jakarta with a decreased wave height. Hazards There are approximately 150 volcanoes in Indonesia, 80 of which are active. Mount (disasters) in pilot Kiaraberes-Gagak, Mount Salak, Mount Gede, Mount Tangkuban Perahu, and others are areas: within a 100 km range of the pilot areas. Volcanoes Mount Krakatau, which erupted in 1883 as the second largest eruption in the history of Indonesia, is located about 170 km west of the pilot areas. Mount Merapi, which has erupted repeatedly throughout history and also has been active in recent years, is located about 350 km east, and Mount Kelut is located about 570 km east of the pilot areas. Mount Galunggung, which erupted in 1982 and caused economic damage of 160 million dollars (0.12 % of GDP), is located about 120 km southeast of the pilot areas. Industrial clusters There are five industrial parks developed by Japanese-affiliated companies around in pilot areas Karawang and Bekasi. KIIC (Karawang International Industrial City), chosen as the representative industrial park of the pilot areas, is one of them. The outline of KIIC is as follows. Constructed in 1992. (Planned for five stages of construction, with the third completed at present.) Developed by ITOCHU Corporation, and managed by the ITOCHU Group. 114 tenants are currently operating, 95 of which are Japanese-affiliated. Aims to provide a steady supply of electricity through preferential contract with the PLN. ・ PLN substations were built on the site and have no rental costs. Staffs are stationed at the PLN office within the industrial park. (comprehensive transformation contract) ・ The park has a guaranteed electricity supply and is excluded from the list of planned outages. Electricity supply had been insufficient until 2008, causing frequent planned outages. Subsequently, infrastructure was developed to balance supply and demand, stabilizing the electricity supply to industrial parks Industrial water: Taken from the West Tarum Canal and treated in-house at a water treatment facility (30,000 tons/day). Telecommunication: 1,000 lines from PT. Telekom. Natural gas: Direct contracts between the PGN (public gas corporation) and tenants. ii General economic The roads along expressways in Bekasi City, Bekasi Regency and Karawang Regency conditions of pilot are the major base for Japanese-affiliated companies. The speed of economic areas development in Karawang Regency is said to be the fastest in Indonesia. Most of the laborers in this area commute from Jakarta, and these areas form the Jakarta Metropolitan area (JABODETABEK, an acronym for Jakarta, Bogor, Depok, Tangerang and Bekasi). With the benefits of economic development, the minimum wage in Jakarta has increased by 44% from the previous year, reaching the level of a little over 20,000 yen per month. Increased fuel and labor costs have, in part, imposed a heavy burden on labor-intensive industries. Consequently, some companies may start considering relocating to rural areas. However, immediate relocation to other areas is expected to be difficult, because infrastructure development around Jakarta is currently substantial compared to other areas and because Japanese-affiliated companies in particular are concentrated there (eastern Jakarta). According to the latest statistical data from the Statistical Yearbook Indonesia 2012, the regional GDP of West Java Province is 861 trillion Indonesian rupiah (as of 2011), accounting for 11.6 % of the total GDP of Indonesia. This is the third largest following Jakarta Special Province (the first at 13.2 %) and East Java Province (the second at 11.9 %). The growth rate of the regional GDP of West Java Province is 6.48 %, which is higher than the 5.16 % of East Java Province, but short of the 6.71 % of Jakarta Special Province, which also exceeds 6.32 %, the average rate of Indonesia. BCP Various disasters such as earthquakes, volcanoes and floods are expected to occur in dissemination in Indonesia. Companies seem to consider policies on disaster prevention, however, few Indonesia cases are known in which specific plans have been discussed and formulated. Furthermore, general business operators do not understand the concept of BCP. Public lifeline providers have not developed disaster prevention plans or a BCP either. Conversely, large foreign manufacturers and trading companies have established BCPs. The national government has developed disaster prevention strategies/plans at the national level. Disaster prevention systems of companies are expected to comply with the national plans and the urban master plan under development. However, aspects other than natural disasters, such as protests and demonstrations, are taken more seriously for the risk management plans of companies. iii Contents Outline of the Pilot Area Page Chapter 1 Disaster Risks of the Pilot Area ........................................................................... 1-1 1.1 Overview ...................................................................................................................... 1-1 1.2 Identification of Predominant Hazards ...................................................................... 1-1 1.3 Disaster Risk for Floods ..............................................................................................1-7 1.4 Hazard and Risk Information Sources ....................................................................... 1-7 Chapter 2 Natural Hazards in the Pilot Area ....................................................................... 2-1 2.1 Floods ........................................................................................................................... 2-1 2.2 Typhoons/Hydrometeorology ....................................................................................... 2-2 2.3 Storm
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