Impact of the Global Financial Crisis on Households in Pekalongan City

Monitoring, Evaluation and Learning

Macro level data shows that Indonesia as well as Pekalongan City experienced an economic downturn due to the global financial crisis (GFC). Apart from this, however, there are also other local shocks which occurred in the city such as the closing of a factory due to internal mismanagement, batik’s competition shock, and the closing of the local fish trading place. These crises somehow affected the economic sector which later affected households that depend on them as sources of income. Thus, households’ experiences and responses at any given moment not only would indicate effects of economic downturn but also accumulated effects of more localized shocks that compound their effects (Hossain et al, 2010).

To understand which groups of households were affected by the compound crises during the period from June 2008 to June 2009, a combined analysis of the CBMS 2009 census and the impact of the GFC survey is needed. The CBMS 2009 census is a data collection of all households in West and North Pekalongan City. It provides information about household members’ characteristics and their living condition but does not include an instrument about income or expenditure of households. The impact of the GFC survey, meanwhile, is a survey that piggybacks on the CBMS 2009 census and aims to provide information about the impact of the crisis on the households. With a certain timeframe — June 2008–June 2009 — the survey tries to capture the changes in households’ livelihood (employment) and the socioeconomic impact of the crisis on the households, in particular, on their food consumption, healthcare and education patterns. The survey was conducted in five villages in Pekalongan City that were assumed to be affected by the GFC. Each village represents a certain core industry that has indications of having felt the GFC impact. Based on the Industry and Trade, Cooperative and Small Medium Enterprises Agency listing, the core industry in each kelurahan is as follows: Medono (batik, sarong and other garments), Tirto (batik), Pasirsari (batik), Krapyak Lor (batik) and Panjang Wetan (fisheries and its products).

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Author 
Asri Yusrina
Akhmadi
Author(s)
Akhmadi
Research Area 
Central Java
Keywords 
CBMS
global financial crisis
impact of crisis
Publication Type 
Periodicals
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