The Impact of Flash Floods and Landslides in Sumatra on the Income of MSMEs in Aceh

Abstract

This study aims to examine the impact of flash floods and landslides in Sumatra on the income of Micro, Small, and Medium Enterprises (MSMEs) in Aceh, using a literature review. Flash floods and landslides can significantly reduce business income, especially in the agricultural and MSME sectors, through land damage, asset loss, and decreased productivity. Studies in similar regions show that household and business income can drop dramatically during and after a disaster, by as much as 80% compared to normal conditions. In addition, MSMEs face further challenges, including higher operating costs due to limited electricity supply, infrastructure damage, and restricted access to raw materials and markets. Factors such as income diversification, educational levels, and membership in social organizations can affect SMEs' vulnerability and their ability to adapt to disasters. The results of this review emphasize the importance of mitigation efforts, improving disaster literacy, and government policy support and access to financing to strengthen the resilience of SMEs in Aceh to the risks of flash floods and landslides.

Keywords: Aceh, Flash Floods and Landslides, Income, MSMEs