Analysis of Financial Resilience in Magelang to Develop Effective Policies Naufal Afif1- Nur Hidayah2
1Akuntansi, Faculty of Economics and Business, Universitas Muhammadiyah Magelang, Magelang, Indonesia
2Manajemen, Faculty of Economics and Business, Universitas Muhammadiyah Magelang, Magelang, Indonesia
Abstract
Financial resilience is an important issue today. COVID-19 pandemic that has occurred since 2020 causes household finances adversity due to financial shocks. The Indonesian Political Indicator states that most Indonesian experienced a decrease in household income in February 2021. The fact is that many people cannot withstand the crisis caused by Covid 19 because the crisis is very different. This is proof that the Indonesian people must have financial resilience to be able to go through various changes and uncertainties that occur. The government must develop effective policies, and ultimately, improve well-being to solve this problem. But first, they need to understand at the individual level to determine the resources needed to overcome financial difficulties. Financial Resilience Spectrum is a solution to find out the position of the community and can be known to which group they belong. The purpose of this research is to create a map of the community in Magelang into Financial Resilience Spectrum Categories. This paper applies the concept of financial resilience to Magelang people to analyze their situation in the aftermath of COVID-19. It is based on a survey and will be analyzed as the average score for each component of financial resilience using descriptive statistics. The findings indicate that Magelang adults experienced severe or high levels of financial vulnerability raising very real concerns about financial wellbeing. These results can be used as input for the government, especially the governments in Magelang to solve financial problems and maintain the financial resilience of their citizen.
Keywords: Financial Resilience- Financial vulnerability- Vulnerable Groups
