Does isomorphic pressure matter? Indonesia's policy on disaster risk finance

The need for disaster risk financing is critical for Indonesian government to be proposed as one of the responses to manage the fact that Indonesia sits on the most active pacific ring of fire where most earthquakes and volcanic eruptions occur. Thus, this study attempted to investigate the isomorphic pressures on Indonesian public organizations from a disaster risk finance perspective. The discussion then becomes important since the government is seen as one of the central institutions responsible to deliver public goods and services, particularly in efforts to mitigate the natural disasters. Issues such as lack of government response, unclear disaster policies, and disaster management miss coordination, the absence of post-disaster management planning to the incompetence human capacity in public sector to handle the disaster became a source of questions on how both central and local governments deal with disaster risk policy. Therefore, it is important to conduct an assessment related to how the government institutionalizes disaster management policies, especially on disaster financing policies that should be reflected through the government's budget alignments to attain public legitimacy, including in disaster risk financing efforts. This study found that the dominating pressure in the disaster management implementation was normative pressure which was specified by the issuance of Law no. 24 of 2007, establishment of InaSAFE, and experience of losses. By knowing the institutional pressure, we gain basic knowledge required to design appropriate responses and strategies to isomorphic pressures to support institutional sustainability, particularly disaster risk finance policy.