Our partners in Central Java Province, Indonesia, have limited capacity for assessing financial impacts of disasters across the full range of potential outcomes and hence for assessing the balance of costs and benefits of using pre-arranged government financing, private insurance or other financial instruments.
The FloodFinJava project seeks to build this decision-making capacity, co-developing with our local partners a ‘decision support framework’ (or DSF) with demonstration software and a series of analyses (‘case studies’) exploring how loss and financial modelling can improve planning and preparation for the financial consequences of extreme flood events. This DSF will be developed for analysing the potential use of financial instruments in two cities, Solo and Semarang, in Central Java Province, Indonesia.
The main research task is developing a structured framework for model based analysis of financial loss from pluvial and fluvial flooding events. This will combine standard spatial data rainfall and flooding with local information e.g. on the exposure of infrastructure such as roads and bridge or location of vulnerable populations. The project will provide a software solution, incorporating exposure and financial modelling, with a graphical user interface for application by local disaster management agencies, insurance companies and other stakeholders. A series of application case studies will provide illustrative applications at different levels of sophistication.
At the end of the project, the DSF will be handed over to our two local university partners for them to maintain and support post-project. We will also examine what lessons can be drawn from our research for improving financial planning for natural disasters (flooding and other hazards) and putting in place appropriate pre-arranged financing in Central Java, in other Indonesian provinces and in other countries.