Multi-Criteria Decision Analysis (MCDA) for estimate economic valuation for flood risk in DKI Jakarta Province

Abstract

A 4-day-flood occurred in Jakarta Province, Indonesia at the end of 2019 caused severe moral and material losses and weakened the economy. Various flood risk management methods are available to mitigate this damage. Assessing flood risks is thus an essential task for disaster management activities. An accurate flood risk map is required to be developed. In this research, we developed an economic valuation of flood risk that combines a quick flood map with the consequences of flooding using the Multi – Criteria Decision Analysis (MCDA) in the DKI Jakarta area. A quick identification of flood zones was carried out using SAR (Synthetic Aperture Radar). We estimated that about 54.10 km2 area was flooded area with a total economic loss about 1.406 trillion rupiahs. The sector of construction (10.10%), manufacturing (11.51%), wholesale, rental trade and repair of vehicles (13,90%), business activities (6.77%), financial & insurance (7.33%), and information & communication (7.6%) are major affected sectors that contributes 56.86% of the total economic loss from the market value. 20.49%-other service activities implicitly underestimate the value of environmental services and human productivities. To understand this, a detailed analysis of non-market value is needed in understanding the actual total economic loss.