Project Background
The study is conducted under the Flood Impacts, Carbon Pricing, and Ecosystem Sustainability (FINCAPES) Project, a Canada–Indonesia initiative led by the University of Waterloo to strengthen Indonesia’s resilience to climate‑induced flood risks. It builds on high‑resolution flood hazard analysis in Pontianak and recent evidence on the fiscal impacts of major floods in Indonesian cities, aiming to operationalise these risk insights within the Ministry of Finance’s Disaster Risk Financing and Insurance (DRFI) framework.
Aims and Objectives
To design an operational framework that aligns climate‑informed flood hazard analysis and actuarial loss estimates with Indonesia’s DRFI mechanisms, and to translate these into concrete, gender‑responsive fiscal policy options and high‑level policy dialogue with the Ministry of Finance and Bappenas.
Scope
- Review existing FINCAPES Pontianak flood risk studies and relevant national policies (DRFI Strategy, RPJMN, urban development policies).
- Assess how flood hazard, socio‑economic, and actuarial data can be linked to DRFI instruments such as contingency funds, insurance schemes, catastrophe bonds, and parametric triggers.
- Develop policy and institutional recommendations, including fiscal strategy briefs and a high‑level policy dialogue concept engaging Ministry of Finance and Bappenas.
Methodologies
Technical review & synthesis: Desk review of FINCAPES modelling outputs and relevant policy and planning documents.
Data integration & application: Analyse climate‑informed hazard maps with urban spatial and socio‑economic data, and identify thresholds suitable for DRFI pricing and triggers.
Policy design & institutional engagement: Co‑develop risk‑to‑finance frameworks, draft fiscal policy briefs, and convene a high‑level validation dialogue with key ministries.
