Recurring severe floods in Jabodetabek, Indonesia, and their significant economic and social impacts, highlighting the need for robust financing and insurance mechanisms. The financial losses from the recent flood emphasise the challenges in disaster risk financing and the low penetration of insurance. This policy brief aims to analyse the economic impact of the 2025 floods and advocate for robust DRFI strategies to enhance financial preparedness and recovery through strengthening disaster risk financing strategy implementation, expanding insurance coverage, enhancing public-private partnerships (PPPs), and leveraging innovative financing to build greater urban resilience.