Research Center ECONOMIC AND PUBLIC POLICY DIVISION Expertise Agency of DPR RI Gd. Nusantara I Lt. 2 Jl. Jend. Gatot Subroto Pusat - 10270 c 5715409 d 5715245 m [email protected] A BRIEF STUDY OF ACTUAL AND STRATEGIC ISSUES Vol.XII, No. 1/I/Puslit/January/2020

ECONOMIC IMPACTS AND FLOOD RISK MITIGATION POLICY IN DKI JAKARTA AND ITS VICINITY IN 2020 19 Ari Mulianta Ginting

Abstract Floods that occurred in early 2020 brought along various impacts on community and businessmen, one of which is the economic impact. There are three the economic impact that the community endures, first is the destruction of houses, vehicles, goods, physical infrastructure and estimated social infrastructures reaching more than 10 trillion rupiahs. Second, the increasing inflation in January 2020 as result of volatile foods due to limited supply and distribution of basic needs. Third, the losses that retail businesses suffered reaching 1 trillion rupiah. The government must issue a comprehensive policy in response to flood disaster mitigation, including identifying problems with flooding, designing policies and strategies to prevent them followed by the implementation of the policy. The final step is evaluation and monitoring of the implementation of the policy. The House of Representatives of The Republic of (DPR RI) must be able to ensure that policies, programs and activities that the government and regional governments conducted must be able to mitigate the recurring risk of flooding in the future.

Introduction Meteorology, Climatology, and In the beginning of 2020, Geophysical Agency (BMKG) precisely on January 1, 2020 flash noted the extreme rainfall evenly floods and landslides hit DKI in Jakarta and its vicinity on the Jakarta, Bogor, Depok, , December 31, 2019 and January 1, Lebak, and Bekasi, which lasted 2020. Highest rainfall reached 377 several day (Kompas, January millimetres (mm) per day, higher 2, 2020). Rainfall in DKI Jakarta than the record of highest rainfall at and its vicinity ares in early 2020 February 2015 as recorded 367 mm per day (Kompas, January 3, 2020), PUSLIT BKD turns out to be one of the highest rainfall in the history (through even though the BMKG predicted the length of the recorded rainfall the peak rainy season to fall in in Jakarta and its vicinity since February 2020 (Tempo Newspaper, the first measurements in 1866). January 6, 2020). National Disaster January 1, 2020 to this date also Management Authority (BNPB) has a big impact for the economy. explained that until January 6, According to senior researcher of 2020, as many as 67 people died the Institute for Development of and 173,040 people evacuated. Economics and Finance (INDEF), Floods and landslides almost Bhima Yudhistira Adhinegara, evenly took place in Jabodetabek, economic loss due to the disaster which was 7 flooding points in is different than the floods in 2007, West Jakarta, 2 flooding points in reaching more than 10 trillion North Jakarta, 2 flooding points in rupiahs (IDX, January 3, 2020). Central Jakarta, 39 flooding points The second economic impact due in South Jakarta, 13 flooding points to the flood is expected to increase in Lebak , 4 flooding points inflation of volatile foods, that it can in Tangerang City, 5 flooding progressively increase and missed points in , 12 the 2020 state budget target of 20 flooding points in , 3.1%. The Head of Central Statistics 58 flooding points in Bekasi City, Bureau (BPS), Suhariyanto revealed and 27 flooding points in Bekasi if the floods cannot be quickly Regency (BNPB, January 6, 2020). overcome, it will have a significant This paper aims to review about the impact on inflation, especially impact of floods in Jabodetabek in negative influences to inflation in early 2020 from the perspective of January 2020 (Bisnis Indonesia, economic and flood risk mitigation January 6, 2020). policy to prevent recurring events In addition, the supply of in the future. raw materials, foodstuffs, and the finished product is less smooth. Economic Impacts of Floods in Large trade to retail sector was 2020 also disrupted due to the stagnated Economic losses from floods distribution channels. Traders and landslides is very large, starting in traditional markets were also from immediate losses such as perplexed to get supply of goods, damaged houses, both lightly specifically fresh vegetables and and heavily, damaged goods and other foods commodities such as loss due to flooding, up to the fishes. The stagnated supplies is submerged cars and motorcycles. the impact of floods that cause an It also caused damage of physical increase in the price of goods on infrastructures and social means, the market significantly. It was such as school buildings, worship compounded with high rainfall places and Public Health Center according to weather forecasts (PUSKESMAS), and Halim Perdana by BMKG, just reached its peak Kusuma Airport temporarily closed in February and March (Bisnis and all the flights were transferred Indonesia, January 6, 2020). to Soekarno Hatta Airport (Kompas, Other economic impact is the January 7, 2020). loss suffered by retail traders. The The flood that occurred at Chairman of Indonesian Retailers several Jabodetabek areas from Association (Aprindo) Roy Mendey 21

explained that there are two types In the upstream phase, the of losses due to flooding, which are government issued a policy for potential loss and fix loss. Potential carry on the dam constructions loss is calculated from losses based in Sukamahi and Ciawi, Bogor on the number of closed stores with Regency, which is accelerated in the amount of affected population 2020. Currently, the development due to flooding, as well as taking into progress of these two dams only account average public expenditure reaches 45% and is expected at the end of 2019. At the present, completed by the end of 2020. In the retail companies as members of midstream phase, the government Aprindo affected by flooding in DKI normalizes the Ciliwung River Jakarta has reached almost 1 trillion and accelerates the completion rupiahs. Whereas for fix loss cannot of penetration channel from the be calculated yet because it is still Ciliwung River to the Eastern Flood waiting for data from APINDO (Suara Canal (BKT). In the downstream Pembaruan, January 7, 2020). phase, the government will ensure the pumps operating a maximum of Public Policy for Flood 24 hours for pumping water into the Mitigation sea (Republika, January 6, 2020). Based on the above explanation, Related with internal the problem of flooding that hit disaster management in public Jabodetabek on early 2020 requires policy perspective, Handmer mitigation policies to prevent and Dovers (2007) expressed that recurring events, fatalities, and disaster management process must hundreds of thousands evacuated begin with the following stages: people as well as economic loss. (1) problem framing discourse; Head of Disaster Study Center, (2) policy framing and strategic Bogor Agricultural University (IPB), choice; (3) policy design and Yonvitner states that synergy of policy implementation; and (4) policy and coordination between various monitoring and learning. Based parties is required to anticipate the on those stages, problem framing upcoming flood. discourse can be done, as it is Solution to floods that hit undeniable that flood problem in Jabodetabek must be integrated Jabodetabek starts from upstream, from upstream to downstream of the which is the massive deforestation river. Besides, there must be orderly on the Puncak Bogor as a result of and good coordination between the change in land use. central government, government of Problems occuring in DKI Jakarta, West , and downstream is that DKI Jakarta and (Tempo Newspaper, January 6, 2020). surrounding areas is geographically Meanwhile, the Minister of lowland with the land decrease Public Works and Public Housing in height in several regions as (PUPR), Basuki Hadimuljono well as its very high rainfall. This explained there are 3 phases that condition was compounded by central government must deal with the termination of normalization them for tackling floods, i.e. upstream, program of watersheds (DAS) for 2 midstream and downstream phases. last year in DKI Jakarta and several rivers in Bekasi. Furthermore, it was carried out, whether the policy has made worse by the unpreparedness been completely overcome the flood of downstream water pumps for problem or not. pumping water into the sea as well as the rising sea tide level. Closing Moreover, related to the The flood that occurred at downstream problem is the change early 2020 brought along the impact in land use into built-up area that on various aspects of people's lives, has reached very high level. Based one of them is economic impact in on research conducted by Yuliana the form of losses in community Arifasihati and Kaswanto in 2016, material and businessmen. The the significance of change of land economic impacts at least include use took place in the Jabodetabek three things: first, floods cause area in watershed units of 1978 until the damage of houses, properties, 2012. Based on the results of the vehicles, physical infrastructure, 22 study, two types of land covering and public (social) facilities such that dominate both watersheds as school buildings, worship i.e. built-up areas and bushes. It places, public health center, and certainly has an impact to the ability others. Results of Indef calculations of the watershed to collect the water represented that this time the flow during rainy season (Kompas, impact of the flood was bigger January 9, 2020). compared to that of 2007 with an Based on these, it is time estimated material loss reaching for the central government and more than 10 trillion rupiahs. local government to issue policy Second, there is an increased framing immediately followed by inflation due to volatile foods that policy design and implementation it disrupted the distribution and in order to prevent the flood supply of staple goods. Third, is the recurring in the future. The central incurred losses suffered by the retail government must cooperate with businessmen, i.e. potential loss and the Government of Bogor regency fix loss estimated to reach 1 trillion to ensure the termination of the rupiahs. change in land use and accelerate It is time for the central dam constructions to collect the government, local government, incoming water flow to DKI Jakarta, and related agencies to issue Bekasi, and Tangerang. policy in order to mitigate flood Meanwhile, for downstream disaster and prevent recurring problems, the central government events in the future. The first step must work together with the DKI from the perspective of public Jakarta Government, Bekasi City policy is identifying the cause of Government, and the vicinity to flood, making policy choices, and normalize all the existed rivers proceeds with designing policy in order to function perfectly and and implementation in the fields. ensure that all pumps function Government also needs to make properly. Following the flood evaluation towards the policy. The prevention policy is created and step to synergize and coordinate implemented, monitoring and flood prevention in the upstream to evaluation of policies must be the downstream should absolutely be done. In this case, the House dampak-banjir-awal- of Representative of the Republic tahun-2020, tanggal 7 Januari of Indonesia needs to supervise 2020. implementation of government “Serius Memitigasi Bencana Banjir”, policies in flood prevention and Kompas, 7 Januari 2020, hal. 1. must be able to ensure that disaster “Utamakan Evakuasi Warga”, mitigation policy can be well- Kompas, 2 Januari 2020, hal. 1. implemented, specifically the flood “Update Data Penanganan Banjir that occurred at Jabodetabek. Jabodetabek dan Lebak 6 Januari 2020”, diunduh dari Bibliography https://www.bnpb.go.id/ “Akar Masalah Banjir”, Republika, 6 update-data penanganan- Januari 2020, hal. 21. banjir-jabodetabek-lebak-6- “Banjir Diyakini Tidak Kacaukan januari-2020-pukul-0800-wib, 23 Pengendalian Inflasi 2020”, tanggal 8 Januari 2020. Bisnis Indonesia, diunduh https://ekonomi.bisnis.com/ read/20200105/9/1187084/banjir- diyakini-tidak-kacaukan- pengendalian-inflasi-2020, diakses 8 Januari 2020. Handmer, John dan Dovers, Stephens. (2007). The Handbook of Disaster and Emergency Policies and Institutions. London: Eathscan. “Krisis Iklim dan Banjir Jakarta”, Kompas, 3 Januari 2020, hal 1. “Manufaktur Siap Pacu Produksi”, Bisnis Indonesia, 6 Januari 2020, hal. 1. “Mengurai Penyebab Banjir Besar di Jakarta”, Kompas, 9 Januari 2020, hal. A. “Pusat dan Daerah Diminta Rancang Solusi Banjir Terintegrasi”, Koran Tempo, 6 Januari 2020, hal. 2. “Ritel Modern Rugi Hampir Rp 1 Triliun Akibat Banjir “,Suara Pembaruan, 7 Januari 2020, hal. 26. “Rugi Rp10 Triliun, Dampak Banjir Awal Tahun 2020”, IDX, 3 Januari 2020, diakses dari https://www.idxchannel.com/ market-news/rugi-rp10-triliun- 24

Ari Mulianta Ginting [email protected]

Ari Mulianta Ginting, S.E., M.S.E., completed his Bachelor’s degree in Financial Management from the University of Indonesia (2006) and Master program in Economics, University of Indonesia (2008). He is currently completing a doctoral program in Economics at the University of Trisakti since 2017. His published scientific papers includes “Analysis of the Effect of Corruption on Poverty in Indonesia,” “Influence of Banking Credit Development on Economic Growth in Indonesia,” and “The Effect of Interregional Development Inequality towards Poverty in Indonesia 2004-2013.”

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