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JDR Vol.20 No.5 pp. 765-775
(2025)
doi: 10.20965/jdr.2025.p0765

Paper:

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Event-Based Seismic Risk Assessment for Indonesia’s Post-Disaster Fund to Stimulate House Damage Recovery

Fiza Wira Atmaja*1,*2 ORCID Icon, Irwan Meilano*1 ORCID Icon, Riantini Virtriana*1,† ORCID Icon, Dumaria Rulina Tampubolon*3 ORCID Icon, Rio Raharja*1 ORCID Icon, and Garup Lambang Goro*4 ORCID Icon

*1Department of Geodesy and Geomatics Engineering, Faculty of Earth Sciences and Technology, Institut Teknologi Bandung
Jl. Ganesha 10, Bandung, West Java 40132, Indonesia

†Corresponding author

*2Department of Industry Research, Indonesia Re Institute, PT Reasuransi Indonesia Utama
Jakarta, Indonesia

*3Department of Mathematics, Faculty of Mathematics and Natural Sciences, Institut Teknologi Bandung
Bandung, Indonesia

*4Department of Civil Engineering, State Polytechnic Semarang
Semarang, Indonesia

Received:
February 10, 2025
Accepted:
July 3, 2025
Published:
October 1, 2025
Creative Commons License
Keywords:
risk assessment, exposure, seismic hazard, average annual loss, probable maximum loss
Abstract

Indonesia, situated at the convergence of four major tectonic plates, has historically been prone to significant seismic activity. In response, the country has adopted Disaster Risk Financing and Insurance (DRFI) as a strategic approach to managing funds, particularly for post-disaster recovery, which poses significant budgeting challenges. This study conducted a detailed seismic risk assessment specifically aiming to enhance the management of funds designated for housing damage recovery after earthquakes. Employing downscaling exposure models and event-based seismic risk assessments, this study estimates the value of earthquake-affected residential properties in Indonesia at the sub-district level to be USD 380.6 billion as of 2022. Subsequent risk analysis employing the event-based seismic risk model produced a hazard map, an exceedance probability curve, and an average annual loss map, indicating an average annual loss ratio of 0.1035% relative to the total exposure. The accuracy of the model was validated using historical event loss data from the 2022 Cianjur earthquake, achieving a mean absolute percentage error of 3.0% at the regency level. This precision level confirms its utility in estimating funds necessary for housing recovery initiatives at this administrative level. The findings support the model’s reliability in assessing the risks associated with funding for earthquake-induced damage up to the regency level and suggest its potential to refine DRFI policies. This model is expected to enhance the effectiveness and inclusiveness of disaster finance strategies in Indonesia.

Cite this article as:
F. Atmaja, I. Meilano, R. Virtriana, D. Tampubolon, R. Raharja, and G. Goro, “Event-Based Seismic Risk Assessment for Indonesia’s Post-Disaster Fund to Stimulate House Damage Recovery,” J. Disaster Res., Vol.20 No.5, pp. 765-775, 2025.
Data files:
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Last updated on Sep. 30, 2025