Losses Due To Floods In Jabodetabek Are Estimated At IDR 1 Trillion

Jabodetabek Flood Conditions in early January (Irvan Meidianto / VOI)

JAKARTA - The floods that hit the Jabodetabek and Banten areas since January 1 have certainly brought material losses to all affected parties. The Jakarta Indigenous Indonesian Entrepreneurs Association (HIPPI) estimates that this loss could reach IDR1 trillion.

Chairman of DPD HIPPI DKI Sarman Simanjorang explained that the loss was based on the income turnover of a number of business establishments that were supposed to operate. However, due to the flood, the circulation of money was paralyzed.

"This flood has hit business players in various sectors, such as retail, restaurants, MSME players, tourist destinations, taxi operators, Grab and Gojek," said Sarman in a written statement received by VOI, Tuesday, January 14.

In the retail sector, Sarman estimates that 400 stores are directly affected so that they cannot serve customers. According to him, if a store has about 100 customers, assuming an average expenditure of Rp. 250 thousand per person, then the loss could reach Rp. 10 billion per day.

Then, Sarman assumed that shopping centers lost 50 percent of visitors during floods. Usually, during the New Year holidays, visitors can reach 5,000 people with an assumption of Rp 200 thousand.

At that time, transactions could reach Rp. 82 billion with a total of 82 malls in Jabodetabek. "If visitors decrease by about 50 percent, the transaction loss will reach Rp. 41 billion," he said.

In addition, there are 28 traditional markets that were affected by the flood, with 250 traders per market and 7,000 traders. "If the average sales are around 500,000 per trader, the transaction loss will reach Rp3.5 billion," he said.

Furthermore, the number of restaurant outlets in DKI Jakarta that were affected by the flood was 3957. There was a decrease in turnover by an average of 50 percent for each restaurant. If each restaurant has a minimum transaction of IDR 2 million, the transaction loss will be IDR 7.9 billion.

Furthermore, Sarman estimates that the transportation sector will experience a decline in turnover of up to 70 percent. The number of online taxis in Jabodetabek reaches 36,000 vehicles. If the turnover decreases by around Rp. 100,000, the transaction loss will reach Rp. 3.6 billion.

"Meanwhile, the number of online motorcycle taxis in Jabodetabek has reached 1,250,000 drivers. If the turnover drops to an average of Rp. 25 thousand, the transaction loss will reach Rp. 31.25 billion," he explained.

In addition, the tourism sector also experienced a decline in income. Visitors to Ancol, Kota Tua, Monas, TMII, and the Ragunan Zoo have certainly experienced a decline. The assumption is that these tourist attractions are reduced by 50-70 percent.

"Transaction losses in Ancol could reach Rp15.5 billion, Kota Tua and its entire museums could reach Rp3.5 billion, Monas could reach Rp10 billion, TMII could reach Rp3.15 billion, and Ragunan reach Rp5.4 billion," he explained.

If you add up the overall transaction losses from the money turnover due to the 2020 extreme floods, it could reach IDR 135,054,000,000 per day. If you multiply it for 5 days during the holiday season in flood conditions, the estimated loss will reach a minimum of IDR 675 billion.

This calculation does not include direct losses to market traders whose merchandise is not selling well, as well as the repair costs of around 1,500 taxis that were submerged.

"If coupled with direct losses to taxis and market traders of around Rp. 370 billion, the estimated loss will reach Rp. 1.05 trillion," said Sarman.

"This is an assumption or estimate. There is no definite data. But, at least we have a picture or image of the impact of this flood on transaction losses or money circulation during the 2020 New Year holidays which should be able to increase Jakarta's economic growth and maintain inflation," he added.