Green Infrastructure Financing Model Offers New Solution to Urban Flooding in Indonesia
A 2026 study published in the Formosa Journal of Social Sciences presents a new governance and financing framework to tackle urban flooding in Indonesia. The research was conducted by Lazarus Ramandei and Marsal Arung Lamba from Cenderawasih University. Completed in early 2026, the study addresses why flood mitigation efforts often fall short and how integrated infrastructure and financing models can improve long-term resilience.
Urban flooding has become more frequent and severe across Indonesian cities due to climate change, rapid urbanization, and the declining effectiveness of conventional drainage systems. The findings matter because flood-related losses continue to rise, affecting infrastructure, livelihoods, and public safety.
Urban Flooding Requires New Approaches
Indonesia faces billions of dollars in losses each year from hydrometeorological disasters, with flooding as one of the most persistent threats. Traditional “gray infrastructure,” such as drainage pipes and concrete channels, has proven insufficient to manage increasingly complex urban water systems.
Green infrastructure offers an alternative. It includes natural or nature-based solutions such as urban forests, wetlands, green roofs, and permeable surfaces. These systems absorb, store, and slow down water, reducing runoff and flood risk.
Research cited in the study shows that green infrastructure can reduce urban runoff by 20–40 percent, depending on design and location. However, implementation in Indonesia remains limited due to governance fragmentation and funding constraints.
Simple Research, Broad Insights
The research team from Cenderawasih University used a qualitative conceptual approach. Instead of collecting field data, the study analyzed international case studies, academic literature, and Indonesian policy frameworks.
Key sources included reports from global institutions such as the Asian Development Bank, World Bank, and UNDP, along with national policies like the 2025–2029 National Medium-Term Development Plan and regulations on public-private partnerships.
The researchers compared global best practices with Indonesia’s institutional and financial conditions. This analysis led to the development of a new integrated framework for flood management.
Key Findings: Integration Is Essential
The study introduces a “blue-green-gray” infrastructure model, combining three systems:
- Blue infrastructure: rivers, lakes, and water retention areas
- Green infrastructure: vegetation-based systems like green roofs and urban forests
- Gray infrastructure: conventional drainage and engineering systems
This integrated approach is more effective than relying on a single system. Combined systems can reduce flood overflow by up to 18–23 percent more than green-only solutions.
The research also identifies key governance requirements:
- Strong coordination between national, provincial, and local governments
- Clear division of responsibilities among institutions
- Integration of green infrastructure into spatial planning policies
- Active community involvement in implementation
Without these elements, even well-designed infrastructure projects may fail.
Financing Remains the Biggest Barrier
One of the most critical challenges is funding. Indonesia’s infrastructure needs are massive, with a significant portion expected to come from private investment.
The study highlights several financing solutions:
- Public-Private Partnerships (PPP) to attract private capital
- Green bonds and green sukuk to fund environmentally sustainable projects
- Land value capture, where increased property values help finance infrastructure
- Climate funds, including international financing for adaptation projects
Indonesia has already issued more than $9.5 billion in green and sustainable bonds between 2018 and 2024, showing growing potential in this sector.
According to Marsal Arung Lamba from Cenderawasih University, combining multiple financing instruments can reduce the burden on government budgets while ensuring long-term sustainability.
Policy and Planning Must Align
The research emphasizes that infrastructure alone is not enough. Policy alignment is critical.
Green infrastructure must be integrated into spatial planning documents such as regional development plans and zoning regulations. For example:
- Flood-prone areas should include mandatory green infrastructure
- Urban development should maintain minimum green space ratios
- Building permits should require sustainable drainage systems
These policies ensure that flood mitigation becomes part of everyday urban planning, not just emergency response.
Real-World Impact for Cities and Communities
The proposed framework has practical implications for multiple stakeholders:
For policymakers:
- Provides a roadmap for integrating climate resilience into national development
For urban planners:
- Offers a model for combining natural and engineered systems
For investors:
- Identifies new opportunities in green finance and sustainable infrastructure
For communities:
- Improves quality of life through reduced flooding, better air quality, and enhanced urban environments
The study also highlights the importance of pilot projects and community engagement to ensure long-term success.
Academic Insight
Lazarus Ramandei from Cenderawasih University emphasizes that flood mitigation requires more than infrastructure investment. It requires coordination, planning, and sustainable financing systems that align environmental and economic goals.
The research shows that when governance, finance, and infrastructure are integrated, cities can become more resilient to climate-related risks.
Author Profile
Lazarus Ramandei is a researcher affiliated with Cenderawasih University, focusing on sustainable urban development and environmental planning.
Marsal Arung Lamba is an academic at Cenderawasih University specializing in urban planning, infrastructure governance, and sustainable development policy.
Source
Formosa Journal of Social Sciences (FJSS), 2026
DOI: https://doi.org/10.55927/fjss.v5i1.2
URL : https://journalfjss.my.id/index.php/fjss/index
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