Integrating disaster risk into economic valuation of strategic infrastructure: A case study of Yogyakarta International Airport under tsunami threat

Background: In response to the increasing frequency of natural disasters and the urgency of climate adaptation, this study assesses the potential economic losses at Yogyakarta International Airport (YIA), a key National Strategic Project/Proyek Strategis Nasional (PSN) in Indonesia. Despite its critical role in promoting regional connectivity and economic growth, YIA is located in a high-risk seismic and tsunami-prone zone along the Indian Ocean. Methods: Using the Total Economic Value (TEV) framework, this research estimates direct and indirect losses resulting from a hypothetical disaster scenario, including waterlogging impacts on runways and aprons. The analysis integrates hazard exposure data, infrastructure vulnerability, and sectoral economic linkages, encompassing damage to assets, disruptions to tourism, and income loss during the recovery phase. Findings: Findings reveal that a single severe disaster could result in 429,746,360,380 rupiah losses, with cascading effects on local livelihoods and regional mobility. The study underscores the need for ex-ante disaster risk integration in infrastructure investment planning, contributing to the development of resilient and sustainable airport systems under Indonesia’s long-term disaster risk reduction framework. Conclusion: This study concludes that Yogyakarta International Airport (YIA) is highly vulnerable to tsunami hazards, with potential for extensive infrastructure damage and significant direct and indirect economic losses, underscoring the urgent need to integrate disaster risk reduction into the planning and operation of critical infrastructure. Novelty/Originality of this article: This article lies in its application of the Total Economic Value (TEV) framework combined with hazard exposure analysis to comprehensively estimate both direct and indirect economic losses of Yogyakarta International Airport (YIA) as a National Strategic Project (PSN) in a tsunami-prone area.