The Short Version of Wealth Portfolio Index of Indonesians Living in Flood-Prone Regions

<ns3:p>Background This study aims to develop a short version of the wealth portfolio index by incorporating expenditure data, addressing the need for practical socioeconomic assessment tools in flood-prone regions of Indonesia. We followed the line of the national socioeconomic survey, which included comprehensive data on food and non-food expenditures, household assets, and housing characteristics. Method To construct and validate the short-form measure, a random sample of residents (N=700) was collected from flood-prone areas in Bima, Manado, and Pontianak. The study employed nonlinear principal components analysis in the form of categorical principal component analysis (CATPCA), which is suitable for integrating variables measured on differing scales. Results The CATPCA analysis supports a two-dimensional wealth portfolio index consisting of total 24 items, reflecting both asset ownership and expenditure patterns relevant to the target population. Discussion The emergence of two distinct dimensions highlights the multidimensional nature of socioeconomic status in environments with recurrent flooding. Based on the current finding, we suggest to use the short-form index which provides robust item coverage while facilitating efficient household-level assessments in diverse Indonesian communities, especially in flood-prone areas.</ns3:p>