JAKARTA \u2013 The threat of a Super El Ni\u00f1o, which is expected to affect\nIndonesia until early 2027, is requiring businesses across sectors to\nimprove their preparedness for climate risks. The prospect of a\nprolonged dry season, drought and fires threatens not only agriculture\nand plantations, but also industry, property and logistics, all of which\ndepend on water availability and environmental conditions.<\/p>\n
Anticipating climate risks is important to reduce potential damage to\nassets, operational disruption and financial losses caused by extreme\nweather. Businesses need to identify vulnerabilities in their operations\nand prepare preventive measures suited to the characteristics of their\nrespective sectors.<\/p>\n
Asuransi Jasindo corporate secretary Brellian Gema Widayana said\nclimate risks needed to be taken into account in business management and\nasset protection. The effects of extreme weather could extend across\neconomic activities, he said, so it was not enough to address them only\nafter losses had occurred.<\/p>\n
\u201cSuper El Ni\u00f1o is a reminder that climate risks must be taken\nseriously, as their effects can spread across sectors and affect assets\nand operational activities. Customers therefore need to understand the\nrisks they face and prepare preventive measures. Insurers, for their\npart, must ensure adequate risk management so they can meet their\nobligations to customers,\u201d Brellian said in a written statement on\nSaturday (24 October 2026).<\/p>\n
Brellian said preparations could begin by mapping risks according to\nlocation, asset characteristics and potential operational disruption.\nWeather forecasts from the Meteorology, Climatology and Geophysics\nAgency (BMKG) can be used to identify areas at risk of drought or\nfires.<\/p>\n
In industry, readiness for extreme weather can include checking\nfire-protection systems and establishing procedures for dealing with\noperational disruption. Businesses that rely on water supplies should\nalso plan their resource management to prepare for the possibility of\nprolonged drought.<\/p>\n
In agriculture and plantations, changing climate conditions can\naffect production. Mitigation measures are therefore needed to reduce\npotential losses from drought and other environmental disruption.<\/p>\n
Alongside preventive measures, financial protection is another tool\nbusinesses can use to manage risk. Insurance can help reduce the\nfinancial impact of losses covered by a policy, although it cannot\nprevent disasters from occurring.<\/p>\n
Rising extreme-weather risks also pose a challenge for the insurance\nindustry in managing potential claims. Data from the Financial Services\nAuthority (OJK) show that claims in the general insurance and\nreinsurance industries reached Rp43.34 trillion through July 2026, an\nincrease of 17.30 per cent compared with the same period a year\nearlier.<\/p>\n
However, the increase in claims covers various types of risk and does\nnot specifically reflect the impact of Super El Ni\u00f1o. The scale of\npotential claims arising from extreme weather will depend on the\ndisaster, the extent of losses and the coverage provided by\npolicies.<\/p>\n
Insurers can prepare by mapping concentrations of insured assets in\ndisaster-prone areas, reviewing their portfolios, and reassessing risk\nselection and premium-setting, or underwriting, processes. Adequate\nreserves and reinsurance support are also needed to ensure insurers can\nmeet their obligations to customers.<\/p>\n
Asuransi Jasindo said it managed risk by helping customers identify\npotential losses and determine their protection needs. It also provides\nclaims services covering reporting, verification and settlement in\naccordance with policy terms.<\/p>\n
In agriculture, Asuransi Jasindo has participated in the Rice Farming\nInsurance Programme (AUTP) with the Ministry of Agriculture since 2015.\nThe programme provides financial protection against crop failure risks\ncovered by the policy, including those caused by drought, floods, pests\nand plant diseases.<\/p>\n
\u201cFor Asuransi Jasindo, maintaining customer trust means not only\nproviding insurance protection, but also ensuring measured risk\nmanagement and dependable service. We are working to ensure the company\nis ready to meet its obligations to customers, so that protection can be\nprovided in accordance with policy terms when a risk occurs,\u201d Brellian\nsaid.<\/p>\n
The potential effects of Super El Ni\u00f1o underline the importance of\npreparedness across sectors as climate conditions change. Identifying\nrisks, preventing damage to assets, ensuring operational readiness and\nsecuring financial protection are among the steps that can reduce\npotential economic losses from extreme weather.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/climate-risks-rising-businesses-need-to-prepare-mitigation-measures-1792885826", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }