Bappenas: Economic Losses Due to Climate Change Could Reach Rp2,005 Trillion by 2029

The Ministry of National Development Planning/National Development Planning Agency (PPN/Bappenas) has issued a serious warning regarding the economic impact of the environmental crisis. Bappenas estimates that economic losses due to climate change in Indonesia could exceed Rp2,005 trillion by 2029.

Nizhar Marizi, Director of Environment at the Ministry of PPN/Bappenas, explained that this figure represents a very significant surge compared to previous years. This projection serves as an alarm for both the government and the private sector to immediately strengthen mitigation actions.

“Economic losses due to climate change are projected to increase approximately fourfold, from Rp469 trillion in 2025 to Rp2,005 trillion by 2029,” said Nizhar during a media briefing in Jakarta on Tuesday (2/6/2026).

Nizhar emphasised that the current national development process faces increasingly complex challenges due to the triple planetary crisis. This triple crisis encompasses climate change, biodiversity loss, and environmental pollution, which are all interconnected.

This projection of trillions of rupiah in losses is certain to occur if Indonesia does not undertake massive and integrated follow-up actions in the coming years. To mitigate these risks, Bappatus is collaborating with the Global Green Growth Institute (GGGI) to launch the Green Indonesia Future Initiative (GIFT) for the 2026-2030 period. This programme is designed to unlock new funding opportunities for low-carbon development.

The GIFT initiative targets the mobilisation of green investments amounting to US$2 billion by 2030. This figure represents a twofold increase from the accumulated achievements of previous phases.