Bappenas estimates climate change losses will reach IDR 2,005 trillion

The Ministry of National Development Planning/National Development Planning Agency (PPN/Bappenas) estimates that economic losses resulting from climate change will reach IDR 2,005 trillion by 2029.

“Economic losses due to climate change are projected to increase approximately fourfold, from IDR 469 trillion in 2025 to IDR 2,005 trillion by 2029,” stated Nizhar Marizi, Director of Environment at the Ministry of PPN/Bappenas, during a media briefing in Jakarta on Tuesday.

According to Nizhar, development efforts are facing increasingly complex challenges, driven in part by the ‘triple planetary crisis’. This crisis encompasses climate change, biodiversity loss, and environmental pollution.

Strengthening climate mitigation and adaptation agendas is being pursued through Indonesia’s Second Nationally Determined Contribution (SNDC) 2031-2035 and the National Adaptation Plan (NAP) 2026-2030. Meanwhile, the protection and sustainable use of biodiversity are being managed via the Indonesian Biodiversity Strategy and Action Plan (IBSAP) 2025-2045, alongside the transformation of sustainable production and consumption patterns through the Indonesian Circular Economy Roadmap and Action Plan.

However, Nizhar warned that the projected economic losses from climate change will materialise if no further action is taken. Consequently, Bappenas, in collaboration with the Global Green Growth Institute (GGGI), is implementing the Green Indonesia Future Initiative (GIFT) 2026-2030.

“The GIFT collaboration is expected to bring further funding opportunities to realise low-carbon development in Indonesia,” said Nizhar.

GIFT aims to mobilise US$2 billion in green investment by 2030, doubling the accumulation achieved in all previous phases. The initiative focuses on three primary roles: pioneering new financing models for Indonesia, supporting ministries and local governments in implementing supportive policies and practices, and unlocking access to global funding sources. The initiative also seeks to strengthen the capacity of policymakers to integrate green growth perspectives into their daily decision-making processes.