Climate Disaster Destroys Economy, Predicted to Trigger IDR 2,005 Trillion in Losses

The Ministry of National Development Planning/Bappenas estimates that economic losses resulting from climate change will reach IDR 2,005 trillion by 2029. This represents a potential fourfold increase from the projected loss of IDR 469 trillion in 2025.

“From the perspective of climate change, we have calculated that economic losses could increase up to four times if we do nothing,” stated Nizhar Marizi, Director of Environment at the Ministry of National Development Planning/Bappenas, during the Green Indonesia Future Initiative (GIFT) launch in Jakarta on Tuesday.

Beyond climate change, Indonesia is also facing significant waste management issues. The capacity of National Landfills (TPA) is projected to reach full capacity by 2028 or even sooner. While some government programmes focus on long-term behavioural changes, the accumulation of waste necessitates short-term interventions through presidential regulations to manage the current backlog.

Furthermore, biodiversity is expected to face degradation, with deforestation projected to cover 2.47 million hectares by 2045. This trend threatens the extinction of various flora and fauna species and the loss of essential ecosystem services. The degradation of habitats, driven by both human activity and climate change, has significantly increased the threat of extinction in recent years.

Indonesia has maintained international commitments to environmental management, such as the United Nations Framework Convention on Climate Change (UNFCCC). Regarding biodiversity, the nation is also bound by the United Nations Convention on Biological Diversity (UNCBD), which requires the formulation of a National Strategy and Action Plan. In Indonesia, this is known as the Indonesia Biodiversity Strategy and Action Plan (IPSAP), which has been developed with a vision extending to 2045.