Warning from Bappenas! Economic Losses Due to Climate Change Predicted to Exceed Rp2,005 Trillion
The Ministry of National Development Planning/National Development Planning Agency (PPN/Bappenas) has issued a warning regarding the increasing economic impact of the environmental crisis. It is estimated that economic losses due to climate change in Indonesia could reach Rp2,005 trillion by 2029.
Nizhar Marizi, Director of Environment at the Ministry of PPN/Bappenas, stated that this massive projection represents a very sharp increase compared to previous years. This situation serves as a serious alarm for both the government and the private sector to strengthen climate change mitigation measures.
“Economic losses due to climate change are projected to increase approximately fourfold, from Rp469 trillion in 2025 to Rp2,005 trillion in 2029,” said Nizhar Marizi during a media briefing in Jakarta on Tuesday (2/6/2026).
According to Nizhar, national development is currently facing increasingly complex challenges, primarily stemming from the ‘triple planetary crisis’. This crisis encompasses three major issues: climate change, loss of biodiversity, and environmental pollution.
To address these challenges, the government has strengthened its climate mitigation and adaptation agenda through Indonesia’s Second Nationally Determined Contribution (SNDC) 2031-2035 and the National Adaptation Plan (NAP) 2026-2030. Meanwhile, efforts for the sustainable protection and utilisation of biodiversity are being conducted through the Indonesian Biodiversity Strategy and Action Plan (IBSAP) 2025-2045. The government is also encouraging a transformation towards sustainable production and consumption patterns through the Indonesian Circular Economy Roadmap and Action Plan.
Nevertheless, Nizhar emphasised that these economic loss projections could become a reality if not followed by more concrete subsequent steps. Consequently, Bappenas, in collaboration with the Global Green Growth Institute, is running 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.
Through this programme, the government aims to mobilise green investments amounting to US$2 billion by 2030. This figure is twice as large as the accumulated investment successfully gathered in all previous phases. GIFT has three primary focuses: developing new financing models for Indonesia, supporting ministries and regional governments in implementing policies that support green development, and expanding access to global funding sources.