Source: Tempo
Date: January 9, 2022

TEMPO.CO, Jakarta - The results of a study from the Ministry of National Development Planning (PPN)/National Development Planning Agency (Bappenas) show that the impact of climate change also has the potential to cause economic losses of up to Rp 544 trillion.


The results of the study from the Ministry of National Development Planning/Bappenas in question focused on the potential economic losses in Indonesia as a result of climate change.

The results show that Indonesia has the potential to experience economic losses of up to IDR 544 trillion during 2020-2024 due to the impact of climate change if policy interventions are not carried out or business as usual.

"The potential loss has been calculated until 2024, and it is estimated that the economic losses due to various [triggered by] climate change are quite large. This is what we must anticipate how we can reduce potential losses," said Director of the Environment of the Ministry of National Development Planning/Bappenas Medrilzam at a webinar, Thursday, January 6, 2022.

In detail, the four priority sectors are estimated to suffer significant losses. First, the impact on coastal and marine areas is estimated to have the highest level of economic loss. For example, shipwrecks and beach inundation. Bappenas estimates that losses due to climate change impacts in this sector will reach Rp 408 trillion.

Second, the agricultural sector. An example of economic loss that can be caused by climate change is a decrease in rice production. The total loss is estimated at IDR 78 trillion.

Third, the health sector, where an example of loss estimated by Bappenas is an increase in dengue fever cases with a total economic loss of Rp 31 trillion.

Fourth, the water sector. Bappenas estimates that the impact of climate change could trigger a decrease in water availability to reach Rp 28 trillion.

Medrilzam said that Indonesia is currently facing the threat of disaster due to climate change. In his presentation, he explained that in the last five years the frequent disasters were dominated by hydrometeorological disasters such as floods and landslides.

The National Disaster Management Agency or BNPB noted that hydrometeorological disasters in 2020, the first year of the Covid-19 pandemic, reached 4,842 events, or an increase of 2.4 times compared to 2010.

In addition, during the 2010-2020 period, the average economic loss experienced by Indonesia due to hydrometeorological disasters each year is IDR 22.8 trillion.

"Notes from BNPB, in 2020 almost 99 percent of the disasters that occur in Indonesia are related to hydrometeorology which relatively dominates. Of course, this is closely related to climate change," explained Medrilzam.