Deputy Governor of Bank Indonesia (BI), Filianingsih Hendarta, stated that climate change significantly impacts the Indonesian economy. Her calculations show that the economic losses incurred by Indonesia due to climate change reached Rp 112 trillion this year alone, equivalent to 0.5 percent of the Gross Domestic Product (GDP).

Filianingsih highlighted one clear example of the impact of climate change in Indonesia: an increase in sea level of around 0.8 to 1.2 cm per year that threatens the survival of coastal communities, where about 64 percent of Indonesia’s population lives. Climate change also impacts the trend of rising temperatures in Indonesia, with an average increase in temperature reaching 0.03 degrees Celsius per year from 1981-2018.

According to a Swiss research institute report in 2021, extreme weather could cost up to 10 percent of global GDP by 2050.

RC