Indonesia's Potential Economic Losses Due to Climate Change to Increase Until 2024

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Adi Ahdiat 02/09/2025 14:20 WIB

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According to calculations by the Ministry of National Development Planning (PPN), Indonesia's potential economic losses due to climate change increased during the 2020-2024 period.

Potential Economic Losses for Indonesia due to Climate Change in 4 Priority Sectors (2020-2024)*

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Potential Economic Losses for Indonesia due to Climate Change in 4 Priority Sectors (2020-2024)*

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Climate change can inflict significant losses on the Indonesian economy.

This is recorded in the Climate Change Resilient Development Policy 2020-2045 report released by the National Development Planning Ministry (PPN).

According to the PPN Ministry, climate change can trigger rising sea levels and temperatures, increased intensity of extreme weather, hydrometeorological disasters, changes in rainfall patterns, and droughts.

These phenomena are expected to cause losses in four priority sectors:

Maritime: Damaged marine ecosystems, reduced capture fisheries productivity.
Agriculture: Changing seasons, reduced crop productivity.
Water: Increased risk of floods and droughts, reduced clean water availability.
Health: Increased risk of environment-related infectious diseases such as dengue fever, diarrhea, and leptospirosis.

The PPN Ministry estimates that the accumulated value of losses due to climate change in these four sectors reached Rp102 trillion in 2020.

The value of these losses is then projected to continue rising, reaching Rp115 trillion in 2024.

However, this figure represents only a small portion of the total losses, excluding the impact of climate change on other sectors.

"The resulting economic losses do not account for all loss variables. Therefore, in reality, the losses from the impact of climate change are far greater," stated the PPN Ministry in its report.

To curb this potential loss, the PPN Ministry states that policies are needed to create development that is resilient to the impacts of climate change.

"If planned climate resilience development actions are implemented, it is expected that the losses experienced can be reduced by almost 50%," said the PPN Ministry.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia's Potential Economic Losses Due to Climate Change to Increase Until 2024

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Indonesia's Potential Economic Losses Due to Climate Change to Increase Until 2024

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