Sri Mulyani: Indonesia Potentially Lose Rp112,3 Trillion

20 Sep 2022


The threat of the climate crisis is becoming more and more real. Because of climate change, Indonesia is about to lose Rp112,3 trillion. 

Minister of Finance, Sri Mulyani Indrawati stressed that this climate change issue will affect our country’s economy. Rather than the Covid-19 pandemic, the impact of this issue, she said, will be broader and more significant in some countries.

Indonesia is potentially losing up to Rp112,2 trillions or 0.5 percent of the GDP in 2023 or next year, said Sri Mulyani in the event of HSBC Summit 2022 last Thursday (15/9).

Indonesia is one of the biggest contributors to greenhouse gases. It has decreased a bit during the pandemic lockdown in 2020 before, but as the situation gets under-controlled, the amount of greenhouse gases returns increasing. 

Referring to the report of research from the Swiss, if we miss the opportunity to accomplish the Paris Agreement, countries all over the world will lose 10% of their economy. 

According to Sri Mulyani, this report confirms that climate change really needs more global attention. The increase in frequency and severity of natural disasters caused by climate change has indicated the potential for real disruption. It will also definitely damage the progress of economic development.

If there is no action taken for the problem, Indonesia will potentially lose up to 45% of its GDP in 2030. The scale of the loss is estimated to be around 0.63-45 percent of the 2030 GDP. 

Soon, if the global temperature increased by 1.1 degree Celsius temperature, Professor Richard Tol from Sussex University, England, predicted the negative impact of global warming will outweigh the positive impact. Yet, the rising temperature is predicted to be achieved in the near future.

As these factors we see, the rising greenhouse gases emission and sea level have become a loud ‘alarm’ for every country to mitigate.


Source: CNBC Indonesia

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