Sri Mulyani: 2020-2024 losses reach USD 34.9 bn, climate crisis a serious threat

Jakarta – Finance Minister Sri Mulyani revealed that Indonesia has suffered a loss of IDR 544 trillion (USD 34.9 billion) due to the impact of climate change during the 2020-2024 period. This expression was conveyed through a post on her Instagram account, referring to an estimate submitted by the National Development Planning Agency (Bappenas).

“In 2020-2024, Bappenas estimates the loss from the impact of climate change to reach IDR 544 trillion,” Minister Sri Mulyani wrote.

The figure highlights the magnitude of the losses caused by climate change on the Indonesian economy. The impact is felt in various sectors, ranging from infrastructure damage to reduced productivity in the agriculture and fisheries sectors.

Sri Mulyani also revealed the Ministry of Finance’s efforts to overcome these losses. One of them is implementing the Climate Budget Tagging policy, which allows government budget control to identify expenditures related to climate change.

This step is expected to help more effectively allocate budgets to address climate change impacts. Furthermore, Sri Mulyani stated that Indonesia has made national efforts, including voicing the issue of climate change, to get the world’s attention.

In addition, Indonesia has also advocated for the importance of compensation funds from the Green Climate Fund and successfully obtained funding from the Reducing Emissions from Deforestation and Forest Degradation (REDD+) effort.

This substantial economic loss is a serious reminder of the urgency of addressing climate change. Sri Mulyani emphasised that climate change is a threat to the environment and the stability of the Indonesian economy.

Thus, concrete steps and cooperation between institutions and stakeholders are very important to face this challenge.

“The climate crisis not only demands emergency action but also requires a long-term commitment to reduce greenhouse gas emissions, protect natural ecosystems, and build strong adaptation resilience. Only with cooperation and shared awareness can Indonesia protect its future from the serious threats posed by climate change,” he said. (Hartatik)

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