Sri Mulyani: Economic Loss from Climate Change May Reach 3.45% of Indonesia's 2030 GDP

TEMPO.CO, Jakarta - Minister of Finance Sri Mulyani Indrawati said that Indonesia's economic losses due to natural disasters caused by climate change could reach 3.45 percent of the GDP by 2030. In numbers, that would be about Rp1.380 trillion, according to her estimate.

Speaking at the Indonesia EBTKE Conex at ICE BSD, Tangerang, Wednesday, July 12, Sri Mulyani said that if we ignore climate change, Indonesia will suffer significant impacts. The minister said that 80 percent of natural disasters in Indonesia are currently related to hydrometeorology.

"It has caused economic losses which are estimated to be 0.66 to 3.45 percent of our GDP in 2030," the minister said.

Sri said that Indonesia's current total GDP is around Rp20,000 trillion. Assuming economic growth is maintained at 5 percent or even 6-7 percent plus inflation, Indonesia's income per capita can increase by around 10,000 times the population.

Sri Mulyani estimates that Indonesia's GDP will double in less than seven years. "It's now 2023. Multiply [this year's total GDP] by two, that would be, let's say, Rp40,000 trillion. You can multiply yourself how much 3.45 percent of that GDP is. And that's how much we could lose," she said.

Amelia Rahima Sari

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