Indonesia’s climate disaster cost USD 44 trillion

Indonesia's climate disaster cost USD 44 trillionCities in Indonesia will face the threat of losses due to climate disaster in 2025 with an estimated loss of up to 44 trillion US dollars per year, said Ari Muhammad of Indonesia Climate Alliance (ICA).

"One of the achievements of the Government of President Susilo Bambang Yudhoyono is to deliver Indonesia into one of the ten major economies in the world, but in the midst of optimism there are things that need to be serious attention," said Ari in Bandar Lampung, as quoted by Antara, 8/7).

The Ministry of Finance and McKinsey's research in 2012 shows that with Gross domestic product growth (GDP) reaching 6 percent per year, Indonesia is optimistically predicted to be the world's seventh largest economy by 2030.

"But the review of the sixth year of Maplecroft (global strategic consulting and risk consulting firm) predicts that cities in Indonesia will face a catastrophic climate losses with fantastic value of up to 44 trillion US dollars per year," Ari said.

Another Asian Development Bank (ADB) study predicts climate change will result in Indonesia and three other Southeast Asian countries (Philippines, Thailand and Vietnam) losing 6.7 percent of GDP per year, and cost 1-2 percent of GDP to cope with that impact.

"The threats and impacts of climate change have become a necessity when the hydro-meteorological disaster dominates the types of disasters occurring since 1815-2013 (National Agency for Disaster Management, 2014)," said Ari.

In the 5th Intergovernmental Panel of Climate Change (2013) report that significant efforts are needed to increase the larger emission reductions to avoid a worse disaster.

"Reflecting on the results of the research and the report, the ICA believes that one of Indonesia's most important presidents' challenges is to make climate resilience the foundation and opportunity for Indonesia's development in the future," he added.

The elected president, Ari continued, should lead his cabinet to formulate a response to the latest challenges facing Indonesia, making the commitment, achievement and success of negotiations in forums related to climate change as Indonesia's climate-resilient development modalities.

The ICA's quick assessment of the vision and mission of the presidential candidates who fought in the 2014 political contest has not shown a firm commitment to build a climate-resilient Indonesia.

Both candidates, according to Ari, ambitiously target economic growth to reach seven percent per year, but did not present the climate change risk assessment for the ambitious economic acceleration effort."Based on research conducted by ICA members, environmental damage has exacerbated the impact of climate change that is felt by middle to low society," Ari said.

For example Jakarta in the floods of 2002 suffered a loss of Rp 1.51 trillion, then increased to Rp 2 trillion in 2007. [hhw]

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