Investor Presentaiton
Economic Loss (Trillion IDR)
120,000
110,000
100,000
90,000
80,000
70,000
60,000
50,000
2019
Climate Change Poses Economic Risks and Opportunities
In Indonesia, economic losses due to climate change have reached IDR 100 Trillion annually and are expected to escalate into 40% of GDP in
2048. The expected loss is higher compared to global average (18% GDP in 2050) as Indonesia highly relies on maritime and agriculture sectors
No
Adaptation
-5
< 2,0°C
Embargo on imports of non-green products
2020
2021
2022
2023
112,205
with
Spontaneous
95,741
58,346
Economis Loss Reduction →
2024
Adaptation
GDP Loss (%)
10
15
-20
-25
-30
with Climate
Resilience
Development
35
Year
2020
2030
2040
2,0°C
2,6°C
3,2°C
2050
Rise of Temperature
Carbon tax on imported products
3
Penalty on ESG rating for non-sustainable investment
Stranded assets & deteriorating asset value due to
shifts in global preference
Impact on the business and financial sector
Source: Kebijakan Pembangunan Berketahanan Iklim, Bappenas (2021).
Source: The economics of climate change, Swiss Re Institute (2021).
However, rising concern toward climate change also brought upon investment opportunities. In Indonesia, green infrastructure and renewable
energy sector potentially attract investment approx. US$792 billion.
Viet Nam
Cambodia
3%
16%
Green
Thailand
12%
infrastructure
Indonesia
US$648 billion
Singapore
2%
Philippines
15%
Malaysia
Myanmar
9%
Source: DBS (2017)
7%
Indonesia
36%
Infrastructure
US$1.8 trillion
Food,
agriculture
and land use
US$0.4 trillion
Renewable
energy
US$0.4 trillion
Energy efficiency
US$0.4 trillion
Thailand
11%
Viet Nam
16%
Cambodia
1%
Renewable
energy
Indonesia
36%
Indonesia
US$144 billion
Singapore
4%
Philippines
5%
Myanmar
3%
Lao PDR
Malaysia
13%
11%
Benefits of planned transition
for Indonesia
High Average GDP
growth of 6.1-6.5% in
2021 - 2045
Creating additional
"green jobs" of 1.8 mio
jobs in 2030
Source: Green Economy Index, Bappenas (2022).View entire presentation