BUSINESS
The Impact of Climate Change on the Indonesian Economy

Seatoday.com, Jakarta Climate change has become a serious threat to the global economy, and Indonesia has not escaped its impact. This island nation faces various consequences of climate change, which can affect economic growth and social welfare.
Sea Level Rise
One of the most striking impacts of climate change is sea level rise. Indonesia, with more than 17 thousand islands, is very vulnerable to rising sea levels. This can result in submergence in coastal areas, beach erosion, and damage to infrastructure. Loss of agricultural land and settlements can disrupt food security and cause population migration.
Climate Disaster
Indonesia is often the target of climate disasters such as floods, landslides, and intense droughts. These disasters can damage crops and infrastructure and result in significant economic losses. Recovery from these disasters requires significant resources and can hamper long-term economic growth.
Agriculture and food security
Agriculture is an important sector in the Indonesian economy, and climate change can have a significant impact on crop yields. Rising temperatures and irregular rain patterns can reduce agricultural productivity. This could result in increased food prices and instability in food supplies.
Influence of Tourism and Ecosystems
Indonesia is also known for its natural beauty, which is a major attraction for tourism. Climate change can threaten natural ecosystems such as tropical rainforests and coral reefs, which are important for tourism. Damage to this ecosystem can reduce income from the tourism sector.
Coping and Adaptation Efforts
The Indonesian government has taken steps to address the impacts of climate change. This includes carbon emission reduction, conservation efforts, and adaptation planning. Although many challenges remain, international cooperation in reducing carbon emissions and mitigating climate change is key to facing this threat.
Climate change is a complex issue that requires global efforts for effective handling. Indonesia needs to continue investing in sustainability and adaptation to address the increasingly pronounced impacts of climate change and maintain sustainable economic growth.