Climate Finance Landscape Indonesia
Climate change is one of the current biggest threats and is indeed a global crisis. The study stated that the current path of greenhouse gas (GHG) emission has a 100% probability of increasing average global temperature by at least 20C in 2100 (Clarke L, 2014). There will be more extreme heating days, the rise of sea level, and the increase of extreme weather phenomena leading to disasters, such as floods, droughts, typhoons and follow-up disasters like landslides (ASEAN, 2021; UN, 2015). These occurrences reveal significant vulnerabilities and the exposure of the ecosystem to the current climate variability. It also elaborates on the alteration of ecosystems, disruption of food production and water supply, damage to infrastructure and settlements, morbidity and mortality, and consequences for human mental health and well-being. For countries at all levels of development, these impacts are consistent with a significant lack of preparedness for current climate variability in some sectors (IPCC, 2014). Indonesia, with more than 17,500 islands, is the largest country in Southeast Asia (SEA). With a total population of 270.6 million people, the country has the 4th largest population in the world and the largest economy in SEA, as can be shown in Figure 1. Indonesia is a place of extremely varied geography, topography, and climate, ranging from sea and coastal systems to peat swamps and montane forests. Indonesia is ranked in the top three countries in terms of climate risk, with high exposure to all types of flooding, and extreme heat. The intensity of these hazards is expected to grow as the climate changes, making Indonesia vulnerable to sea-level rise, and rice production alongside other impacts on agricultural production (World Bank and ADB, 2021). In addition to that, Indonesia has a recorded history of high disaster events, with most of them being hydrometeorological disasters related to climate and its dynamics of change. These disasters include hurricanes, floods, flash floods, landslides, forest, and land fires, droughts and extreme weather. Among a total of 43,023 reported disaster events in Indonesia, reported in the Indonesian Disaster Database (DIBI), the majority of disasters are climate disasters (Table 1). Based on INFORM RISK Indonesia has an index value of 4.6 which is categorised as a medium risk class (European Commission, 2024).
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