As discussed above (01.02.02), environmental aspects are an important risk factor to economic productivity in Indonesia. According to the Global Facility for Disaster Reduction and Recovery, reconstruction following disaster costs the Indonesia government between $300 and $500 million annually. Costs during major disasters can amount to 0.3 per cent of national GDP and up to 45 per cent of provincial GDP. In addition, loss of life, damage to infrastructure, destruction of agricultural crops, and a reduction in income from tourism are considerable costs to bear (GFDRR, 2019). Lasting change, caused by ‘rising sea levels and changing weather patterns’, due to climate change pose a serious risk to Indonesia’s development.

Following the 2004 tsunami, the Government of Indonesia implemented a law on disaster management in 2007 and established the National Disaster Management Agency (BNBP) in 2008.  Activities to improve resilience and to reduce risk include relocation of families from high risk areas or road improvement work in areas prone to earthquake and landslides (GFDRR, 2019).

References:

GFDRR. (2019). Indonesia. Global Facility for Disaster Reduction and Recovery. https://www.gfdrr.org/en/indonesia