World Bank Identifies Environmental Challenges Faced By Indonesia

Bernama 19 Nov 09;

JAKARTA, Nov 19 (Bernama) -- The World Bank on Thursday launched a report highlighting challenges that Indonesia will face in attaining environmental sustainability, Antara news agency said.

The World Bank's Country Environmental Analysis examined the economic costs of environmental degradation and offers options on how best to address priority issues of environmental governance and climate change adaptation.

Quoting the analysis, the Indonesian news agency reported that the natural capital constitutes about one quarter of total wealth in Indonesia but is being rapidly depleted and not being offset by adequate investments in human or produced capital.

It also said that climate change will result in a number of negative impacts on Indonesia, including reduced crop production, greater risks of flooding, and further spread of vector-borne diseases, with economic costs projected to reach 2.5-7.0 percent of gross domestic product (GDP) by 2100.

Meanwhile, it said poor sanitation is estimated to have led to major health, water, tourism and other welfare costs worth more than US$6 billion in 2005, or more than 2 percent of GDP that year.

The agency said that outdoor and indoor air pollution is estimated to have led to health impacts worth about US$5.5 billion per annum.

Related to deforestation, the World Bank said that since 2001 the activity spread over 1 million hectare per year.

Although it is reduced from historical highs of over 2.5 million hectares per year, it is still very high compared to other tropical forested countries.

It said that forest loss and peat land conversion cause environmental degradation, health and biodiversity losses, and greenhouse gas emissions.

"Environmental degradation has a high cost for Indonesia. However, with the recent passing of new laws in environment, electricity and solid waste management, Indonesia is clearly on the path towards a more environmentally sustainable future," said Joachim von Amsberg, the World Bank Country Director for Indonesia in the report.

He said that the next step in this transformation is to match this legal framework with adequate capacity and incentives at all levels of government, while at the same time take the appropriate adaptation and mitigation measures to address climate change.

Indonesia has been identified as one of the countries in Asia most vulnerable to climate change hazards, Antara said citing the report as saying.

The report was compiled through extensive consultations with the Indonesian government, non-governmental organizations and research institutes.

-- BERNAMA