Coordinating Minister Luhut Says State Losses Due To Rob Floods Are Estimated At More Than Rp1,000 Trillion

JAKARTA - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the potential loss to the state due to tidal flooding is estimated at more than Rp1,000 trillion. Because of the climate change crisis that has occurred in the last 20 years.

Luhut noted that around 112 regencies/cities spread across the east coast of Sumatra, the west coast of Sumatra, the north coast, the coast of Kalimantan, parts of the coast of Sulawesi and Papua were identified as experiencing tidal flooding. Therefore, it is necessary to make a budget for the construction of the sea wall, the elevation of infrastructure and coastal buildings, as well as the cost of relocation.

"The potential loss due to tidal flooding is estimated to exceed Rp. 1000 trillion, the cost must be spent to build sea shore embankments, raise infrastructure and coastal buildings, as well as relocation costs," said Luhut in the BMKG National Coordination Meeting which was broadcast virtually, Thursday, July 29.

For the past 5 years, Luhut explained, the government has moved quickly to allocate a budget for climate change. The average expenditure reaches IDR 86.7 trillion per year. Around 76.5 percent of this figure is used for mitigation and cross-sectoral actions, while 23.5 percent is for adaptation.

"Government spending on climate change covers 34 percent of the total climate financing needs per year. Indonesia also consistently carries out 4.1 percent for climate change actions," he explained.

Nevertheless, said Luhut, the government is pushing for the development of new schemes to support climate change financing. For example, issuing green sukuk or green sukuk, which are the first sharia State Securities (SBN) in the world that puts forward the concept of financing programs for environmentally friendly projects.

"Currently the government has succeeded in encouraging the development of new schemes and supporting climate change financing, for example with green sukuk or to attract private investment and infrastructure projects that have an impact on climate change and green financing as well as the Indonesia One SDG platform," said Luhut.