Not War Not Inflation, The World Can Los 10 Economic Percents If This Happens

Finance Minister Sri Mulyani (Photo: Screenshot of Katadata's Youtube)

JAKARTA It is believed that the world will lose 10 percent of the economic value if the Paris Agreement agreement for the target of net zero emissions 2050 is not carried out comprehensively. This was conveyed by the Minister of Finance (Menkeu) Sri Mulyani quoting a study conducted by the nonprofit Swiss Re Institute in 2021.

"This also adds to inflationary pressures due to the current disruption of international supply," he said when he was keynote speaker at the 2022 HSBC Summit forum on Wednesday, September 14.

Menurut Menkeu, situasi yang berkembang nanti sangat mungkin memicu masalah keuangan, penurunan kesejahteraan, dan pembentukan produk domestik gross (GDB) yang rendah.

The issue of the environment is very important to pay attention to in the world because it can threaten economic growth and development. We see, gas emissions are increasing, temperatures are getting hotter, and sea level rise indicates that this issue needs to be handled quickly," he said.

The Minister of Finance added that with these various impacts, it was clear that Indonesia could be affected by the impact.

"We calculate that climate change makes Indonesia lose economic potential of around 0.62 percent to 3.45 percent of GDP in 2030," he said.

For information, Indonesia itself has ratified the Paris Agreement with Law Number 16 of 2016 concerning the Ratification of the Paris Agreement to the United Nations Framework Convention on Climate Change, and was promulgated on October 25, 2016.

This ratification is one of the government's efforts in providing guarantees to every citizen to get a quality environment.

According to VOI records, the government claims that Indonesia needs at least US$365 billion to achieve a 29 percent carbon reduction.

Meanwhile, the 41 percent target is believed to cost no less than USD 495 billion.