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Indonesia

Indonesia: IFRC network mid-year report, January – June 2024, 5 November 2024

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OVERALL PROGRESS

Context

Indonesia, the world’s fourth most populous nation, is projected to reach a population of 281 million people by 2024. The country is the 10th largest economy in terms of purchasing power parity and the Java Island, considered the national hub of Indonesia’s development, functions as industrial zones, with existing ports and warehouses primarily in major urban centres such as Jakarta, Surabaya, Serang and Semarang. However, these critical economic hubs are susceptible to both natural and technological hazards. According to the 2023 INFORM Index for Risk Assessment, Indonesia scored 4.6, which puts it as a “medium stable risk” country. As of 2024, there is no trend of increasing risk, except in the context of climate change. Indonesia stands as a nation high susceptible to the impacts of climate change, with a wide range of consequences from extreme events such as floods and drought to gradual shift such as rising sea levels and increasing temperatures. Climate change affects many development sectors in Indonesia, including its health sector. It is estimated that climate change may result in the loss of approximately 1.86 per cent of Indonesia’s national gross domestic product (GDP). This economic impact is projected from anticipated changes in climate-related diseases, including dengue, malaria, diarrhoea and pneumonia between 2021 to 2050. The burden on Indonesia’s health system can escalate challenges in delivering healthcare services and hinder the country’s efforts to achieve the Sustainable Development Goals (SDGs) and universal health coverage. Currently, Indonesia is focusing on strengthening human capital and elevating its rank in the global marketplace. In 2022, the country’s economic trajectory was strengthened to 5.3 per cent, supported by positive terms of trade led by commodity related exports and recovery in private consumption. The country held its presidential and vicepresidential election earlier this year and is slated to hold to regional elections in the latter half of 2024.