IMF Staff Country Reports

Indonesia: Financial Sector Assessment Program-Technical Note on Climate Risk Assessment

February 26, 2025

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International Monetary Fund. Monetary and Capital Markets Department "Indonesia: Financial Sector Assessment Program-Technical Note on Climate Risk Assessment", IMF Staff Country Reports 2025, 051 (2025), accessed March 29, 2025, https://doi.org/10.5089/9798229003407.002

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Summary

Indonesia is exposed to both climate change transition risks and physical risks. With primary energy supply heavily dominated by fossil fuels, like many other countries, and as a major exporter of coal and liquefied natural gas, Indonesia is exposed to risks from the transition toward a carbon-neutral economy. Moreover, Indonesia is vulnerable to natural hazards, such as floods, droughts, and wildfires. With global temperatures rising, the frequency and severity of such events is expected to rise as well.

Subject: Climate change, Environment, Greenhouse gas emissions, Natural disasters

Keywords: Climate change, Current ratio, Earnings before interest and taxes, Global, Greenhouse gas emissions, Indonesia FSAP, Interest coverage ratio, Natural disasters, Risk scenario, Staff team of the International Monetary Fund, World Bank staff

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