Indonesia is entering a period in which climate change and environmental degradation are no longer just environmental concerns, but a more systemic problem, interacting with economic, social, and political dynamics in ways that increasingly heighten instability. Recent events illustrate this clearly. Just at the end of last year, unprecedented disasters occurred in Sumatra and Aceh. In just these past few weeks, extreme weather has affected many regions across the country, with Jakarta and surrounding areas experiencing widespread flooding.

These risks are already having an impact through rising disaster frequency, leading to economic losses and social impacts; climate change and environmental degradation are interacting in ways that amplify instability in the economic and social systems. At the same time, policies particularly related to land use and resource extraction carry significant 2 environmental implications if not carefully governed. Together, these dynamics are reshaping Indonesia’s risk landscape.