World Bank says Indonesia forest fires cost US$5.2bil in losses

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JAKARTA: The total damage and economic loss from forest fires in Indonesia this year amounted to at least US$5.2bil (RM21.6bil), equal to 0.5% of gross domestic product, the World Bank said in a report.

The estimate was based on its assessment in eight affected provinces from June to October 2019, though analysts at the multinational bank said fires had continued to rage through to November.

“The forest and land fires, as well as the resulting haze, led to significant negative economic impacts, estimated at US$157mil in direct damage to assets andOver 900,000 people reported respiratory illnesses, 12 national airports halted operations, and hundreds of schools in Indonesia, Malaysia and Singapore had to temporarily close due to the fires.

More than 942,000ha of forests and lands were burned this year, the biggest since devastating fires in 2015 when Indonesia saw 2.6 million hectares burned, according to official figures.The World Bank also estimated a 0.09 and 0.05 percentage points reduction in Indonesia’s economic growth in 2019 and 2020, respectively, due to the fires. Its growth forecast for Indonesia is 5% for 2019 and 5.1% for 2020.

The blazes were “manmade and have become a chronic problem annually since 1997” because fire is considered the cheapest method to prepare land for cultivation, the bank said. Because about 44% of the areas burned in 2019 were in peatlands, carbon emissions from Indonesia’s fires were estimated to be almost double the emissions from the fires in the Brazilian Amazon this year. — Reuters

 

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