Indonesia Must Seize the Opportunity to Access the Loss and Damage Fund

While debates over the commitment of developed nations to fund The Loss and Damage Fund (LDF) remain contentious, Indonesia cannot afford to let this opportunity pass by. The Loss and Damage Fund has the potential to transform how the country prepares for and responds to climate impacts, and we must act decisively. This can be the effective solution to meet national funding needs in facing various threats and impacts of climate disasters.

The Loss and Damage Fund was conceived as an acknowledgment of the irreversible damages caused by climate change, especially in developing nations. Unlike mitigation efforts, which aim to reduce emissions, or adaptation strategies, which focus on preparing for climate impacts, the LDF addresses the financial costs of losses that can no longer be avoided. This includes physical damage to infrastructure and non-economic losses like the erosion of cultural heritage and livelihoods. For Indonesia, a country already grappling with the economic and human toll of climate-related disasters, the fund represents a critical mechanism to access global support and safeguard its communities.

Indonesia’s vulnerability to climate change cannot be overstated. Data from the National Disaster Management Authority (BNPB) highlights that over 80 percent of disasters in the country are hydrometeorological in nature, such as floods, landslides, and storms. These events are becoming more frequent and severe. In 2023 alone, disaster-related losses exceeded Rp22.8 trillion. Recent events further underscore the nation’s precarious position. In November 2024, floods in North Sumatra disrupted elections in several districts, flash floods in Sukabumi severed major transportation routes and displaced thousands, while floods in Southeast Sulawesi devastated homes and livelihoods. These incidents are not isolated; they are part of a broader trend driven by climate change that threatens Indonesia’s developmental progress.

The spate of recent disasters highlights the need for a more comprehensive approach to mitigation and adaptation. Beyond the incidents in North Sumatra and Sukabumi, Jakarta also faces relentless threats from massive flooding, sea level rise, and coastal erosion. Furthermore, prolonged droughts in East Nusa Tenggara often disrupt water supplies and agriculture. These events demonstrate the urgent need for investments in robust early warning systems, resilient infrastructure, and community-based adaptation strategies.

Despite these challenges, climate adaptation often takes a backseat in Indonesia’s policy priorities. The budget allocation for disaster risk reduction and the development of early warning systems remains inadequate. For instance, while BNPB has initiated efforts to expand disaster preparedness, significant gaps remain in the availability of early warning instruments, particularly in remote and high-risk areas. This lack of investment hampers the nation’s ability to respond promptly, exacerbating the impacts of disasters and prolonging recovery times.

For Indonesia, the LDF is not just an opportunity but a responsibility. Funds from this mechanism could support the installation of state-of-the-art disaster monitoring technologies, particularly in underserved regions. They could also be channeled into building adaptive infrastructure such as flood-resistant housing and coastal defenses, restoring mangroves to buffer against storm surges, and empowering local communities with education and resources to adapt to a changing climate. However, accessing the fund requires meticulous preparation. The application process involves developing detailed proposals that meet international criteria, which emphasize transparency, accountability, and measurable outcomes. To navigate this, Indonesia must establish a dedicated task force comprising experts from national and local governments and civil society. Collaborations with international organizations like the UNFCCC can also provide valuable technical support. It is equally crucial to ensure that the funds are equitably distributed and that their impacts are closely monitored to maximize their effectiveness. The Loss and Damage Fund can represent a chance for Indonesia to turn its climate vulnerability into an opportunity to protect most vulnerable communities and strengthen disaster preparedne.