With over 270 million inhabitants and more than 17 500 islands, Indonesia is the fourth most populous country in the world and the largest economy in Southeast Asia that relies on fossil fuels. Rapid economic growth has led to a reduction in poverty in recent decades and supported socio-economic development. However, slower global growth, the COVID-19 pandemic, inflation and geopolitical shocks have magnified economic vulnerability in recent times. Indonesia’s geography and heavy economic reliance on natural ecosystems make the country highly vulnerable to climate change. The Asian Development Bank estimates that the costs associated with climate change range between 2.5% and 7% of GDP by 2100, with the poorest in society bearing the brunt of the financial burden and loss of livelihoods. 

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