World Bank: Indonesia forest fires cost $5.2bn in economic losses

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. (AFP)
Updated 11 December 2019

World Bank: Indonesia forest fires cost $5.2bn in economic losses

  • Economic losses equal to 0.5 percent of Indonesia’s gross domestic product
  • Drifting smoke at the height of the dry season in September triggered a diplomatic spat between Jakarta and Kuala Lumpur

JAKARTA: The total damage and economic loss from forest fires in Indonesia this year amounted to at least $5.2 billion, equal to 0.5 percent of gross domestic product, the World Bank said in a report on Wednesday.
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 $157 million in direct damage to assets and $5.0 billion in losses from affected economic activities,” the World Bank wrote in the report.
Over 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.
Drifting smoke at the height of the dry season in September triggered a diplomatic spat between Kuala Lumpur and Jakarta.
More than 942,000 hectares (2.3 million acres) 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. Officials said the spike was due to El Nino weather patterns lengthening the dry season.
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 percent for 2019 and 5.1 percent 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 percent 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.
The European Center for Medium Range Weather Forecast estimated a total of 720 megatons of CO2 emissions came from Indonesian forest fires in January-November this year.
Longer-term effects of repeated fires were not included in this estimate, the World Bank said. Repeated haze exposure would reduce health and education quality and damage the global image of palm oil — an important commodity for Indonesia.


Karzai urges Ghani to drop truce as pre-condition for talks with Taliban

Updated 21 January 2020

Karzai urges Ghani to drop truce as pre-condition for talks with Taliban

  • Ex-president says Taliban offer to reduce violence a ‘major development’

KABUL: Former Afghan President Hamid Karzai has urged President Ashraf Ghani to drop the pre-condition of cease-fire to begin talks with the Taliban amid high hope that the US and Taliban delegates will sign a deal following more than a year of secret discussions.

Speaking in an interview with BBC local service, Karzai said the government “should not block intra-Afghan dialogue under the pretext of cease-fire.” He said the Taliban offer for reduction in violence as the group says is nearing to ink the deal with American diplomats in Qatar, was a “major development.”

He said Ghani needed to accept the Taliban offer.

Ghani says truce is a must ahead of starting any negotiations with the Taliban calling reduction in violence a general term and arguing that such a call by the Taliban political leaders in Qatar only goes to show that they have control over field commanders back in Afghanistan.

The Taliban say the group will announce truce when the intra-Afghan dialogue begins which will happen after Washington sets timetable for withdrawal of the troops.

Washington at least on one occasion called off the talks with the Taliban in Qatar due to Taliban attacks back in Afghanistan as discussions continued in Qatar despite none of the warring sides having committed to halt offensives during the talks.

Ghani’s government has been sidelined from all rounds of talks between the Taliban delegates and US diplomats led by Zalmay Khalilzad in Qatar. There has also been rift between Ghani and Dr. Abdullah Abdullah, who shares power with the president in the National Unity Government, on the pre-condition of cease-fire.

Unlike Ghani, Abdullah is happy with reduction of violence. Talking in a meeting of council of ministers, Abdullah on Monday indirectly said Ghani had taken the peace process in his monopoly.

 “Peace is not one person’s monopoly, one person’s wish — but it is a collective desire, and the people of Afghanistan have the right to take a position regarding the peace process,” said Abdullah.