The Value of Nature : Evaluating and Realizing the Value of Indonesia’s Forests and Ecosystems

World Bank

The Value of Nature : Evaluating and Realizing the Value of Indonesia’s Forests and Ecosystems

Autores

World Bank

Editor

Washington, DC: World Bank

Descripción

Indonesia’s forest ecosystems are critical for sustaining economic growth, human well-being, and biodiversity conservation. Despite covering less than 1 percent of the Earth’s landmass, Indonesia contains 10 percent of the world’s tropical rainforests, making it the third largest such area globally. These forests are home to around 10 percent of the world’s known biodiversity, providing habitat for endangered species and supporting ecosystem services vital to economic and social wellbeing. Indonesia’s mangrove forests are the world’s largest and most biodiverse, covering 3.4 million hectares and providing storm protection, carbon sequestration, and coastal fisheries. These natural assets underpin economic development, with agriculture, forestry, and fisheries collectively providing jobs for over 40 million people (Statistics Indonesia). This report aims to identify and quantify these ‘hidden’ values and to propose strategies to leverage their full economic potential. Indonesia has set ambitious economic targets, aiming for 8 percent economic GDP growth by 2028-2029 and transitioning to a high-income economy by 2045. Achieving these goals requires recognizing and utilizing all available economic opportunities, including natural capital. Currently, nature is undervalued and overexploited because it is perceived as a public good, freely available for use. Unlike infrastructure, technology, or human capital, natural ecosystems rarely receive the investment needed to sustain their productivity. Yet, like any other form of capital, nature requires management and financing to maximize its contribution to national prosperity. By integrating natural capital into economic planning and policymaking, Indonesia can unlock new pathways for sustainable, long-term growth, often referred to as green growth. This approach ensures that nature’s economic contributions are fully accounted for, leading to better decision-making in land-use policies, infrastructure development, and investment strategies.