Demography, climate change to pose challenges to Indonesia in 2045

Finance Minister Sri Mulyani Indrawati stated that Indonesia faces complex challenges ranging from demography to urbanization and climate change, as it inches close to its 100th year of independence in 2045.

“These are challenges, such as an increase in demographics, climate change, and not to mention urbanization, taking into account the large number of people working in urban areas,” Indrawati stated at the Ministry of Finance Festival 2021 event held here on Thursday.

The minister noted that currently, Indonesia was in that period of demographic bonus, wherein the number of educators in the productive age group of 15 years to 65 years constituted 70.72 percent of the population.

The demographic bonus itself is an acceleration of economic growth due to changes in the age structure of the population, marked by a decrease in the dependency ratio of the non-working populace to the working age population.

The total population of Indonesia, as per the 2020 population census, reached 270.2 million people, an increase of 32.56 million as compared to the 2010 population census. There is a 1.25-percent increase in the population per year from the 2010-2020 period, notably slower than the 2000-2010 period, recorded at 1.49 percent.

Of the 270.2-million populace, 70.72 percent belong to the productive age group, while 9.78 percent of them are elderly. That percentage is higher than the one in 2010, which was pegged at 7.59 percent.

The 270.2 million people comprised 10.88 percent of the post generation Z, 27.94 percent of the generation Z, 25.87 percent of millennials, 21.88 percent of generation C, 11.56 percent of baby boomers, and 1.87 percent of pre-boomers.

The minister noted that this demographic bonus brings along with it a fair share of challenges, such as urbanization, given even more number of young people will start working and choose to live in urban areas. This would require preparation that comprises building public facilities, such as homes, schools, hospitals, and playgrounds.

Apart from that, the community activities, which will grow ever increasingly high, are bound to generate even more CO2, thereby increasing the earth’s temperature.

“Not to mention that every activity we do produces CO2,” she elaborated.

According to Indrawati, the current population of some seven billion is estimated to reach nine billion by 2045, thereby causing significant climate change impacts.

“If just seven billion (people) have increased the world’s temperature by 1.1 degrees Celsius as compared to pre-industrial times, then what about nine billion (people)?” she remarked.

To this end, Indonesia has adopted some measures to control climate change, such as establishing the environmental management agency (BPDLH) and the disaster pooling fund (PFB).

The effort also encompasses the activation of innovative payment instruments, or Green Sukuk, as well as the imposition of carbon taxes and plastic excise taxes through the Taxation Harmonization Law (UU HPP)002E

Source: Antara News

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