[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109427-en":3,"doc-seo-109427-105":31,"detail-sidebar-cat-0-en-105":93},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},109427,4398048950312,"Violet","https://ap-avatar.wpscdn.com/avatar/400002538284de19e3c?_k=1778320343897328908",8,"Research & Report","Indonesia Financial Sector Assessment Program - Climate Risk Assessment - Technical Note","Indonesia is exposed to climate change transition risks and physical risks, with impacts that reach the banking system and broader macro-financial outcomes. The technical note, prepared within the FSAP by IMF and World Bank staff, provides technical analysis supporting FSAP findings and recommendations. It reviews transition and physical risk channels, outlines the methodological approach, presents results including banking solvency and liquidity effects, and concludes with climate risk policy recommendations grounded in scenario-based assessments.","September 2024  \nPublic Disc losure Authorized  \nINDONESIA  \nFINANCIAL SECTOR ASSESSMENT PROGRAM  \nTECHNICAL NOTE  \nCLIMATE RISK ASSESSMENT  \nPub lic Disc losure Authorized  \nPrepared By  \nMonetary and Capital Markets Department, International Monetary Fund and Finance, Competitiveness and Innovation Global Practice, World Bank  \nThis Technical Note was prepared by IMF and World Bank staff in the context of the Financial Sector Assessment Program. It contains technical analysis and detailed information underpinning the FSAP’s findings and recommendations. Further information on the FSAP program can be found at [http://www.imf.org/external/np/fsap/fssa.aspx](http://www.imf.org/external/np/fsap/fssa.aspx), and [www.worldbank.org/fsap](www.worldbank.org/fsap).  \nCONTENTS  \nGlossary __________________________________________________________________________________________ 4  \nEXECUTIVE SUMMARY __________________________________________________________________________ 5  \nINTRODUCTION _________________________________________________________________________________ 7  \nTRANSITION RISK_______________________________________________________________________________ 8  \nA. Overview: Transition Risks in Indonesia_______________________________________________________ 8  \nB. Methodological Approach___________________________________________________________________ 10  \nC. Results: Transition Risk Impact on the Banking System ______________________________________ 20  \nPHYSICAL RISK _________________________________________________________________________________25  \nA. Overview: Physical Risks in Indonesia________________________________________________________ 25  \nB. Methodological Approach___________________________________________________________________ 28  \nC. Macro-Financial Impact _____________________________________________________________________ 34  \nCONCLUSIONS AND POLICY RECOMMENDATIONS__________________________________________37  \nReferences_______________________________________________________________________________________ 40  \nFIGURES  \n1. Financial Sector Exposure to Transition-Sensitive Sectors ______________________________________ 9  \n2. Methodological Approach ____________________________________________________________________ 11  \n3. Indonesia: Sample Coverage __________________________________________________________________ 15  \n4. Sales-to-GVA Elasticities ______________________________________________________________________ 17  \n5. Emission Projections __________________________________________________________________________ 18  \n6. Solvency and Liquidity Metrics________________________________________________________________ 19  \n7. GHG Emissions________________________________________________________________________________ 21  \n8. The impact of Climate Actions GDP ___________________________________________________________ 21  \n9. The Impact of Climate Actions by Sector______________________________________________________ 23  \n10. Firms’ Projected Probabilities of Default _____________________________________________________ 23  \n11. Banks’ Credit Losses _________________________________________________________________________ 24  \n12. Meteorological, Hydrological and Climatological Disaster Incidence in Indonesia, 1990–202026 13. Commercial Lending (Upper Panel) and Rural Bank Lending (Lower Panel), by Province, As Percent of Total _________________________________________________________________________________ 27  \n14. Methodological Approach ___________________________________________________________________ 29  \n15. Preliminary Results for Climate Change Physical Risk Analysis _______________________________ 35  \n16. Drivers of Output Deviation and Alternative Scenarios_______________________________________ 35  \n17. CET1 Ratios under Different Climate Scenarios ______________________________________________ 36  \nTABLES  \n1. 2024 FSAP Key Recommendations on Climate Risk Analysis _________________","cbCaihzxgAgSCKY6","https://ap.wps.com/l/cbCaihzxgAgSCKY6","pdf",856139,6,1,42,"English","en",105,"# Glossary\n# Executive Summary\n# Introduction\n# Transition Risk\n## Overview: Transition Risks in Indonesia\n## Methodological Approach\n## Results: Transition Risk Impact on the Banking System\n# Physical Risk\n## Overview: Physical Risks in Indonesia\n## Methodological Approach\n## Macro-Financial Impact\n# Conclusions and Policy Recommendations\n# References\n# Appendices","[{\"question\":\"What kinds of climate-related risks does Indonesia face in the FSAP assessment?\",\"answer\":\"The note highlights both transition risks and physical risks from climate change. These risks are assessed for their effects on the financial sector, particularly banking.\"},{\"question\":\"How does the technical note structure its analysis of transition risks?\",\"answer\":\"It presents an overview of transition risks in Indonesia, describes the methodological approach, and then summarizes results on how transition risk affects the banking system.\"},{\"question\":\"What is covered under physical risk analysis and its expected macro-financial impact?\",\"answer\":\"The note provides an overview of physical risks in Indonesia, explains the methodological approach used, and then discusses macro-financial impacts, including key solvency and liquidity related outcomes under scenarios.\"}]","Indonesia Financial Sector Assessment Program - Climate Risk Assessment - Technical Note | PDF",1784479641,106,{"code":4,"msg":32,"data":33},"ok",{"site_id":25,"language":24,"slug":34,"title":13,"keywords":35,"description":14,"schema_data":36,"social_meta":88,"head_meta":90,"extra_data":92,"updated_unix":29},"indonesia-financial-sector-assessment-program-climate-risk-assessment-technical-note","",{"@graph":37,"@context":87},[38,55,70],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,49,52],{"item":42,"name":43,"@type":44,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":46,"name":47,"@type":44,"position":48},"https://docshare.wps.com/document/","Document",2,{"item":50,"name":12,"@type":44,"position":51},"https://docshare.wps.com/document/research-report/",3,{"item":53,"name":13,"@type":44,"position":54},"https://docshare.wps.com/document/indonesia-financial-sector-assessment-program-climate-risk-assessment-technical-note/109427/",4,{"url":53,"name":13,"@type":56,"author":57,"headline":13,"publisher":59,"fileFormat":62,"inLanguage":24,"description":14,"dateModified":63,"datePublished":64,"encodingFormat":62,"isAccessibleForFree":65,"interactionStatistic":66},"DigitalDocument",{"name":9,"@type":58},"Person",{"url":42,"name":60,"@type":61},"DocShare","Organization","application/pdf","2026-07-30","2026-07-19",true,{"@type":67,"interactionType":68,"userInteractionCount":20},"InteractionCounter",{"@type":69},"ViewAction",{"@type":71,"mainEntity":72},"FAQPage",[73,79,83],{"name":74,"@type":75,"acceptedAnswer":76},"What kinds of climate-related risks does Indonesia face in the FSAP assessment?","Question",{"text":77,"@type":78},"The note highlights both transition risks and physical risks from climate change. These risks are assessed for their effects on the financial sector, particularly banking.","Answer",{"name":80,"@type":75,"acceptedAnswer":81},"How does the technical note structure its analysis of transition risks?",{"text":82,"@type":78},"It presents an overview of transition risks in Indonesia, describes the methodological approach, and then summarizes results on how transition risk affects the banking system.",{"name":84,"@type":75,"acceptedAnswer":85},"What is covered under physical risk analysis and its expected macro-financial impact?",{"text":86,"@type":78},"The note provides an overview of physical risks in Indonesia, explains the methodological approach used, and then discusses macro-financial impacts, including key solvency and liquidity related outcomes under scenarios.","https://schema.org",{"og:url":53,"og:type":89,"og:title":13,"og:site_name":60,"og:description":14},"article",{"robots":91,"canonical":53},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":94},[95,99,103,107,112,116,121,124,129,132,136],{"id":21,"doc_module":4,"doc_module_name":47,"category_name":96,"show_sort_weight":97,"slug":98},"Story & Novel",90,"story-novel",{"id":48,"doc_module":4,"doc_module_name":47,"category_name":100,"show_sort_weight":101,"slug":102},"Literature",80,"literature",{"id":54,"doc_module":4,"doc_module_name":47,"category_name":104,"show_sort_weight":105,"slug":106},"Exam",70,"exam",{"id":108,"doc_module":4,"doc_module_name":47,"category_name":109,"show_sort_weight":110,"slug":111},5,"Comic",60,"comic",{"id":20,"doc_module":4,"doc_module_name":47,"category_name":113,"show_sort_weight":114,"slug":115},"Technology",50,"technology",{"id":117,"doc_module":4,"doc_module_name":47,"category_name":118,"show_sort_weight":119,"slug":120},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":47,"category_name":12,"show_sort_weight":122,"slug":123},30,"research-report",{"id":125,"doc_module":4,"doc_module_name":47,"category_name":126,"show_sort_weight":127,"slug":128},9,"Religion & Spirituality",20,"religion-spirituality",{"id":127,"doc_module":4,"doc_module_name":47,"category_name":130,"show_sort_weight":127,"slug":131},"World Cup","world-cup",{"id":133,"doc_module":4,"doc_module_name":47,"category_name":134,"show_sort_weight":133,"slug":135},10,"Lifestyle","lifestyle",{"id":137,"doc_module":4,"doc_module_name":47,"category_name":138,"show_sort_weight":108,"slug":139},19,"General","general"]