Fires cost Indonesia $22b, twice the tsunami bill: World Bank

(THESTRAITTIMES)Indonesia'seconomytooka221trillionrupiah(S$22.1-billion)hitthisyearfromforestfiresthatcloakedSouth-eastAsiainhaze,morethandoublethesumspentonrebuildingAcehafterthe2004tsunami,theWorldBanksaidonTuesday(Dec15).

Thefiresandresultinghazeareanannualoccurrencecausedbyslash-and-burnlandclearance.Buttheblazesin2015weretheworstforsomeyears,causingairqualitytoworsendramaticallyandmanytofallillacrosstheregion.

InaquarterlyupdateontheIndonesianeconomy,theWorldBanksaidthefireshaddevastated2.6millionhectaresofforestandfarmlandacrossthearchipelagofromJunetoOctober.

ThecosttoSouth-eastAsia'sbiggesteconomyisestimatedat221trillionrupiah,equivalentto1.9percentofpredictedGDPthisyear,itsaid.

Incontrast,itcostUS$7billion(S$9.85billion)torebuildIndonesia'swesternmostprovinceofAcehafteritwasengulfed11yearsagobyaquake-triggeredtsunami,withthelossoftensofthousandsoflives,thebanksaid.

"Theeconomicimpactofthefireshasbeenimmense,"saidWorldBankIndonesiacountrydirectorRodrigoChaves.

FirehaslongbeenapopularwayofquicklyandcheaplyclearinglandonIndonesia'sSumatraislandandtheIndonesianpartofBorneo,tomakewayforlucrativepalmoilplantations.

Butthefiresburnoutofcontrolandproducenoxioushazeduringthemonths-longdryseason,particularlywhenstartedoncarbon-richpeatland.

TheWorldBanksaidthatifeveryhectareburnedin2015wereconvertedtopalmoil,thevaluewouldbeaboutUS$8billion.Indonesiaistheworld'sbiggestproduceroftheoil,usedinnumerouseverydaygoodsfrombiscuitstoshampoo.

"Soontheonehand16billiondollarscosttothepublic,ontheotherhand,eightbilliondollars-lotsofmoney-toahandfulofindividuals,"saidWorldBankenvironmentalspecialistAnnJeannetteGlauber.

Theestimatedcostsarebasedonananalysisofthetypesoflandburnedandtakeintoaccounttheimpactonagriculture,forestry,trade,tourismandtransportation,aswellasshort-termeffectsofthehazesuchasschoolclosuresandonhealth.

MorethanhalfamillionpeoplesufferedacuterespiratoryinfectionsinIndonesia,whilemanyinneighbouringSingaporeandMalaysiaalsofellill.

(THESTRAITTIMES)Indonesia'seconomytooka221trillionrupiah(S$22.1-billion)hitthisyearfromforestfiresthatcloakedSouth-eastAsiainhaze,morethandoublethesumspentonrebuildingAcehafterthe2004tsunami,theWorldBanksaidonTuesday(Dec15).

Thefiresandresultinghazeareanannualoccurrencecausedbyslash-and-burnlandclearance.Buttheblazesin2015weretheworstforsomeyears,causingairqualitytoworsendramaticallyandmanytofallillacrosstheregion.

InaquarterlyupdateontheIndonesianeconomy,theWorldBanksaidthefireshaddevastated2.6millionhectaresofforestandfarmlandacrossthearchipelagofromJunetoOctober.

ThecosttoSouth-eastAsia'sbiggesteconomyisestimatedat221trillionrupiah,equivalentto1.9percentofpredictedGDPthisyear,itsaid.

Incontrast,itcostUS$7billion(S$9.85billion)torebuildIndonesia'swesternmostprovinceofAcehafteritwasengulfed11yearsagobyaquake-triggeredtsunami,withthelossoftensofthousandsoflives,thebanksaid.

"Theeconomicimpactofthefireshasbeenimmense,"saidWorldBankIndonesiacountrydirectorRodrigoChaves.

FirehaslongbeenapopularwayofquicklyandcheaplyclearinglandonIndonesia'sSumatraislandandtheIndonesianpartofBorneo,tomakewayforlucrativepalmoilplantations.

Butthefiresburnoutofcontrolandproducenoxioushazeduringthemonths-longdryseason,particularlywhenstartedoncarbon-richpeatland.

TheWorldBanksaidthatifeveryhectareburnedin2015wereconvertedtopalmoil,thevaluewouldbeaboutUS$8billion.Indonesiaistheworld'sbiggestproduceroftheoil,usedinnumerouseverydaygoodsfrombiscuitstoshampoo.

"Soontheonehand16billiondollarscosttothepublic,ontheotherhand,eightbilliondollars-lotsofmoney-toahandfulofindividuals,"saidWorldBankenvironmentalspecialistAnnJeannetteGlauber.

Theestimatedcostsarebasedonananalysisofthetypesoflandburnedandtakeintoaccounttheimpactonagriculture,forestry,trade,tourismandtransportation,aswellasshort-termeffectsofthehazesuchasschoolclosuresandonhealth.

MorethanhalfamillionpeoplesufferedacuterespiratoryinfectionsinIndonesia,whilemanyinneighbouringSingaporeandMalaysiaalsofellill.