Indonesia’s recent US$80B market volatility is a wake‑up call: climate and nature risks are now financial risks. As highlighted in Professor Johan Sulaeman’s new Op‑Ed, “Market volatility highlights Indonesia’s overlooked climate and resource risks”, SGFIN research shows that physical climate hazards and fossil‑intensive exposures can sharply amplify credit losses, making environmental resilience a core pillar of financial stability. Recent developments in Indonesia’s resource sector further reveal how environmental governance shapes investor confidence. The path forward is clear: embed climate and natural‑capital risks into supervision, disclosure, and investment to build stronger, more resilient markets in Indonesia and beyond.
