Depok, 12 November 2025 – The Department of Economics, Faculty of Economics and Business, Universitas Indonesia (FEB UI), held an offline guest lecture titled “The Economics of Climate Change: The Case of Indonesia”, featuring Prof. Budy P. Resosudarmo, Professor in Development and Environmental Economics at the Arndt-Corden Department of Economics, Australian National University.
The session took place offline and exclusively for undergraduate students of the Department of Economics, on Wednesday, 12 November 2025, from 11.00 to 13.00 WIB.
During the lecture, Prof. Budy explained the strong linkage between climate change and Indonesia’s economic development. He emphasized that environmental economics in developing countries, including Indonesia, should be centered on sustainable development, which balances economic growth, social equity, and environmental preservation — often referred to as the triple bottom line.
Prof. Budy highlighted Indonesia’s historical development path, which relied heavily on natural resource exploitation such as oil, gas, and forestry. While this approach supported economic growth and significantly reduced poverty, it also contributed to environmental degradation and increasing carbon emissions.
He also elaborated on Indonesia’s climate policy commitments under its Nationally Determined Contribution (NDC), which aims to reduce carbon emissions by 31.89% through domestic efforts and up to 43.2% with international support by 2030. Indonesia has also set a long-term goal to achieve Net Zero Emission by 2060 or earlier.
Despite these commitments, Prof. Budy stressed that the transition toward a green economy presents various challenges, including policy leakages, rebound effects, and potential regressive impacts on lower-income households. Effective coordination among government, private sectors, and civil society will be required to ensure a just and sustainable transition.
In closing, he emphasized that Indonesia’s future development must be guided by sustainability principles: “True economic progress is not only about growing today but ensuring that future generations can enjoy the same opportunities and quality of life.”
The lecture received strong enthusiasm from attending students. Through this event, the Department of Economics hopes to enhance students’ understanding of the economic dimensions of climate change and the importance of sustainable development strategies for Indonesia.
Contact: depie@ui.ac.id
Website: https://econ.feb.ui.ac.id
Instagram: @depie_febui
