The Indonesian consortium that controls 60% of the route inaugurated two years ago recorded losses of over 0 million in 2024. This year, losses are expected to increase further. The project is part of the Belt and Road Initiative, but from the outset it appeared to be economically unsustainable. It is not the only case among the major railway projects in Southeast Asia. Nevertheless, Prabowo is intensifying his embrace of Beijing.
The floods meet all the criteria to be considered a catastrophe: millions of people affected, significant damage to property and infrastructure, and insufficient local capacity. But the central government is suspending its decision. The declaration is not just a formality, but responds to pre-established criteria. The provincial government of Aceh is evaluating a request for aid from the UN.
A fire ripped through a seven-storey building in the heart of the capital, home to a subsidiary of a Japan-based company that sells and services drones. The fire’s effects were exacerbated by the burning of lithium batteries stored in the building. Nineteen people were rescued from the top floor terrace where they had fled to escape the toxic fumes.
Recent massive flooding carried huge quantities of timber into a lake that covers more than 100 square kilometres, threatening colonies of endemic bilih fish. The government is mapping the accumulations. Entire villages have disappeared, while evidence grows that the disaster is linked to illegal logging.
The Ministry of the Environment has launched an investigation into corporate responsibility for the devastation caused by violent floods and landslides. Some 50,000 of the 340,000 hectares of forest have been logged. For Environment Minister Hanif, there will be serious repercussions. A further review is underway regarding permits. The death toll rises to 753, while experts are calling for a declaration of national disaster.
The death toll from recent floods has topped 1,300, while 1.2 million people have been displaced in Indonesia alone. The insurance coverage gap is widening, as experts note that increasingly frequent extreme events threaten to make current models unsustainable. Insurance companies are preparing to exclude some natural risks, while most losses in developing countries remain uninsured.
