World Bank: Indonesia forest fires cost $5.2bn in economic losses

The World Bank also estimated a 0.09 and 0.05 percentage points reduction in Indonesia’s economic growth in 2019 and 2020, respectively, due to the fires. (AFP)
Updated 11 December 2019

World Bank: Indonesia forest fires cost $5.2bn in economic losses

  • Economic losses equal to 0.5 percent of Indonesia’s gross domestic product
  • Drifting smoke at the height of the dry season in September triggered a diplomatic spat between Jakarta and Kuala Lumpur

JAKARTA: The total damage and economic loss from forest fires in Indonesia this year amounted to at least $5.2 billion, equal to 0.5 percent of gross domestic product, the World Bank said in a report on Wednesday.
The estimate was based on its assessment in eight affected provinces from June to October 2019, though analysts at the multinational bank said fires had continued to rage through to November.
“The forest and land fires, as well as the resulting haze, led to significant negative economic impacts, estimated at $157 million in direct damage to assets and $5.0 billion in losses from affected economic activities,” the World Bank wrote in the report.
Over 900,000 people reported respiratory illnesses, 12 national airports halted operations, and hundreds of schools in Indonesia, Malaysia and Singapore had to temporarily close due to the fires.
Drifting smoke at the height of the dry season in September triggered a diplomatic spat between Kuala Lumpur and Jakarta.
More than 942,000 hectares (2.3 million acres) of forests and lands were burned this year, the biggest since devastating fires in 2015 when Indonesia saw 2.6 million hectares burned, according to official figures. Officials said the spike was due to El Nino weather patterns lengthening the dry season.
The World Bank also estimated a 0.09 and 0.05 percentage points reduction in Indonesia’s economic growth in 2019 and 2020, respectively, due to the fires. Its growth forecast for Indonesia is 5 percent for 2019 and 5.1 percent for 2020.
The blazes were “manmade and have become a chronic problem annually since 1997” because fire is considered the cheapest method to prepare land for cultivation, the bank said.
Because about 44 percent of the areas burned in 2019 were in peatlands, carbon emissions from Indonesia’s fires were estimated to be almost double the emissions from the fires in the Brazilian Amazon this year.
The European Center for Medium Range Weather Forecast estimated a total of 720 megatons of CO2 emissions came from Indonesian forest fires in January-November this year.
Longer-term effects of repeated fires were not included in this estimate, the World Bank said. Repeated haze exposure would reduce health and education quality and damage the global image of palm oil — an important commodity for Indonesia.


US to pay over $1 bn for 100 mln doses of J&J’s potential COVID-19 vaccine

Updated 05 August 2020

US to pay over $1 bn for 100 mln doses of J&J’s potential COVID-19 vaccine

  • The latest contract equates to roughly $10 per vaccine dose produced by J&J
  • This is J&J’s first deal to supply its investigational vaccine to a country

WASHINGTON: The United States government will pay Johnson & Johnson over $1 billion for 100 million doses of its potential coronavirus vaccine, its latest such arrangement as the race to tame the pandemic intensifies, the drugmaker said on Wednesday.
It said it would deliver the vaccine to the Biomedical Advanced Research and Development Authority (BARDA) on a not-for-profit basis to be used after approval or emergency use authorization by the US Food and Drug Administration (FDA).
J&J has already received $1 billion in funding from the US government — BARDA agreed in March to provide that money for the company to build manufacturing capacity for more than 1 billion doses of the experimental vaccine.
The latest contract equates to roughly $10 per vaccine dose produced by J&J. Including the first $1 billion deal with the USgovernment, the price would be slightly higher than the $19.50 per dose that the United States is paying for the vaccine being developed by Pfizer Inc. and German biotech BioNTech SE.
The US government may also purchase an additional 200 million doses under a subsequent agreement. J&J did not disclose that deal’s value.
J&J plans to study a one- or two-dose regimen of the vaccine in parallel later this year. A single-shot regimen could allow more people to be vaccinated with the same number of doses and would sidestep issues around getting people to come back for their second dose.
This is J&J’s first deal to supply its investigational vaccine to a country. Talks are underway with the European Union, but no deal has yet been reached.
J&J’s investigational vaccine is currently being tested on healthy volunteers in the United States and Belgium in an early-stage study.
There are currently no approved vaccines for COVID-19. More than 20 are in clinical trials.