Haze Crisis Cost Indonesia Almost 2% of GDP, World Bank Says

  • Losses more than twice the rebuilding bill after 2004 tsunami
  • President Widodo warns `hotspots' have reappeared after lull

A firefighter puts out a fire in South Sumatra, Indonesia in Oct..

Photographer: Abdul Qodir/AFP/Getty Images
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Forest fires in Indonesia last year cost the country at least $16 billion in economic losses, equivalent to 1.9 percent of its gross domestic product, according to the World Bank.

Indonesia made some mistakes in responding to challenges such as the fires and resulting haze, World Bank Country Director Rodrigo Chaves said at a media briefing in Jakarta. The cost, twice the amount it took to rebuild after the 2004 tsunami, takes intoaccount the impact on agriculture, tourism, forestry, trade and transport over five months, the lender estimated.