Key insights and market outlook
Several cities worldwide, including Jakarta, are predicted to be submerged or disappear by 2100 due to rising sea levels and land subsidence. Jakarta is sinking several centimeters annually, with 40% of its area already below sea level, protected only by a 2-meter seawall. The main causes are excessive groundwater extraction and uncontrolled urbanization. Without serious intervention, much of Jakarta could be underwater by the end of the century.
The World Economic Forum has identified Jakarta as one of the cities with the highest risk of disappearing by 2100 due to the combined effects of climate change and land subsidence. The city is experiencing significant challenges as it faces both rising sea levels and rapid land subsidence.
Jakarta, the capital of Indonesia, is sinking at an alarming rate. The city is experiencing land subsidence of up to 10 inches (25 cm) per year in some areas, with 40% of its territory already below sea level. The situation is critical as the city relies on a 2-meter seawall for protection against flooding. The primary factors contributing to this condition are excessive groundwater extraction and uncontrolled urban development.
The rapid sinking of Jakarta is primarily attributed to the over-extraction of groundwater, which causes the soil to compact and lose volume. Additionally, urbanization without proper infrastructure planning has exacerbated the problem. If left unaddressed, much of Jakarta could be submerged by the end of the century, displacing millions of residents and causing significant economic damage.
To mitigate this crisis, the government needs to implement strict groundwater management policies and invest in infrastructure improvements. This includes enhancing the existing seawall, developing better drainage systems, and promoting more sustainable urban planning practices. The situation in Jakarta serves as a warning for other coastal cities facing similar environmental challenges.
Climate Change Threat to Coastal Cities
Urban Infrastructure Risk