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Wildfires in Indonesia Pose Economic Risk, Central Bank Says

  • Prolonged disruption could hurt economy, deputy governor says
  • Central bank is sticking to its GDP growth projections for now
Indonesian firefighters battle a forest fire in Kampar, Riau on Sept. 23.

Indonesian firefighters battle a forest fire in Kampar, Riau on Sept. 23.

Photographer: Wahyudi/AFP via Getty Images

Wildfires that have been raging in Indonesia may hurt economic growth if the problem persists, Bank Indonesia Deputy Governor Dody Budi Waluyo said.

“The impact of forest and land fires that cause smoke disruption, if prolonged, will certainly have an impact on economic and business activities,” Waluyo said via text message on Wednesday, without quantifying the effect. “For this reason, we fully support the steps taken by the government to overcome this.”