Increased frequency of floods and storms from climate change can increase project delays, either through construction stoppage or late arrival of building materials due to transportation disruptions. Furthermore, the region’s building owners and developers should be prepared for stricter enforcement of permitting terms and tougher regulatory requirements relating to energy and water use. These factors contribute to higher material costs, so developers could face longer-term price increases for energy-intensive and imported materials.

Up to 84% of Indonesia’s national greenhouse gas emissions arise from land use change and deforestation. This map shows the extent and location of forest cover loss in Indonesia—detected by satellite—for 2000 to 2005, when deforestation averaged 0.71 million hectares per year and Indonesia was the second-most deforesting country, following Brazil. Globally, Indonesia accounts for approximately 27 percent of GHG emissions from land use change and forestry.

The analysis in WRI's report "Over Heating: Financial Risks from Water Constraints on Power Generation in Asia" found that new power generation capacity will be increasingly located in areas already considered to be water stressed or scarce (the power sector requires a steady supply of water for cooling and generation to maintain loads and avoid disruptions).

While many of the governments have goals to increase the development of renewable sources of energy; coal, natural gas, and hydroelectric plants are expected to provide the majority of electricity supply in 2013.

The dependency of thermal and hydroelectric power plants on water for cooling and generation creates water-related risks for the sector.