Economist: Preventing forest fires saves more than fighting them

Preventing forest and land fires (karhutla) offers greater economic advantages than the losses they cause, according to Fakhrul Fulvian, Chief Economist at Trimegah Sekuritas Indonesia. He highlighted that the economic repercussions of these fires, especially amid the current El Nino phenomenon, extend far beyond the immediate value of the burned land or forests.

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Disasters have a multiplier effect that is often not seen on the first day. Initially, it might be a land fire. After that, health problems arise, work activities are disrupted, schools are disrupted, transportation is disrupted, and ultimately, the economy and people's livelihoods are weakened.

Fulvian explained that disasters have a "multiplier effect" that is often not immediately apparent. Initially, a fire might seem like a localized land issue. However, it can quickly lead to a chain of problems, including increased health issues due to smoke, disruptions to work and school activities, and ultimately, a weakening of the community's economic activities and overall livelihood. The worsening air quality from smoke can lead to respiratory problems, increasing public health costs, reducing worker productivity, and disrupting education.

The economic disruptions can also spread to transportation and logistics, affecting local trade and daily community activities. In agricultural regions, prolonged dry conditions exacerbated by fires can impact water availability and food production, potentially leading to food price inflation and reduced community income if the situation persists.

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We can often calculate the cost of a disaster after it occurs. What is much harder to calculate is the loss that did not happen because prevention worked. Yet, economically, its value can be very large.

Fulvian emphasized that disaster prevention is integral to maintaining economic sustainability. He noted that the success of disaster budgets is often measured by what *doesn't* happen. When fires are controlled early, economic activities remain uninterrupted. Effective early warning systems allow communities to anticipate risks, and readily available logistics and equipment enable prompt responses. The economic value of these prevented losses, though rarely captured in statistics, is substantial for the community. "It is far better to prevent than to cure," Fulvian concluded, stressing that this principle holds strong economic logic, not just social or health benefits.

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Therefore, the principle of 'better to prevent than to cure' is not just a social or health principle, but also has strong economic logic.