The Report of EIU: The Water Scarcity Could influence the Economic Progress in Asia

The illustration of palm oil plantation
The Report of EIU: The Water Scarcity Could influence the Economic Progress in Asia

InfoSAWIT, JAKARTA – In the same time with the commemoration of the World Day in this year within the theme, Leaving no one behind, Economist Intelligence Unit (EIU), and sponsored by Cargill, the new report was published which focused to the water and how the agricultural industries correlate to the water in the future in Asia. The report also revealed that the water scarcity could infulence the economic progress in Asia. 90 percent of the respondents from food and agricultural industries in Asia agreed with this.

The report, Liquidity Premium is the second part of the research of Fixing Asia’s Food Systems. It was published in September 2018 for the first time and researched kinds of issues about the food systems in Asia. The research program which consisted of five parts are made based on the survey to 820 industrial leaders in Asia, including the desk research and interviews with the experts.

The most accurate concern about water scarcity would happen in Indonesia and Philippine. 67% respondents in the two countries agreed that the water scarcity could influence the economic growth compared to Singapore reaching 43%, Thailand reaching 44%, and India reaching 60%.

Based on the report, Indonesia is one of ten top countries which has risky population about the water scarcity because Indonesia is in the fourth rank in the water index and sanitation (the total population which has no sanitation) and the sixth rank in the flood index ( the potential population to be in flood). Indonesia is also mentioned as one relatively rich country but faces the issue in water stock because the water management is not good still.

“The water scarcity is the big challenge in Indonesia. Just like other countries in Asia, the challenge is how to fulfill the demand on water stock but in the same time, the population and the life style in food change and go forward too,” Corporate Affairs Director of Cargill Indonesia, Arief Susanto, in the official statement to InfoSAWIT recently.

Arif also said that it is not about the disaster which happened in Indonesia. So every side should participate, starting from the government, the companies, and the people, to solve this issue.

The project showed that 40% of the developing countries in Asia would face the critical water scarcity in 2030 that would lead to the gap of demand and offer about the water.

The report also quoted some major issues behind this: the economic development that would increase the water demand, the increasing sectoral competition to the water needs; the agriculture which uses contaminated water that would be risky for the health of the animal and plantation; the over exploitation and the climate changes, the bad management of water – the price of water does not reflect its quality, there is no incentive to get efficient water; and the expensive technology.

The report also revealed that to solve the water scarcity issue, the Asian countries should revise the water management system and realize the price and the value of water. Besides it needs transparency and collaboration among the countries to manage and solve the potential tension that could be rising from the water scarcity. (T2)


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