Globally, Indonesia is significant in terms of its rich biodiversity and biological resources. With terrestrial, freshwater and marine domains, Indonesia is a country with the highest biological diversity and is considered one of 17 megadiverse countries (countries with very high diversity), with 2 of the world's 25 biodiversity hotspots. Having 10% of the world's tall plant species, Indonesia is ranked as one of the world's centers of agrobiodiversity. For faunal diversity, approximately 12% of the world's mammals (515 species) exist in Indonesia, placing it second only to Brazil, at the global level. Having around 16% of the world's reptiles (791b species), and 35 primate species, Indonesia ranks fourth in the world for both categories. Moreover, with 17% of the world's bird species (1,592 species) and 270 species of amphibians, Indonesia ranks fifth and sixth respectively.

While being home to the greatest diversity of land-based species in Indonesia, the forests have been drastically reduced through uncontrolled logging and widespread forest fires, which have severely fragmented and degraded forest ecosystems. Peak deforestation from forests and peatlands is leading to a reduction in the country's biodiversity.

The depletion of Indonesia's biodiversity puts an estimated 40 million Indonesians living in rural areas at risk of losing their livelihood base.