An Overview of Indonesia Sustainability

By Liana Bratasida
Chair of Supervisory Board, ISSP Indonesia Executive Director , Indonesian Pulp and Paper Association (APKI)

Sustainability Sharing Session January 4, 2013 - Karawaci, Tangerang Property of ISSP Indonesia, 2013

Indonesia at the Glance

Source: Worldbank, and Indonesias Ministry of Energy and Mineral Resources, 2010

Population in 2010 (inh) GDP in 2010 (US$) Income per capita (US$) Land area (km square) Energy consumption (Mboe) Transportation (Mboe)

231 mio 700 billion 3,000 1,919,440 891.64 226.09

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Indonesias view of Sustainable Development

Transformation in the trajectory of economic development to sustainable development.

Resources-efficiency approach and internalizing value of natural resources and environment, eradicating poverty, creating green jobs, and ensuring sustainable economic growth. Win-win solution between environmental protection and economic growth.
Should be adjusted based on the condition and needs of each country.
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Indonesias Spatial Planning

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Legal Basis of Sustainable Development in Indonesia

1. Law of the Republic of Indonesia No. 6/1994 on Ratification of UN Climate Change Convention 3. Law of the Republic of Indonesia No. 30/2007 on Energy

the

2. Presidential Regulation No. 5/2006 on National Energy Policy

4. Presidential Instruction No. 2/2008 on Energy and Water Efficiency

5. Law of the Republic of Indonesia No. 32/2009 on Environmental Protection and Management

6. Many others
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Indonesias Commitment

And we will need to work together, to adapt our lifestyle and our national policies towards a green global economy, based on the principle of common but differentiated responsibilities and respective capabilities. It is in this spirit that we in Indonesia have adopted a 4-track development strategy, which is pro-growth, pro-job, pro-poor, and pro-environment. -President Susilo B. Yudhoyono, World Economic Forum at Davos, January 2011
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Indonesias Policy & Framework

4-track development strategy: 1. Pro-growth, 2. Pro-job, 3. Pro-poor, and 4. Pro-environment.
MDGs
1. Masterplan for Acceleration and Expansion of Indonesia Economic Development 2011-2025 (MP3EI) 2. Masterplan for Acceleration and Expansion of Indonesia Poverty Eradication (MP3KI) 3. Masterplan for Acceleration and Expansion of Indonesia Environmental Protection and Management (MP3LHI)

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ISSP INDONESIA

Indonesias RPJM National Priorities

1

2
3 4 5 6

Bureaucracy Reform and Good Governance Education Health

Poverty Alleviation
Food Security
Infrastructure

11 + 3 National Priority 2010-2014

7 8 9

Investment Climate

Energy Environment and Disaster Management (incl. Climate Change)

Disadvantaged, Borders and Post-Conflict Areas

10 Culture, Creativity and Technology Innovation 11 12

Politic, Law and Security 13 Economic Development 14 Social Welfare

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Indonesias Challenges

Poverty is still main obstacle

(Fiscal stimulus vs stimulus for ecology..?)

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ISSP INDONESIA

Statement by President Soesilo Bambang Yudhoyono

We are devising an energy mix policy ... that will reduce our emissions by 26 percent by 2020. With international support, we are confident we can reduce emissions by as much as 41 percent.

Indonesias Pledge for Emission Reduction*

We are also looking into the distinct possibility of committing a billion tons of CO2 reduction by 2050.We will change the status of our forests from that of a net emitter sector to a net [carbon] sink sector by 2030

*Stated at the G20 Summit on Sept 2009 and reiterated at UNFCCC COP 15/CMP 5 on Dec 2009
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Indonesias Actions
President Commitment G-20 Pittsburgh and COP15 To reduce te GHG Emission in 2020

26%
Unilateral

26% 15%

41%

Unilateral and International Support

RAN-GRK

Indonesia Green Investment Fund (IGIF)

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Policy Arrangements
National Communications GHG Inventory and National Action Plan on GHG Emission Reduction (GR* 61/2011) National Action Plan for GHG Emission Reduction Indonesia Climate Change Trust Fund/ICCTF Indonesia Climate Change Sectoral Roadmap/ICCSR TNA, NAP on Mitigation and Adaptation LCDP
*GR = Government Regulation
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GHG Inventory: Share of Sector to total national GHG emission in 2000

The main contributing sectors were Land Use Change and Forestry, followed by energy, peat fire related emissions waste, agricultural and industry
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Challenges and Opportunities

Indonesia is seeking to reform economic and fiscal policy to meet low-carbon economy objective. A range of governmentled studies is underway in Indonesia that looks at options to reduce emissions, such as: 1. provide domestic enabling conditions supported by innovative financing mechanisms as well as policy reforms (fiscal/pricing policy, standards, education capacity building) 2. create public and private partnership and including green investment funding mechanisms 3. green investment at the core of the stimulus packages include green investment in regular government budget 4. provide global enabling conditions (trade, IPRs, ODA, TT and environmental agreements)

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Sustainable Development Activities In Indonesia

Green Industry ( Low Carbon, Cleaner Production, 3R) Ministry of Industry Green Economy Ministry of Environment Green Building Ministry of Environment (Ministry Regulation no. 08/2010) Sustainable Transportation (Public Transportation System, Eco Airport) Ministry of Transportation Sustainable Agriculture Development Ministry of Agriculture Sustainable Forest Management Ministry of Forestry Sustainable Development-based Spatial Planning Ministry of Public Work Green Banking/Sustainable bank National bank of Indonesia/BNI, Bank Mandiri Green Investment (Socially Responsible Investment/SRI): Bapepam and Indonesia Stock Exchange Energy Self-sufficient Village Climate Village
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