UMM TEAM MALANG JUNE - 2008

4 Indonesia Position & Role

1. 2.

3.
4. 5. 6.

7.
8. 9. 10.

Country Description Impact of Climate Change in Indonesia Source of Green House Gasses Working Group on Climate Change Legal & Regulatory Framework National Development Planning Program for Mitigation Technology Requirement Financing the Climate Change Strategy Energy status & Alternative Energy

4 Indonesia Position & Role

4 Indonesia Position & Role

4 Indonesia Position & Role

Indonesia is located in the tropical belt, is the largest and widest archipelago country in the world, consist of 17,508 big and small islands, there are 5 big islands : Sumatera, Java, Borneo, Celebes and West Irian There are two season in Indonesia , May to October is dry season and October to April is rainy season Second worlds longest coast line (81.000 km)

4 Indonesia Position & Role

Based on demography survey in 2000, the total population was 206 million, representing the fourth largest country in the world With the population growth rate was 1,49 percent. Estimate population in 2006 was 220 million.

4 Indonesia Position & Role

4 Indonesia Position & Role Climate Change Effects Impacts on Indonesia Disappearing Small Islands

Sea Level Rise Ocean Warming Increased Temperature Increased Rainfall Increased Evaporation Increased Tropical Storms

Salt Water Intrusion

Decline in Fisheries Harvest Loss of Biodiversity Increased Fire Risk Increased Disease Risk, Range Floods and Land Slides Changes in Planting Season Drought, Food Security Transport Vulnerability Food and Water Scarcity

4 Indonesia Position & Role

Deforestation rate (2000 2005) -> 2,8 Million Ha/year & Forest fire (West Borneo in 2006) -> loss of 91 Million USD (source: www.beritabumi.or.id) Flood (February 2007) result in 8 Billion USD loss (source: www.detikfinance.com) Landslide -> 80 Million USD/year Human health : Dengue, Malaria, Diarrhea Rise of Sea Level Drought (Cirebon District in 2006) result in loss of 8.6Million USD (source: http://greenpena.blogspot.com)

4 Indonesia Position & Role

The disappearing of small Island -> within 2005 2007, 24 small islands disappear, the location:
3 island in Nanggroe Aceh Darussalam (NAD) 3 island in Papua 5 island in Riau 2 island in west sumatera 7 island in the coastal area of Jakarta

(source: Ministry of Oceanary & Fishery)

4 Indonesia Position & Role

4 Indonesia Position & Role

The availability of water is very dependent on the climate, due to the limited supply of water (only covers about 37% of urban population and 8% of rural population) causing people and industries use deep groundwater resources land subsidence that creates areas vulnerable to flood and salt water intrusion

4 Indonesia Position & Role

Jakarta Coastal Region in 2050

4 Indonesia Position & Role

During El Nino years (1994, 1997,2002, 2003, 2004 and 2006) shown that 8 reservoirs in Java have produced electricity below normal capacities During El Nino 1997 has caused serious problems to coral reef ecosystems where 90-95% of coral reefs at the depth of 25m have experienced coral bleaching

4 Indonesia Position & Role

Poorest nations and poor groups are likely to be hardest hit by the effects of climate change as they: rely heavily on climate change-sensitive sectors (agriculture and fisheries) Are less able to respond (lack of human, institution and financial capacity) Achievement of the National Development goals and Millennium Development Goals (MDG) see table

Changes in mean climate, variability, extreme events and sea level rise Increased temperature and changes in precipitation reduce agricultural and natural resources Change in precipitation, run-off and variability leads to greater water stress Increased incidence or intensity of climate related disasters lead to damage to assets and infrafstructure Temperature, water and vegetation changes contribute to increase prevalence of disease

Impact on poverty and national development planning targets Lowered industrial output and labour productivity, high inequality, impacts on trade, and fiscal and macro-economic growth, and povertyreducing effects Reduced productivity and security of poor peoples livelihood assets, and reduced access for the poor to their livelihood assets Less effective coping strategies among the poor, and increased vulnerability of poor people
1.

Impact on the eight MDG

2.

3.

4.

5.

6.

7.

8.

Eradicate extreme poverty and hunger Food security jeopardized, more intense disasters threaten livelihood Achieve universal primary education More vulnerable livelihoods means more children engaged in employment; infrastructure damage from disasters Promote gender equality and empower women Women make up two-thirds of worlds poor and are more adversely impacted by disasters. Reduce child mortality Children more vulnerable to malaria and other diseases, which are spread more widely by climate change Improve maternal health Pregnant woman particularly susceptible to malaria Combat HIV/ AIDS, malaria and other diseases Increase prevalence of mosquito-bone diseases Ensure environmental sustainability Climate change indication of unsustainable practices. Move toward more energy-efficient model of consumption Promote global Partnerships Wider forums must acknowledge the role of climate change in impacting MDGs

4 Indonesia Position & Role

Based on Workshop on Climate Change and Health in South East Asian Countries : Kuala Lumpur, Malaysia

4 Indonesia Position & Role

4 Indonesia Position & Role

4 Indonesia Position & Role

4 Indonesia Position & Role

Transportation Industry Forestry Agriculture

4 Indonesia Position & Role

4 Indonesia Position & Role

EXISTING INDONESIAN WORKING GROUP ON CLIMATE CHANGE

Mitigation

Adaption

Post Kyoto

Transfer of Technology

Financial Mech.

Forestry

Energy

Energy:

Industry

Transportation

Agriculture

Forestry

Ocean

Waste

Working Group on Climate Change Activities: to undertake qualitative policies and measures that lead to the our response to Climate change, i.e. to stabilize concentration of GHGs at the safe level. Working Group of Transfer of Technology Activities: to further derivation and enrichment the previous project and to prioritize technology needs, and capacity building to assess technology needs, modalities to acquire and absorb them.

4 Indonesia Position & Role

Ministry of Environments Ministry of Research and Technology Agency for the Assessment and Application of Technology (BPPT) Governments Departments: Energy & Mineral Resources, Forestry, Agriculture, etc. Meteorology and Geophysical Agency Indonesia State Electricity Company Private Sectors Universities NGOs

4 Indonesia Position & Role

4 Indonesia Position & Role

4 Indonesia Position & Role

Presidential Rule No.5, 2006 regarding National Energy Policy, asp. on energy mix by the year 2025 Presidential Decree No.10, 2005 on energy efficiency Presidential Decree no. 1, 2006 regarding Biofuel Utilization Program Act No. 6/1994 which stipulate the ratification of UNFCCC

4 Indonesia Position & Role

Act No. 23/1997 regarding Environmental Management Ministrial Decree of Forestry No. 14/04 regarding Afforestation/Refforestation Project Ministrial Decree of Environment no. 53/03 regarding Ministry of Environment as National Committe of Climate Change

4 Indonesia Position & Role

Ministrial Decree of Environment no. 206/05 regarding Ministry of Environment as the Indonesia DNA Government Regulation no. 4/2001 concerning Controlling Environmental Damages and or Pollution Associated with Forest and Land Fire

4 Indonesia Position & Role

LEGAL & REGULATORY FRAMEWORK FOR INDONESIA POWER SECTOR, INFRASTRUCTURE DEVELOPMENT & IMPLEMENTATION
DESCRIPTION PT. PLN (PERSERO) INDONESIA POWER SECTOR LEGAL & REGULATORY FRAMEWORK
INFRASTRUCTURE DEVELOPMENT LEGAL & REGULATORY FRAMEWORK

ARTICLE 5 POINT 1

ELECTRICITY LAW (GOVERNMENT OF INDONESIA LAW NO. 15 / 1985) <A>

INFLUENCED BY

POLICY, STRATEGY, NATIONAL TARGET, AND NATIONAL PLAN

DERIVATION

NATIONAL ELECTRICITY GENERAL PLAN 20062026 ( MEMR DECREE NO. 2270K/31/MEM/2006) <C>

ARTICLE 2 POINT 2

MODIFICATION OF GOVERNMENT REGULATION NO 10/1989 SUBJECT, SUPPLY AND UTILIZATION OF ELECTRICITY (GOVERNMENT REGULATION NO.3/2005) <B>

NATIONAL ENERGY POLICY (PRESIDENTIAL REGULATION NO.5/2006) <D>

ASSIGNMENT TO PLN FOR ACCELERATION OF COAL FIRED POWER PLANTS DEVELOPMENT (PRESIDENTIAL REGULATION NO. 71/2006) <E>

ARTICLE 5 POINT 1&2

ESTABLISHMENT OF COORDINATION TEAM FOR POWER PLANTS DEVELOPMENT. (PRESIDENTIAL REGULATION NO,72/2006) <F>

COAL FIRED POWER PLANT CRASH PROGRAM

COOPERATION BETWEEN GOVERNMENT AND ENTERPRISES FOR DEVELOPMENT OF INFRASTRUCTURE (PRESIDENTIAL REGULATION NO67/ 2005) <P>

CONSIDERING

SUPPLY AND UTILIZATION OF BIOFUEL AS ALTERNATIVE FUEL (PRESIDENTIAL INSTRUCTION NO.1/2006) <G> LIQUEFIED COALS SUPPLY AND ITS UTILIZATION (PRESIDENTIAL INSTRUCTION NO.2/2006) <H>

RENEWABLE ENERGY

IMPLEMENTING RULES, PROCEDURES AND PLAN

SUPPLY AND DEMAND BALANCE INVESTMENT REQUIRMENT PROJECT LIST

POWER PURCHASE AND TRANSMISSION RENTAL GUIDELINES OF THE ISSUANCE OF PROCEDURE OF POWER ELECTRICITY BUSINESS PURCHASE AND/OR LICENSE FOR TRANSMISSION RENTAL TRANSMISSION ELECTRICITY SUPPLY TRANSPROVINCE OR FOR PUBLIC CONNECTED TO NATIONAL (MEMR REGULATION GRID NO.001/2006) (MEMR REGULATION NO. <J> 010/2005) <L>

CRITICAL AREA LIST OF POWER SYSTEMS (AREAS) IN CRITICAL CONDITION (EMERGENCY CONDITION) (MEMR REGULATION NO. 206-12/40/600.2/ 2006) <M> LIST OF POWER SYSTEMS (AREAS) IN CRITICAL CONDITION (EMERGENCY CONDITION) (MEMR REGULATION NO. 482-12/40/600.2/ 2006) <N>

RENEWABLE ENERGY MEDIUM SCALE

LEGALIZATION OF MODIFIED PLN ELECTRICITY SUPPLY GENERAL PLAN/ RUPTL 2006-2015 (MEMR DECREE NO. 2923K/ 30/MEM/2006) <I>

MEDIUM SCALE OF RENEWABLE ENERGY POWER PLANT (MEMR REGULATION NO. 002/2006) <O>

RISK MANAGEMENT GUIDELINES FOR INFRASTRUCTURE DEVELOPMENT (MINISTRY OF FINANCE REGULATION NO.38/PMK.01/2006) <Q>

IMPLEMENTATION

POJECT DEVELOPMENT AND IMPLEMENTATION

TO OBTAIN GOVERNMENT SUPPORT/ GUARANTEE

NATIONAL ENERGY TRAJECTORY

PRIMARY ENERGY MIX 2005
Panas Bumi 1.32% Tenaga Air 3.11%

Gas Bumi 28.57%

Minyak Bumi 51.66%

t1?
Batubara 15.34%

Enhancing energy security & mitigating CO2 emissions: to secure strategic reserve, to improve efficiency in energy production & use, to increase reliance on non fossil fuels and to sustain the domestic supply of oil/gas (slower growth in fossil fuel-demand in oil/gas imports and in emissions). Proposed energy technology use, diffusion and deployment, increasing clean energy technologies. Energy infrastructures and its time frame. Etc.

t2?

t3?

National Energy Mix Target 2025 (PERPRES NO. 5/2006)

Minyak Bumi 20%

THE NATIONAL ENERGY ISSUES What is the Sustainable Road Map?

Gas Bumi 30%

Bahan Bakar Nabati (Biofuel) 5%

Presidential Rule No. 5/2006

t25

Others 17% EBT +

Panas Bumi

5%

Biomasa, Nuklir, Air, Surya, Angin 5% Batubara yang Dicairkan (Coal Liquefaction) 2%

Batubara

33%

4 Indonesia Position & Role

4 Indonesia Position & Role

Integrating Climate Change to National Development Planning Process

INPUT DOCS BRIDGING DOCS
Strategic Nat. Res & Env. Assessment (SNREA) for 2010-2014 NMTDP

2010-2014 National Mid-Term Development Plan (NMDPT)

National Communication, National Sector Strategy, etc.

Climate Change Program

MID TERM DEVELOPMENT PLAN 2004-2009

GOV WORK PLAN 2008 GOV WORK PLAN 2009 GOV WORK PLAN 2010

MID TERM DEVELOPMENT PLAN 2010-2014

GOV WORK PLAN 2011 GOV WORK PLAN 2012 GOV WORK PLAN 2013 GOV WORK PLAN 2014

FUNDING
GOV FUNDING
LOAN GRANT
COMM/ PRIVATE/ NGO/CSR

CDM

DEBT SWAP

INDONESIA
CLIMATE CHANGE NATIONAL ACTION PLAN LIVING DOCUMENT NATIONAL ACTION PLAN IN FACING CLIMATE CHANGE MINISTRY OF ENVIROMENT The Strategy of Carbon Absorption Potential Improvement and Strategy of Carbon Emission Reduction MINISTRY OF SOCIAL WELFARE
NATIONAL DEVELOPMENT PLANNING AGENCY BAPPENAS NATIONAL DEVELOPMENT PLANNING RESPONSE TO CLIMATE CHANGE

INTERNATIONAL WORLD

IMPLEMENTATION

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Agriculture Coastal and Small Island Health Transportation Public Works Human Settlements Energy and Mining Forestry Environmental Technology Rehabilitation & Revilitation Peat Land 12. Mainstreaming Decentralized Disaster Risk Reduction

4 Indonesia Position & Role

What is national development plan? Process to make development plans consist of long-term development plan, medium-term development plan and annual development plan which will be implemented by state institutions, private sector and community in all level of regions Current regulations applied for development planning: Law No. 25/2004 about Development Planning Presidential Regulation No. 7/2005 about Medium-term National Development Planning 2004-2009

Other national development plan policy relates to Climate Change: Millennium Development Goals (do not have legal status)

4 Indonesia Position & Role

4 Indonesia Position & Role

Environmental Policies are aimed to:

1.

To mainstreaming sustainable development principles into alldevelopment aspects; Improve coordination among environmental institutions in nantional and local level;

2.

3. 4.

Increase the law enforcement effort to the poluters;

Increase the capacity of environmental institutions in national and local level; Improve the awareness of community on environmental issues and support community active participation to monitor environmental quality;

5.

4 Indonesia Position & Role

Among 15 environmental policy objectives, 3 objectives (No.5-7) are related to climate change issues:

Improve urban air quality especially in Jakarta, Surabaya,Bandung, and Medan, supported by improvement of environmentally sound of transportation system and management; 2. Reduction of ODS (Ozone Depleting Substances) gradually until 2010; 3. Improve national capacity in adapting climate change issues into development aspects;
1.

4 Indonesia Position & Role

Target 9 : Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources

Target 10 : Halve, by 2015, the proportion of people without sustainable access to safe dringking water and basic sanitation Target 11 : By 2020, to have achieved a significant improvement in the lives of slum dwellers

4 Indonesia Position & Role

4 Indonesia Position & Role

To integrate the agenda of climate change adaptation to the National Development Strategy such as: Mid-Term & Long-Term Development Plan; To re-observe and re-adjust initiative or program to be resilience to the climate change; To Institutionalize the climate information usage to enable climate risk mitigation and management; To encourage local government to integrate the climate risk consideration into their local development planning; To strengthen information and knowledge to reduce climate risk in recent and in the future; To ascertained of the availability of internal resources and funding for adaptation program and maximalize the utilization of available international funding; To choose for no-regret option, which is taking the adaptation act regardless for example the non-occurence of climate change; To encourage the establishment of national dialog to accelerate the implementation process of climate change adaptation agenda in Indonesia.

4 Indonesia Position & Role MITIGATION

1. Toward Green Indonesia (MIH) & Aforestation (National forest and land rehabilitation) 2. Water Conservation (Watershed Management, Well Absorption, Reservoir) 3. Forest Fire Master Plan Poverty Derivation Education for Farmer (for not doing land clearing by land burning such as: government will supply fertilizer and contribute good quality seed) 4. Flood Management 5. Reconstruction/redesign of irrigation Agriculture 6. Encouraging CDM Project increase by sectoral approach 7. Mixed Energy Policies 8. Free tax for clean technology equipments 9. Energy Efficiency in the government buildings 10. Air Pollution Control for Transportation 11. Self Sufficient Energy Village Program

ADAPTATION 1. Encourage MGA (Meteorological and Geophysical Agency) to have station monitoring for weather forecast More Accurate and Realistic Number 2. Identify the vulnerable sectors affected by climate change. 3. Public Participation. 4. Mainstreaming Adaptation Issue into related policies sector; for reviewing the 5--years Strategy Programme. 5. Draft National Strategy on Adaptation to Climate Change

4 Indonesia Position & Role

4 Indonesia Position & Role

The immediate objective:

to enable Indonesia to identify national technology needs, capacity building to asses international technology availability, and modalities to acquire and absorb the appropriate technology.

Sectors in Existing Indonesian TNA

Energy Sector Energy Industry Industry Sector Household and Commercial Sector Transportation sector Non-Energy Sector Agriculture and Livestock Forestry

(Existing Indonesian TNA submited to UNFCCC on 2001)

4 Indonesia Position & Role

MODALITIES OF TECHNOLOGY TRANSFER Institutional Establishment Regulation Development

Procedure of Transferring Technology The Role of Decentralization System & Procedure Establishment

Financial Arrangement

Foreign Direct Investment Official Development Assistance The Global Environmental Facility Clean Development Mechanism Multilateral & Bilateral Agencies Regional Development Banks Etc.

(Existing Indonesian TNA submited to UNFCCC on 2001)

4 Indonesia Position & Role

Criteria for prioritizing technology needs

Utilization of local resources Rational utilization of resources Socio-economic important GHG reduction potential Investment cost Social acceptance Minimum impact on environment

Methods for prioritization of technology needs

Costbenefit and riskbenefit analyses
(Existing Indonesian TNA submited to UNFCCC on 2001)

4 Indonesia Position & Role

Indonesia listed barriers and measures sector-wise. Types of barriers to technology transfer identified are: Economic / market Information/awareness Policy Regulatory Institutional Human Technical Infrastructure Indonesia expressed concern about the high investment costs of selected mitigation options, which could translate into higher product prices and loss of competitiveness in the case of the energy sector. However, it identified barriers only in the transport, forestry and agriculture sectors.

(Existing Indonesian TNA submited to UNFCCC on 2001)

4 Indonesia Position & Role

High Efficiency Power Generation: Clean Coal Technology, CHP Technology, etc. Energy Efficiency in Industrial sector (cement, iron & steel, pulp & paper, fertilizer, textile, mining, lime calcination, chemical, etc.) Energy Efficiency in Industrial Equipments (Industrial process, electrical motor, boiler, compressor, furnace, Refrigeration, heater, room conditioning, cooling tower, electrical system, combustion, pump, lighting, steam distribution, waste heat recovery, etc. Energy consumption efficiency in transportation including using gas for vehicles including improvement of public transportation Carbon Capture Sequestration (CCS) Cleaner Production Technology for Industry Renewable Energy: Biomass, Wind, Solar, Ocean, Geothermal, Hydro electric, etc. Climate modification technology Climate monitoring & reporting system

4 Indonesia Position & Role

Avoiding forest burning, avoiding deforestation, forest conservation and reforestation, etc. Composting of agricultural waste, manure management, etc. Landfill management to avoid methane release Ocean Sequestration Technology for water resources management Industrial waste water treatment Industrial solid waste treatment (recovery, composting of palm free fruit bunch.

4 Indonesia Position & Role

Indonesia is already responding to this challenge in anticipation of the future consequences. In 2007 and 2008, central government spending on environmental programs over 2006 levels to 6 trilion rupiah was doubled. At the regional level, we have also nearly doubled spending to 6 trillion Rupiah on reforestration and special funds for environment and conservation. Together, these funds amount to USD 1.4 billion spent on environment management, conservation and forest restoration. In 2005, Indonesia also instituted a large increase in fuel prices by reducing subsidies that will encourage energy efficiency , while protecting the poor.
53

Indonesia
(RPJP, RPJM, RKP)

Climate Change Joint Programs

(Country Strategy/ Program)

Donor

The support of developed countries on Climate Change Program all over the world should be in addition to their commitment to support MDGs achievement through ODA(0.7 % GNP)
54

4 Indonesia Position & Role

Financing Bilateral
JBIC
DFID AusAID DANIDA Netherlands EC GTZ Norway CIDA Sweden

Mechanisms G-to-G
Bilateral Multilateral Loan Grant

Mitigation & Adaptation

Climate-Proof Economy

Policy Re-orientation
Community-Based Programs

CC Trust Fund
Trust tee Management GoI host TA & financial & management support

Awareness raising
Training/Workshops

Capacity Building
Small-scale Investment

Multilateral
Wolrd Bank ADB UNDP Public-private partnership CDM

Piloting
Execution of Policy/Strategy

Others
Intl trust funds: GEF, Adaptation funds, CIF Private Sectors

Policy Implementation

4 Indonesia Position & Role

UNFCCC Convention
Article 11: grant and/or concession Prefer to have ODA+

Paris Declaration
ownership, donor harmonisation, governance,

In line with national interest and financing regulation:

Long-term and Mid-term National Development Goals State Law No. 17/2003 about State Finance and Foreign Loan and Grant

Regulation (Government Regulation No.2/2007)

4 Indonesia Position & Role

Non-UNFCCC mechanism: Grant from Bilateral Countries or Multilateral Institutions (ODA and ODA+) Foreign Loan (ODA and ODA+): Program Loan: only for budget/fiscal deficit Sectoral Loan: emphasizing co-benefit approach between development and climate change Trust Fund (both International and national)
UNFCCC mechanism: Global Environmental Facility (GEF) Special Climate Change Fund (SCCF) Adaptation Fund (AF) Up-coming Reduction Emission from Deforestation and Degradation (REDD) mechanism

4 Indonesia Position & Role

CDM investment through Bilateral, Multilateral and Unilateral sources PRIVATE SECTOR: We should also look to encourage greater levels of private sector involvement in mitigating and adapting strategies. Government can use fiscal instrument to encourage private sector to invest in environmental friendly technology

Grant Debt swap Trust Fund Soft Loan - concession

59

Steering Committee/Ministers Policy Program Steering Committee

Chair: GoI Co-chair: Representative of Donor
Sub Group/Issue Sub Group/Issue Sub Group/Issue: Climate Change

Report

Funding

Multi Donor Trust Fund (MOU GOI-Donors)

Program Dialogue

Ministries/Agencies/ Local Governments/ SOEs

Bilateral/ Multilateral Donors

60

4 Indonesia Position & Role

4 Indonesia Position & Role

Indonesia Energy Projection

4 Indonesia Position & Role

Gas Coal Wind Wind

Thermal

Other

Oil

4 Indonesia Position & Role

Gas Coal Oil Wind Wind

4 Indonesia Position & Role

4 Indonesia Position & Role

4 Indonesia Position & Role

4 Indonesia Position & Role

4 Indonesia Position & Role

4 Indonesia Position & Role

Presidential Decreed No. 1 / 2006 Regarding Supply & Usage of Bio Fuel as Alternative Energy

4 Indonesia Position & Role

4 Indonesia Position & Role

4 Indonesia Position & Role

4 Indonesia Position & Role