Indonesias Policy on

CDM Implementation
Prasetyadi Utomo
Ministry of Environment of Indonesia
CD4CDM Workshop

Pathumthani, Thailand
19 21 October, 2005

National Policy on Climate Change

Accelerate the development of industry
and transportation with low emission level
through the utilization of clean and efficient
technology as well as renewable energy;
Improve the potential of land and forestry
to absorb greenhouse gases;
Indonesia adopts international law as a
national law to be detailed in the
framework of regulation and institutions.

CDM Implementation in Indonesia

Legal background:
Act No.: 23/1997 concerning Environmental
Management;
Act No.6/94, Ratification to the UNFCCC;
Act No.17/04 Ratification to the Kyoto Protocol;
Min of Forestry Decree No.14/04 on A/R project.

Institutional strengthening:
Establishment of National Commission on Climate
Change (Ministerial decree No.53/03
Establishment of the DNA Ministerial decree No.206/05)

Active involvement of various stakeholders

National Committee on CDM

Indonesian National CDM Authority (DNA)
= Komisi Nasional Mekanisme
Pembangunan Bersih (KN-MPB)
Established through Minister of
Environment decree No.206 Year 2005

Organisation structure and supporting

Elements of Indonesias DNA on CDM
(KNMPB)
KNMPB
Secretariat

Technical
Team

Experts

Stakeholder
Forum

Permanent Members

Min of Environment
Min of Energy & Mineral Resources
Min of Forestry
Min of Foreign Affairs
Min of Industry
Min of Transportation
Min of Agriculture
Min of Home Affairs
National Development Planning Board

KNMPB: the Functions

Mandatory function
Approving proposed CDM projects based on the
national sustainable development criteria
Tracking the progress of PDD on CDM Exec Board

Non-mandatory promotional function

Facilitating communication among investors and the
proponent and other related parties
Facilitating capacity building in proposing and
implementing CDM projects
Providing information to support CERs marketing
and/or CERs potential

SD Criteria and Indicator for CDM

Environmental Sustainability:
Environmental sustainability through conservation or
diversification of natural resources
Local community health and safety
Economic sustainability:
Income generate
Local community welfare
Investment flow
Social sustainability:
Local community participation
No negative impact on communitys social integrity
Improve social facility
Technical sustainability:
Transfer of technology
Improving indigenous/existing technology
Transfer of knowledge
Not used on experimental technology

National Strategy on CDM

Implementation in Indonesia
Institutional and legal strengthening
Establish bilateral agreements with Annex 1
countries
Improve coordination among central and local
governments
Develop networking among stakeholders (govnt,
NGO, univ, business, etc.)
Improve public awareness, education, training;
Provide access to information on climate change
issue

Strategy on CDM Implementation

No specific area for project type of CDM
Highly support of using Renewable energy,
alternative energy and clean technology
Simplified approval procedure on CDM
proposed
Incentive scheme for CDM Project
developer
Promote CDM project potential through
international event such as Carbon expo

Energy Policy
(Action Plan for Sustainable
Development in Indonesia)
Phase out energy market distortion gradually;
Promotion of the renewable energy use and
development;
Encourage society applying energy efficiency;
Support on consumption of clean and efficient
technology for industry and trade sector;
Restructure prices of various energy type.

Policy in Non Energy Sector

Sustainable forest management
Improvement on agricultural system
Application of biotechnology engineering
to increase agricultural products
Management of agricultural practices in
less fertile land with dry land variety

Perspective on Future development

of CDM
Indonesia has a number of promising
potential CDM projects
Indonesia has attracted Annex 1 countries
to become the Host Country for CDM
Increasing enthusiasms from local
business player as well as other
stakeholders in CDM
Strengthened by the establishment of
KNMPB (Indonesian DNA)

Further Information
Deputy Assistant for Climate Change Impact Control

Tel.: +62 21 8517164

Fax.: +62 21 85902521
E-mail : climate@menlh.go.id

Indonesia DNA: dna-cdm.menlh.go.id