GE National Workshop_Bappenas

Presented at The National Workshop on “ Mobilizing the Public and Private Sector of Indonesia Towards a

Resource Efficient and Green Economy”Jakarta, 23 September 2010 1

OUTLINEBAPPENAS

1. OBJECTIVES2. A NEW PERSPECTIVE OF DEVELOPMENT

– GREEN ECONOMY3. LONG TERM PERSPECTIVE OF

NATIONAL DEVELOPMENT PLANNING4. SUSTAINABLE DEVELOPMENT

PERSPECTIVES IN LONG TERM NATIONAL DEVELOPMENT PLANNING

5. PROPOSED ACTIONS

General condition

• to review – existing green economy concept/initiatives

• to indicate – current Indonesia's policy context and existing

initiatives that support the resource efficiency/green economy approach

• to suggest – possible new path of sustainable economic approach

(toward green economy) in development planning mechanism

1. OBJECTIVES OF PRESENTATIONBAPPENAS

2. A NEW PERSPECTIVE OF DEVELOPMENT – GREEN ECONOMY

BAPPENAS

General condition

• We are one of the ten megadiverse countries and our life depends on natural resources– Our economy has largely been dependent on the productive value of

biodiversity (genetic, species and ecosystem)– Approximately 24.8% of our GDP comes from management of natural

resources such as agriculture, forestry, mining/energy, fishery– With population > 230m with growth rate + 1.2%, majority of working force

(40%) is in natural resources management sectors

• We have valuable assets– Archipelago with the largest waters, the highest number of islands, and the

second longest coastal line in the world, located in the equator between two continents and two oceans

– Abundance natural resources and biodiversity in land, sea, air and space – Human resources

Megadiverse with valuable natural resource assetsBAPPENAS

General condition

• We are one of the ten megadiverse countries and our life depends on natural resources– Our economy has largely been dependent on the productive value of

biodiversity (genetic, species and ecosystem)– Approximately 24.8% of our GDP comes from management of natural

resources such as agriculture, forestry, mining/energy, fishery– With population > 230m with growth rate + 1.2%, majority of working force

(40%) is in natural resources management sectors

• We have valuable assets– Archipelago with the largest waters, the highest number of islands, and the

second longest coastal line in the world, located in the equator between two continents and two oceans

– Abundance natural resources and biodiversity in land, sea, air and space – Human resources

Megadiverse with valuable natural resource assetsBAPPENAS

• Indonesia is a maritime country with more than 17,000 islands laid across Asia and Australian continent.

• It covers 7.7 million km2 consists of 1.9 million km2 land areas, 3.1 million km2 water, 2.7 million km2 exclusive economic zones with the total coastal line about 80,791 km

• > 42 type of terestrial and 5 unique marine ecosystem from ice landscape and alpine vegetation in Papua to spectacular coral reefs, sea grass beds and deep weber seas

• Uniqueness is enriched by 3 demarcation lines and Wallace line

GEOGRAPHIC CONDITIONSCONTRIBUTED TO THE INDONESIAN BIODIVERSITY

RICHNESS AND UNIQUINESS

Source: LIPI, 2010

• Unsustainable development – This is due largely to a narow perspective of development

reducing the carrying capacity and the natural resource availability

– Anthropocentric economic growth is the root of the problem

• Major issues – implication or ‘by-product’ of current development– Biodiversity threat– Excessive exploitation of land and marine resources– Environmental pollution and degradation– Unmanaged growth of population– Scarcity of water, food and energy– The climate change and global warming

Narrow persepctive of developmentBAPPENAS

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Borneo/K

alimantan in a great

dangers

(1) Forest is over exploited; (2) Logged; (3) Converted to many other purposes; (4) No optimal replanting program

Source: LIPI, 2010

Losing biodiversityThere have been five previous mass extinctions , but

the extinction rate this time is faster

Rising extinction rates(based on Norman Meyers, The Sinking Ark - 1980)

70 million years ago 1 per 1000 years

1600-1900 1 every 4 years

1900-1980 1 per year

1980 1 per day

2000 100 per daySource: LIPI, 2010

Why the lost of biological diversity must be stopped ?

The worst thing that can happen – will happen in the 1980s – is not energy depletion, economic

collapse, ............. As terrible as these catastrophes would be for us, they can be repaired within a few

generations. The one process ongoing in the 1980s that will take millions of years to correct is the loss of genetic

and species diversity by the destruction of natural habitats. This is the folly our descendants are least likely

to forgive us (Wilson, 1980).

Understanding the value of Biodiversity

Source Coconut Soybean Jatropha Alagae

Oil (Ton/ha) 2.070 450 1.460 6.757

FoodHealthEnergy

Magainins are small amphiphilic peptides produced by frogs and toads collapsing ion-gradients and cause lethal swelling of many bacteria.

Microalgae

Source: LIPI, 2010

Economic valuation of non timber product at the conservation site of the Private Company Timber Estate Crops at Province of Jambi - Indonesia

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Not include diverse of animal genetic resources e.g. fishes, deer, antelope, amydas etc., as an important

source of protein for the future Source: LIPI, 2010

General conditionNEW WAY OF DEVELOPMENT PERSPECTIVEBAPPENAS

Source : Green Economics, Molly Scott Cato, 2009

Widening the Consideration of Economics beyond the Classical Economists ‘Circular Flow’

General condition

• Development that considers NOT ONLY a narrow-formal economy, but also see a wider perspective of development– Social Resource Economy– Natural Resources Economy

• TOWARD sustainable development– Meets the needs of the present without

compromising the ability of future generations to meet their own needs.

– Must be economically viable, socially just, and environmentally sound

NEW WAY OF DEVELOPMENT PERSPECTIVEBAPPENAS

General conditionNEW WAY OF DEVELOPMENT PERSPECTIVEBAPPENAS

CONCEPT INITIATOR KEY FEATURESGreen Economy Initiative (GEI)

UNEP The process of reconfiguring businesses and infrastructure to deliver better returns on natural, human and economic capital investments, while at the same time reducing greenhouse gas emissions, extracting and using less natural resources, creating less waste and reducing social disparities

Green Industry

UNIDO to position economies on more sustainable pathways of growth by undertaking green public investments and implementing public policy initiatives that encourage greener private investments offer the potential to jump-start economies

Green Jobs ILO (+UNEP) the direct employment created in economic sectors and activities, whichreduces their environmental impact and ultimately brings it down to levels that are sustainable and decent jobs that contributes to environmental sustainability

Green Growth

UNESCAP a policy focus for the Asia and Pacific region that emphasizes environmentally sustainable economic progress to foster low-carbon, socially inclusive development.

Green Economy

Ministry of Environment Indonesia

Economic development model with the objective to address the interdependence of human economies and natural ecosystem & the adverse impact of human economic activities on climate change & global warming

3. LONG TERM PERSPECTIVE OF

NATIONAL DEVELOPMENT

PLANNING

BAPPENAS

General condition3.1. POLICY DEVELOPMENT CONTEXTBAPPENAS

Related Policy Development :

1.Long Term National Development Planning (RPJP) 2005-2020(Law No. 17/2007)

2.Medium Term National Development Planning (RPJM)

3.National Priority4.10 Presidential Directive, Tampak Siring

20105.Program Pembangunan yang Berkeadilan

(Presidential Decree No. 3/2010)

Long Term National Development Planning (RPJP) 2005-2020BAPPENAS

Vision:Indonesia that self-confidence, onward, just and wealthy

Missions1. Realizing a society that has high morals, ethics, culture,and civilization,

based on the Pancasila

2. Realizing a nation that is competitive

3. Realizing a democratic society based on the rule of law

4. Achieving Indonesia safe, peaceful and united

5. Realizing developmentthat is equitable and Just

6. Realizing an Indonesia that is balanced and sustainable

7. Realizing an Indonesia as an archipelago nation that is self reliant, advanced, strong, and that is based onthe national interest

8. Realizing an Indonesia that has an important role in the international community

National Long-Term Development

Plan 2005-2025

(20 YEARS)

National Medium-Term Development

Plan

(5Years)

Annual Government

Work Plan (RKP)

Phase I (2004-2009)

Phase III (2015-2019)

Phase IV (2020-2024)

Phase II (2010-2014)

RKP 2010RKP 2011

RKP 2012RKP 2013

RKP 2014

NATIONAL DEVELOPMENT PLANNING SYSTEM BAPPENAS

RPJP

2005-2025

RPJM

Phase I (2004-2009): Improvement of the natural resource management and environmental quality, natural disaster mitigation, environmental pollution and degradation control, public awareness, and institutional capacity

Phase III (2015-2019): Preservation of carrying capacity, rehabilitation ability, improvement in natural resource management and environmental conservation, and in public awareness and attitude, institutional and spatial planning capacityPhase IV (2020-2024): Preservation of biodiversity and uniqueness of natural resources, improvement of value added, competitiveness and national development assets

Phase II (2010-2014): Improvement of the renewable energy management, institutional capacity, public awareness, biodiversity conservation, disaster mitigation and spatial planning

MEDIUM TERM NATIONAL DEVELOPMENT PLANNING (RPJM) BAPPENAS

Vision“ Prosperous, Democratic and Just

Indonesia”

Mission1.Continue Development to achieve

Prosperous Indonesia2.Strengthen Democratic Pillars 3.Strengthen Justice in every Aspect of

Development

MEDIUM TERM NATIONAL DEVELOPMENT PLANNING 2010-2014

(Perpres 5/2010)BAPPENAS

National Priority and Action Plan 2010-2014

1 Bureaucracy Reform and Good Governance

2 Education

3 Health

4 Poverty Alleviation

5 Food Security6 Infrastructure

7 Investment Climate

8 Energy9 Environment and Disaster Management (incl.

Climate Change)10

Disadvantaged, Borders and Post-Conflict Areas

11 + 3 National Priority

2010-2014

11

Culture, Creativity and Technology Innovation

NATIONAL PRIORITYBAPPENAS

12 Politic, Law and Security

Economic Development

Social Welfare

13

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General conditionMAINSTREAMING SUSTAINABLE DEVELOPMENT CONCEPT IN RPJMNBAPPENAS

Mainstreaming on Sustainable Development

ENVIRONMENTAL ASPECT• Improvement on land and water resource capacity• Improvement on Air Quality

SOCIAL ASPECT• Preserving structure and social values• Improvement on community participation

ECONOMIC ASPECT• Economic growth, poverty reduction and social disparities

EXISTING INITIATIVES :1. Strategic Environmental Assessment (KLHS)2. Strategy on Poverty Reduction3. Sustainable Forest Management4. Sustainable Agriculture5. Responsible and Sustainable Fisheries

EXISTING INITIATIVES :1. The Indonesian Climate Change Sectoral Roadmap (ICCSR)

support the GOI’s development vision related to climate change for the next 20 years

2. Development of Financial Mechanism to Support Climate Change Initiatives (ICCTF)

3. Support GHG emission reduction through development of National Action Plan (RAN-GRK)

General conditionCROSS SECTORAL POLICY ON CLIMATE CHANGE IN RPJMNBAPPENAS

Cross sectoral policy on Climate Change

Mitigation: Forestry, Peatland, Energiy including transportation, industry, and waste management

Adaptation: Agriculture, Marine and fisheries, Coastal, Infrastructure, and Health

Supporting: Data, Information and communication, institutional capacity, research and technologi

Unilateraland International Support

President Commitment G-20 Pittsburgh and COP15

To reduce te GHG Emission in 2020

President Commitment G-20 Pittsburgh and COP15

To reduce te GHG Emission in 2020

26%26%

15%Unilateral

RAN-GRK

26%26%41%

SCENARIO of 2020 GHG Emission ReductionBAPPENAS

The Action Plan is focused on : 1. GHG Emission Reduction2. Increase of GHG Absorbtion Capacity (carbon

sequestration)The Action Plan - principles:

1. should not hinder economic growth, and prioritizing people’s welfare 2. supports protection of the poor and vulnerable communities, including

environment conservation in the framework of sustainable development3. Consists of core activities to reduce the emission and supporting

activities to strengthen the policy framework

10 PRESIDENTIAL DIRECTIVE (TAMPAK SIRING, 2010)BAPPENAS

1. Economy must grow 2. Unemployment must be reduced by creating

jobs.3. Poverty reduction4. Increasing income per capita.5. Economic stability.6. Domestic financing.7. Food security and water.8. Energy security9. Economic competitiveness.10.Environmentally friendly economic

development

44. SUSTAINABLE DEVELOPMENT PERSPECTIVES

IN LONG TERM NATIONAL DEVELOPMENT PLANNING

BAPPENAS

General condition4. SUSTAINABLE DEVELOPMENT PERSPECTIVES


BAPPENAS

Missions Goals National/Sector Policy & Existing Initiative

1. Realizing a society that has high morals, ethics, culture, and

civilization, based on the Pancasila

a. who comply with the law 1. Government Regulation No.25/2004: National Development Planning System;

2. Law No.17/2007: RPJPN (Long-Term Development Planning) 2005-2025;

3. Law No.32/2009: Protection and environmental management;

4. President Decree No. 43/ 1991: Energy Conservation;

5. Government Regulation No. 41/1999: Forestry; 6. Government Regulation No.70/2009: Energy

Conservation; 7. President Instructions No.2/2008: Provide

Incentives for Implementing Energy Conservation Programs

b. who develop their social assets Minister of Forestry Regulations No.P.37/Menhut-II/2007: Social Community Forest (Hutan Kemasyarakatan)

2. Realizing a nation that is competitive

a. that places a high importance on the development of quality and competitive human resources

Strategic Plan 2010-2014 of MoMAF, MoEMR, MoFr, MoAg,



BAPPENAS


b. Increasing the mastery and utilization of science and technology through research, development, and application towards sustainable innovation

Strategic Plan 2010-2014 of MoEMR

c. Development of advanced infrastructure and reforming the law and state apparatus

Strategic Plan 2010-2014 of MoAg, MoPW

3. Realizing a democratic society

based on the rule of law

a. strengthens the quality of decentralization and regional

autonomy

Law No.32/2004: Local Government

Government Regulation No. 62/1998: Apportioned Forestry Affairs of Government in the Field to Regional

b. reforms the structure of the law and enhances the law of culture and enforcies the law in a just, consistent and in a

non discriminative way‐

President Instruction No.3/2010: Equitable Development Program Justice for all

5. Realizing developmentthat is equitable and Just

a. reduces poverty and unemployment dramatically Strategic Plan 2010-2014 of MoAg

b. provides equal access for the general public to various public services and economic facilities and infrastructure

National Medium-Term Development Plan 2010-2014



BAPPENAS


6. Realizing an Indonesia that is balanced

and sustainable

a. that is improving the management of development that can maintain the balance among

the utilization, sustainability, availability, and uses of the natural resources and environment, while still preserving the functions, capacity, and comforts of life in the present

and in the future through the utilization of space that is harmonious for use for human

settlement, for social economic activities, and for conservation purposes

Strategic Plan 2010-2014 of MoEv, MoAg, MoPW,

Government Regulation No.32/2009: Protection and Environmental Management.

MoAg: ISPO, sustainable agricultural development;MoPW: Green Infrastructure; MoFr: Sustainable Forest Management; MoEv, MoHA, Bappenas: SEA.

b. Increases the economic use of natural resources and the environment in a sustainable manner

Strategic Plan 2010-2014 of MoFr; Gov Reg. No.03/2008: Forest & Forest Management Plan & Forest Utilization

MoEv: Economic Instrument,incetive system of environmental financing, Green GDP, Develop the guidance & application of economic valuation of Natural Resources & Environment & Environmental Impact; BNI & Bank Mandiri: Green Banking; Bappepam: Green Investment

c. Improves the management of natural resources and the environment for supporting the quality of life

Strategic Plan 2010-2014 of MoEMR

Bappenas: ICCSR, ICCTF, RAN-GRK; MoEv: Implementation B3, waterwaste investment program B3; MoEMR: Development of Renewable Energy



BAPPENAS


d. Provides beauty and comfort of life, and increases the preservation and utilization of bio diversity as ‐ the basic asset of national development.

Strategic Plan 2010-2014 of MoFr

MoT: Green Transportation; MoEMR: Energy Efficient Equipment Labeling

7. Realizing an Indonesia as an archipelago nation that is self eliant, advanced,strong, and that is based on the national interest

a. by developing the marine economy in an integrated manner by ptimizing the utilizationof marine resources in a sustainable manner

Gov. Reg. No.26/2008: National Spatial Plan (RTRWN); Strategic Plan 2010-2014 of MoMAF

MoMAF: Integrated Coastal Management

8. Realizing an Indonesia that has an important role in the

international community

a. encourages international, regional, and bilateral cooperation among nations, among groups and

among institutions in various fields

MoEv: PEMSEA

Note: MoMAF = Ministry of Marine and Fisheries; MoEMR = Enrgy and Mineral Resources; MoFr = Ministry of Forestry; MoAg = Ministry of Agriculture; MoI= Ministry of Industry; MoPW = Ministry of Public Work; MoEnv = Ministry of Environment

THERE IS A NEED TO FILL THE GAP AND TO CALL FOR SECTORAL POLICY INTEGRATION

BAPPENAS

55.. PROPOSED ACTIONS

BAPPENAS

General condition5. PROPOSED ACTIONS BAPPENAS

1. Integrate related policy framework for promoting green economy development and identify financing needs and mechanism to mainstream the new approach.

2. Apply Principles of Green Budgeting in the Medium and Short Term Development Plan

3. Develop incentives for renewable energy development and acceleration of power plant development using renewable energy

4. Introduce incentives for more environmentally friendly industries

5. to actually apply sustainable development approach in development planning mechanism


6. Integrate related policy framework for promoting green economy in sectoral development policy both at macro and micro level

7. Define a coherent strategy for Ecosystem & Biodiversity protection strategy (Taking more pro-active role in UNCBD for capturing biodiversity and ecosystem value)

8. Highlights from recent quantitative studies of the impact of ‘green economy’ for Indonesia with emphasis on instruments (climate change related)

9. Mainstreaming ‘green economy’ through extended macro economic indicator.


10.Shifting strategy toward green economy ?a. Low carbon track: Decarbonizing energy and

manufacturing sectorsb. Ecosystem service tracks: valuing nature’s

environmental servicesc. Accelerate bio-based economic development e.g.

utilizing bio-resources preferably unique or endemic to Indonesia for such initiatives

d. Full all resources e.g. government, research institutes and Univeristy, private company, community in bio-based economy initiatives

e. Direct intervention of the government in implementing bio-base economy (infrastructure for ecotourism industry, agrobiodiversity, bioprospecting and its use in pharmaceutical Industry, air and water management)

CALL FOR SUPPORT TO IMPLEMENT THE PROPOSED

ACTIONS

BAPPENAS

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Documents

GE National Workshop_Bappenas