General Policy Direction Cross-cutting

Guideline for Implementing Green House Gas Emission Reduction Action Plan 28 Not only that, it is necessary to enhance understanding on possibilities of selecting and carrying out mitigation options in several sectors to maintain synergy level and avoid conlicts with other dimensions of sustainable development. Climate change-related policies are seldom applied separately from other policies. Instead, they are applied in the form of series of policies with other policies, for example with development related policies. In conducting climate change mitigation actions, one or more policy instruments must be applied. Several national policies and instruments are made available in order to be able to create incentives for mitigation actions to be done, like what is done in other countries, namely government support through inancial contribution, tax credit, standard setting and creation of markets important to effective technological development, innovation and use. However, considering that public policies often bring about unexpected side-effects or far-less-than-expected ones, reporting becomes important for climate change policy integration because it can improve accountability and learning. Stable condition also guarantees country development such as Indonesia to get other supports, for example technological transfer and funds. In general, NAMAs can use a large spectrum of policy instruments of GHG emission reduction such as: i economic and iscal policies, for example carbon tax, fuel subsidy removal, or emission trade; ii target economic and iscal policies, for example subsidy for energy-saving investment, feed-in tariffs for renewable energy technologies, or inancial incentives; iii standards, for example vehicles’ fuel consumption, rules and construction certiication, or tools standard and labelling for energy eficiency; iv knowledge-transferring information and education, for example public awareness campaigns, energy analysis audit, or demonstration actions or trainings; and v Research and low-carbon technological developments and new energy more suitable for dealing with climate change issues that must be analyzed at the national level to evaluate its application before the implementation phase. Furthermore, effectiveness of the impacts of proposed policy instrument implementation needs to be analyzed in order to understand how much it can improve low-carbon economic development. Therefore, it is clearly obvious that the application depends on the national framework and sectors, national situation and understanding on the interaction at the national and international levels. Guideline for Implementing Green House Gas Emission Reduction Action Plan 29 Figure 10 describes a logical low of integration of climate change policies which constitutes a connection of key elements for reaching the whole action at the national level in meeting GHG emission reduction targets at the national level. State of Economy, Social, and Environment Mandatory Progarmmes Oppotunities Related with Climate Change Mitigation Policies Strategy Policies Instruments Outcome Figure 10. Flow of Climate Change Policy Integration. According to the UN Convention on Climate Change UNFCCC, article 3.4 it is mentioned that the parties possess the right for, and should promote sustainable development. Thus, policies and measures to protect the world from climate change that is especially resulted from human beings should be in line with the condition of each party and should be integrated with the national development program, while taking into consideration that economic development is essential for adopting measures to address climate change. The question of consistency between climate change objectives and other policy goals is rarely discussed in the general strategy development. There is even a tendency to overlook inconsistencies between climate change issues and other issues, while potential synergies are highlighted in the climate change-related policies. Some ways of integrating policies can be done through integration of cross- cutting cross-sectoral policy integration or by-sector policy integration within and across all levels of government see Figure 11. Cross sectoral policy refers to cross sectoral measures and procedures to mainstream a comprehensive integration of climate change strategies and the integration of climate change mitigation into public policies that include Guideline for Implementing Green House Gas Emission Reduction Action Plan 30 broad climate change strategies and preparation adoption of new regulations and the annual national budget. Meanwhile, sectoral integration within the governmental levels refers to the integration of climate policies into speciic or certain sectors by various entities under supervision of a ministry. Climate change mitigation actions are often seen in the context of just one level of governance or, if several levels are concerned they are viewed simply as a top-down control hierarchy. However, it is clear that mitigation actions concern all levels from the local level to global level, and their interactions are complex and multi-directional. Therefore, the mitigation strategies must be implemented in by-sector strategies and measures. TRANSPORTATION POLICIES MINISTRY OF TRANSPORTATION GOVERNOR BUPATI DIVISION AGENCY AGENCY DIVISION DIVISION INDUSTRY POLICIES MINISTRY OF INDUSTRY ENERGY POLICIES MINISTRY OF ENERGY SECT ORAL POLICIES INTEGRA TION CROSS CUTTING POLICIES INTEGRATION NATIONAL LEVEL PROVINCIAL LEVEL DISTRICT LEVEL Figure 11. Cross-Cutting and By-Sector Climate Change Policy Integration.

4.2 Policy Direction and Action Plan by Sector

4.2.1 RAN-GRK Implementation Towards NAMAs in the Land-based Sectors Forestry, Peat Land, Agriculture, and Other Sectors

4.2.1.1 Current Situation and Future Land Resource Management

Nevertheless, the land-based sectors, including forestry and agriculture also give 15 contribution to the total national Gross Domestic Product PDB BPS, 2010. Picture 12 below demonstrates the contribution of the land- based sectors to the national emission and GDP. Guideline for Implementing Green House Gas Emission Reduction Action Plan 31 Another factor to consider is that the land-based sectors also helped Indonesian economic recovery after the 1997-1998 economic crash, through the substantial increase in export and job creation Siregar, 2008. However, the current land resource use in Indonesia is relatively ineficient because the resources have been exploited very rapidly without proper investment in the improvement in human resources and management as well as marketing of inished products. Therefore, a GHG emission reduction plan from the land-based sectors by managing land resources in sustainable way will be very important for Indonesia. It is not only in the climate change issues but also for improving more eficient land resource use. Figure 12. Indonesian Emission and PDG by sector. Peat Land 26 Energy 22 Industry 2 Agriculture 5 Waste 9 Land Use Conversion and Forestry LUCF 36 2004 Indonesia’s Emission KLH, 2010 Financial, Real Estate Corporate Service 7 Transportation Communication 6 Trading, Hotel Restaurant 13 Konstruksi 10 Mining Digging 27 Agriculture, Animal Husbandry, Forestry Fisheries 27 Services 10 Processing Industry 27 Electricity, Gas Clean Water 1 Indonesian PDB by Sector 2009 BPS, 2010