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system, solid waste collection in urban areas ranges from 40 to 85 of total wastes, including the share attributable to scavengers ADB 1997; Rock 2000. In several
areas though, due to financial strain, the government privatised some collection services and most of these were considered to be more successful Rock 2000.
3.8 Performance bonds
Implementation of performance bonds in Indonesia has been rather limited. One case of their implementation was in 1996 when the Directorate General of General
Mining obliged all mining operators to provide a reclamation guarantee. The guarantee was made based on an estimate of the potential of environmental damage
and could take the form of time deposits in a state-owned bank, an irrevocable letter of credit, or surety bonds.
7
The reforestation fund of the Ministry of Forests and Estate Crops was another case of performance bonds ADB 1997; Rock 2000.
Nevertheless, reclamation and reforestation activities have been very limited so far. This is partly since the funding received was also used to fund activities other than
reclamation and reforestation, and partly since the reclamation and reforestation were not properly conducted.
3.9 Fuel tax
Since the 1980s, a fuel tax of as much as 5 was introduced in Indonesia. The main goal, though, was to raise the revenue of local governments. Of the total fuel tax
revenue, 10 is for the central government, and the rest is distributed to provincial, district and municipal governments. Since 1997, however, the government has
subsidised domestic fuel prices by much more than 5, so this fuel tax has not been effective in controlling its use.
3.10 Tradable permits
As far as is known, there is no systematic tradable permit in Indonesia. However, there has been much discussion advocating this kind of permit to manage water
in a river basin. Law 221982, Law 391990 and Law 481990 mention that the river basin should be the management unit for water management in an area.
Introducing tradable water rights hence seems to be natural in this situation. This would appear to be consistent with developments in the irrigation sector that make
provinces responsible for operating and maintaining irrigation networks, and that introduce cost recovery irrigation user fees and management transfer water users
associations into the overall management of irrigation ADB 1997; Rock 2000.
3.11 Environmental certification
