04.4 Indonesia's position and policy.ppt 8512KB Mar 29 2010 05:00:24 AM

UMM TEAM – MALANG
JUNE - 2008

4 – Indonesia Position & Role

Country Description
2. Impact of Climate Change in Indonesia
3. Source of Green House Gasses
4. Working Group on Climate Change
5. Legal & Regulatory Framework
6. National Development Planning
7. Program for Mitigation
8. Technology Requirement
9. Financing the Climate Change Strategy
10. Energy status & Alternative Energy
1.

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 world’s 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
Sea Level Rise
Ocean Warming
Increased
Temperature

Impacts on Indonesia
Disappearing Small Islands

Salt Water Intrusion
Decline in Fisheries Harvest
Loss of Biodiversity
Increased Fire Risk
Increased Disease Risk, Range

Increased
Rainfall

Floods and Land Slides

Increased
Evaporation

Drought, Food Security

Increased
Tropical Storms

Food and Water Scarcity

Changes in Planting Season
Transport Vulnerability

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

Impact on poverty and
national development
planning targets

Increased temperature
and changes in
precipitation reduce
agricultural and natural
resources

Lowered industrial
output and labour
productivity, high
inequality, impacts on
trade, and fiscal and

macro-economic
growth, and povertyreducing effects

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

Reduced productivity
and security of poor
people’s 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

Impact on the eight MDG

1.

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 world’s 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

Energy:
Industry

Post Kyoto

Transfer of
Technology

Transportatio
n

Agricultur
e

Financial Mech.

Forestry

Energ
y

Waste
Forestry

Ocean

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

NATIONAL ENERGY TRAJECTORY
PRIMARY ENERGY MIX 2005
Panas Bumi
1.32%

Tenaga Air
3.11%

Gas Bumi
28.57%

t1 ?

Minyak
Bumi
51.66%

Batubara
15.34%

t2 ?

• 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.

t3 ?

THE NATIONAL ENERGY
ISSUES
What is the Sustainable Road t25
Map?

Presidential
Rule No.
5/2006

National Energy Mix Target
2025
MinyakNO.
Bumi 20%
(PERPRES
5/2006)
≤
Gas Bumi
30%

Bahan Bakar Nabati
(Biofuel)
5%

Others
17%
EBT +

≥

≥

Batubara

Panas Bumi

≥

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

33%

≥
≥

5%

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
DEVELOPMEN
T PLAN
2004-2009
GOV WORK
PLAN
2008

GOV WORK
PLAN
2009

MID TERM
DEVELOPMENT PLAN
2010-2014
GOV WORK
PLAN
2010

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

INTERNATIONA
L WORLD

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”

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

IMPLEMENTATIO
N

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;

2.

Improve coordination among environmental institutions in
nantional and local level;

3.

Increase the law enforcement effort to the poluters;

4.

Increase the capacity of environmental institutions in
national and local level;

5.

Improve the awareness of community on environmental
issues and support community active participation to
monitor environmental quality;

4 – Indonesia Position & Role

Among 15 environmental policy objectives, 3
objectives
(No.5-7) are related to climate change issues :
1. 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;

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 MITIGATION
– Indonesia Position & Role
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

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
 Cost–benefit and risk–benefit 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

Donor
(Country Strategy/
Program)

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

4 – Indonesia Position & Role
Financing
Bilateral
JBIC
DFID
AusAID
DANIDA
Netherlands
EC
GTZ
Norway
CIDA
Sweden

Multilateral
Wolrd Bank
ADB
UNDP

Others
Int’l trust funds: GEF,
Adaptation funds, CIF
Private Sectors

Mechanisms
G-to-G
Bilateral
Multilateral

Mitigation &
Adaptation
Climate-Proof Economy

Loan
Grant

Policy Reorientation
Community-Based Programs

CC Trust Fund
Trust tee
Managemen
t

GoI host
TA &
financial &
management
support

Awareness raising
Training/Workshops

Capacity Building
Small-scale Investment

Public-private partnership
CDM

Piloting
Execution of Policy/Strategy

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

Report

Program Steering
Committee
Chair: GoI
Co-chair: Representative of Donor
Sub
Group/Issue

Program
Dialogue

Sub
Group/Issue

Funding

Multi Donor
Trust Fund
(MOU GOI-Donors)

Sub
Group/Issue:
Climate
Change

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
Therma
l

Othe
r

Oil

4 – Indonesia Position & Role

Gas
Coal
Oil
Wind
Wind

4 – Indonesia Position & Role

4 – Indonesia Position & Role

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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