Download GREEN ECONOMY: Balancing Economic Development and

STRATEGIES FOR INCLUSIVE
GREEN ECONOMY APPROACHES
IN INDONESIA
by
LAKSMI DHEWANTHI
Ministry of Environment
Asia Regional Dialogue on Country Experiences and Ways Forward for Economic
Decision-Makers, Bangkok, 26-28 Sep 2012
LONG TERM DEVELOPMENT MISSION, 2005-2025
2
Competitive
Indonesia
Just and
Distributed
Development
Green and
Everlasting
Indonesia
Indonesia as a
Strong, Selfreliant
Archipelagic
Country base on
National Interests
Source: Bappenas, 2010
Vision
“ Prosperous, Democratic
and Just Indonesia”
Mission
 Continue Development
to achieve Prosperous
Indonesia
 Strengthen Democratic
Pillars
 Strengthen Justice in
every Aspect of
Development
2004
• Pro-poor (poverty alleviation)
• Pro-jobs
• Pro-growth
2007
• Added by Pro-environment
2014
• Economic Growth 7%
2020
• GHG Emission reduction 26%
(+15%)
• Reduced biodiversity loss
Challenges
POLICIES as well as MARKET FAILURES
(subsidized growth, distorted energy prices, no internalized of externalities)
• Reshape Financial Infrastructure
• Food Security
• Energy Security
• Miving from Single Track to Multiple Track
INTERVENTIONS FOR
MARKET CORRECTIONS AND
CHANGING BEHAVIORS
National Priority and Action Plan 2010-2014
NATIONAL PRIORITY AND ACTION PLAN
PRIORITY
Food Security
Energy
FOCUS
• Land, Area Development and Agriculture Spatial
Plan
• Infrastructure
• Research and Development
• Investment, Finance and Subsidy
• Food and Nutrition
• Adaptation to Climate Change
• Policy
• Restructuring of State Enterprises
• Energy Capacity
• Alternative Energy
• Oil and Gas Derivative Production
• Gas Conversion
• Climate Change
• Environmental Degradation Control
Environmental and Disaster
• Early Warning System
Management
• Capacity Building on Disaster Mitigation and
Forest Fire
5
GREEN ECONOMY- 3 component
Sustainable use of natural resources, internalizing cost of natural resource
depletion/environmental degradation, efforts on alleviate the poverty,
creating decent jobs, and ensuring sustainable economic growth”
Expected behaviours for GREEN ECONOMY
LOW CARBON
AND LESS
HARZARDOUS
WASTE
I. ROAD MAP OF LOW
CARBON
(National/Regional Action
Plan on GHG emission
Reduction (RAN GRK))
REDD+
SUSTAINABLE USE
OF BIOLOGICAL
DIVERSITY
MAINTAIN NATURAL
CARRYING CAPACITY
II. Update IBSAP
(Indonesia
Biodiversity
Strategic Action
Plan)
III. SPATIAL PLANNING
(RTRWN/D) emphasizing on
Environmental Carrying
Capacity
Source: Bappenas, 2012
Overview of development of incentive instruments
in Indonesia (emphasized by Act 32/2009)
Objectives of Environmental Finance
Incentives towards
sustainable resource use
Incentives set by the State
Creation of markets
Emission
charges
Product
charges
Environmental
taxes
Environmental Fiscal Reform
Waste and
water fees
Payments for
Environmental
Services
Tradable
permits
Access and
Benefit Sharing
Funds
linked
to resource
use (selfgenerated)
certification
Concessions or performance
bonds
Reform and removal of
adverse subsidies
Revenue
mobilisation
Carbon Offsets
Refund
systems
Environmental funds
Mechanisms for
administrating funds
Debt-for-nature
swaps
Funds from government
and donors budegts
Private donations
Funds
from outside
resource
management
Diagram modified from Emerton, L. et al. (2006) Sustainable Financing of Protected Areas, IUCN and Fischer, A. / Petersen, L. /
Hubbert, W. (2004): Natural Resources and Governance: Incentives for Sustainable Resource Use, GTZ).
7
How Indonesian views the future development agenda?
• “The agenda should promote
equitable development, sustainable
growth with equity, and
strengthened global partnership.”
• “The agenda should promote an
optimal balance between
economic growth, social equality,
and environmental sustainability.”
• “Eventually, the post-2015
development agenda should lead
to the attainment of a “zero global
Susilo Bambang Yudhoyono,
poverty rate” by the middle of 21st
President of Republic of Indonesia, 2012
AS CO-CHAIRS OF HIGH-LEVEL PANEL OF EMINENT
century.”
PERSONS ON POST-2015 DEVELOPMENT AGENDA
Thank you
For further information:
Assistant Deputy Minister for Environmental Economic
Deputy Minister for Environmental Governance, Ministry of Environment
http://www.menlh.go.id/pinjaman lunak, Tlp/Fax. 021 8517161
9