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UMM TEAM – MALANG JUNE - 2008 4 – Indonesia Position & Role 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Country Description Impact of Climate Change in Indonesia Source of Green House Gasses Working Group on Climate Change Legal & Regulatory Framework National Development Planning Program for Mitigation Technology Requirement Financing the Climate Change Strategy Energy status & Alternative Energy 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 Impacts on Indonesia Disappearing Small Islands Salt Water Intrusion Decline in Fisheries Harvest Loss of Biodiversity Increased Temperature Increased Fire Risk Increased Disease Risk, Range Increased Rainfall Increased Evaporation Increased Tropical Storms Floods and Land Slides Changes in Planting Season Drought, Food Security Transport Vulnerability Food and Water Scarcity 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 1. Reduced productivity and security of poor people’s livelihood assets, and reduced access for the poor to their livelihood assets 4. 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 Less effective coping strategies among the poor, and increased vulnerability of poor people Impact on the eight MDG 2. 3. 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 Energy: Adaption Industry Post Kyoto Transfer of Technology Transportation Agriculture Financial Mech. Forestry Forestry Ocean Energy Waste 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 LEGAL & REGULATORY FRAMEWORK FOR INDONESIA POWER SECTOR, INFRASTRUCTURE DEVELOPMENT & IMPLEMENTATION DESCRIPTION PT. PLN (PERSERO) INFRASTRUCTURE DEVELOPMENT LEGAL & REGULATORY FRAMEWORK INDONESIA POWER SECTOR LEGAL & REGULATORY FRAMEWORK ELECTRICITY LAW (GOVERNMENT OF INDONESIA LAW NO. 15 / 1985) <A> ARTICLE 5 POINT 1 INFLUENCED BY NATIONAL ELECTRICITY GENERAL PLAN 20062026 ( MEMR DECREE NO. 2270K/31/MEM/2006) <C> POLICY, STRATEGY, NATIONAL TARGET, AND NATIONAL PLAN ARTICLE 2 POINT 2 MODIFICATION OF GOVERNMENT REGULATION NO 10/1989 SUBJECT, SUPPLY AND UTILIZATION OF ELECTRICITY (GOVERNMENT REGULATION NO.3/2005) <B> ARTICLE 5 POINT 1&2 NATIONAL ENERGY POLICY (PRESIDENTIAL REGULATION NO.5/2006) <D> ASSIGNMENT TO PLN FOR ACCELERATION OF COAL FIRED POWER PLANTS DEVELOPMENT (PRESIDENTIAL REGULATION NO. 71/2006) <E> ESTABLISHMENT OF COORDINATION TEAM FOR POWER PLANTS DEVELOPMENT. (PRESIDENTIAL REGULATION NO,72/2006) <F> DERIVATION CONSIDERING SUPPLY AND UTILIZATION OF BIOFUEL AS ALTERNATIVE FUEL (PRESIDENTIAL INSTRUCTION NO.1/2006) <G> LIQUEFIED COAL’S SUPPLY AND ITS UTILIZATION (PRESIDENTIAL INSTRUCTION NO.2/2006) <H> · · IMPLEMENTING RULES, PROCEDURES AND PLAN IMPLEMENTATION · SUPPLY AND DEMAND BALANCE INVESTMENT REQUIRMENT PROJECT LIST LEGALIZATION OF MODIFIED PLN ELECTRICITY SUPPLY GENERAL PLAN/ RUPTL 2006-2015 (MEMR DECREE NO. 2923K/ 30/MEM/2006) <I> POJECT DEVELOPMENT AND IMPLEMENTATION POWER PURCHASE AND TRANSMISSION RENTAL GUIDELINES OF THE ISSUANCE OF PROCEDURE OF POWER ELECTRICITY BUSINESS PURCHASE AND/OR LICENSE FOR TRANSMISSION RENTAL TRANSMISSION ELECTRICITY SUPPLY TRANSPROVINCE OR FOR PUBLIC CONNECTED TO NATIONAL (MEMR REGULATION GRID NO.001/2006) (MEMR REGULATION NO. <J> 010/2005) <L> CRITICAL AREA LIST OF POWER SYSTEMS (AREAS) IN CRITICAL CONDITION (EMERGENCY CONDITION) (MEMR REGULATION NO. 206-12/40/600.2/ 2006) <M> LIST OF POWER SYSTEMS (AREAS) IN CRITICAL CONDITION (EMERGENCY CONDITION) (MEMR REGULATION NO. 482-12/40/600.2/ 2006) <N> TO OBTAIN GOVERNMENT SUPPORT/ GUARANTEE COAL FIRED POWER PLANT CRASH PROGRAM COOPERATION BETWEEN GOVERNMENT AND ENTERPRISES FOR DEVELOPMENT OF INFRASTRUCTURE (PRESIDENTIAL REGULATION NO67/ 2005) <P> RENEWABLE ENERGY RENEWABLE ENERGY MEDIUM SCALE MEDIUM SCALE OF RENEWABLE ENERGY POWER PLANT (MEMR REGULATION NO. 002/2006) <O> RISK MANAGEMENT GUIDELINES FOR INFRASTRUCTURE DEVELOPMENT (MINISTRY OF FINANCE REGULATION NO.38/PMK.01/2006) <Q> 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. National Energy Mix Target 2025 (PERPRES NO. 5/2006) t3? Minyak Bumi THE NATIONAL ENERGY ISSUES What is the Sustainable Road Map? Presidential Rule No. 5/2006 20% ≤ Gas Bumi 30% t25 Bahan Bakar Nabati (Biofuel) 5% Others EBT +17% ≥ ≥ Panas Bumi ≥ 5% Biomasa, Nuklir, Air, ≥ Surya, Angin 5% Batubara yang Dicairkan (Coal ≥ Liquefaction) 2% Batubara 33% ≥ ≥ 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 DEVELOPMENT PLAN 2004-2009 GOV WORK PLAN 2008 MID TERM DEVELOPMENT PLAN 2010-2014 GOV WORK PLAN 2009 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 INTERNATIONAL 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 IMPLEMENTATION 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: 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; 1. 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 Transportation 11. Self Sufficient Energy Village Program 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 Mechanisms G-to-G Bilateral Multilateral Climate-Proof Economy Loan Grant Others Int’l trust funds: GEF, Adaptation funds, CIF Private Sectors Policy Re-orientation Community-Based Programs Awareness raising CC Trust Fund Trust tee Management GoI host TA & financial & management support Multilateral Wolrd Bank ADB UNDP Mitigation & Adaptation 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 Thermal Other Oil 4 – Indonesia Position & Role Gas Coal Oil Wind Wind 4 – Indonesia Position & Role 4 – Indonesia Position & Role 4 – Indonesia Position & Role 4 – Indonesia Position & Role 4 – Indonesia Position & Role 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