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
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LONG TERM DEVELOPMENT MISSION, 2005-2025
Competitive
Indonesia
Just and
Distributed
Development
Green and
Everlasting
Indonesia
Indonesia as a
Strong, Self-
reliant
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
Pro-poor (poverty alleviation)
Pro-jobs
Pro-growth
2004
Added by Pro-environment
2007
Economic Growth 7%
2014
GHG Emission reduction 26%
(+15%)
Reduced biodiversity loss
2020
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

Challenges
INTERVENTIONS FOR
MARKET CORRECTIONS AND
CHANGING BEHAVIORS
National Priority and Action Plan 2010-2014
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PRIORITY FOCUS
Land, Area Development and Agriculture Spatial
Plan
Infrastructure
Research and Development
Investment, Finance and Subsidy
Food and Nutrition
Adaptation to Climate Change
Food Security
Policy
Restructuring of State Enterprises
Energy Capacity
Alternative Energy
Oil and Gas Derivative Production
Gas Conversion
Energy
Climate Change
Environmental Degradation Control
Early Warning System
Capacity Building on Disaster Mitigation and
Forest Fire
Environmental and Disaster
Management
NATIONAL PRIORITY AND ACTION PLAN
GREEN ECONOMY- 3 component
Expected behaviours for GREEN ECONOMY
LOW CARBON
AND LESS
HARZARDOUS
WASTE
MAINTAIN NATURAL
CARRYING CAPACITY
SUSTAINABLE USE
OF BIOLOGICAL
DIVERSITY

I. ROAD MAP OF LOW
CARBON
(National/Regional Action
Plan on GHG emission
Reduction (RAN GRK))


REDD+
II. Update IBSAP
(Indonesia
Biodiversity
Strategic Action
Plan)
III. SPATIAL PLANNING
(RTRWN/D) emphasizing on
Environmental Carrying
Capacity
Source: Bappenas, 2012
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
Revenue
mobilisation
Incentives towards
sustainable resource use
Objectives of Environmental Finance
Incentives set by the State
Payments for
Environmental
Services
Access and
Benefit Sharing
Carbon Offsets
Environmental funds
Debt-for-nature
swaps
Mechanisms for
administrating funds
Refund
systems
Concessions or performance
bonds
Creation of markets
Private donations
Emission
charges Tradable
permits
Environmental
taxes
Waste and
water fees
certification
Environmental Fiscal Reform
Funds
from outside
resource
management
Funds
linked
to resource
use (self-
generated)
Funds from government
and donors budegts
Reform and removal of
adverse subsidies
Product
charges
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).
Overview of development of incentive instruments
in Indonesia (emphasized by Act 32/2009)
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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
poverty rate by the middle of 21st
century.
How Indonesian views the future development agenda?
Susilo Bambang Yudhoyono,
President of Republic of Indonesia, 2012
AS CO-CHAIRS OF HIGH-LEVEL PANEL OF EMINENT
PERSONS ON POST-2015 DEVELOPMENT AGENDA
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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