Green Investment Magazine Volume 1/2013

• FORUM GRUP DISCUSSIAN1

Investment-Innovation-Productivity


Green Pathwaysfor The Future

Indonesia64 GREEN INNOVATION

Increasing Awarenessand Initiativesin Green Building

MasterHelmsman’s Concerns on Green Energy

Indonesia is approachinga critical time with political

transition in 2014 and pre 2020 and beyond 2020 climate change

negotiations.

VOLUME I/ 2013

Rachmat WitoelarPRESIDENT’S SPECIAL ENVOY FOR CLIMATE CHANGE/EXECUTIVE CHAIR OF THE NATIONAL COUNCIL ON CLIMATE CHANGE (DNPI)

Rachmat GobelCEO OF PANASONIC GOBEL GROUP





The major demographic changes in Indonesia are (i) rapid urbanization, which may result in 65 percent of the population living in urban areas by 2050; (ii) population growth, which will continue for several decades at least, but at a progressively slower rate; (iii) changing age structure, which in recent decades has produced a growing bulge in the working ages but in future will lead to a growing proportion of elderly; and (iv) the changing socioeconomic composition of the population with a steadily growing “middle class.” These changes need to be taken into account in constructing business as usual scenarios and in developing mitigation policies

(Population Dynamics and Human Dimension of Climate Change Indonesia, 2012)

4


5


• EDITORIAL NOTES• EDITORIAL NOTES

Over the past two years we, the Green Investment Innovation and Productivity (GIIP) Initiatives, have been providing a host of inspiring and insightful ideas, knowledge as well as lesson learnt from policy makers, business entities and practitioners in realizing green actions on the ground. “Green Economy Pathway of The Future Indonesia” is a relevant and contextual issue for Indonesia for a couple of reasons: firstly, we are really concerned about the future direction of government policies as we are approaching a political transition in 2014. The certainty and sustainaibility of the future direction as well as a strong institutional foundation will ensure long-term commitment to engage in the green economy.

Secondly, looking ahead at global and regional economy dynamics such as the climate change regime and the upcoming ASEAN integration into One Community Nation in 2015, we encourage the government to prepare relevant policies and regulations to that end.

Thirdly, looking back on the most recent economic challenges, green economy direction will also create a wide range of opportunities in creating new jobs with high values. Therefore, putting green jobs in the dialogue will contribute to a better and healthy Indonesian environment in the future.

This edition outlines two important issues: energy efficiency and conservation, and sustainable landscape management. Energy is one of the most important aspects for human beings in daily

activities. We use energy everyday for transportation, heating and cooling rooms, lighting, and others. However, our primary source of energy through burning fossil fuels is limited. For that reason, it is important for individuals, companies, and entire communities to start reducing energy consumption for daily use. Once we reduce our energy consumption, we also support the government program to reduce GHG emissions.

Energy conservation and efficiency are some of the many mitigation actions to reduce GHG emissions. Energy conservation includes any human behavior that can result in less energy consumption. In addition, energy efficiency involves technologies that use less energy to perform the same function. Energy conservation and efficiency can also contribute to greater national security by reducing demand for foreign energy resources. Therefore, a commitment is needed from all stakeholders including government, private sectors, NGOs, and others.

Sustainable landscape management is a concept/practice that elaborates environmental, economy, and society aspects in an integrated manner. The implementation of sustainable landscape management can protect the natural resources, and provide benefits to humans. In addition, sustainable management is designed to be both attractive and in balance with the local climate and environment. Several benefits from sustainable landscape management are carbon sequestration, clean air and water, habitat restoration, and increase energy efficiency.

The sustainable landscape management needs to look at different scenarios such as policy, engineering, finance, and engagement. However, its implementation could face several barriers in Indonesia such as governance, economic, and social challenges. To solve the barriers we need commitments from all key stakeholders, to translate the concept into commitments that are suitable to the current condition.

We couldn’t be more excited to have reached this point. Please take some time to get to know the outline of our magazine. You will notice the five categories: green pathways, green innovations, green champions, green insights, and facts and figures. Within each category, there are articles for you to enjoy.

We are honored to share the work of so many committed and thoughtful people. We look forward to our reader’s responses. Feedback may be chanelled on our website, www.greeninvestmentindonesia.net

We’ll be following these topics. If you come across interesting new materials, let us know. We will include your case study in an upcoming issues of GIIP Magazine.

We appreciate your support and are so happy to have you as a reader of GIIP Magazine.

With warmest thanks,

Farhan Helmy,Editor in Chief

Green Transformation:

INVEST, INNOVATE AND BE PRODUCTIVEGreetings and a warm welcome to our very first issue of Green Investment, Innovation and Productivity Magazine!

ISTIMEWA

6


7


• CONTENTS• CONTENTS

“ I’ve seen a stop to excessive fishing and coral harvesting, and even in Bontang, Kalimantan, with rampant large scale mining, there are serious activities to maintain forest function”

Large deforested areas, accumulations of garbage in urban as well as in rural areas, severe flood, damaged coral reef are among concerns raised by speakers and participants of Focus Group Discussion on “Energy Conservation and Efficiency” on July 2, 2013.

Asia, a continent consisting of 46 countries with a population of more than 4.2 billion people, or about 60 percent of the global total, has experienced the fastest economic growth of any region in the world in recent decades.

Contents

Contributors

InterviewGreen Insights

Green Pathways

Green Champions

GHG Mitigation Action andthe Future of Biofuel Industry

Book Review

Increasing Awareness and Initiatives in Green Building

Green Highlights

Facts & Figures

Network Updates

Photo Gallery

Respect and Love The Nature

Better Sustainable Landscape Management Needed

A Need for Concerted Effort: Energy Conservation and Efficiency

Advancing Low-emission, Climate-resilient Development Across Asia Rachmat Witoelar

Jusman Syafii Djamal

Rachmat Gobel Yoshinori Katori

Nurjaman Mochtar

Atsushi Sasaki

47

6064

828488

72

16-41

8

12

42

50In a bid to encourage the industry to be more environmentally aware, Matsushita Gobel Foundation and the Japan International Cooperation Agency (JICA) hosted the Green Investment Forum.

Green Pathways:The Future Indonesia

Green Investment Forum

NADINE CHANDRAWINATA

Green Investment Magazine is joinly published by National Council on Climate Change (DNPI) in cooperation with Japan International Cooperation Agency (JICA) and Matsushita Gobel Foundation (MGF).

Cover

NationalMonument (Monas) andsurrounding areas indicate thechallenge of spartialreenginering to cope with population dynamics and climate change impacts.(photo credit: Budiali G)

Contact Address: Gedung BPPT I Lt. 16 Jalan M.H. Thamrin 8, Jakarta 10340, Indonesia Tel. +62 21 3190 4635

www.greeninvestmentindonesia.net@greenIIP greenIIP, email: greenIIP@ greeninvestmentindonesia.net

SandraKhananusit

Asia LEDS Partnership Secretariat.

Doddy S. Sukadri

DNPI and Low Emission Development Strategies (LEDS)Partnership.

Artissa Panjaitan

IndonesiaClimate Change Center

ADVISORY BOARDRachmat Witoelar, Agus Tagor, Agus Purnomo, Amanda Katili Niode, Rachmat Gobel, Jusman Syafii Djamal, Atsushi Sasaki, Farhan Helmy (Secretary).

EDITORIAL BOARDFarhan Helmy, Amanda Katili Niode,Titi Murni Resdiana, Masato Kawanishi,Jun Ichihara, Matsuura Kazuki, Ricky Rachmadi.

EDITOR IN CHIEF Farhan Helmy.

EDITORS Jon Respati, Yudhiarma MK, AG Sofyan, Teguh Prasetyo.

LAYOUT AND ILLUSTRATOR Sugara Adi.

PORTAL Alfan Nasrulloh, Fahmi Januar.

PROJECT MANAGEMENT Aviana MS Tjokro.

PROJECT ASSISTANTSManami Iida, Indra Sucahyo, Dewi Aprianti, Irmawati Batavia, Jesslyn Tandella, Astri Indirawati, Bramantyo Dewantoputra, Soraya Soemadiredja.

54

MuhammadFarid

National Council on Climate Change (DNPI)

Peter van Rooij

ILO Indonesia

AdrianC Hayes

Australian National University

DOC. JAPAN EMBASSY

SHUTTERSTOCK

SHUTTERSTOCK

DOC. GIIP

IST

SHUTTERSTOCK

IST

MAS

DOC. JICA

SOF

SOF


Green Pathwaysfor The Future

Indonesia64 GREEN INNOVATION

Increasing Awarenessand Initiativesin Green Building

MasterHelmsman’s Concerns on Green Energy

Indonesia is approachinga critical time with political

transition in 2014 and pre 2020 and beyond 2020 climate change

negotiations.

VOLUME I/ 2013

Rachmat WitoelarPRESIDENT’S SPECIAL ENVOY FOR CLIMATE CHANGE/EXECUTIVE CHAIR OF THE NATIONAL COUNCIL ON CLIMATE CHANGE (DNPI)

Rachmat GobelCEO OF PANASONIC GOBEL GROUP

8


9


• GREEN PATHWAYS• GREEN PATHWAYS

BETTER SUSTAINABLE LANDSCAPE MANAGEMENT NEEDEDLarge deforested areas, garbage accumulation as well as in rural areas, severe floods, damaged coral reefs are among concerns raised by speakers and participants of Focus Group Discussion on “Energy Conservation and Efficiency” on July 2, 2013.

BUDIALI G

M. Budi KuncoroGreen Prosperity Director MCA Indonesia

DOC. GIIP

Speakers and participants shared common views that environmental damages and degradation are highly visible on the Indonesian landscape, recalling the necessity to engage the society into greener behavior and practices.

The discussion featured four speakers who presented experiences in some projects enlightening the situation on the ground, showing critical elements of landscape management, the challenges they met and the lessons learned through these experiences.The experts and practitioners from both private and public sectors gathered in the Focus Group Discussion (FGD) also came up with ideas about ways and possible actions needed to get better results from Sustainable Landscape Management.

Engaging Stakeholders in a Sustainable Forest Management

Indonesia’s rain forest is currently undergoing a high deforestation rate. Working on a project in the Berbak area, in Jambi, M. Budi Kuncoro, Green Prosperity Manager at Millennium Challenge Account (MCA Indonesia) develops innovative ways to preserve forests. Particularly, Kuncoro proposed ideas of environmental preservation and the tools that could be used to merge environmental sustainability and the economic development of communities living from these resources.

The forest in the Berbak area is divided into several zones,

each dedicated to a specific utilization including: National Park, production forest, protected forest and the community national park (known as “tahura”). Logging companies and communities utilizing these resources in an unsustainable way, leading to fast deforestation and damaging the biodiversity and landscape.

Field experiences have shown how policy and technology interventions can improve the land management. Building canals, dams and fishing corridors can ensure better water management. Land accessibility for villagers make a huge difference in terms of yield productivity. Also, engaging them in forest management (in activities such as patrolling against illegal logging) greatly contributes to sustainability in the area. Developing sustainable cultures and aquaculture activities in the area contribute to reduction rate of deforestation. Economic and environmental services are mutually enforced in these cultures.

However, implementing such development plans and applying planning tools is challenging. Aligning administrative jurisdictions and defining formal land use zones with deserved biophysical features of the landscape is not easy. It requires a Participative Land-Use Planning (PLUP) approach engaging all the stakeholders in a dialog to arrive at common goals and collective solutions to achieve them. At the same time, spatial certainty has to be guaranteed in order to provide accurate information on the allowable land-use. Information on clear licensing procedures to investors is also needed to increase their business confidence.

10


11



Applying REDD+ Program at Sub-National Levels

In Sulawesi, data shows drastic shrinking of forested areas over the past 20 years. Deforestation is mainly caused by unsustainable agricultural activities characterized by irresponsible land clearing and prevalence of forest fires associated with it, or improper cutting off trees on steep slope zones that cause capacity reduction of water infiltration into the soil.

The REDD+ program aiming at reducing carbon emissions from deforestation constitutes an important component of sustainable land management. The latest version of this program integrates elements of land conservation and sustainable forest management.

Heri Yunara, an activist with the Matsushita Gobel Foundation, conducted a feasibility study of a REDD+ project at the Gorontalo region, North Sulawesi.. Using the MRV as the measurement tool, the MGF team works on 5 projects, which objective is reducing 100,000 metric tons of CO2 emission/year. The project shall be extended to cover the whole Sulawesi by 2016, contributing to more than 1,300,000 tons CO2 reductions/ year making the project to become sub-national REDD+ project in Sulawesi.

The model also aims at helping local government to conduct capacity building activities for the communities on the implementation of the project and providing incentives to encourage a sustainable use of forest resources in the forms of subsidies and carbon

credits. Solutions are proposed to limit detrimental practices, such as replacing local corn planting culture which put great pressures on the land fertility with higher economic value plants like cocoa. The projects provide benefits to local communities including new employment possibilities thanks to the project based on a “ground truthing activity”.

The field survey will be supported by two satellites that will be launched in the coming years in order to monitor the land condition, resources management practices and natural disasters threat. The MGF project also installs solar power panels to provide basic lighting needs for the villagers emigrated from deforested areas. Yunara said more Japanese aid in solar panel is expected for regions that lack of electricity including providing power for medical-clinics..

The projects engaged by MGF enjoy full supports from both Indonesian and Japanese government .

First Hands Encounter With West Java’s Environmental Issues

Another interesting initiative discussed during the FGD sessions was the “Fortuga Expedition”, a three months field trip made by members of the Bandung Technology Institute (ITB), from South to North coast of Java, aiming at seizing local environmental problems and finding ways to solve them.

Starting from the South Coast, the team encountered damage caused by intense mining activities,. But the expedition also got information about Chevron’s CSR program restoration of a biological corridor from the Mount Halimun to the Balak National Park, in West Java through replanting about 250,000 trees in the area.

The expedition was concerned about the negative impacts of tourism on the fragile ecosystem of Gede Pangrango National Park, near Bogor, where visitor awareness of environmental issues need to be increased. At the Citarum watershed to Cisanti Lake, pictures show dreadful scenes of deforested areas subject to landslides and degradations. Samples collected in Majalaya showed high levels of industrial pollution. The team were also confronted with piles of domestic waste that constitutes a great threat to the environment. Shocking pictures of the Batujajar Bridge, Bogor, shows the sad image of a river literally covered by garbage.

Ending at Citarum Mouth, at about 30km east to Jakarta, the expedition learned about intensive mangrove destruction, and the rehabilitation initiatives conducted by environmental groups. Going offshore from the Jakarta Bay, the expedition found that the Thousands Islands region, a touristic area consisting of more than 300 small islands off Jakarta coast, is facing serious consequences from global warming and water pollution causing coastal abrasion and coral reef damage. This situation requires serious attention from the government to prevent the problems from worsening.

The trip very useful to raise awareness about environmental threats happening near home. The expedition also has confirmed the participants’ interest in reforestation, mangrove protection and coral rehabilitation programs. They are currently developing

methods and tools to overcome the environmental problems.

A Better Water Management to Limit Flood in the City

The city of Jakarta receives 2,300 mm of rain water a year. However, with a population reaching more than 10 million, the clean water demand is estimated at 737, 3 million cubic meter per year. Serious water shortages hit during the dry season.

Landscapes around the city have been severely damaged due to human activities. Tea gardens planted during the Dutch colonization accelerated deforestation, and therefore trees could not assure their role in the water cycle.

According one of participants in the forum, Jakarta’s water issue mainly relies in land-use changes made without considering conservation. Authorities still resolve flood in the same devastating way-horizontal drainage method-letting water flow to the sea. Canals within the city rapidly overflow with heavy rain.

A new approach has to be put forward to solve floods. It is necessary to adopt a more global concept of “Total Conservation”, taking into account landscape conservation aspects (through plantations for example) and the city’s own characteristics. There needs to be a change from horizontal to a vertical drainage.

The FGD proposed concrete realizations to be done in different parts of the city. Dams, ponder systems and rain harvesting should be developed in the northern part of the city, localized on the sea. Floods could be reduced by increasing green spaces (to 30%) and blue spaces (to 12%) in the South of the city. The area of Depok, Bogor and Puncok should welcome the realization of a vertical tunnel reaching about 300 meters.

Such realizations could greatly impact floods and the devastating consequences for Jakarta’s inhabitants.•

Green Landscape. Raising awareness about environmental Threats

DOC. GIIP

Heri Yunara

Conducted a feasibility study REDD+ model project for the Gorontalo

DOC. GIIP

Iwan Hignasto

Citarum-CiliwungExpedition 2013

DOC. GIIP

Investing in planting material enterprises can greatly increase the production of appropriate yielding crop varieties of small-scale farmers Based on the historical trends of carbon stock changes (in red),

Reference Emissions Levels can be established. Model Project may reduce 30,000 t-CO2/year. With success rate of 70%, approx 20,000 t-CO2/year is expected.

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

1990 2000 2010

Carb

on St

ock (

t-CO2

)

yearReference site Project site

DOC. GIIP

12


13



A NEED FOR CONCERTED EFFORT:ENERGY CONSERVATION AND EFFICIENCYEnergy conservation and efficiency is the main topic discussed in the second Focus Group Discussion (FGD) on 2 July 2013.

SHUTTERSTOCK

14


15



Speakers and participants shared their views on the responses to the challenges of reducing CO2, by taking initiative and to obtain economic gains and at the same time protect the environment. The discussions revealed

many ways how the national and global community can meet the challenges, from simply replacing incandescent bulbs into more energy efficient LEDS, to sophisticated projects that require big investments. But to ensure effective results of all those measures, there to be needs governments’ strong goverment commitment which translates the commitment into to be effective policies that support the public initiatives. There needs to be international collaborations to achieve the goals, as no single country in the world can solve the global problems. The followings are some of the interesting topic discussed in the FGD.

Reducing Energy Consumption In the Public Service

Improving energy efficiency in public lighting system is one of the ways to reduce energy consumption in cities. This issue was brought up by ICLEI a movement of 1200 cities in the world to promote the concept of sustainable cities.

One of the projects engaged by this movement in Indonesia is promoting the use of highly efficient LED (light-emitting diode) bulbs to replace the traditional lighting bulbs for public lighting in two Indonesian cities, Balikpapan and Bogor. Working closely with local authorities, the organization seeks to embed LEDs use in the cities’ administration policies and regulations to ensure its successful and consistent implementation. In doing so, it hopes to accelerate the transition towards a low carbon society in the urban centers.

ICLEI has been involved in a three year long program to identify priorities for reducing carbon emissions in cities and urban areas.. The project’s scope is not limited to power efficiency issues but also with other urban issues like waste management.

The project enjoys full support from city administrations that saw it as a ‘green cause’.

Balikpapan and Bogor were chosen as “model cities” for its relatively modest sizes and complexity representing typical small cities in Indonesia. Upon successful outcomes in the two small cities, the project aims to include four “satellite cities” around big cities in Indonesia to joining the program. Discussions are currently being made to define the cities’ needs and priorities to

be addressed by the project.

Whereas strong commitment and support from local authorities are necessary, the program administrators also hope to get support from the central government as part of the national efforts in transforming the economy into green economy.

Green Buildings Save Money From Energy Efficiency and Help Protect Environment.

Another interesting topic was the development of ‘Green Building’, an emerging concept and practice with large potentials to make great impacts on reducing global warming and protecting the environment by developing environmentally responsible and highly energy efficient buildings

The concept implies energy efficiency and using environmentally non-intrusive materials are imperatives to make the building “green”. The qualifying criteria for green building are not limited to the chosen materials, the energy settings and the construction process but also considering the aspects of building maintenance and operation. Green building qualification or rating is also applicable for renovated buildings, in which case the evaluation includes examining the (old building) demolition activities to ensure that it meets the criteria

In Indonesia, the green building concept is advocated and promoted by the Green Building Council Indonesia (GBCI) a chapter of the World Green Building Council based in the USA.. The organization conduct assessment and rating procedures, capacity building for relevant stakeholders leading to awarding “greenship” certification, and general awareness programs for the general public about the aspects of green building. GBCI has engaged in discussions with relevant stakeholders including government agencies to advocate mandatory application of the concept in line with the efforts to reduce GHG emission reduction and preserve the environment.

GBCI ensures transparency of the rating process using tools that are clearly understood by stakeholders. This will ensure objectivity of the rating applied. The rating process involved active design to ensure optimum energy efficiency is properly considered and the building meets sustainability imperatives. Typical aspects of concern for green building include lighting, air conditioning, and environmentally friendly technology. Assessing old and existing buildings poses greater challenges to GBCI to conduct the rating procedures as their original design most likely did not consider the aspects critical to green buildings..

For 2012, GBCI targeted saving over 6 million KWh electricity reducing almost 6,000 ton of CO2. The 2013 target is set at 34 Million ton of CO2, which will involve certification of 50 buildings covering a total 50 000 m2 built area or alternatively 121 buildings with a total coverage of 20 000m2.

The main barrier of green building development and transformations are the relatively higher investment to build new green buildings or transform old buildings to meet green buildings criteria. While people are willing to do something to

reduce their electricity bills, most of them are not ready adopt the entire criteria of green buildings for their property. Most people do not want to consider to making green investments unless they se an economic benefit. To overcome this barrier, time and hard work is required by all proponents of the green building concept to raise awareness among stakeholders including building owners, contractors, designers, government and politicians of the great prospects of green buildings in contributing to the national target to reduce significant amount of GHG emission.

Energy Efficiency Pays

The government vision in reducing long term energy demands gives significant room to energy efficiency (EE) measures. To justify the validity of this vision, a recently conducted energy audit by the Ministry of Energy and Mineral Resources (ESDM) of 481 companies between 2010 and 2012 to assess energy efficiency potentials in those companies indicated that companies implementing the basic recommendations for energy efficiency could make significant economic gains.

At the government levels, the audit showed that the financial savings resulting from energy efficiency investments were much higher than the amount of the investment. For example, replacing 2,8 million traditional street lights bulbs with energy efficient LEDs would need a total investment of 14 billion IDR over 10 years period, while the value of the energy saved by the replacement would be about 90 million IDR . In addition to save 17,1 million IDR on strict electricity, there would be less costs for light replacement and subsidy savings. Also, reducing the energy demand would slow the need for new power plant and contribute to reduction of GHG emissions.

The main issue is about how to find funds. While Clean Development Mechanism (CDM) could a good solution, the price of CERs dropped to 0,5 EUR, which greatly limits its potential. The main source of funding today is the voluntary market: in 2012, 101 million tonnes of carbon offset have been contracted for future delivery. This represents a 4% increase compared to 2011. The overall market value decreased compared to 2011 with a volume-weighted average price of 5.9/tCO2e today (against 6.2 in ).

Offset buyers are mainly companies willing to reduce their externalities, often in the frame of their CSR policies.

Research programs and Clean Technology Fund constitute another way to fund energy efficiency. Donors are developing such projects such as the ADB Private Sector Geothermal program or the IFC Energy Efficiency and Renewables.

According to a participant from South Pole Carbon, the Ministry of Finance is interested in providing funding for the energy efficiency projects as long as they lead to energy subsidies reduction. In addition to proper savings allowed by energy efficiency initiatives (estimated at 1,7 billion IDR/ year), the MoFhopes to reduce subsidies as well; a 790 billion IDR investment in EE would lead to a 300 billion reduction of energy subsidies.•

Sustainable Landscape Management. Speakers and participants of FGD are discussing matters related to sustainable landscape management

DOC. GIIP

16


17


• INTERVIEW• INTERVIEW

While the international community generally appreciates Indonesia’s commitment to reducing its GHG emission significantly, many people on the ground were rather skeptical about the effective implementation of this goal. A great deal of people saw the statement made about 2 years ago by President Susilo Bambang Yudoyono (SBY) to reduce 26 - 41% of the emission as no more than an image building campaign that is an obvious ‘signature’ of the two term administration. But the government seems to mean business by establishing a national plan for the implementation of the plan, the National Action Plan for Climate Change Mitigation ( RAN-GRK), announced early last year despite the seemingly serious plan, skepticism remains. One important argument for such skepticism is because the government does not seem to fully consider the complexity of carbon emission. To meet the overall objective of the carbon emission reduction, the plan must be embedded the overall national development strategy. Failing to do it has resulted in the government’s inconsistencies when it comes to making effective policies to meet the development objectives. Another reason for the skepticism is that legislative politicians rarely speak or initiate discourses on the issues of climate change. Perhaps their lack of interest in climate change issues is rooted in their lack of knowledge of the issues. Skeptics say politicians in Senayan seem to consider the issues as primarily the domain of the government, while on the government side, they find the efforts in dealing with climate change as half-heartedly implemented. This is evidenced by the lack of effective authority held by the Ministry of Environment that should the primary agency to deal with the complex climate issues. This ministry currently does not demonstrate the effective authority to spur all the national stakeholders to do what it takes to mitigate climate change impacts and to adapt to new climate parameters.

GIIP spoke with Rachmat Witoelar, a senior politician under Suharto Administration, and currently Executive Chair of the National Council on Climate Change (DNPI), to get first hand information about the current national efforts in coping with climate change issue.

Mr Witoelar shared his views on the current status of Indonesia climate change issues and on his expectations of Indonesian climate change, global current and future mitigation and adaptation efforts.

INDONESIAN CLIMATE CHANGE CHALLENGES

Rachmat Witoelar PRESIDENT’S SPECIAL ENVOY FOR CLIMATE CHANGEExECUTIVE CHAIR OF THE NATIONAL COUNCIL ON CLIMATE CHANGE (DNPI)

SOF

18


19



What are the main concerns in coping with climate change issues in Indonesia and the challenges that the government is currently facing?

The Government is greatly concerned about global climate change issues, while at the same time it has to meet the challenges of building a strong national economy amidst the fast depletion of global natural resources and a growing population. At the national level, I have great concern about the slow and meager responses of relevant, if not all, government agencies to the national efforts in mitigating and adapting into the negative impact of climate change, while the impacts are evidently experienced by Indonesia today.

In my view the government needs even stronger political will to deal with the looming danger of climate change, and to do what it takes to prevent serious devastation to our country and protect our people from the negative impacts to development and sustainability. We should realize that being the world largest

archipelago located in the tropics global climate change, but of course we can not deal with these issues unilaterally.

The whole world should share a common vision and responsibilities in saving the planet, though each country has its own responsibility based on its specific conditions and capacity.

In the global perspective, I believe Indonesia has shown a strong commitment to coping with global warming and climate change issues by planning to lower GHG emissions up to 41% by 2020 through international collaboration, as President SBY had announced to the world about two years ago.

I think most of us are beginning to realize and feel the real impact of global climate change in our daily life in our country. Many climate anomalies that triggered more severe natural disasters have happened globally , and Indonesia has its share in experiencing them.

The increasing prevalence of natural

disasters and their severity could disrupt or at least influence (negatively) the economies of many countries including Indonesia.

What are, in your view, the government’s achievements in terms of policies and implementation to deal with climate change?

As I said, as a developing country, Indonesia has put itself as the forefront of global efforts by commuting to reduce GHG emission at relatively significant level. The world applauded this commitment as not so many countries, including highly industrialized ones, are making such clear and significant commitments (in that respect).

Indonesia’s significant target to reduce GHG5 generally receives positive responses from some industrialized countries and the UN bodies. This resulte in various initiatives (proposed), including plans associated with REDD+ programs to deal with climate change mitigation and adaptation activities in Indonesia. Such

initiatives, include the recently (2010) established partnership with Norwegian government to deal with deforestations issues. I hope more of those initiatives will be established and properly implemented in the near future. Other achievements like the establishment of RAN-GRK last year seems to go unnoticed by the general public, perhaps because the media have not paid great attention to it. I must admit, however, that establishing a plan is one thing, but the effective and consistent implementation of it is another matter. What we are lacking here is a comprehensive monitoring and reporting system which could provide the information to the public, about the up to date status of the national efforts in combating climate change. Such data should also be translated into plain language to make it comprehensible by the general public.

What are your views about the current responses of Indonesia’s industrial sector toward greening the country’s economy?

Industry plays a strategic role in transforming Indonesia’s economy towards “a green economy”, by embedding sustainability thinking into their business strategy. Not only industry but all the economic sectors must contribute to building the fundamentals of green economy. Particularly, industry should strive for producing truly “green” products in the sense of making it part of the greater efforts to make the whole national economy sustainable, and resilient against negative impacts of climate change. From my perspective, to make the transformation into green economy, the government should be more serious and effective in dealing with the climate change mitigation and adaptation. Policies and regulations necessary to govern these issues must be effective and consistent to ensure that all stakeholders adhere to it. The regulations must also clearly stipulate incentives and disincentives to stimulate the public initiatives to produce positive impacts.

It seems that there is currently some public skepticism about Indonesia’s serious commitment in coping with climate change in the long run. What are your expectations of the future governments in this respect?

I believe it is high time for Indonesia to have a Law on Climate Change to provide a stronger legal umbrella for all the policies and regulations needed to cope with the issue. I sincerely hope that the next year’s general elections will produce strong leaders in government and long-term thinking statesman, like legislators at the House of Representatives (DPR) who will work hard to tackle the pressing issues related to global warming and climate change. Therefore I hope that the law will be produced in the near future.

I know that some major political parties have expressed their intentions to deal with climate change issues more seriously in the next administration. I believe that the public or constituents are supportive to this idea. As I said, to make our country and society sustainable, there needs to be

In the global perspective, I believe Indonesia has shown a strong

commitment to coping with global warming and climate change

issues by planning to lower GHG emissions up to 41% by 2020 based

on international collaboration, as President SBY had announced it to

the world about two years ago.

SOF

20


21



a clear vision, strategy and long-term plan that must be consistently implemented. I hope the next government will better realize this and act upon accordingly to get things done properly.

You mentioned two big challenges related to the agreement to lower emission before and after. Second, by 2015 the ASEAN will turn into One Community Nation. How should Indonesia respond to the targets and challenges?

Indonesia should have integrated economic and social policies both locally and globally. In addition, Indonesia should intensify discussions globally to make the policies for easy implementation

by the public in the perspective as stated in the climate change convention that was ratified in 1994. These are long-term policies.

Indonesia is approaching a critical time with political transition in 2014 and pre 2020 and beyond 2020 climate change negotiations.

The green economy and associated investments are also a matter of institutional transformation. This transformation presents a huge opportunity for developing countries to maintain high economy growth while keeping GHG emissions low. It poses

enormous challenges in terms of a long term vision, leadership, and strong engagements among sectors.

In addition, the upcoming ASEAN Integration into One Community Nation 2015 will also lead to the same direction. This requires the transformation of green economy ideas into viably sustainable and feasible actions that encompass policies and direct practical actions.

You mentioned earlier that Indonesia needs to have a strong Law on Climate Change. Could you elaborate why do you think that such law is needed?

As I said, we need a stronger legal basis to implement policies on climate change, therefore DNPI currently sees the urgency of such law to ensure that all efforts related to mitigation of and adaption to climate change imperatives are legally protected.

A number of developed countries including the EU, the UK and, New Zealand, have already enacted laws on climate change. Some developing countries like China, Colombia and the Philippines also have such laws.

With that law, these countries could support the creation rigorous and legally based efforts to tackle climate change to protect national resources.

Indonesia should also have similar laws to better protect its resources for future generations. In addition, the law would also provide a strong legal basis for the government to transform the economy into sustainable and resilient economy. Climate change is one of the most important triggers for conducting an economic transformation.

You wrote on recent paper “Study on Population Dynamics and the Human Dimensions of Climate Change,” about the importance of transforming the economy into green (sustainable) economy, and to do this, the government should make climate change issues to be part of the national development policies. Would you share about it to our readers?

DNPI has identified various options to

reduce GHG emissions, including the need to implement serious and systematic drives toward energy efficiency in all sectors. For example, energy efficiency in urban areas through better evidence-based spatial planning and allied interventions could produce enormous results in reducing the national energy consumption and increasing conservation.

DNPI also sees the need for revitalizing the national family planning program to make a major contribution to GHG mitigations efforts over the next 40 years and beyond. It is also important to invest heavily in the education of today’s youth as an essential component of a successful transformation into a green, sustainable economy.

In my opinion, much can be done to promote the benefits of green choices and sustainable lifestyles to help mitigate the current steep rise in the country’s carbon intensity, especially among the youth.

How do you think DNPI could help the government stimulate the public and private sectors to engage activities in climate change mitigation and adaptation?

The government and the private sector face common challenges in combating climate change to provide the necessary and conducive conditions for sustainable growth. Only by productive cooperation can we achieve our common goals.

By engaging in cooperation with the

private sector DNPI can help promote the investments and innovations that are essential elements in driving the economy towards sustainable development. Combining these two elements will create a new market for ‘green’ goods, services and employment.

Significant investment is needed to ensure the institutional transformation toward maintaining a high economic growth which at the same time lowering GHG emission. Innovation plays a critical role in finding new ways toward sustainable production and consumption.

Through cooperation with public and private sectors at national and international level involving experts and practitioners from diverse areas and Industries, DNPI can maintain frank dialogue, share knowledge, experiences and best practices on various issues related to climate change impacts, mitigation and adaptation.

Currently DNPI maintains a partnership with Matsushita Gobel Foundation, the Embassy of Japan in Indonesia and the Japan International Cooperation Agency (JICA) to engage in various activities related to climate change mitigation and adaption, including capacity building activities.

DNPI greatly appreciates Matsushita Gobel Foundation, the Embassy of Japan to Indonesia and JICA and thankful for their consistent and continuous support for this cause.•

Indonesia is approaching a critical time with political transition in 2014 and pre 2020 and beyond 2020 climate

change negotiations.

22


23



MASTER HELMSMAN’S GREEN ENERGY CONCERNS

Rachmat Gobel CEO PANASONIC GOBEL INDONESIA GROUP

Indonesia is facing crucial problems in the energy and environmental sectors. How have Japanese firms including PT Panasonic Indonesia coped with the prevailing problems in the two issues’?

Japanese firms are mostly aware of the importance of anticipating the energy crisis and moving forwards toward the achievement of energy resilience. Energy issues are inseparable with environmental issues especially related to climate change.

There has been an increasing urgency in the industrial sector to develop environmentally-friendly technology.

As part of the Japanese government’s policy, Panasonic Indonesia has made a strong commitment to be at the forefront as a green and innovation company.

We see manufacturers in Japan as risk takers for the sake of becoming green and innovation companies.

Japanese manufacturers, like those in other parts of the world, actually still feel the pinch of economic slowdown.

However, the industrial firms in Japan and a number of Japanese companies in Indonesia are risk takers, becoming green and innovative companies with large

investments to ‘transform the industry into a green industry’.

Companies there in Japan as well as Panasonic Indonesia, have gone through various changes for innovation and further turned into green companies in all production lines.

There have been wide range of changes especially in production. Our products are made with the use of environment-friendly raw materials. Our factories have also improved energy process to reduce gas emission.

Secondly, we have strived to improve productivity and efficiency.

Thirdly, we create good quality products.

Fourthly, the company provides better health services for our employees.

Fifthly, the company’s human resources are morally better with high responsibility in managing natural resources.

The company has already taken into account, efficiency in the use of energy, ranging from hydro, oil, gas to electricity.

To that end, we set up rules of the games for all of us in Panasonic to go ahead together for efficiency as the company’s

movement and with strong corporate culture for the benefit of all including other industries. In turn it will also strengthen our competitiveness in terms of cost efficiency and others.

Panasonic is as also a company with strong leadership and with a great commitment to preserve the environment. We are not only a company for the sake of employment as it may cause new problems.

Employment by the company without having strong commitment and responsibilities has no added value. Our human resources may fail to achieve improvements in all aspects for the company and the nation.

We encourage our employees not to only think about their own benefits but also for the success of all in the company and contribution for the nation.

Industrial firms in Indonesia should play bigger role to preserve the environment starting from improving their industrial waste treatment facilities. Otherwise, bad environment within and outside companies’ premises will affect employees’ health and productivity.

We should have better rules of the games

With determination to do everything for the development of the industry, Rachmat Gobel, CEO Panasonic Gobel Indonesia Group has a good record in the survival of electronic manufacturing Indonesia. His success lies in combination of resilience and discipline.

Even his big concerns are mainly focused on the development of other industries in Indonesia. His dedication to brought him recognition, in 2011 he was awarded the prestigious Asian Productivity Organization Regional Award for contributions to improving productivity in Indonesia’s industrial sector from the Asian Productivity Organization, Tokyo, Japan.

He is also one of the private sector leaders in introducing sustainable development through Green Productivity forging strategic partnerships with the rest of Asia and the Pacific.

He identified the urgent need of the industry to help strengthen the country’s energy resilience while coping with prevailing environment issues in the industrial sector. His significant work to improve Indonesia’s industrial sector and extensive promotion of new and renewable energy was rewarded with an appointment as Chairman of the Indonesian Renewable Energy Society (METI)

Rachmat Gobel shares his views on energy and environmental issues to Green Magazine at his office in Jakarta.

MAS

24


25



to make all stakeholders in the industrial sector help the government deal with environmental problems including climate change.

Environmental issues and connectivity among the ASEAN members countries have come to the surface in recent ASEAN and APEC summit forums. How do you see the benefits of Indonesia by participating in the forums especially in terms of improving productivity, competiveness and concerted effort to cope with climate change?

Certainly Indonesia has taken many benefits from the ASEAN and APEC Summit forums. Indonesia and other members have agreed to accelerate physical, institutional, and people-to-people connectivity.

For sure, connectivity can reduce production and transportation costs, strengthening regional supply chains as well. For the industry cost efficiency is a crucial factor to survive.

We are also encouraged to fully utilize renewable energy for the benefits of all the ASEAN member countries.

The industrial sector benefits economically and environmentally from greener power policy.

We from the industrial sector can help the government cope with frequent and more intense extreme weather events due to climate change caused by carbon emissions.

Indonesia as part of Southeast Asia with its rapid economic and population growth should play an important role in the global solution and make low carbon emissions achievable.

There have been calls from global movements for reducing the dependency on fossil fuels by increasing the contribution of renewable energies. We in Indonesia have tried to intensify the use of new and renewable energy for outlying or remote regions to operate renewable energy based power plants using solar or wind energy.

Indonesia is endowed with rich natural resources to become a leading player for clean, renewable energies in the

South Asia. Renewable energies are more competitive than coal. We should fully utilize indigenous local resources and create more employment.

With the use of more renewables, Indonesia has an economic advantage. The industry as a partner of the government will also offer solutions, not become a burden. We, the industry can help the country to reduce dependence on fossil fuels like oil and coal.

To that end, we keep on developing environment-friendly technology for our manufactures. We also keep on developing recycling technology within the company and encourage similar concerns to other industries to do likewise.

It is time for Indonesia to gradually switch to the use of renewable energy sources. However, we still face bureaucratic constraints.

What is the Role of METI in proposing regulation to the government?

Indonesia has large potential of new and renewable energy such as wind, solar,

hydro and geothermal. Indonesia is home to around 40 percent of the world’s geothermal energy reserves.

Indonesia also has up to 75,500 megawatts of estimated hydropower resources and generates 4.80 kWh per m2 per day in solar power potential.

With the big potential of new and renewable energy, the Indonesian government set targets to generate 6.7 gigawatts of installed renewable energy capacity by 2025.

However, Indonesia’s transition towards renewable is not smooth as expected to meet this target. This underperformance is due to the insufficient extent of the government’s effort to provide incentives to investors wishing to venture to the country’s renewable resources. It is related to a certain extent with a lack of awareness.

Apparently the government’s improved political will is needed to reap benefits from the country’s renewable energy potential.

The government must have a better understanding of the importance of renewable energy and ready to shift its mindset away from its current focus on fossil energy.

Do you see the need for Indonesia to have more regulations for energy resilience and environment?

There have been efforts to issue more regulations in addition to a number of regulations on energy and environment already in force.

However we should not only make regulations to blame someone only, but more importantly we must keep on socializing the importance of the regulations and its implementation to the public.

It is the role of the industrial sector to help the government manage energy and the environment. Players in the industry should be more active in its cooperation with the government. The industry a partner for the government especially in energy resilience and the environmental

preservation among others by promoting green industry concepts.

The industry is also developing recycling technology to significantly reduce industrial wastes.

Are there any expectations for the future role of the industry in Indonesia and in the global context?

Indonesia has the potential to develop strategic industries in the fields of renewable energy and energy efficiency technologies. METI sees the need to extensively develop research on new and renewable energy in Indonesia.

Hopefully, the encouraging development in the field will make renewable energy more financially viable.

The government and the industry, needs the introduction and application of more consistent policies within the real sector and greater collaboration with the foreign countries in the energy sector. There should be more bilateral cooperation in developing green energy.•

The company has already taken into

account of efficiency in the use of energy,

ranging from hydro, oil, gas to electricity.

MAS

26


27



Global actions for combating climate change and promoting a low carbon society are vital to evade great catastrophic impacts to human civilization on this planet. Japan is introducing a new mechanism, Joint Crediting Mechanism (JCM), in order to promote development of low carbon society. This new mechanism is expected to be of useful means, as are other credit schemes like CDM, to achieve the ultimate goals of global climate change mitigation.

Below is an article by HE Yoshinori Katori, the Ambassador of Japan to Indonesia.

First of all, I would like to extend my heartfelt congratulations on introducing the first edition of this magazine by Indonesian National Council on Climate Change (DNPI). I am convinced that this magazine will contribute to raising public awareness on climate change problems and provide useful insights on how to cope with the challenges associated with it.

I am witnessing significant progress in developing climate change policies in Indonesia. The Government of Indonesia has developed the National Action Plan for GHG Emission Reduction (RAN-GRK) by setting a voluntary target of 26% emission reduction from BAU to be achieved by 2020 (or 41% with international assistance). The government is currently also embarking on a strategic project aiming to establishing the country’s GHG Inventory.

Along with these efforts, it is important to explore ways to implement concrete activities on the ground towards achieving the objectives of sustainable development (the “green growth”), particularly by mobilizing new technology and securing the necessary funds from the private sector and other national and international sources. This strategy was one of the main subjects discussed in the Second “East Asia Low Carbon Growth Partnership Dialogue” held in Tokyo in May this year.

And for the purposes of disseminating and promoting low carbon technologies the Government of Japan has proposed the establishment of “Joint Crediting Mechanism (JCM)”. It is our great pleasure to announce that Japan signed a bilateral document with Indonesia on the establishment of JCM on August 26, 2013. Similar documents have also been agreed upon so far with seven other countries, i.e. Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Viet Nam, and Laos. JCM is one of the measures to help facilitate green investment, and boost innovation as well as productivity. Therefore, I’m particularly pleased that GREEN magazine has chosen JCM as a main topic in its first edition.

What is JCM?

In order to effectively address the issues of climate change, it is necessary to achieve low-carbon growth at a global scale through mobilization of green (low carbon) technologies and finance which enables expansion of markets for green products and services. These factors are crucial to accelerate the development of renewable energy; build more efficient power generation systems; produce various low carbon products like energy efficient home electronics, low and emission-free vehicles and other low carbon products; and to deploy energy-efficient manufacturing processes.

JCM is a new scheme that Japan is currently promoting in order to help support various projects using low carbon technologies, develop low carbon products and services as well as implement carbon mitigation actions, which, overall, is expected to contribute to sustainable development in developing countries. From Japan’s perspectives, the GHG emission reductions achieved by the JCM in partner countries will help Japan to achieve its emission reduction target. The bilateral JCM will stimulate and boost the transfer of low carbon technologies and improve mitigation actions faster and in more flexible way according to the particular condition of the partner countries. I would like to stress that the JCM will be implemented to ensure transparency, credibility as well as environmental integrity. Chart 1 shows how the JCM works.

Why JCM?

The Clean Development Mechanism (CDM) has been serving as an incentive to mobilize private investment associated with low carbon development. However, the mechanism is also considered difficult and cumbersome to implement, because of the complex and long process necessary to get the approval of CDM administrators as well as the requirement for “additionality”. As a result, CDM is not necessarily considered as serving efficiently for those countries that require it most. To mitigate climate change, it is imperative

JOINT CREDITINGMECHANISM (JCM) A New Initiative Promoted by Japan

Yoshinori Katori AMBASSADOR OF JAPAN TO INDONESIA

Yoshinori Katori (left) and his Indonesian counterpart Rizal Lukman attending joint press release upon the completion of signing of JCM bilateral document between Indonesia and Japan (Aug 30, 2013)

DOC. JAPAN EMBASSY

28


29


• INTERVIEW • INTERVIEW

that GHG emission reduction is implemented by all countries in the world. Therefore, it is of utmost importance to create a new mechanism that can complement CDM in order to achieve their goals.

How does JCM operate?

The diagrams (chart 2, 3) show the basic concept of the operation of JCM, while some details of its operation can vary depending on the conditions of the partner countries. Under JCM, the Joint Committee (JC), which consists of representatives from

both governments, plays a significant role in administering the mechanism. The JC develops rules and guidelines, approves the proposed methodologies, designates the third-party entities (TPEs), registers JCM projects, and finally decides the amount of credits to be issued. The first JC meeting for Indonesia was held in October 2013 in Jakarta.

TPE is supposed to validate the proposed projects and verify the amount of GHG emission reductions or removals. The role of each government is to issue the credits to its registry, based on the notifications from the Joint Committee.

What are the features of the JCM?

JCM is basically designed using CDM as its main reference, but it is intended to be more simple, practical and flexible as you can compare in chart 4. For example, a JCM project is validated based on eligibility criteria, whereas in CDM case a project must be assessed concerning its additionality. The criteria are defined in the methodology approved by the Joint Committee, and describe requirements for e.g. energy efficiency of the products to be used. By using the eligibility criteria, we can simplify the validation process and reduce the risks of rejection of the projects. Besides, in order to reduce monitoring burden, default values can be widely used in a conservative manner.

JCM starts as a non-tradable credit type mechanism. Hence, credits cannot be traded internationally for the time being. However, the governments of Japan and Indonesia will closely monitor and discuss the mechanism to move into transition to a tradable credit mechanism at the earliest possible time, taking into account the overall situations and experience of JCM implementation as it progresses.

Projects qualified for JCM

In the case of CDM, projects in some sectors such as energy-saving home electronics and highly efficient coal-fired power generation are difficult to implement. JCM is expected to

Photo: 1st Joint Committee between Indonesia and Japan (Oct 16-17, 2013)

Interested parties can find related information including rules and guidelines adopted by Joint Committee on “New Market Mechanism Platform” website http://www.mmechanisms.org/e/initiatives/index.html

Japan Host Country•Notifies registration of projects

• Issuance of credits

Government

•Reports issuance of credits

•Notifies registration of projects

•Reports issuance of credits

• Issuance of credits

Government

chart 2. Basic scheme of the JCM

•Develops/revises the rules, guidelines and methodologies•Registers projects•Discusses the

implementation of JCM

Joint Committee(Secretariat)

Conduct policy consultations

•Request registration of projects

•Validate projects•Verify amount of

GHG emission reductions or removals

Third party entities

• Inform results of validation

/verification

•Request issuance of credits

•Requestregistration of projects

•Submit PDD /monitoring report

• Inform results of validation

/verification

Project Participants• Implementation &

monitoring of projects

•Submit PDD /monitoring report Project Participants

• Implementation & monitoring of projects

•Request issuance of credits

JCM CDMGovernance -“de-centralized” structure

(Each Government, Joint Committee)

-“centralized” structure(CMP, CDM Executive Board)

Sector/project Coverage

-Broader coverage -Specific projects are difficult to implement in practice(e.g. USC coal-fired power generation)

Validation of projects

- In addition to DOEs, ISO14065certification bodies can conduct

-Checking whether a proposed project fits eligibility criteria which can be examined objectively

-Only DOEs can conduct-Assessment of additionality of each proposed project against hypothetical scenarios

Calculation of Emission Reductions

-Spreadsheet are provided-Default values can be used in conservative manner when monitored parameters are limited.

-Various formulas are listed-Strict requirements for measurement of parameters

Verification of projects

-The entity which validated the project can conduct verification

-Validation & verification can be conducted simultaneously

- In principle, the entity which validated the project can not conduct verification

-Validation & verification must be conducted separately

chart 4. Key features of the JCM in comparison with the CDM

(Subject to further consideration and discussion with host countries)

cover a broader scope of projects than that of CDM. While JCM projects are to be decided by the Joint Committee, projects for energy-efficiency, renewable energy and REDD+ are expected to qualify for JCM in Indonesia.

We are now working to determine the necessary rules and guidelines for a smooth and efficient implementation of the JCM between Indonesia and Japan. Therefore, no project has been approved yet under the JCM with Indonesia. However, many Japanese companies have been conducting feasibility studies or pilot activities on potential JCM projects with Indonesian partners.

Future Expectation

In Japan, there are a number of companies that can contribute to low carbon growth in Indonesia with leading technologies. I am certain that the implementation of the JCM will contribute to more investment and further dissemination of low carbon technologies from Japan to Indonesia.

The JCM with Indonesia has just begun and we still have much work to do. But I am convinced that the JCM will lead to win-win cooperation between our two countries that will contribute to the global strives for climate change mitigation.•

DOC. JAPAN EMBASSY



31


• INTERVIEW

Trained in Aeronautical Design Technology, Jusman Syafii Djamal joined the National Team for the Evaluation of Transportation Safety and Security in 2007. This has brought him to a position as Minister for Transportation (2007 – 2009) in President Susilo Bambang Yudoyono’s first term Cabinet. His scientific background led him to being named a member of the National Innovation Committee (KIN) by the government in 2010. Jusman is currently the Chairperson of Matsushita Gobel Foundation (MGF) and serving as a Chairman of the Board of Commissaries with P.T. Telkom. Indonesia.

On behalf of MGF, Jusman enthusiastically shared his views on climate change issues, green economy and energy resilience.

He looked at Indonesia’s challenges in climate change issues and its impacts on the country’s current and long-term socio-economic development. He shares the world scientific community’s views that global warming caused by modern human activities is the real culprit of climate change. Climate change is real and has to be dealt with seriously by the entire global community before it become irreversible and disastrous to the planet and the human civilization.

In addition to climate change, Indonesia is also faced with the depletion of oil and other fossil-based energy sources. Industries, therefore, are expected to use more environment–friendly energy.

INDUSTRIES SHOULDBE THE DRIVING FORCE

Jusman Syafii Djamal CHAIRPERSON OF MATSUSHITA GOBEL FOUNDATION (MGF)

SOF

32


33


• INTERVIEW • INTERVIEW

open market mechanisms to prevail.

Another aspect of domestic market protections against the flow of non-green products is imposing National Industrial Standards to products and services traded and distributed in the domestic market. The government must ensure that the products and services meet the national standards.

But establishing such national standards will take time and face great challenges as Indonesian industrial system is still overwhelmingly characterized by import substitution.

The MGF is collaborating with JICA and the DNPI to hold regular discussions and workshops on climate change and other green

issues. What do you expects from such events to help create public awareness on climate change issues?

I find that holding regular discussions is an excellent way to exchange knowledge, experience and best practices among stakeholders about climate change and green economy. We invite participants from various background and expertises to share views and build up useful networks to create common awareness and understanding about climate change and the compelling need to green economy transformation.

Through the for a hope to narrow gaps between (academic) knowledge about climate change and green issues and

the need to get programs effectively implemented on the ground, and hope along the way to find best solutions and benchmark in meeting the challenges.

We hope through our discussions, that experts will share their scientific findings and professional experience to government and practioners and the government will better explain its policies and regulations to other stakeholders, all aimed at improving solutions to solve the common problems associated with climate change. We also hope the discussions will inspire participants to be more committed to the cause of climate change mitigation and have better impacts in their respective capacity in meeting the common challenges.•

How do you see role of the industry in coping with the challenges on environmental preservation and energy resilience?

Industries, especially the energy intensive ones, have been using a great deal of the energy supply available on the planet. Their productive activities have left huge carbon prints causing damages to the environment and global warming. It is only natural that they must play an important role in the country’s and global efforts in curbing the excessive CO2 emission to avert the global climate catastrophe associated with climate change.

Industries must be one of the driving forces in the government’s efforts to mitigate climate change. They should position themselves as a partner to the government in many respects to help achieve the goals of the national climate change mitigation programs. Industries’ involvement in the programs could be in the area of environment preservation and in the national endeavors to ensure energy security and resilience

Industries’ business strategies and operations must be aligned to the

national government’s programs of green economy transformation to reap the maximum benefits for the people of Indonesia. Industries must nurture innovations to improve low carbon productivity. This will include using more renewable energy to reduce CO2

emissions caused by burning fossil fuels.

The Agro industry sector should undertake more intensive research and innovation to improve food productivity and enable national and global food resilience, as global warming is seriously disturbing global food productivity and posing clean water supply challenges in many part of the world, especially in developing countries. Rapid urbanization in developing countries also put pressure on food productivity and clean water supply systems, as more and more land are being converted into housing and urban facilities. All of these require industries to realign their operating strategy to support the national government‘s climate change mitigation programs and undertakings.

What should the government accomplish by the transformation into green economy?

One of the important things the

government should do is to prevent and protect the people from consuming products and services, ether those produced domestically or imported ones, that are produced not in compliance with green economy requirements. This could be accomplished through strong policy and effective regulations which ensure all economic sectors’ compliance to the green principles.

I believe that it is much better to serve our national interests by filtering non-green products produced or imported using green criteria, rather than spending tax-payers’ money for various measures to protect environment and the people’s health. Protection against the flow of non-green products could be accomplished through various non tariffs barriers to prevent unwanted products entering the domestic market. This kind of measure may become the only option that the national government could use in the near future to protect national markets against foreign products, as regional economic integration is the clear trend of the future. Regional integration treaties compel national government to open the country’s market by allowing free and

We as a nation need to transform ourselves

into a green economy with more innovation, higher productivity and

achievements.

SOF

34


35



In the perspective of a donor organization like JICA, how do you see Indonesia’s challenges in dealing with the climate change?

Firstly, I think that the international community highly appreciates the efforts being made by the government of Indonesia in setting the target of GHG emission reduction by 26 percent on its own and up to 41 percent with international assistance, both compared to the state of BAU (business as usual). With

these efforts Indonesia is moving toward greening its economy. But I understand it is not an easy task to promote the green economy while the country is making significant economic growth that might absorb a large amount of conventional energy in the process. With such pace of economic development, lifestyles are focused on keeping up with the elements of modernity, and that demands more conventional energy use. I also understand

that it is not an easy task to cope with the prevalent natural disasters in the country, many of which can be directly associated to climate change.

In my opinion, the government of Indonesia needs not only to develop policies and plans in dealing with the problems, but also need to implement them effectively and with adequate fiscal support. In this respect, I observe that the government of Indonesia has already

Climate change is already happening now. We can increasingly see, feel and experience it all over the world. Experts say mitigation may be too late now as the window of opportunity for keeping the global warming at acceptable levels is nearly closed, while the world community is failing to come to a real consensus about how to tackle it. Mr Atsushi Sasaki, Chief Representative of Japan International Cooperation Agency (JICA) to Indonesia, shared his opinion to GREEN about the common challenges being faced by the world, particularly in what a country like Indonesia could do best to address climate change.

JICA: COMBATING CLIMATE CHANGE NEEDS INVOLVEMENT OF ALL CITIzEN

Atsushi SasakiCHIEF REPRESENTATIVE OF JAPAN INTERNATIONALCOOPERATION AGENCY (JICA)

DOC.JICA

36


37



developed policies and plans, and the issue now is how to implement them seriously and consistently together with all stakeholders.

How should Indonesia create conducive conditions for the industrial sector to motivate them to do what it is necessary to mitigate climate change?

Allow me to share Japan’s experience in coping with the challenges to meet its energy needs. After the oil crisis in 1973, Japan, with a very low energy self-sufficiency rate, started to consider more seriously about how to use energy as efficiently as possible. The government of Japan engaged in dialogue with the private sector, promoted energy saving policies that resulted in the manufacturing of energy efficient products with high international competitiveness. Through the implementation of the government policies to combine restrictions with fiscal incentives for energy efficient products and processes, a high level of energy efficiency has been realized in most of

industrial facilities as well as products such as automobiles, home appliances, etc. Taking Japan’s experience into account, Indonesia might be advised to develop and implement similar policies to those of Japan based upon dialogue with the private sector. The strong leadership of high-level government officials is essential; otherwise, the ministries and agencies concerned may not easily agree on setting policies as in many cases they may have different opinions.

The industrial sector apparently plays an important role in transforming the current economy into a green one. Which industrial sectors do you think should be involved to help Indonesia optimize efforts in dealing with climate change issues, while at the same time produce added value to the economic growth, keep the environment clean and help create more jobs?

To tackle the complex issue of climate change, we need to involve all people; they must have their own roles in addressing the issue. When we think of balancing

economic growth, job creation and green development, we could use the good example of national parks; some national parks in Indonesia are working to preserve the natural environment, providing added value which enables them to promote eco-tourism. In addition, Indonesia has a large potential in developing renewable energy such as geothermal and hydro-power. The development of these resources will contribute to not only addressing climate change issues but also promoting economic development and employment through fostering local industries and the sustainable supply of power.

There have been some anxieties among national and international communities about the continuity of efforts in GHG emission reduction in the long-run, especially with the imminent political transition from legislative and presidential elections in 2014. What is your opinion about it?

I believe that the importance of addressing climate change issues is well recognized and understood by all Indonesian leaders, and that they know what to do domestically as well as what kind of role this country should play in the international society.

There have been ideas among experts and intellectuals about the imminent need of having a national law on climate change in line with the global context of mitigation of and adaption to climate change. Do you support such an idea, particularly in the Indonesian context?

In my opinion, it is more important that the leaders are highly committed and engage into serious actions to combat climate change, and motivate all citizens to support the actions at their own capacity, rather than having a law or not.

Do you see an encouraging development in green initiatives in Indonesia, and how do you think JICA could do to support these?

We are happy to support and contribute to Indonesia’s green initiatives. We are doing this for example by supporting the development of Mass Rapid Transportation (MRT) systems in Jakarta, the introduction of innovative public transportation system and the development of infrastructure with cutting-edge technology. JICA is also supporting various ministries within the government of Indonesia to

develop policies associated with climate change mitigation and adaptation, and providing assistance in implementing the policies. In the context of clean energy development, JICA is provides support to improve the system of geothermal power development as well as developing advanced technology of bio-energy applicable to Indonesia through the practice of joint researches.

We realize that developing renewable energy takes a relatively long time. In that respect, JICA supports the development of a high efficiency (super critical) coal power plant, which enables the effective use of abundant coal resources, and the promotion of utilizing cutting-edge technology such as carbon capture and storage. These activities are expected to help Indonesia realize green economy with stable electricity supply and optimal energy mix.

How do you see the role of mass media in Indonesia to support the implementation of green economy?

It is absolutely necessary to increase people’s awareness of the environment and climate change issues to promote

green economy, and of course the role of mass media is indispensable. It will take a long time to increase the awareness of the people, but unfortunately the issues of environment and climate change are not always attractive subjects to be covered by mass media. In this regard, those who provide information to mass media must do their best to make it attractive to people; at the same time, taking into account social significance, mass media should be urged to cooperate with sources of such relevant information.

What do you expect from Indonesia’s role in global climate change mitigation?

Indonesia’s forest and peat land area is one of the largest in the world, and Indonesia possesses some of the largest renewable energy sources in the world. With the world’s fourth largest population as well as its high economic growth rate recently, it is no doubt that the core country in ASEAN is Indonesia, whose policies have impact significantly on the world. I expect Indonesia to play a leading role in addressing climate change issues, and JICA will continue to work together with people in Indonesia in a variety of sectors related to climate change.•

Indonesia’s forest and peat land area is the one of the largest in the world, and Indonesia

possesses some largest renewable energy sources in the world.

DOC.JICA

DOC. JICA

38


39



What are IECF standpoints in dealing with the issue of climate change?

Our standpoint is clear that in coping with this global issue, stakeholders need to think and work together to solve the problems . It is undeniable to all of us that human activities are causing environmental damages which lead to global warming and climate change. We are also witnessing strong indications of the growing uncertainty in the global climate pattern which triggers increasing prevalence of serious natural disasters.

When we talk about green investment we should see it not only as a measure

to avert the negative impacts of climate change, but we must also see its potentials of producing benefits for sustainability. Therefore mass media must endeavor to see all aspects of measures taken by stakeholders, be it government, private sector or non-government organizations.

Do you see that concrete steps have been already taken to solving the problems?

Sure, I saw concrete steps that have been taken by the government and other stakeholders to address the issues of climate change, though frankly I would like to see more serious and consistent

measures be taken particularly by the government to spur all stakeholders to engage in climate change mitigation and adaptations acttivities. The government strategic plan stated in the RAN-GRK must be implemented consistently

At the Bali gathering the Forum agreed along with all related stakeholder to mitigate the on-going damage to the environment by taking the necessary actions in our own capacity to remedy such damages and to prevent such damages from reoccurring.

Unfortunaely there are many concepts and terminology used to discuss the

The Nusa Dua Commitment declared by the Indonesia Editor in Chief Forum ( IECF) on June 14, 2013, at Nusa Dua, Bali, is to remind mass media in Indonesia on the importance of building a strong Indonesia in all respects of a modern civilized state. The Forum produced nine commitments related to the needs of addressing the environmental and energy issues properly and effectively.

IECF, established on July 19, 2012, represents almost all Indonesian Editor in Chief of Printed and Electronic media, pledged support to the national efforts in preserving the environment, in maximizing renewable energy development and deployment, and in energy conservation through energy efficiency actions to achieve national security. All of these efforts should be consistently and effectively implemented to foster national sustainable and equitable development .

By making the commitments, the Forum shows mass media’s serious concerns on the issues of climat change mitigation an adaptation as well as on the imminent global energy crisis that could pose a serious threat to the global sustainability.

The Forum also appreciates the initiatives taken by the National Council for Climate Change (DNPI) in collaboration with Matsushita Gobel Foundation and Japan International Cooperation Agency (JICA) to hold Focus Group Discussions on the issues of climate change and green economy and for inviting the IECF to participate in the discussions.

At the Bali gathering, Nurjaman Mochtar, Chairman of IECF who is also the Editor in Chief of two major TV channels, SCTV and Indosiar, shared his thoughts on those issues and on the strategic role of mass media in publishing and providing ‘checked and balanced’ information concerning the progresses of the national and global efforts in coping with the issues.

CHAIRMAN OF INDONESIA EDITOR IN CHIEF FORUM (FORUM PEMRED)

Nurjaman Mochtar

MASS MEDIA SHOULD ExPAND CLIMATE CHANGE AND GREEN ECONOMY COVERAGE

IST

40


41



climate change issues that the general public may not comprehend those technical jargons, which preclude them from understanding the whole matters. Climate change is a multisectoral issue, so we need to involve all relevant sectors to find the solution to the problems. It is the mass media’s primary role and responsibility in diseminating the information as reliably and as accurately as possible to the public. The mass media should strive to encourage the public to take relevant actions which could contribute to mitigating the impacts of climate change

I believe that in this respect mass media should excersise their role objectively and in responsible ways in line with the principles of press freedom that we enjoy today thanks to the democratic system that our country follows.

How about the role of industrial sector to Green Economy transformation?

We have spoken with many businessmen in Indonesia about climate change, and I believe that they are in support

of the government efforts to mitigate the the impacts of climate change. Mr. Rachmat Gobel of Panasonic Indonesia is among the ones who give full support to green economy transformation. I saw representatives of industrial sectors actively participate in many discussions at national and international forums including the FGD initiated by DNPI, Matsushita Gobel Foundation and JICA. Again, in this respect I see that mass media should play its genuine role in informing the public about the strategic role of industries in helping to solve the climate change problems.

For example, the industry, particularly the energy sector, should be more active in making the country less dependent on fossil fuels. But the government should give industry ample opportunities and the necessary incentives to drive the private sector to developing healthy renewable energy businesses. Other industries should respond by improving their energy efficiency measures and reduce GHG emissions

I belive that one of the options the

government could take in providing incentive to public and private sectors, is to present awards to companies that distinctly contribute to greening the economy. Such awards are inspiring, and educate other businesses to apply the same principle. Mass media can help herald such award winning companies to stimulate others to follow the good examples.

How do you respond to the view by some environmentalists and green observers that Mass Media is less interested in covering climate change issues?

I think that the view is not entirely correct. Though it should be admitted that not all medias have given enough space in their publication for discussing the issues, generally mass media do not refuse to cover climate change issues. To improve and expand the coverage, I think the sources also have to improve the quality of their information to entice the press to cover it in their publications. In this respect I think the Nusa Dua commitment is clear enough in its aim to remedy the negative views about mass

media’s lack of interest in climate change issues.

Besides, climate change issues may be seen as less important by the Indonesian press mainly because the news sources fail to make it attractive for example, the issues of green investment and renewable energy. Nevertheless, on behalf of IECF, I’d like to invite everybody who are concerned about “green issues” to engage the mass media to help dissiminate the information to the public. We are always open to discuss the issues with anyone seriously concerned about it.

What do you think of the global initiatives in addressing the climate change?

To address the problems of climate change we need global commitment and concrete supports by all members of the global community. The green Investment Program is one of the many strategic steps to be taken by the global economy. An appeal by concerned businessman like Rachmat Gobel to scale up green invesments is obviously a good example of how members of the community

should respond to the climate issues, of course within their respective capacity.

We hope that the current global trend in the development clean technology and green economy transformation will continue well into the end of this century to provide a solid ground for building low carbon society and save the planet.

Do you have an important message to convey to our readers?

We wish to see much clearer clear blue prints of how the government will address the climate change issues. We also want see all government policies and measures in this context be implemented effectively and on consistent basis to make real impacts to the causes.

In the next national congress that we hope to hold in December 2013, IECF will focus on the direction of the national sustainable and equitable developments toward celebrating the 100th anniversary of Indonesia Independence. We expect to cover the long term strategy for national development, including the handling of the climate change.•

I believe that in this respect the mass media should excersise their role objectively and in

responsible ways in line with the principles of press

freedom that we enjoy today.

DOC. JICA

42


43


• GREEN INSIGHTS• GREEN INSIGHTS

Background

Asia, a continent consisting of 46 countries with a population of more than 4.2 billion people, or about 60 percent of the global total1, has experienced the fastest economic growth of any region in the world in recent decades. With the exception of several developed countries, notably Japan, Asian countries are undergoing rapid economic growth and industrialization, contributing to improved living standards and a better life for millions. About fifty percent of Asians live in cities and over the next 30 years Asian cities will grow by another 1.1 billion people.2 However, characterized by exposed land areas—such as islands, deltas, coastal regions, and steep slopes—and rapid urbanization leading to high population densities, many Asian

1 “World population”, Wikipedia. http://en.wikipedia.org/wiki/World_population2 “Accessing Asia: Air Pollution and Greenhouse Gas Emissions from Road Trans-port and Electricity”.http://cleanairinitiative.org/portal/node/11573.

ADVANCING LOW-EMISSION, CLIMATE-RESILIENT Development Across AsiaDoddy S. Sukadri and Sandra Khananusit

Doddy Sukadri is a member of the Indonesia National Council on Climate Change and is Co-Chair of the Asia Low Emission Development Strategies (LEDS) Partner-ship.

Sandra Khananusit serves as part of the Asia LEDS Partnership Secretariat.

SHUTTERSTOCK

44


45


• GREEN INSIGHTS • GREEN INSIGHTS

Emission Development around the World”.5 He shared experiences over the past two years working with 116 countries on how LEDS could help countries decouple economic growth from emissions and resource use. He presented examples on how LEDS could be a viable path forward, supporting economic growth by creating new jobs, fostering sustainable production, and creating new green businesses, while at the same time reducing carbon emissions and reducing poverty.

Developing Asian countries face a challenge of achieving sustainable economic development and improving living standards, while simultaneously reducing the rate of growth in GHG emissions. Low-carbon, climate-resilient development, commonly described as “green growth”, is viewed as the most effective means of meeting both objectives. Low emission development strategies provide strategic planning, analytical, and policy processes to promote economic growth while achieving significant, long-term emission reductions in key sectors.

The Asia LEDS Partnership

The LEDS Global Partnership encompasses three regional platforms—in Asia, Latin America, and Africa—all of which aim to strengthen and support capacities, learning, and coordination of LEDS and green growth activities at the country, regional, and global levels. The Asia LEDS Partnership is the largest

5 United Nations Framework Convention on Climate Change. Ad Hoc Working Group on the Durban Platform for Enhanced Action. Second session (ADP 2), Bonn, Germany, 29 April – 3 May 2013. Workshop on Low-emission Development Opportunities, Tuesday, 30 April, 2013. http://unfccc.int/files/bodies/awg/applica-tion/pdf/adp2_workshop2_leds_30042013.pdf

regional platform of the LEDS Global Partnership in terms of its membership.

The Asia LEDS Partnership was launched in September 2012 at the first Asia LEDS Forum in Bangkok, Thailand, which convened more than 170 representatives from 17 Asian governments, regional and international development organizations, non-governmental organizations (NGO), businesses, and others active in LEDS in Asia. At the Forum, participants helped to catalogue progress, prioritize regional needs, and identify collaborative activities to achieve a vision of Asia as a region of robust economic progress and low GHG emissions, with countries adopting and implementing LEDS and green growth practices across all sectors. Currently, representatives from over a dozen Asian countries are actively engaged, as well as numerous international partners and NGOs.

The objectives of the Asia LEDS Partnership are four-fold: (1) to facilitate enhanced collaboration among those actively engaged in LEDS in the region, including working to maximize results while minimizing duplication; (2) to identify and disseminate tools, models, approaches, and best practices in priority LEDS topics to enable application across the region; (3) to foster capacity building of practitioners to make Asia a leader in designing and implementing LEDS and green growth; and (4) to strengthen support for LEDS across Asia by catalyzing leaders of change and raising awareness about the benefits and methods of promoting LEDS.

One of the primary mechanisms to achieve these objectives is regional peer-to-peer exchange on experiences and lessons in fostering LEDS. Asian countries are implementing a wide variety of policies and initiatives that support low-emission growth, and

cities and countries are now more vulnerable to the impacts of climate change. In many countries substantial gaps exist between the rich and the poor, with a significant number of people still living in poverty. In addition, economic trends have led to an increased demand for electricity and transportation. As a result, air pollution is worsening and greenhouse gas (GHG) emissions are rising rapidly.

The Big Challenge: Closing the Emissions Gap

An Intergovernmental Panel on Climate Change special report indicated that for more than a decade, the increasing rate of CO2 released into the atmosphere has reached a point that is dangerous to both human well-being and continued economic growth.3

A continuing concern over an “emissions gap” was expressed at the 2012 United Nations Climate Change Conference in Doha, when Parties of the United Nations Framework Convention on Climate Change (UNFCCC) agreed on the need for urgent action “…towards the deep reduction in global greenhouse gas emissions to hold the increase in global average temperature below 2°C above pre-industrial levels and to attain a global peaking of global greenhouse gas emissions as soon as possible.”4

At the 2013 UNFCCC Bonn Climate Change Conference in June, Parties continued to discuss how to close the emission gap. At the climate change workshop organized by UNFCCC, Ron Benioff, Director of the Low Emission Development Strategies (LEDS) Global Partnership, addressed this issue with his presentation “LEDS Global Partnership: Advancing Climate-Resilient Low-

3 Carbon Dioxide Capture and Storage. Intergovernmental Panel on Climate Change (IPCC), 2005. 4 United Nations Framework Convention on Climate Change. Ad Hoc Working Group on Long-term Cooperative Action under the Convention. Fifteenth session, part two, Doha, 27 November 2012. http://www3.unog.ch/dohaclimatechange/sites/default/files/FCCC_AWGLCA_2012_L.0004_ENG.pdf

To avoid the worst impacts of climate change, such as more extreme weather, reduced agricultural productivity, and rising sea levels, GHG emissions must be cut in half by 2050. Yet they are expected to double in that time frame without concerted global action.Source: International Energy Agency, Tracking Clean Energy Progress, Energy Technology

WHAT IS THE GOAL OF THE ASIA LEDS PARTNERSHIP?

To advance the development of country-led strategic plans to promote economic growth while reducing GHG emissions—without causing unintended adverse trade-offs to other environmental pressures—in the Asia region.

WHAT ARE LOW EMISSION DEvELOPMENT STRATEGIES,OR LEDS?

LEDS are country-led strategic planning frameworks to promote climate-resilient economic growth while simultaneously reducing GHG emissions over the long-term. LEDS carries the same general meaning as low-carbon development strategies, low-emission climate-resilient development strategies, and green growth strategies. While LEDS focus on reducing GHG emissions, effective LEDS frameworks should work to ensure that climate resilience and adaptation are fully considered in near- and long-term planning.

SHUTTERSTOCK

46


47



countries are learning through doing, finding what works best in their unique circumstances and according to their specific needs. Some countries have detailed green growth strategies, while others have low-carbon city models, sector strategies, or examples of the private sector identifying innovative ways to spur climate-resilient development.

The following are examples of just a few interesting initiatives related to low-emission growth undertaken by national governments and organizations active in the Asia LEDS Partnership:

At the national level, in Vietnam, the Vietnam Green •Growth Strategy (VGGS) considers a low-carbon economy and green growth as underlying principles in achieving sustainable development, with GHG emission reduction and removal to become a mandatory index in social and economic development. The VGGS aims to accelerate the process of economic restructuring in order to use natural resources efficiently, research and apply modern technologies, develop infrastructure to improve efficiency of theeconomy, cope with climate change, contribute to poverty reduction, and drive economic growth in a sustainable manner. The strategy outlines objectives, prioritized projects to be implemented in 2011-2015, and plans for 2016-2025 as

well as a vision to 2100.

At the sub-national level, Thailand is prompting a •paradigm shift within society and behavior change among its citizens towards low-carbon practices. The “Low Carbon City” initiative aims to catalyze this

shift and help achieve reductions in GHG emissions. A recently piloted nine-step approach offers cities and municipalities a systematic process to assess and undertake voluntary GHG mitigation measures. Cities following this approach are well positioned to participate in the national GHG registry in development, and will

continue to lead the way in the transition to a low-carbon society.

At a sectoral level, in Nepal, the national government •is supporting local governments in creating District Climate and Energy Plans (DCEP) to accelerate dissemination of renewable energy technologies. The DCEP systematically addresses opportunities where renewable energy can contribute to climate change mitigation and adaptation, and gender and social inclusion, and provides a framework for decentralized energy planning that is customized to local contexts and needs. The DCEP can also be placed within a broader framework that encapsulates local and national development plans, moving Nepal towards a low-emission, socio-economic development pathway.

Achieving Success with LEDSHigh level political, cross-ministerial, and stakeholder engagement is vital. It is important to facilitate opportunities for peer-to-peer learning, knowledge-sharing, and innovation. Continuous communication of LEDS benefits to all stakeholders is needed to deepen the awareness and support of LEDS. Integration with national and sub-national development programs and climate-resiliency is essential, particularly to foster learning and assistance on policy and financing strategies, as well as collaboration on common resources and services across programs.

Join Our Network Membership in the Asia LEDS Partnership is voluntary, cost-free, and open to governments, organizations, and individuals from the public, private, and non-governmental sectors active in designing, promoting, and implementing LEDS and green growth within the sub-regions of East Asia, Southeast Asia, South Asia, Central Asia, and the Pacific.•

To join the Asia LEDS Partnership, please visit: http://adobe.ly/11XRCPp To learn more about the Asia LEDS Partnership, please visit:http://ledsgp.org/about/Asia_LEDS_Partnership.

GHG MITIGATION ACTION AND THE FUTURE OF BIOFUEL INDUSTRYArtissa Panjaitan, Indonesia Climate Change Center

SHUTTERSTOCK

SXC.HU

SXC.HU

SXC.HU

48


49



But, while Indonesia currently still has low energy consumption per capita, its rapid industrialization is as energy intensive as in the developed countries. This poses challenges to the country to find the right

balance in its national energy mix to ensure energy security while reducing GHG emission

The highest emission contributors in the energy sector are: Power (electricity) generation and Transportation. Indonesia’s electricity demand still grows at a higher rate than its economy and 57% of the power in 2012 was generated by coal. On top of this fact, in 2011, Indonesia provided subsidy in electricity price

for about Rp. 93 trillion ( around USD 9 billion) annually.

To reduce its emission level from coal and diesel powered generators, Indonesia must improve its energy efficiency in all economic sectors and by making it mandatory for power generation to use cleaner energy, for example by using natural gas during peak hours or replacing diesel power systems by natural gas engines. With such measures and further development of renewable energy for electricity generation, Indonesia can meet its emission reduction target and eliminate electricity subsidies. The money saved from the subsidies could be used to build new infrastructure and improve existing ones.

Bio-diesel for electricity & transportation in plantations as well as remote areas

Bio-gas/solids

Low Energy (electricity) Consumption/Capita

Energy (electricity) Growth Sensitivity > 1 Subsidy

Technology Platform

Energy Mix

Subsidy Growth Sensitivity > 1?

Strategically Remove Subsidy

Emission Growth Sensitivity > 1?

Grow RE Investment

Enhance the Use of Natural Gas

Demand Growth Sensitivity > 1?

Improve Efficiency

Shift to Locally Sourced Energy

Improve Connectivity of Logistics/Supplies

Using Cellulosic Materials

-

200

400

600

800

1,000

1,200

1,400

1,600

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Indonesia Oil Consumption(‘000 barrels/day)

CAGR:• 1990 – 2012 at 3.5% per year• 2000 – 2012 at 2.4% per year• 2008 – 2012 at 3.0% per year

Source: US Energy Information Agency

Indonesia can propel its economic growth and at the same time reduce its GHG emission level by adopting the right policy to attract investments from private sectors. A key area to achieve such goals is in the energy sector.

Renewable Energy (RE) from are local sources, is considered as the most effective alternative to provide electricity in remote areas. However, one of the challenges in promoting RE depends on government pricing policy as the electricity price is strongly regulated. Current RE prices are set by government using formula which allow developer to get higher price in more remote regions, but the price does not entirely reflect the actual differences of generation prices between regions, As a result, the prices offered are not attractive enough to independent power producers (IPP). Probably to make the price more attractive to IPP, it should rather be set based on its reasonable ROI. But the downside of this system is that developers must undergo long negotiation process with PLN, something that has been avoided by stakeholders in the recent past.

New Generation of Biofuels

At current crude-oil prices and with Indonesia’s strategic direction to remove fuel subsidies, the prospect of developing bio-fuel industry from cellulose materials is economically more interesting. Using these materials to produce biofuels will eliminate the controversial issues related to lands use to produce biofuels crops.

Bio-diesel and -ethanol can be used to meet the growing energy demand for power & transportation, and reduce dependence on fossil fuels. Indonesia has abundant cellulosic feedstocks from plantation wastes and productive forests.

Massive production of this new generation of biofuels to replace fossil fuels could also improve Indonesia international trade balance as the country will be able to reduce energy imports from other countries. Based on current technology Indonesia could target the use of D20 diesel fuel instead of D10, without negative effects on currently available diesel engines. This could produce positive impacts to the economy, as energy imports

will decline or even entirely be eliminated, and the process of producing biofuels will create new jobs. But to develop massive biofuels from cellulocic materials will also create great challenges, particularly related to raw-materials collection from scattered areas.

Cellulosic conversion technologies are now progressing toward bio-chemical, thermo-chemical and microbial process. Bio-chemical process mainly use enzyme and acid type of hydrolysis. While thermo-chemical process at first produces syngas via pyrolysis or gasification process and then either followed by syngas fermentation or catalytic synthesis. So far, there is no claim of which is a clear winner among these technologies.

Biofuel specifications include their emission reduction level. Current biofuels have a range of 40%-50% emission reduction compared to 50%-60% of Cellulosic Biofuel. In the case of bio-ethanol, it is currently known the new technology could bring down the cost of producing cellulosic ethanol approaching the US$ 2/gallon benchmark. From feedstock perspective, a ton of cellulosic materials can be converted into around 300 liter of ethanol, depending on the raw materials and the type of processing technology. So, pursuing cellulosic biofuel in Indonesia has sufficient supply of feedstock and will help reduce emissions and grow investments.

The air to fuel ratio between bio-ethanol and gasoline are widely different. Therefore the Engine Management System (EMS) of cars will have to be adjusted to a certain blending standard, or be made flexible to accomodate different blending ratios automatically.

Developing cellulosic fuels in Indonesia presents an opportunity to strengthen Indonesia’s national energy security, reduce emission level from power and tranportation sectors, and help economic development in remote areas of Indonesia.•

Figure 1. Potential decision options to reduce GHG emissions in Power & Transportation.

Figure 1. Potential decision options to reduce GHG emissions in Power & Transportation.

50


51


• GREEN INVESTMENT FORUM• GREEN INVESTMENT FORUM

GREEN PATHWAYS: THE FUTURE INDONESIAIn a bid to encourage the industry to be more environmentally aware, Matsushita Gobel Foundation and the Japan International Cooperation Agency (JICA) hosted the Green Investment Forum.

This investment forum on “Green Economy Path of The Future Indonesia” involved the National Council on Climate Change ( DNPI) and the chief media editors to make socialization programs well-

implemented with the supports of the public.

Rachmat Gobel of Matsushita Gobel Foundation said it is high time for the industry to do something important for the environment for the sake of the future generations. Matsushita Gobel has started to make the industry comply with environmental-friendly requirements in production process and in more awareness to reduce carbon emission. To that end there is acooperation with JICA and mass media. Through this forum of exchange and brain storming we hope there will be more ideas on innovations and breakthrough so that the Industry will be fully aware of environmental preservation.

The forum is very relevant to promote investment, innovation, and productivity for all players in the industry. It is also important to note that the forum appreciates the media has done to inform

Green Investment Dialog on Green Economy Pathway of

The Future Indonesia

Farhan Helmy, Program Coordinator of Green Investment, Innovation and Productivity Network.

DOC.GIIP

DOC.GIIP

52


53


• GREEN INVESTMENT FORUM• GREEN INVESTMENT FORUM

the public on the importance of environmental preservation, Rachmat Gobel said out the Green Investment Forum.

On the occasion, he also expressed gratitude for the supports of Ushio Shigeru-san, from the Japanese Embassy and Atsushi Sasaki, Chief Representative of JICA Indonesia. All have given supports to Matsushita Gobel Foundation .

The Forum would like to thank the Chief of the Editor Forum, now under the chairmanship of Nurjaman Mochtar, for the enthusiasm to participate in this initiative. The role of media is significant and strategic to promote and empower decision makers in policy making process as well as implementation.

Indonesia will enter a new phase in crystallizing all of the ideas discussed in the first round for the last two years (2010-2012) to become implementing actions.

We have been starting to engage stakeholders through Focused Group Discussions(FGD) on two very critical issues: sustainable landscape management and energy conservation and efficiency.

Rachmat Witoelar, Executive Chair DNPI.

Jusman Syafii Djamal, Chairperson of Matsushita Gobel Foundation.

Rachmat Gobel, CEO of Panasonic Gobel Indonesia Group.

The “Green Economy Path of The Future Indonesia” is really relevant and contextual issue for Indonesia for a couple reasons: firstly, we are really concern on the future direction of government policies as we are approaching to political transition in 2014. We would like to see a certainty and sustainability of the future direction. We are of the view that, strong institutional foundation will ensure long-term commitment to engage in the green economy.

Secondly, looking ahead on the global and regional economy dynamics such as climate change regime and the upcoming ASEAN integration into One Community Nations in 2015, we would like the government to prepare relevant policies and regulation towards that end. We will be ready to support you in materializing these endeavors. We do believe as a nation we can work hand in hand with the government to engage in this process towards green economy.

We are looking back on the most recent economy challenges. The green economy will also create a wide range of opportunities in creating new jobs with high values. Therefore, taking up the

issues of green jobs into dialogue would also contribute to better and healthy Indonesian environment in the future.

There is a new challenge to boost high economic growth at the same time with the mitigation efforts in reducing greenhouse gases emission. As such, this effort requires a long term vision, openness and acceptance to the new ideas, and also commitment and hard work from all of concerned parties from both government and non-government in achieving the objectives.

The increasing demand of eco/green products have become the increasingly important and strategic issues to improve competitiveness of our nation. Understanding of “Green Technology” and its implementation of ”Green Industry” is critical to increase the competitiveness.

As one of the industrial players, I see that global market trend is heading toward the eco product market. This is really a big opportunity and challenging as we. The breakthrough effort in finding a solution for short term issues within the long.•

DOC.GIIP

54


55


• GREEN CHAMPIONS • GREEN CHAMPIONS

An activist in environmental movements dealing with global warming issues, Nadine Chandrawinata, a former Miss Indonesia 2005 tries to keep herself healthy by being close to the nature.

Nadine, a former model who was born in Germany in 1984, tries to help preserve the environment by encouraging people to love and respect nature.

Traveling to savor nature across the archipelago, she discovered Indonesia’s beauty from land and sea. This was despite many environmental publications reporting the large scale exploitation of rainforests and coral reefs.

Despite human activities that cause serious impacts to nature, particularly on marine ecosystems, Nadine can see and feel that there is improvement in how the communities deal with the ocean. She believes that many reports on global warming issues and the natural disaster threats have coastal inhabitants realize the importance of oceans on the global ecosystem.

NADINE CHANDRAWINATA

Respectand Love The Nature

I’ve seen a stop to excessive fishing and coral harvesting, and even in Bontang, Kalimantan, with rampant large scale mining, there are serious activities to

maintain forest function

ECO TOURISM AMBASSADOR

IST

IST

In her frequent journeys across the country, Nadine observes people’s changing behavior in their treatment toward the sea. For example people, particularly fishermen, stop throwing waste into the sea. “I’ve seen a stop to excessive fishing and coral harvesting, and even in Bontang, Kalimantan, with rampant large scale mining, there are serious activities to maintain forest function” said the former beauty queen.

Nadine believes everyone should “go green”. “We should first ask our friends to join the cause, even by simply turning off lamps. Human beings are nature’s major destroyers, but we can also become nature’s major saviors,” said Nadine on many occasions.

Her great concerns on marine life and preservation has awarded her an appointment as Marine Conservation Ambassador by World Wildlife Fund (WWF) and by Wakatobi Regency, South Sulawesi.• (Various Sources)

56


57


• GREEN CHAMPIONS• GREEN CHAMPIONS

Ciliwung River is one of the important rivers in Java. The river flows from its source in the highlands of Mount Gede, West Java down to the Jakarta Bay. The Dutch colonial governments used the river to support the economy of Batavia. The colonial administration also realized the river’s strategic function in controlling floods that plagued the city during the rainy seasons. They built a few minor waterways and channels to reduce flood threats. Historical records showed the river was well-known for its beauty and was a place to visit. Jean Batiste Ravenier, a Dutch scholar, praised Ciliwung for its clean water and the beautiful scenery along its banks.

Today, Ciliwung river is heavily polluted and many of its natural banks along the river has been occupied by squatters. Many poor citizens are forced to live by the river because

it is all they can afford. Because of their “informal” occupation along the river banks, no organized rubbish collection is serves the squatters which forces them to dispose of their wastes in the river. In addition, because they cannot afford clean drinking water, many of the residents are forced to boil and drink the river water for their daily consumption, leading to many health problems.

After Indonesian independence from the Dutch, the river has lost its waterway functions, but it is becoming Jakarta’s main supplier of clean and drinking water through a modern

PENI SUSANTI CHAIRPERSON OF CILIWUNG BERSIH MOVEMENT

Friend of the Rivers

Today, Ciliwung river is heavily polluted and many of its natural banks along the river has been occupied by

squatters.

processing system run by the city administration. It also still maintains its function as the source of agricultural irrigation along the river banks to this day.

The polluted river has drawn concern from scholars, government officials and from non-government organizations. Peni Susanti, former head of Jakarta Environmental Control Department, has spent her long career at the Jakarta Administration working on environmental issues. She has great concerns for Ciliwung’s uncontrolled pollution caused by increasing human activity along its river banks. During the few years before her retirement, she launched a project to bring back Ciliwung’s natural beauty. Peni’s initiative has got great support from many national and international organizations, including the military. Together, they strive for treating the polluting elements and involving stakeholders in the process.

Peni hopes that the river clean-up programs she is working on with her partners will get proper attention and effective supports from centrall and regional governments served by the great river. She also hopes more international supports will be obtained to help achieve the project’s goals.•

River Clean-up Program. A project to bring back Ciliwung’s natural beauty.

Former Minister of Settlement and Regional Infrastructure Development, Erna Witoelar, together with volunteers of Ciliwung Clean River Program.

SOF

IST

58


59


• GREEN CHAMPIONS• GREEN CHAMPIONS

There are many choices when you want to contribute to of environmental preservation. Suzy Hutomo chooses to do it by establishing and running a “green business”. In her successful business franchise of “The Body Shop”, promoting and selling “ethical and green cosmetic” concepts, Suzy is doing just that.

“We feel that businesses must apply a sustainable concept to prevent environmental damaging impacts and in that respect we must try to apply a role model,” said Suzy Hutomo.

The Body Shop International, founded by the late Anita Rodick in 1992 is globally known as business entity that consistently promotes green causes right from its conception.

As a business woman and individual, Suzy believes in the principle doing good business must be for the sake of ‘planet, people, profit’ This thought has compelled her to run her business in environmentally responsible ways.

Suzy is the main franchise holder of the Body Shop businesses in Indonesia. The company has been growing successfully since Suzy took the main franchise rights from the UK based corporation in 1976. The franchise chain has now 98 shops in 30 cities across Indonesia.

“We are trying to keep in touch with and give the best services to our customers, asking them to consider the social aspects associated with environmental preservation that are embedded in products they purchase and consume” said the former Chairperson of KEHATI foundation.

A Graduate of the National University of Singapore and Fashion Institute of Technology, New York, USA she is also concerned with the empowering of women to make them independent and have a be strongly commitment to preserving the environment.

“I am trying to make The Body Shop a role model for the public and business community in how to run a business which produces added values of preserving the environment ,” said the daughter of Hari Darmawan, an owner of a big retail business, “Matahari” chain stores.

“I was born when Indonesia was still a country with abundant green landscape and great bio-diversity which produced pleasant climate especially in the mountain area like “Puncak” in West Java. In my younger years I could feel how fresh the air and how green and beautiful the nature surrounding us. I recalled the days with my parents and other members of my family when we maintained large gardens with various organic plants. When I married I kept my gardening hobby which helped me remain close to nature while I started my businesses , ‘the Body Shop International’s business is exactly in line with the ideas and good values to help preserve the environment, so I almost immediately fell in love with Body Shop’s philosophy,”.

Personally I believe that one day consumers will reject products from a company whose production process and the use of raw materials are not in line with environmental preservation, and there will be an increasing awareness to the concepts green productivity and green innovation as a solution to the future survival against worsening environment,” she said seriously.

“There will be more young entrepreneurs who are upholding good values and in positive perspective over the need to preserve the environment in running businesses. This new generation does not consider producing green products as a burden or additional cost to their businesses, but they see it as opportunities to earn good money while helping to preserve the environment at the same time. Those in such good businesses are also visionary leaders in the business sector,” said Suzy who is also a co- founder of Centro Department Stores with her husband, Hutomo Santoso.

Suzy said that she has made several investments to improve public awareness on environmental issues and on ways to cope with the related problems, by sponsoring production of a movie called“Sekolah Rimba” ( Jungle School) which will be screened in theaters by the end of November 2013.

“We also support projects in coral reef preservation in Bali and in the Jakarta Bay areas, in cooperation with Coral Triangle Center, an international not for profit organization which devotes its activity to saving the world coral reefs. We also applied green office concept, like using recycled paper, doing waste recycling and use energy saving lamps. We do not use styrofoam in our packaging system, request our customers to return used bottles and avoid using plastic bags.” said this mother of three children .

“Every year we also participate in the international program on Earth Hour and we also ask customers to do the same” she further said.

Suzy believes that the government should play an important role in coping with environmental issues. There is a need for strong green polices from the government, and it should lead in preserving the environment. Within the private community, parents and teachers have also crucial role and great responsilities in educating kids on green causes. Every child is educated by their parents and their teachers, and they must become wole models by showing care about environment, teach children about what is happening in the world and how being a green citizen can help the world to become a better place.

As for the businesses, as Anita Roddick the founder of The Body Shop said, company is a member of the community and large multi-national corporations in a capitalistic system are in a way more powerful than government. For the sake of the planet, business people should not have to wait to be regulated but to proactively respond to the needs of the planet. The good thing is that doing so, companies will also make profit, because the future customer want to see companies to be responsible for preserving the environment. They will shun companies that their operations and business models are essentially destroying the planet”.

“If you care about the future of the planet and the world sustainability, be a green citizen, vote for green politicians in DPR and in the government, support good NGOS and the national and global efforts to save the planet from the imminent perils of runaway global warming”, Suzy said, ending her conversation with Green Magazine.•

SUzY HUTOMO CEO The Body Shop Indonesia

Visionary Leader in Green Business

We feel that businesses must apply a sustainable concept to prevent environmental

damaging impacts and in that respect we must try to apply

a role model

Collecting garbage. Running business in environmentally responsible ways.

IST

IST

60


61


• BOOK REVIEW• BOOK REVIEW

It is no exaggeration to say that human-induced climate change will have a transformative effect on the way we live. If the anthropogenic causes – principally the burning of fossil fuels and land-use change – are not mitigated then the Earth’s surface will grow warmer, sea levels will rise, weather patterns will change, many dry areas will become drier and wet areas wetter, and the organization of economy and society will have to change in order to adapt to the new environmental conditions. If on the other hand the nations of the world agree to implement effective mitigation practices this will require reducing greenhouse gas (GHG) emission it is hard to see how this can be achieved without major societal and technological changes since historically fossil fuels have been the main energy source for powering industrial society and economic development. Coping with climate change requires societal transformation.

Whether the societal changes required for mitigation and adaptation impact negatively or positively on population well-being will depend on many factors. Central is how opportunities for institutional and technological innovation are identified, developed and implemented. What is often overlooked is the role of population dynamics among the causes and consequences of climate change. A clear appreciation of the role of population composition and change helps focus attention on specific population-based issues where innovation can improve well-being at the same time as responding positively to climate change.

In Indonesia, work supported by the National Council on Climate Change (DNPI) has already identified a number of population-based policy options which can both improve quality of life and reduce GHG emissions.1 They include,

POPULATION DYNAMICS

AND HUMAN DIMENSION OF

CLIMATE CHANGE INDONESIA

Population, Climate Change and the

Transformation of Society:

Opportunities for Innovation and

Investment

first, improving energy efficiency in rapidly-growing urban areas through better spatial planning, improved infrastructure, and allied interventions (such as revised building codes). Innovations in urban design can result in safer and more comfortable public transportation, less reliance on private cars, cleaner air, more civic pride, and wider opportunities for pleasant physical exercise; these in turn lead to significant improvements in population health and well-being. The Government’s new Masterplan on Acceleration and Expansion of Economic Development 2011-2025, with its focus on enhanced connectivity and establishing a series of urban corridors throughout the archipelago, provides a golden opportunity for researching and implementing innovative elements for this policy option.

Secondly, recent population projections show that revitalizing the national family planning program can make a major contribution to Indonesia’s mitigation efforts over the next half century and beyond. A number of reports suggest the program needs to be revitalized to protect the health and reproductive rights of citizens. The fact that reaching population stabilization sooner rather than later contributes a significant reduction in the country’s GHG emissions is a fortunate co-benefit.

Thirdly, investing heavily in the forward-looking education of today’s youth will do much to enhance this generation’s lifetime learning, health and well-being. It is also essential if Indonesia is to take full advantage of the country’s “demographic dividend” and maintain the competitiveness of its workforce. With the right kind of educational, institutional and technological innovations in place the resulting surge in human capital and national prosperity can smooth the transition to a green economy.

Finally, much can be done among the young rising middle classes in Indonesia to promote the public and private benefits of sustainable lifestyles and green consumer choices. In his well-known report on The Economics of Climate Change Nicholas Stern concluded that markets and government regulations, essential as they are, will not be sufficient by themselves to cope with climate change. People’s attitudes and “preferences” will need to change too. This is not a question of taking away or restricting people’s choices, but rather “nudging” them to make choices with fewer harmful consequences for themselves and others. Making consumerism more climate-friendly

1 See the DNPI Policy Memo, Population Dynamics and the Human Dimensions of Climate Change in Indonesia, available at www.dnpi.go.id

requires investment in innovation on the part of governments, private sector and civil society working together.

Adopting a population perspective can also help uncover opportunities for innovation in climate adaptation. Research shows that the relative exposure, sensitivity and adaptive capacity of population groups to environmental hazards are each strongly associated with demographic and social characteristics. The stock and flow of human capital in a community available for local adaptation efforts, for example, cannot be estimated without taking into account the underlying population dynamics. Until recently discussion about reducing vulnerability emphasized building “resilience,” in the sense of a community, say, having the resources to withstand the impact of an extreme weather event, or at least be able to “bounce back” afterwards and restore their pre-existing way of life. The latest thinking argues this ideal is not sustainable in the long term, and what is needed instead is the kind of resilience that can “bounce forward.” This connects well with the idea of societal transformation. We do not want to invest in adaptation simply in order to maintain life as it is today: we want innovative adaptation so that well-being is improved and everyone can look forward to a brighter future.

The idea of societal transformation has always been at the heart of development. Too often, however, transformations have made societies less sustainable in the long-term rather than more. Focusing on how population dynamics affect and are affected by GHG “pollution” positions the debate about climate change within the broader discussion of sustainable development. The so-called Shared Socioeconomic Pathways (SSPs), currently being developed by the international research community as part of a new generation of climate scenarios to be used by the International Panel on Climate Change (IPCC), scope out the range of population and socioeconomic changes we might plausibly see in different regions of the world in the current century. They will help researchers and policy analysts assess how different development pathways pose challenges to mitigation and adaptation efforts, respectively.

The “master challenge” is to find low-carbon development pathways which both improve the well-being of populations and at the same time respond adequately to climate change. Rising to the challenge will require innovations in economic, political, social, cultural and international institutions as well as in technology. Keeping a focus on the changing dynamics of the populations which construct and live by these institutions will help identify where institutional innovations are most urgently needed.•

Adrian C HayesAustralian National University

IST

62


63


• BOOK REVIEW• BOOK REVIEW

Not every one the opportunity to be witness to the had tensions and excitements happening during the heated debates over the climate at the Conference of Parties ( COP meetings under auspices of the UNFCCC).

While reading this book readers will be informed about how the global community draws up policies on climate change in a historical global event.

The book provides insight on how Indonesia makes and applies policies to cope with climate changes especially related to mitigation programs.

Indonesia played an important role in the climate change negotiations in the COP13th in Bali in 2007.

As Cop President Rachmat Witoelar, successfully encouraged wider participation by all parties to address the climate change in a transparent and participative fashion. This resulted on an Action Plan on the common agenda set forth in the Bali Road Map.

Indonesia’s delegates, with the support UNFCCC secretariat had offered workable solutions for the developed and developing countries to address issues related to mitigation, adaptation and the means required to implemen programs (financing, transfer technology and capacity building).

The Bali Road Map specified in more detail Long Term

Cooperation Action (LCA) that was negotiated until the end of 2012.

The evolution on climate change policies in Indonesia was marked by the appointment of the Indonesia National Council on Climate Change ( DNPI) in 2008 chaired by President Susilo Bambang Yudhoyono and Rachmat Witoelar as the Executive Chair. The Council has a membership of 17 Cabinet Ministers and National Meteorology, Climatology and Geophysics Agency tasked to formulate policies on low carbon emission and related efforts to cope with climate change issues in Indonesia.

The council has seven working groups to discuss policies to achieve the targets of mitigation and adaptation programs, of building the necessary infrastructure including developing technology and capacity building.

After the establishment of the DNPI, climate change issues have become the concern of line ministries.

Indonesia’s voluntary GHG mitigation program was later announced by the President in 2010, and the implementing guidines are described in the National Action Plan on Emission Reduction ( RAN-GRK) issued recently.

Based on projected emission reductions (1999) Indonesia’s carbon emissions may reach 2,95 giga tons CO2 by 2020, and the Indonesian government made a commitment

to lower the GHG emission by 26% by 2020, while projecting an average economic growth of 7% annually.

To support the government’s decision, DNPI developed a study on GHG abatement costs in 2020, and on other issues related to the cost of GHG reduction.

The books further unveils the implementation of mitigation programs by the Indonesian government including the initiatives and angagements of the private sector for the investment and actions needed to implement the programs and the development of national strategy on low carbon development.

The mitigation programs are mostly related to reducing emission from deforestation and forest degradation or REDD+ which potentially could reduce emission by 75% by 2020.

The REDD+ Programs in Indonesia started in 2008 and two years later it received stimulus to advance with financial assistance pledged by Norway in an LOI signed on May 26, 2010. Based on this LOI, the Indonesian government strives to have REDD+ implementated more rigorously.

Development of MRV REDD+ system in Indonesia and the government’s aspiration to adopt the implementation of REDD+ safeguarding the environment, societal development

and governance.

To accelerate the implementation of REDD+ in Indonesia, the government sets up a REDD+ Taskforce in charge to manage a readiness program and build the necessary modalities and procedures to implement the programs. Now we just have a new permanent REDD+ national agency established in last september for full REDD+ implementation.

At the end of the book, there is information regarding the budgeting system for mitigation and adaptation programs. Indonesia delegation target at COP is to clarify and secure long term commitment on long term finance for GCF and adaptation fund including the REDD+ financing.

This books also explains the role of donors including Australia, Finland, Germany, Japan, Norway, the UK and the USA, in providing support to Indonesia in achieving its targets of lowering emission associated with climate change. This information is crucial for the people of Indonesia especially on matters related to delivery mechanism

Overall, the book describes the evolution of policy development and implementation on climate change based on COP 13 in Bali in 2007 until COP 17 in Durban in 2011.

In my opinion, this book is a ‘must read’ for all who are interested in Indonesia’s endeavors to combat climate change.•

EVOLUTION OF INDONESIA CLIMATE CHANGE POLICYMuhammad FaridSecretary of LULUCF Working GroupIndonesia National Council on Climate Change

IST



65


• GREEN INNOVATION

The construction of more environmentally friendly buildings and the renovation of existing buildings will play a critical role in reducing these emissions.

There are some criteria of green building concepts: energy efficiency, water efficiency, resource efficiency, responsible site management and improved indoor air quality. A green building construction concept also requires proper water and garbage management.

There is a trend in the property sector to build more green buildings.

The government has started to make initiatives through the Ministry Public Works that has applied green building concepts in constructing its own office building.

“Green building is not a trend, but must be applied in our daily life,” said Rana Yusuf Nasir as a Director of the Green Building Council Indonesia (GBCI).

The Green Building Council Indonesia (GBCI) is a non-government and non-profit institution which is dedicated to public education in the application of good practices in

environment-friendly building construction and facilitate the sustainable global building industry .

“GBCI is an emerging member of World Green Building Council (WGBC) headquartered in Toronto, Canada. The WGBC at present has 93 member countries with one WGBC office in each country,” said Rana.

In Indonesia GCBI was founded in 2009 with Siti Adiningsih Adiwoso as a Chairperson in establishing good quality of green building construction.

INCREASING AWARENESS AND INITIATIVES OF GREEN BUILDINGSAlong with the increasing awareness in global warming, and studies showing that buildings contribute to carbon emissions, there have been initiatives from the government and individuals to build more environmentally friendly buildings.

The Ministry of Public Works. In compliance with Green Building Standard

Rana Yusuf Nasir Director of Green Building Council Indonesia (GBCI)

Hermanto Dardakvice Minister of Ministry of Public Works

SOF

ISTIST

66


67


• GREEN INNOVATION• GREEN INNOVATION

Among others it issues Green Building Certification in Indonesia based on criteria by GBCI such as Appropriate Site Development or ASD, Energy Efficiency & Conservation ( EEC), Water Conservation (WAC), Material Resource and Cycle (MRC), (Indoor Air Health and Comfort (IHC) and building and Environment Management (BEM).

Within the Indonesian society of architecture, the understanding of eco friendly housing is growing. In the past decade the understanding was conceptual, but in last few years, has becomes more implementative and incorporated into design work from the beginning. This is known as the passive approach of design.From the start the builder has planned the building by taking considerations of eco friendliness in many design aspects, in the construction, and for building use.

At the implementing stage, Jakarta has Governor Rule No 38/2012 that stipulates green building requisites to acquire the IMB (Building Construction Permit).

Director of GBCI Rana Yusuf also said that there has been increasing awareness in the application of green building concepts.

As a graduate of the Bandung Technology Institute, he himself is proud of the encouraging development in Green Building Concept Application.

The application ranges from planning, construction and the operation of the building. There are some aspects of natural conservation, efficiency, the use of environment-friendly building materials and healthy spatial layouts of the building.

Rana also said that there have been training demands as

an indication of increasing awareness of the public on the importance of green building concept application and the maintenance of the buildings.

“In the beginning we work voluntarily with frequent presentation of works. The GBCI also holds regular training for the public,” he said.

He hard work paid off as the public have showed care and awareness by participating in green building training.

One of companies which participated was PT. Angkasa Pura II for 1,000 of employees.

“All of these are good signals that the public is now more aware of green building an demanding green building certificates as well,” he said.

Procedures

As the recipient of Ozon Award from the Ministry of Environment she said there have been long procedures to issue green certificates. Sometimes it takes around one year to finish the certification issuance process from planning to evaluation.

Meanwhile existing buildings only require auditing for cost or budgets and the quality of building materials.

“Certificates are valid for three years and subject to evaluation and lower standard ratings”, he said.

Meiko Handoyo from the DPD Real Estate Indonesia (REI) DKI Jakarta said increases added values in sales. However, it will

be awhile before the concept is widely accepted from a business perspective.

Yandi Andri Yatmo from the Indonesian Association of Architects (IAI) “the education sector should come up with a common vision and understanding on green building concepts,” he said.

“We need one common perception and criteria on green building concepts in the wider context relating to the environment, climate change and socio-cultural aspects,” he said.

He said the most important thing is understanding of sustainable building, a philosophy where architects are stewards of the earth.

Role Models

Explaining further on green buildings Rana Yusuf said the office of the Ministry of Public Works is a good green building model for other government offices.

Chief of the Public Works Ministry’s’ communication center, Danis H. Sumadilaga, said the ministry has applied environmentally friendly building. concept.

Construction fusing the green building concept is 10 percent to 15 percent more expensive than ordinary building, but offers a number of benefits.

The ministry has spent Rp387.2 billion for efficiency in electricity consumption up to 44%.

“The building can save water by 81% during rainy season and 63% in a dry season ,” he said, adding other benefits are related with the application of daylight sensors and motion sensors for public areas by saving 13 percent of costs.

“Does are the benefits of the green building application,” he said.

Other aspects are related to grey water system of up to 83 % with or without rain water 61 %. Grey water system can save 180 m3 clean water and for recycling to get total 150 m3/day, he said.

With zone control system the green building has 30 percent energy efficiency by being of green materials based on sustainable, eco friendly and non toxic elements.

“All material are in compliance with ISO 14001 so that it can save up to 1,650 tonnes per year in comparison to Antidesma Bunius trees which only can absorb 31 tons or Pterocarpus Indicus by 0.71 ton and Beringin (Ficus Benjamamina) 7.08 ton/year.

The Ministry of Public Works office is also bicycle friendly with existing facilities.

Good Example

Separately, Vice Minister of Ministry of Public Works, Hermanto Dardak, said that the office with green building concept is also important to reduce CO2 emission .

The Building of Public Works Ministry promoting green building construction conceptBUDIALI G

68


69



“The office with green building concept in water management, building materials and other environmental-friendly aspects has received recognition and Gold Award” from Green Building Council (GBCI),” he said.

There are only six buildings which have got (green building certificate as stated by The Director of the Facilities Management Collier International) Christina Ng. Of the six buildings, three are new buildings and other are existing buildings.

The Green Building Council Indonesia (GBCI) has issued certificates based various grades, said Christina.

“There are already six building certificates in Indonesia and 21 buildings have applied for getting certificates or under registration and 34 buildings are under process,” she said at the Eco Expo (BEX) Asia 2013 in Marina Bay Sands Convention Centre Singapore.

New buildings which have green building certificates are the offices of PT Dahana Tbk (platinum), Technology Science Institute (Teknologi Sains Bandung) - ITSB (gold), and Public Works Ministry office (platinum).

Meanwhile, existing building which were awarded green building certificate are Menara BCA, PT. Grand Indonesia (platinum), Sampoerna Strategic building, PT. Buana Sakti (gold), and German Centre Indonesia (gold).

Christina praised the government initiatives to manage sustainable green building such as the offices of the Public Works Ministry and the Ministry of Marine and Fishery.

Rana Yusuf said that there is a greater role of the government in introducing and implementing green building concepts and regulation.

The government’s role to support the achievement of green building is stipulated through the Presidential Rule No. 73/2011 which make mandatory that a state building has to be eco friendly, which is in the context of the rule, that is understood as green building.

The government has showed a strong commitment to support the establishment of green buildings. The role of GBCI will be there until the government has turned into a regulator and the role of GNCI will come to an end as green building management and supervision will be taken over by the government.

The Benefits

Asked on the importance of Green Building, Rana Yusuf said that some benefits include environmental preservation, social

and economic benefits.

“It can improve the quality of air and waste reduction and bring benefits in building operational cost efficiency and productivity to owners of the building,” he said.

Similarly as Rana, Irwan Sendjaja, Chairman of the Indonesian Association of Property Management (Ampri) said that green buildings can curb soaring operational costs.

“The office building management feels the benefits of cost efficiency in building maintenance”, he said. This will prevent profits to go high or increasing.

Green building concepts, can save costs especially if the building are for sales or rental, by as much as an additional efficiency up to 20 percent per month.•

BUDIALI G

70


71



Eco friendly buildings measure the effects of the building on its external environment and increasing the internal building quality. Usually, some aspects to consider are: the architectural design of the building, construction methods, building materials, efficiency of energy consumption, efficiency of water usage, and ecological life cycle.

What makes a building eco-friendly?

There seems to be no single answer for definitions about eco-friendly building vary. A building and a hill has different efficiency calculation than with one on coastal areas. Living in an upper storey of an apartment tower has a different eco-calculation than a house. Each building has its own answers as designs are adapted to different conditions. Nevertheless there is a general approach to design an eco friendly building.

The first step is To know Where You Are.

This focuses on the quality of the surrounding environment and about the possible quality can be achieved there. Being well informed about the location is crucial for an eco friendly building, whether renovation, purchase, or building from scratch.

Next step is that Size Does Matter. Despite the common view of the bigger the space the better for the user, especially for housing, eco-friendly approach doesn’t always say so. Bigger is not better, because a smaller the building means a better control, over environmental aspects.

The third step is realizing that we have to decide autonomously that we want to build an eco-friendly building. This awareness is an important factor as this will help focus the efforts toward realistic design, energy saving, and protection of various natural resources to be used.

The fourth step is more technical, studying the

method of construction, seeking alternatives to conventional construction methods, and using materials effectively to.

Especially for architects, designing eco-friendly building is truly a process. The goal is not making a perfect building but a better building. The general approach described through the above mentioned steps, by Prof. Jong Jin Kim from the College of Architecture and Urban Planning University of Michigan, packaged as the principles of sustainable design within the contex of eco-friendly architectural designing.

The economy of natural resources focuses on reducing, re-using dan re-cycling various natural materials used in the building. Main aspects of concern are energy saving, water conservation, and efficiency of other materials. With these efficiencies, the architect will reduce the usage of non renewable resources, in construction and after the building operates.

Life cycle design is a method to analyze the construction process and it’s effect on the environment. It comprises the pre-building, building, and post building phase. The conventional model of the life cycle of a building is: design-construction-operation-demolition. In this principle we enter an approach that recognizes the consequence to the environment in all phases in

the model. The approach is to reduce the negative effect to the environment and to prolong the lifetime of building materials. Material that reach the end of its conventional usage period can be processed as new material and can always be reused.

Humane design is the principle that focuses on the interaction between men and their environment. This principle is related to the design adaptation to the natural conditions, urban design, site planning, and the degree of comfort of the building to be achieved. The first two principles relate to the efficiency and conservation, while the third principle relates to living harmony of all ecosystem constituents : non-organic elements, living organisms, and the people. This principle grows from the philosophy to embrace and appreciate the existence of all things and organisms on earth.

Finally, to be able to design an eco friendly building, an architect must learn about environmental problems. Architectural education must be able be concerned towards the environment, introduce students to environmental ethics, and also to develop their skills based on scientific grounding with a base in sustainable design.•

BETTER UNDERSTANDINGTOWARDS GREEN BUILDINGS

Within the last decade, the field of architecture has become increasingly environmentally aware. The green movement developed rapidly, focused not only on protecting natural resources, but also energy consumption efficiency and environmental damage reduction. Architectural design has changed to reflect societal attitudes that are more concerned with the environment, and reflects the availability of eco friendly products that are now easier to get in the market.

Endy SubijonoThe Indonesian Institute of Architects (IAI)

SHUTTERSTOCK

IST

72


73


• GREEN HIGLIGHTS • GREEN HIGLIGHTS

In 2011, Indonesia announced a target to reduce emissions unilaterally by 26% by 2020 from business-as-usual levels, and aims to slash emissions by up to 41% using international assistance. Indonesia faces a

number of challenges that could undermine GHG emission reduction efforts in the future. The country’s numerous land-based industries often fail to apply models of land use that go beyond short term involving large scale deforestation to address issues relating to biodiversity and conservation. Indonesia’s industrial, transport and residential energy use are also bound to rise in the future as the country continues to develop at a rapid pace. Ensuring this process does not undermine emission reduction objectives will require a shift from coal to natural gas, while developing renewable energies like geothermal power, of which Indonesia was the world’s third largest in 2011.

With half of Indonesia’s population living in cities today, and the trend growing, city level action where change can be planned and implemented (reasonably) quickly. It makes sense to engage here – in a coordinated, concerted effort. It is part of ICLEI’s mission to support local governments in addressing low-carbon development, from planning to

URBAN LOW CARBON-DEVELOPMENT IN INDONESIA:FROM STRATEGY TO ACTION

Authors: Gino Van Begin, Secretary General, and Maryke van Staden, Low-carbon Cities Program Manager, ICLEI – Local Governments for Sustainability (ICLEI), World Secretariat

implementation and monitoring. This also closely links to several of the organization’s other City Agendas such as green growth, biodiversity and sustainable development – with ICLEI supporting a vision of offering quality of life to all people while actively addressing climate change and other global challenges, yet at the same time securing the environment for sustainable use by current and future generations. A challenge indeed!

Urban low-carbon development strategies

The Urban-LEDS project1 funded by the European Commission (EC), and jointly implemented by UN-Habitat and ICLEI, supports local governments in emerging economy countries (Brazil, India, Indonesia and South Africa) to address these issues – from a climate change mitigation and sustainable development perspective. The overall objective is to integrate low-carbon strategies into all sectors of urban planning and development, by defining and approving Urban Low Emission Development Strategies (Urban-LEDS).

In this project ICLEI’s GreenClimateCities (GCC) program is

1 http://urbanleds.iclei.org

used, offering a proven methodology that takes local governments step-by-step through a process to plan, implement, and monitor low-emission community development. It addresses both start-up and advanced local governments.

In the Urban-LEDS project 8 cities are guided to develop into Model Cities, with more than 20 Satellite Cities observing, learning and sharing their own developments regarding strategy elaboration ,priority setting, action planning, as well as implementation and monitoring processes. The Indonesian cities of Balikpapan and Bogor were one of the first Urban-Leds model cities on board while Kabupaten Bogor, Tanggerang Selatan, Tarakan, Bontang were selected as satellite cities.

Role of local governments

The role of local government is interesting in this whole process. Engaging as an important level of government that is closest to citizens, it is in a position to inform, guide and lead local inhabitants, businesses and industries in the low-carbon development process. The local government is also an accountable level of governance that outlines and implements policy, deals with urban planning, is a focus for community identity, provides services to meet community needs, facilitates

City and Climate Change dialog organize by ICLEI and DNPI at Indonesia Pavillion, COP 19, Warsaw, Poland.

DOC. DNPI

DOC. DNPI

74


75


• GREEN HIGLIGHTS• GREEN HIGLIGHTS

and coordinates local efforts and resources in pursuit of common community goals.

All these areas of action can be very effectively used when addressing low-carbon development, especially when considering that climate change policy is a cross cutting issue that involves all the sectors in economy; energy, waste, water and sanitation, housing, transportation, urban planning and land use, as well as procurement. Increasingly local and other levels of governments are exploring this in a more coordinated, coherent and strategic manner. This is also the vision pursued within the Local Government Climate Roadmap, with the 2nd phase launched at the World Mayors Summit of Climate Change in Nantes – as outlined in the Nantes Declaration released in the same timeframe as the first part of the IPCC’s 5th Assessment Report2.

Focus on the built environment

An Urban Low Emission Development Strategy defines a pathway to transition a city to a low-emission, green and inclusive urban economy, through its integration into city development plans and processes. In the Urban-LEDS process the built environment is a key sector where local action is addressed – exploring how new low-carbon districts can be developed, how buildings can be energy efficiently retrofitted - where energy demand is not only actively reduced but also the transition to (ideally local or regional) renewable energy solutions are being explored in the local strategies and action plans.

This implies a wide range of activities: from optimizing building design to applying sustainable materials and technologies, from soft measures such as raising awareness to involving civil society in activities (relevant to their buildings, their homes, offices, schools). However, it also requires an integrated approach to ensure continuity over a period of time - optimizing resource and energy efficiency, reducing dependency on declining fossil fuels by stimulating renewable energy resource use, changing

2 http://www.iclei.org/climate-roadmap/2013-nantes-world-mayors-summit-on-climate-change.html

lifestyles and perceptions, shaping a green economy and social equity system.

From strategy to action

Based on years of intensive advocacy efforts, local governments are now recognized as “governmental stakeholders” in the global climate regime. Their planning and implementation of low emission development will not only support national plans but also effectively contribute to global climate change mitigation.

The diversity of local action has the potential to achieve substantial CO2 equivalent reductions, encourage behavior change and shape a sustainable future. ICLEI and its partners offer guidance and support to local governments, from global protocols to greenhouse gas emission inventories and action planning.

Indonesia is already forging its way through a low carbon development pathway. As one of the four target countries of Urban-LEDS Project implemented by ICLEI, Indonesia hosts pioneering projects in transport and street-lightning to be financed through innovative NAMA funds. Together with France, Poland and Mexico, Indonesia is also one of the pioneer countries of the “Friends of Cities” at the UNFCCC.

From strategy to action - this is exactly what UN-Habitat, six ICLEI Offices, the implementing Indonesian cities and their partners are doing in the Urban-LEDS project.•

Indonesia has been granted funding for mass transportation systems that are environmentally friendly from the British government and the German government.Indonesia got surprise in the middle of Conference of the Parties (COP)-19 of the United Nations Framework Convention on Climate Change (UNFCCC). A proposal on Sustainable Urban Transport Initiative - Nationally Appropriate Mitigation Action (Sutri NAMA), as a commitment of Indonesia’s greenhouse gas emission reducing, got approval on the funding of the program under NAMAS Facility from England and Germany Governments. The proposal was submitted by Indonesian Ministry of Transportation. NAMA’s Facility is a mitigation partnership which was formed to support partner developing countries in implementing ambitious actions against climate change. The Sutri NAMA was approved to under the partnership of 43 states as well as provision for Chile, Costa Rica and Colombia.”Indonesia and Colombia became the first countries to gain international support for sustainable transportation action. This funding proves the international world appreciates we mitigation action for transport,” said Expert Staff on

Environment of Indonesian Transportation Minister, Wendy Aritenang. Aritenang, representing the delegation of the Republic of Indonesia explained SUTRI NAMA along with other elected NAMAs program in a side event entitled “Financing the Implementation of Transformational NAMAs through Europe Union NAME Facility” on the side event of the climate change conference in Warsaw.

The Sutri NAMA project funding assistance amounting to 17 million euros from 70 million euros in total collected NAMAs Facility for four of the selected proposals. Aritenang explained transportation sector contributed up to 23 percent of greenhouse gas emission in 2005, according to data of Indonesian Climate Change Sectoral Roadmap (ICCSR), meanwhile 90 percent of national energy consumption was spent by private vehicles. Therefore, development of mass transportation system is a mitigation action that is multi-beneficial, reducing oil and gas consumption as well as the energy subsidy. The Sutri NAMA would be implemented in three big cities as pilot project in Indonesia, namely Medan (North Sumatera), Manado (North Sulawesi) and Batam. Later on, the Sutri NAMA can be applied in many big cities in Indonesia.•

INDONESIA RECEIVED15 MILLION EURO TO SUPPORT SUSTAINABLE TRANSPORT

Advisor to the Minister of Transportation Environmental Affairs, Wendy Aritenang,

representing the delegation of the Republic of Indonesia describes the program

Sustainable Urban Transport Initiative - Nationally Appropriate Mitigation Action

(Sutri NAMA) in the EU side event on Climate Change Conference COP-19 in Warsaw, Poland, entitled “Financing the

Implementation of Transformational NAMAs through NAMA Facility”. Indonesia, Mexico,

Chile and Colombia were selected as the first countries receiving international support for NAMAs impementation. (Nur R Fajar/ RI

delegation to COP-19)

DOC. DNPI

DOC. DNPI

76


77



To coordinate the implementation of climate change programs and strengthen the position of Indonesia in international forums in controlling climate change, the Government of Indonesia established

the National Council on Climate Change (DNPI) in 2008. Since its founding, DNPI has been at the forefront of the climate change dialogue in Indonesia, supporting and coordinating central, provincial, and local government bodies along with the private sector and civil society. In 2009, DNPI published the Indonesia Greenhouse Abatement Cost Curve. The analysis outlined the full potential for Indonesia to reduce its greenhouse gas emissions through the right mixture of domestic policies and international support. The ultimate goal was setting Indonesia on a path of sustainable economic development.

At the time, the cost curve was a ground-breaking effort for Indonesia. Amongst other things, the report:

• Showed Indonesia’s huge potential for emissions reductions from LULUCF measures - more than 1.2 gigtons per year in 2030

• Confirmed in the public debate the global importance

of ending Indonesia’s soaring peat emissions, as Indonesia is home to almost 60% of global emissions from peat decomposition

• Warned that while Indonesia still has relatively low emissions from fossil power production, the rapid projected growth in coal power risks a lock-in of high emissions investments for decades to come if quick action is not started now to invest in low carbon power

• Calculated a greenhouse gas abatement opportunity for Indonesia more than 70% below the business as usual emissions projection for 2030, at an average cost of USD 2 / ton CO2e, making Indonesia a large and attractive market for other countries seeking to finance climate mitigation efforts

Above is the original 2009 cost curve. Each bar on the chart is one GHG abatement “lever.” The width of each lever is the size of the GHG abatement opportunity, in MtCO2e per year -

amongst the largest levers, for example, is a REDD opportunity in timber plantations shown towards the right. Taking the width of all the levers together provides the annual 2.2 GtCO2e abatement potential by 2030. The height of each lever is its cost, measured in USD per tCO2e abated. A number of levers for Indonesia, like switching to LED lightbulbs, would actually save money, so their costs are negative. The levers are ordered from the most cost negative to the most cost positive, meaning from the lever that saves the most to the lever that costs the most. The average price of abatement for the levers identified in 2009 was approximately 2 USD per tCO2e

Since the report was published, much has happened. In 2010, President Yudhyono announced Indonesia’s commitment to voluntarily reduce emissions by 26% by 2020. Furthermore, Indonesia entered into a climate partnership with Norway under which the Norwegian Government is making available USD 1 billion in a pay for performance program to support Indonesia in meeting this commitment. More recently, the REDD+ Taskforce has completed its work, paving the way for the establishment of a National REDD+ Agency in the coming months. In light of these exciting developments, the time is right for DNPI to update its cost curve analysis so that it can

continue to serve as a strong analytical base for the new wave of developments.

To update the cost curve, the Head of Secretariat for DNPI and Special Assistant to the President on Climate Change, Agus Purnomo, with the support and close partnership of the Japan International Cooperation Agency, has again commissioned McKinsey & Company to update the Indonesia cost curve. DNPI and McKinsey will work across multiple Indonesian agencies to gather the government’s best thinking on the shifts since 2009 in Indonesia’s emissions trajectory and the available GHG abatement levers. Together they will syndicate and communicate the implications of the updated analysis more broadly across the government and non-government sectors.

In this new phase, the cost curve update will focus even more on the opportunities ahead for Indonesian policy-makers. Once we have confirmed the major abatement levers available, we will review what barriers stand in the way of Indonesia seizing those opportunities. We will then develop a set of policy options - based on lessons learned from other governments globally - to overcome those barriers and unlock Indonesia’s potential in climate change mitigation.•

UPDATING THE INDONESIA GHG ABATEMENT COST CURVEAs we are all aware, uncontrolled climate change poses a severe risk to the entire global community. The Indonesia archipelago, with its rich diversity of flora and fauna, geographical breadth, and many low-lying islands, would be adversely affected should global warming trends not be reversed. At the same time, Indonesia represents a significant portion of the CO2 emissions abatement opportunity available to the world, and is in position to benefit in multiple ways from the global effort to reduce harmful GHG emissions.

78


79



We must keep in mind that Indonesia has become one of the world’s largest greenhouse gas (GHG) emitter mainly through deforestation and forest and peatland degradation. As economic growth

proceeds, Indonesia’s emissions are expected to grow even further under a business as usual scenario. Indonesia is also projected to increasingly suffer from the impacts of climate change such as forced migration, land degradation, food security issues, high economic and social costs etc.

However, anticipating such challenges, the Indonesian Government follows a progressive path regarding climate change. The government of Indonesia like many other countries in Asia and the Pacific have voluntarily committed to reducing green house gas (GHG) emissions by 2020. Indonesia has committed to a reduction of 26% (up to 41% with international support) in GHG emissions. In order to achieve this, climate change mitigation planning must be fully integrated into national economic development planning. In the last 5 years, also as a merit of the immense efforts of the National Climate Change Council, Indonesia has issued various legislations, commenced pilot initiatives, and developed plans to implement its commitments for green-house gases reduction.

At the same time, we must not forget that decent work issues such as high youth unemployment, precarious work conditions, lack of social security, vulnerablility of women and informal

workers, just to mention a few, still prevail. Indonesia’s President Susilo Bambang Yudhoyono has affirmed his committed to developing a greener economy, and a job-rich model of low-carbon development that also addresses poverty reduction and employment creation.

Moving towards a greener, climate resilient economy is increasingly important to ensure a sustainable development path, not only over the long-term but also in the short-term. Going green and adapting to climate change are not an option anymore, but an imperative!

Actions are already being taken by governments, employers, trade unions, and other partners to move towards more sustainable patterns of development. The model of development advocated by the national government indeed places great emphasis on reducing poverty, creating jobs, promoting economic growth in a way that is more respectful of the environment and adapts to the shortage in natural resources.

As Indonesia adopts greener economic growth strategies, it will explore new opportunities, and, at the same time, encounter various challenges. A transition to a greener economy has an enormous potential of creating a large number of green and decent jobs, both, directly and indirectly through supply chains in the long run. The challenge, thus, for environmental policies is to choose ways that maximize productive and decent work. On the other hand, the challenge for labour and social policies

GREEN JOBS: EMPLOYMENT DIMENSIONS IN THE TRANSITION TO AN ENVIRONMENTALLY AND SOCIALLY SUSTAINABLE ECONOMY IN INDONESIAPeter van RooijDirector ILO Country Office Jakarta

Indonesia like many other countries in Asia and the Pacific currently finds itself in a structural transition period with an increased emphasis on environmental sustainability and low carbon development. The Indonesian Government, enterprises, and trade unions are in the early stages of identifying ways to engage in this transition, with some stakeholders taking notable steps in different areas.

SHUTTERSTOCK

80


81



planning would thus be the next and much needed step.

As a response to the Indonesian Government initiative on Climate Change and Sustainable Development, the ILO introduced the Green Jobs concept, initially through the Green Jobs in Asia Project in 2010. Back then Green Jobs was as a relatively new concept, however, today it can be seen what has been achieved in cooperation with the ILO constituents, in particular an increased understanding of the issues at stake and support for further collaboration in this area. The constituents and national partners have significantly enhanced their knowledge on the linkages between environment, employment and the economy. The social partners have received foundation training on green jobs and have been given the opportunity to develop their own capacity building programs with a view to link green jobs to their own national agendas and action plans. Today, the constituents are in a better position to develop specific policies and programs for the promotion of green jobs and greener jobs employment opportunities and undertake national discussions on the mainstreaming of green jobs into social and employment policies.

The sector based activities in Indonesia focused on the promotion of green jobs in the sustainable tourism sector, a booming sector not only in Indonesia and the promotion of green entrepreneurship in 5 economic sectors, namely Creative Industries, Food security, Tourism, Renewable Energy, and Waste Management.

When it comes to further interregional cooperation and action

on green jobs with a view to highlighting the critical role of the social partners involved three points on this matter are to be highlighted:

1) Although considerable progress has already been made since the inception of green jobs activites in Indonesia, much more will need to be done in particular in creating decent work and sustainable livelihoods especially for the poor and facilitating the transition of the labour force and enterprises;

(2) the involvement of the social partners is absolutely critical and experience has demonstrated that areas of common interest exist for realistic targets in the short and medium term through collective actions such as skills for green jobs, sustainable livelihoods for the poor and productivity at work;

(3) last but not least, a robust national green jobs program in Indonesia would be of strategic value to support the current national policy framework. Green jobs can help with the ‘greening’ of social and employment policies and mainstream the sustainability approach across the labour agenda by involving ILO constituents and other relevant partners;

In conclusion, it is of paramount importance to encourage a shift in mindset of all stakeholders, a common effort to ever put sustainability into the center of attention in national development for Indonesia and incite a strong discussion at the national level creating the condition for a just transition of Indonesia to a socially inclusive and environmentally sustainable economy with decent work and green jobs.•

lies in integrating the environmental dimension, including the need for training for green jobs in education and vocational training provision.

Indonesia’s transition towards a green economy with green jobs is in full progress at different pace in various sectors. It will be crucial for the Government to analyse which are the core green sub-sectors, how and when a green structural change will occur among these sectors and project the potential impact on employment.

Shifts in the labour market, new demand for green skills and re-skilling programs, new and adapted profiles of jobs and skills as well as specific measures to help workers, employers and enterprises adapt to this changing environment are essential parts of this transition of the economy. This also includes the enactment of social protection and financial schemes targeting the most vulnerable. The Indonesian economy will require an upgrade of the skills development strategies at the national and the provincial levels. As various industry sectors adjust to this drive towards more sustainable operation and consumption patterns, the Government with the active involvement of the social partners - employers and workers organizations - must develop strategies to ensure that changes in the sub-sectors will generate better, more green and decent jobs, and promote policies to exploit fully the potential for new green jobs and the greening of existing jobs.

To ensure inclusive sustainable development in Indonesia, it

is important to strengthen the social pillar of climate change policies and programs. There is an opportunity to target youth unemployment through substantial investments in green economic sectors and climate change resilience that are targeted with green skills training programs. Intensive discussion among the economic ministries, technical and human resource ministries is necessary to ensure that all projections are realistic and strategies are implementable and effective. Government is also advised to open dialog with private sector players in each sub-sector to gain an understanding of the conditions on the ground, including barriers and obstacles faced by investors and entrepreneurs. Finally, discussions must also take place with workers’ representatives.

Green Jobs as a global initiative, is of strong worldwide concern, but has also a focus on the livelihoods of the local communities and individuals. It is an initiative for the people, for the environment, and for our future.

In this context, the green jobs activities in Indonesia are fully aligned with the national development priorities: pro-growth, pro-jobs, pro-poor, and pro-environment. At the 100th International Labour Conference in June 2011, the President of Indonesia announced the intention of the Indonesian Government to develop a green jobs skills development strategy, a youth apprenticeship program for green jobs and to promote self employment and entrepreneurship in the green sectors. A concretization of this whithin medium and long term national

SHUTTERSTOCK

82


83


• FACTS AND FIGURES• FACTS AND FIGURES

Graph 2:

The majority of CDM projects registered in the UNFCCC are based on methane avoidance (95 projects), followed by biomass energy (39 projects) and hydro-projects (29 projects). CDM projects also concern fossil fuel switch activities (15), geothermal developments (15) and landfill gas (12).

2005

5 613

4634

2539

44

2006 2007 2008 2009 2010 2011 2012

Graph 1:

After a decrease following the 2008 financial crisis, the number of Clean Development Mechanism (CDM) projects approved through DNA has increased with a total of 25 approvals for the year 2010, 39 in 2011 and 44 in 2012.

THE POTENTIAL OF PROJECT BASED MITIGATION ACTIONS

Source: DNPI (2013)

Solar,1 Cement, 1

EE Households, 1EE Industry, 7

EE Supply Side, 7

EE Own Generation, 7Fossil Fuel Switch, 10

Fugitive, 5

Geothermal, 15

Hydro, 29Coal bed/minemethane, 2

Methane Avoidance, 99

Land�ll gas, 17

N20, 3

PFCs and SF6, 3

Agriculture, 1

A�orestation, 1

Reforestation, 1Biomass Energi, 37

84


85


• NETWORK UPDATE• NETWORK UPDATE

EREC 2013Brussels, BelgiumNovember 28, 2013

EREC2013 is the leading European Renewable Energy Policy Conference, which is organized twice a year. It is the main occasion to discuss and interact with Europe’s industry leaders, researchers and policy makers.

http://www.erec2013.org/en/home_95.aspx

SolarTech Germany 2014Berlin, GermanyFebruary 10-11, 2014

The B2B conference and exhibition present the recent developments in the

renewable energy sector in Germany and solar project finance. It offers opportunities for cooperation between German and international companies involved in the solar energy market.

http://www.amiando.com/IPQBFLP.html?page=971642

Sustainability Solutions FestivalGreater Phoenix, USAFebruary 15-22, 2014

Hosted by the Rob and Melani Walton Sustainability Solution Initiative at ASU’s Global Institute of Sustainability, the Inaugural Sustainability Solutions Festival rewards and presents inventors, entrepreneurs, designers and creative thinkers involved in developing sustainable solutions. Events are organized for different publics: students, scholars, industries.

http://sustainabilitysolutions.asu.edu/programs/solutionsfestival/

World Smart Energy WeekTokyo, JapanFebruary 26-28, 2014

The 7th international Photovoltaic Power Generation exhibition will present a wide variety of new technologies from materials, manufacturing equipment, solar cells to Pv system related technologies from all over the world. The show presents itself as the best gateway to enter the Japanese and Asian-Pacific PV market.

http://www.pvs-expo.jp/en/

2014 Green Truck SummitIndianapolis, USAMarch 4-5, 2014

A Conference aiming at offering world-class education on clean vehicle technology innovations for vocational trucks.

https://ntea.com/worktruckshow/index.aspx?id=18868

10th Energy Efficiency and Renewable Energy Forum and Exhibition for South-East Europe - SofiaBulgariaMarch 5-7, 2014

The event will present the latest energy efficient solutions, systems for energy storage, bio-, hydro-, solar, geothermal, waste and wind energy technologies as well as electric vehicle innovation.

It will bring together all the relevant stakeholders from South-East Europe, from the energy sector, grid operators and utilities, building industry to finance and state administration.

http://via-expo.com/en/pages/ee-re

EWEA 2014Barcelona, SpainMarch 10-13, 2014

Europe’s premier wind energy event is an international platform for the wind energy industry to showcase and demonstrate its latest products and services. The event features a broad conference programme as well as an extensive exhibition, increasing networking opportunities.

http://www.ewea.org/annual2014/

Eco Challenge Gold CoastGold Coast, AustraliaMarch 16, 2014

Eco Challenge Gold Coast - wooden surfboard expression session will take place on Sunday the 16th of March 2014 9am to 1pm at Tomewin St, Currumbin Beach as part of Bleach

EWEA Technology Workshop: Wind Power ForecastingRotterdam, NetherlandsDecember 03-04, 2013

This workshop focuses on technical aspects related to wind power forecasting onshore and offshore. Topics covered will include the end user’s requirements, numerical weather prediction models, wind power forecasting models and operational systems, the integration of forecasts in business processes and the importance of forecasting at 200GW.

http://www.ewea.org/events/workshops/wind-power-forecasting/

GreenBiz ForumPhoenix, USAFebruary 18, 2014

The 6th annual GreenBiz Forum defines the trends, challenges and opportunities in the field of sustainable business. The forum is organized in partnership with the Sustainability Consortium, and ASU Global Institute of Sustainability.

http://www.greenbiz.com/events/greenbiz-forum/2014/02/arizona

IST

86


87


• NETWORK UPDATE• NETWORK UPDATE

Boulevard. This event using alternative surf craft will fund-raise for Surfrider Foundation, Rise Above Plastics project while having maximum fun.

http://www.climatewave.com/green-events/sustainable-surfing-events/

Globe 2014Vancouver, CanadaMarch 26-28, 2014

The GLOBE Conference is one of the main sustainable business event in the world. It brings at the fore front new insights on business and sustainability and help companies to integrate these issues in their activities. The 2014 edition will cover the most pressing environmental issues, including changing energy landscape, water issues, food security, and resource management during conferences and discussions with experts.

http://2014.globeseries.com/

Hidroenergia Congress and Fair TradeIstanbul, TurkeyMay 21-23, 2014

Hidroenergia is the key event for small Hydropower (SHP) sector. It gathers several hundred of participants debating and assessing new political, financial and technical developments. It is also an opportunity to demonstrate products and services.

http://2014.hidroenergia.eu/

Renewable Energy Asia 2014Bangkok, ThailandJune 4-7, 2014

The exhibition presents renewable energy sources and newest

technologies. It covers a wide area from wind and solar energy to thermal and waste-to-energy, hydro-powered programs, biomass and other green technologies. Renewable Energy and Energy Efficiency Clinics staffed by experts will be held during the show.

http://www.renewableenergy-asia.com/

Wind ExpoTokyo, JapanFebruary 26-28, 2014

Wind Expo is Japan’s largest exhibition and conference on wind energy. It gathers industrial professionals from all round the world.http://www.windexpo.jp/en/

Resilient Cities 20145th Global Forum on Urban Adaptation and Resilience (to Climate Change)Bonn, Germany29-31 May 2014

Resilient Cities - The Annual Global Forum on Urban Resilience and Adaptation - is the global platform for urban resilience and climate change adaptation, hosted every year in Bonn. Bringing together over 600 Mayors, city representatives, researchers, experts, the congress offers a number of sessions and events on a wide variety of topics amongst which were urban risk, resilient urban logistics, financing the resilient city, urban agriculture, smart infrastructure and many more.

ICLEI Global Town Hall at Metropolitan Solutions

Hannover, Germany7-11 april 2014 The ICLEI Global Town Hall will serve as the official discussion and information sharing platform of the upcoming Metropolitan Solutions fair – the place where experts will map out the path to a “Green Urban economy” by devising concrete, feasible and effective projects that will address the big challenges of the future.On 7-11 april 2014 we will take these dialogues one step further with the lessons learnt from 2013. If you wonder whether cities are from Mars and companies from venus, come to ICLEI’s Global Town Hall @ Metropolitan Solutions to engage in discussions and dialogues and learn to understand each other

Indonesia Pavilion: Mainstreaming Climate Action towardsa Low-Carbon Economy 1 Stadion Narodowy, National Stadium, Warsawa, Polandia 1-22 November 2013 |

Organized by National Council on Climate Change (NCCC/DNPI)Climate change is the main issue of development. Indonesia responds this matter by proactively mainstreaming the climate change issues into national development plan. Indonesia is also actively negotiating at the international climate change negotiations to strive for the interests of the state. In order to improve the soft diplomacy of Indonesia, Indonesia Pavilion will be held with theme “Mainstreaming Climate Action towards a Low-Carbon Economy”. This event is conducted as side event of the 19th Conference of The Parties (COP 19) United Nations Framework

Convention on Climate Change (UNFCCC). The event consists of some seminars, series of panel discussions, and other meetings which are designed to raise the issues on progress of Indonesia climate change policies, programs, and actions. Some of the important topics that will be discussed on this event are green jobs, open platform for climate change governance, low carbon emission development, agriculture and climate change, climate financing, Joint Crediting Mechanism, adaptation, GHG Inventory, and some other interesting topics.

Indonesia Japan Expo: Smart Community Indonesia 2013

Jakarta International Expo Kemayoran19-22 December 2013

Organized by Perhimpunan Persahabatan Indonesia Jepang/Asosiasi Editor Indonesia

Diplomatic relation between Indonesia and Japan has entered its 55th year. To commemorate the diplomatic relation, both countries will hold an event that shows ideas and technologies which are advantageous to Indonesia’s development. The theme of the event is Smart Community Indonesia 2013 –Exhibition of interacting industries towards the development of a wealthy nation. The exhibition means to introduce the development and socialization of renewable energy, energy saving measures, as well as the implementation and socialization of environmental technologies focusing on air and water to the government, various institutions and companies, as well as the Indonesian people. It also facilitates transfer in technology, economics, and culture between Indonesia and Japan.

Green Airport Indonesia 2013: Connecting the World of Airport Services and Technology

Providers with Indonesia’s Construction and Infrastructure Stakeholders Jakarta Convention Center13-15 November 2013Hosted by PT Angkasa Pura I Airport

Green Airports Indonesia is held in conjuction with Regional Governments Conference (RGC) 2013 where investors, service, and technology convene with senior government decision makers from across the 34 Provinces of Indonesia responsible for implementing priority infrastructure projects. This event will provide the premium forum for airport and aviation technology and service industries to showcase themselves before leading decision makers responsible for the roll out of Indonesia’s massive nation wide airport expansion program. This event is hosted by PT Angkasa Pura I Airport under the patronage of and in coordination with The Coordinating Ministry for Economic Affairs, Directorate General of Civil Aviation Ministry of Transportation, and The National Development planning Agency (Bappenas).

Electric, Power, and Renewable Energy Indonesia 2015 Jakarta International Expo Kemayoran9-12 September 2013

Organized by PT Pamerindo Indonesia

Indonesia’s rapid economic growth has resulted in increading power demand by 7% each year. Indonesia holds 40% of the world’s total geothermal reserves, however currently only less than 4% is being developed, leaving the sector wide open for growth. This event includes three key issues, namely power, electric, and renewable energy, that will be raised through exhibition, international group pavilion, and conference.

International Conference on Green Business and Enterpreneurship

Hotel Pullman Jakarta Central Park, Indonesia20-21 November 2013

Organized by Department of Management, Faculty of Economics, Trisakti University

The growing commitment to sustainable principles has increased the demand for new green products and or services. These days, bussinesses and consumers are in searching of better ways to reduce waste, and hopefully can minimize its impact on the environment. The growing importance on protecting the environment turns into opportunities for enterpreneurs to outset and operate their own green bussiness innovation. The organizers of the conference invite theoritical and empirical research sessions under a range of sub-themes to address the challenges ahead. Furthermore, the conference will provide an opportunity to link local aspects of green bussiness, practitioners, enterpreneurship and scholars in respond to global trends, changes, and challenges.

88


89


• PHOTO GALLERY• PHOTO GALLERY

FIRST FOCUS GROUP DISCUSSION

SECOND FOCUSGROUP DISCUSSION2 JULY 2013, DNPI, JAKARTA2 JULY 2013, DNPI, JAKARTA

DOC. GIIP DOC. GIIP

90


91



THE MEDIA’S ROLE IN PROMOTING GREEN ISSUES SUSTAINABLE OIL PALM27 MARCH 2013, MANDARIN ORIENTAL HOTEL, JAKARTA

25 NOVEMBER 2011, NIKKO HOTEL, JAKARTA

DOC. GIIP

DOC. GIIP

92


93



THE FEASIBILITY OFSUNDA STRAIT BRIDGE19 JULY 2012, FOUR SEASONS HOTEL, JAKARTA

DOC. GIIP

94


95



Fortuga ExPEDITIONGENTENG-SERIBU27 APRIL-26 MAY 2013

DOC. GIIP

96


97



Fortuga ExPEDITIONCORAL REEF REHABILITATION MANGROVE REHABILITATION

AND PRIMATE INVENTORY

DOC. GIIPDOC. GIIP

98




• FORUM GRUP DISCUSSIAN


Investment-Innovation-Productivityhttp://dnpi.go.id/portal/id/multimedia/dnpi-cast/dnpi-movie/380-setelah-hujan-datang

Date post:	29-Jan-2015
Category:	Business
Upload:	farhan-helmy
View:	121 times
Download:	4 times