- Country: Indonesia
- Geographic Coverage: National & Provincial
- Lead Local Agencies:
- National Development Planning Agency (BAPPENAS)
- Coordinating Ministry for Economic Affairs (CoMEA)
- Ministry of Energy and Mineral Resources (MERM)
- Ministry of Environment and Forestry (MEF)
- Ministry of Agriculture
- Ministry of Finance
- Ministry of Foreign Affairs
- Ministry of Internal Affairs
- State Administration Agency
- Provincial Government of Central Kalimantan
- Provincial Government of East Kalimantan
- Indonesia Country Program, GoI-GGGI Green Growth Program that fosters green investment and related enabling condition within three focus sectors of energy, special economic zone (SEZ) and forest-and land-based mitigation.
Indonesia became a Founding Member of GGGI in September 2012. Active in Indonesia since 2010, through technical support in the provinces of Central Kalimantan and East Kalimantan, GGGI has increased its partnership with the Government of Indonesia (GoI) to promote national green growth that recognizes that value of natural capital, improves resilience, build local economies and is inclusive and equitable.
Already a G-20 nation, Indonesia has enjoyed strong and consistent economic growth over the past 15 years, with GDP that has risen by around 6% per annum. The GoI has set a goal for the country to become one of the top ten largest economies in the World by 2025, and in the top six by the 2050.
The GoI recognizes that a green growth approach can achieve a number of simultaneous objectives that together can maintain the economic growth as well as bring Indonesia closer to true sustainable development. It is designed to deliver sustainable and equitably-distributed increases in GDP and standards of living while, at the same time, curbing pollution, making infrastructure clean and resilient, using resources more effectively. The approach also values the often invisible natural assets that have underpinned economic success over the centuries and on which human welfare ultimately depends.
In April, 2013, Indonesia’s Ministry of National Development Planning (BAPPENAS) signed a Memorandum of Understanding with GGGI to collaborate on the launch of programs and activities for the promotion of green growth in Indonesia. Within the framework of the Indonesia Country Program, known as the Government of Indonesia-GGGI Green Growth Program, GGGI is providing technical support, research and capacity building that is in line with Indonesia’s green growth vision.
Watch an interview with Indonesia’s Vice Minister of National Development Planning, Lukita Dinarsyah Tuwo.
GoI – GGGI Green Growth Program
In 2013 a comprehensive program was established to provide technical support to both the national-level government and the sub- national governments of Central Kalimantan and East Kalimantan. This cooperation, the GoI – GGGI Green Growth Program, is led by BAPPENAS and also involves cooperation with a range of other national-level ministries and agencies, including the Coordinating Ministry for Economic Affairs, the Ministry of Energy and Mineral Resources, REDD+ Agency, and the regional Development Planning Agencies (BAPPEDA) in Central Kalimantan and East Kalimantan.
In April 2013 BAPPENAS and GGGI signed a Memorandum of Understanding (MoU), which outlines the scope and objectives of the Green Growth Program. Following this, in June 2013, the GoI-GGGI program was launched nationally. in June 2013, The program was internationally launched by The international launch at the Global Green Growth Forum in Copenhagen was accompanied by the publication of the first joint GoI – GGGI report, “Prioritizing Investments: Delivering Green Growth”, which introduces the systematic approach, tools and methodologies that can be used to help mainstream green growth into existing planning and investment processes. In early 2014, the Steering Committee of the Green Growth Program was launched, which includes representatives from the GoI, the private sector, academia and civil society.
Intensive engagement with national and sub-national government partners during Phase I, including the participatory development of a green growth framework and Roadmap for green growth in Indonesia, has resulted in clear local and national ownership of the Green Growth Program. Overall, stakeholders at both individual and institutional levels are increasingly eager to build their knowledge and skills in the area of green growth.
In 2016, Bappenas and GGGI kicked off the Phase II of the Green Growth Program which reflects a demand-driven approach to addressing Indonesia’s needs related to green growth. It has been designed through an intensive and extensive series of stakeholder consultations that have taken place since May 2014. Consultations have involved a number of implementing ministries at national level and provincial level agencies.
The overall goal of the GoI – GGGI Green Growth Program is Indonesia achieves green growth that is socially inclusive, environmentally sustainable and resource efficient. In order to achieve this, the Program will facilitate the piloting of green investments while enhancing sustainability and replication via institutionalization of green growth methods within Indonesia’s policy and investment-enabling systems and structures. It will demonstrate approaches to working with national and sub- national enabling and planning systems using de-risking instruments that incentivize and facilitate selected green projects (including large economic activities as well as small and medium enterprises and efforts done by smallholders). Phase II will also demonstrate systematic and concrete approaches to the (re- ) design of projects in selected sectors and use of such instruments (e.g. PPP), while helping to shape a conducive investment climate through improved plans, policy and other enablers. In addition, the Green Growth Program includes capacity building across each of these components.
The four components of Phase II are mutually reinforcing and closely linked outcomes, which together encapsulate the Program’s critical expected impacts on green growth in Indonesia:
- Plans and strategies set the overall direction, goals, and means of economic development for sectors, regions, and the nation to achieve green growth. Green growth strategies at all levels will closely reflect, and support the achievement of, both Sustainable Development Goals (SDGs) as well as Intended Nationally Determined Contributions (INDCs) to the UNFCCC.;
- Within the overall planning and policy framework, enablers provide the necessary conditions and incentives to encourage practical actions, including investments in initiatives that will deliver green growth outcomes;
- Green investment in specific projects and programs provides the financial resources, both public and private, for undertaking these practical actions;
- Each of the preceding components, and the connections among them, require well governed and capable institutions and leadership. The purpose of the proposed Green Growth Facility is to provide a green growth implementation platform that delivers services to support improvements in this capacity and to inform decision makers about knowledge solutions related to all aspects of green growth in Indonesia.
Watch GGGI Indonesia Country Representative Anna can Paddenburg speak about GGGI’s distinctive contribution to green growth in Indonesia.