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Taking Indonesia Beyond Climate Action and Emission Reduction

The Government of Indonesia expresses strong commitment to take the archipelagic nation beyond climate actions and emission reduction in its upcoming development plan, playing a leading role among middle-income countries in the path towards low carbon development and green economy.

Katowice, Poland, 10 December 2018—Showcasing green projects under the Low Carbon Development Initiative (LCDI) in Indonesia, the Government of Indonesia (GoI) held a high-level panel discussion at the Indonesia Pavilion on 10 December 2018, during the 24th Session of the Conference of Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). The panel discussion featured innovative green projects already underway in Indonesia and in other developing countries with focus on green financing.

The panel discussion highlighted Indonesia’s ambitious national and international commitments, including the Paris Agreement[1] and the accompanying Nationally Determined Contribution (NDC), the Sustainable Development Goals (SDG’s) and the nine-point priority agenda known as “Nawa Cita”, which calls for a clean, transparent and democratic government, a strengthened rural economy, land tenure reform, and increased productivity and competitiveness of the Indonesian people. Targets are furthermore designed around inclusive and people‑centered economic growth. The principles and targets of a green, inclusive and people-centered economy are expressed in the current National Medium-Term Development Plan (RPJMN) 2015-2019.

The National Long-term Development Plan (RPJPN 2005-2025) of Indonesia is divided in four stages, each with a lifespan of five years (medium-term), parallel with the government terms. The GoI is now preparing the next National Medium-Term Development Plan (RPJMN) for the period of 2020-2024, in which the GoI has pledged to ensure climate actions under SDGs and NDC can be met. Therefore, the Ministry of National Development Planning of the Republic of Indonesia (BAPPENAS) has taken the leading role and launched LCDI Indonesia in October 2017 with a goal of explicitly incorporating carbon emission reduction targets into policy planning exercises as well as to go beyond climate actions and emission reduction to ensure optimum benefits for the people of Indonesia.

“The Government of Indonesia is fully committed to integrating tangible climate actions in the shape of low carbon development path into the country’s National Medium-Term Development Plan 2020-2024 by mainstreaming the principles and approaches of low carbon development and green economy in it,” said Indonesia’s Minister of National Development Planning H.E. Bambang P.S. Brodjonegoro in his opening remarks. “Furthermore, the government is also committed in developed a blended financing scheme and issued green bonds this year, Indonesia is heading toward energy transition in regard to low carbon energy solutions and systems,” he added.

The Event officially opened by the Minister of National Development Planning of the Republic of Indonesia H.E. Bambang P.S. Brodjonegoro, the panel discussion also featured prominent public figures joining the panel as speakers, including the Director General of the Global Green Growth Institute (GGGI) Frank Rijsberman, the State Secretary, of the Norwegian Ministry of Climate and Environment Sveinung Rotevatn, Director General of New, Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources, Republic of Indonesia Rida Mulyana, Director of GCF’s Country Programming Division Pa Ousman, Energy Economist at the European investment Bank David Kerins.

In his speech, Dr. Frank Rijsberman, Director-General of GGGI said that there is an urgency to move to renewable energy options, the high potential for Indonesia to do so in multiple areas of renewable energy, and GGGI’s work in Indonesia is demonstrating the financial feasibility to introduce new clean technologies. He highlighted the example of Fiji’s Low Emissions Development Strategy (LEDS) during his speech, emphasizing the importance of shifting away from fossil fuel subsidies and investing more in renewables.

In addition to showcasing Indonesia’s green projects, the panel discussion aimed to share experiences on development paths that have been able to decouple energy consumption from greenhouse gas emission reductions and the progress and challenges facing the acceleration of investment for energy transition towards low carbon solutions. The panel also presented and identified opportunities for enhanced public-private partnerships and the potential financial mechanisms that can support further sector development.

The Ministry of National Development Planning (BAPPENAS) facilitates financing solutions by developing RE-Pro (List of Renewable Energy Project) featuring on-grid and off-grid renewable energy projects that are ripe for financing. This RE-Pro book, as an initial pipeline, is being offered to development partners, private sectors, and financing institutions.

The closing remarks by Deputy Minister for Maritime Affairs and Natural Resources, Ministry of National Development Planning, Republic of Indonesia Arifin Rudiyanto concluded that there are no trade-offs between sustainability and development. It is important for policy makers to demonstrate green projects model with financial returns that result in sustained and inclusive economic growth, while at the same time contributing to greenhouse gasses emissions and ensure a healthy and productive life. Ministry of National Development Planning (Bappenas) is currently in the process of designing a government financing mechanism to support the development of renewable energy, energy efficiency, and energy conservation through blended financing scheme.

About the Ministry of National Development Planning (BAPPENAS)

BAPPENAS, the Ministry of National Development Planning, Republic of Indonesia, is an Indonesian central government institution which is responsible for formulating national development planning and budgeting (annual, five-years, and long term). BAPPENAS has also a responsibility to coordinate international development (bilateral, unilateral and multilateral) cooperation.

About the Indonesia Climate Change Trust Fund (ICCTF)

The Indonesia Climate Change Trust Fund (ICCTF) is a key instrument of the Government of Indonesia in reducing emission intensity and greenhouse gasses emission through actions of low carbon development and adaptation on climate change impact. ICCTF also strives to integrate climate change issues into Development Plans at the national, provincial and regional level as well as implementing the initiatives on climate change mitigation and adaptation. Through leveraging and channeling of domestic resources and international funds into projects aligned with Indonesia’s RAN/RAD-GRK implementation plan, the ICCTF supports Indonesia’s 29% emission reduction target by own effort  or 41% emission reduction target by international support.

About the Global Green Growth Institute (GGGI)

Based in Seoul, Republic of Korea, GGGI is an intergovernmental organization that supports developing country governments transition to a model of economic growth that is environmentally sustainable and socially inclusive. With operations in 30 countries, GGGI provides technical support, capacity building, policy planning & implementation, and helps countries to build a pipeline of bankable green investment projects. To learn more, see http://www.gggi.org and visit us on Facebook and Twitter.

[1] Indonesia signed the Paris Agreement on April 22, 2016 and ratified the agreement on October 31, 2016