The government launched on Tuesday a two-year green growth initiative as part of its commitment to promoting environmentally friendly development as well as a sustainable economy.
The initiative was prepared with the help of South Korea-based Global Green Growth Institution (GGGI).
Deputy Minister for National Development Planning Lukita Dinarsyah Tuwo said that the Green Growth initiative would help the country balance its economic growth and sustainable economy in accordance with its growth target and commitment to maintaining environmental resilience.
Indonesia, according to Lukita, signed a Memorandum of Understanding (MoU) with GGGI last year for assistance, under which the research organization would offer the help of experts.
“The three components are greening the planning process mainly by carrying out the MP3EI [the Indonesian Economic Development Acceleration Masterplan], formulating a funding mechanism for REDD+ to catalyze green growth and supporting key provincial governments in the prioritization and implementation of green growth,” Lukita said.
The government recently revised its development masterplan program — which is aimed at making the country one of the world’s top 10 economies with a US$4.5 trillion gross domestic product by 2025 — to make it more environmentally friendly, and Lukita said that the government expected GGGI to help achieve the goals.
Government infrastructure projects carried out for the MP3EI have included toll roads, seaports, airports, railways, power generators and nationwide broadband access to support a wide array of economic activities in six economic corridors across the archipelago — Sumatra, Java, Kalimantan, Sulawesi, Bali-Nusa Tenggara and Papua-Maluku.
In 2009, Indonesia also committed to reducing its carbon emissions by up to 26 percent by 2020.
To reach the target, Norway agreed to provide a US$1 billion assistance package under a letter of intent (LOI) signed in 2010 to help Indonesia reduce emissions from deforestation and forest degradation, known as REDD+.
Indonesia is currently readying a financial scheme for the REDD+ agency that will begin formal operations in 2014.
Lukita said the government had designated Central Kalimantan and East Kalimantan for the Green Growth’s pilot projects and estimated that the government would need $1.5 million in funds to carry out the initiative.
“GGGI is not a financing organization, so we will try to get funds from any possible cooperations be it with other countries, organizations or private sectors,” he said.
Although GGGI does not offer funding, GGGI director general Howard Bamsey said that the organization would lend a hand by providing technical assistance.
“We have big networks and a number of practitioners […] to help the government analyze the situation and make choices,” Bamsey said.