Indonesia has experienced stable economic growth over the past decade, transforming the country into one of the largest economies in Asia. At the same time, the government recognises that further action is needed to address poverty, inequality, unemployment and environmental degradation. Accordingly, the Indonesian government is working to incorporate sustainability policies and emission reduction activities into its national plans and targets. 

In 2017, the government launched the Low Carbon Development Initiative (LCDI), which provides analysis of policy scenarios to achieve low-carbon development and poverty alleviation while maintaining economic growth. These policy scenarios are being mainstreamed into the Medium-Term National Development Plan (RPJMN) 2020-2024 that will be used by sector ministries, government bodies and other stakeholders as a reference for their policymaking and programmatic planning.  

In this context, Indonesia joined PAGE in 2018 to transform its economy into a driver of sustainability and social inclusion and to catalyse action to address environmental challenges. Phase 1 of LCDI has already successfully introduced system and spatial dynamics planning tools to assess development scenarios. PAGE support relates to implementation of LCDI Phase 2 in line with the Government of Indonesia’s LCDI focus sectors, including energy, waste, industry, forestry and peat, agriculture, and blue carbon.  

This has contributed to several of the Sustainable Development Goals, including:

LOOKING FORWARD

As requested by the Ministry of National Development Planning (BAPPENAS), PAGE will assist in conducting Rapid Assessment on Green Stimulus for post-COVID-19 Green Recovery in the selected sectors to feed into the National Green Economic Recovery Plan. The study will focus on LCDI sectors, primarily energy, industry and waste sectors in alignment with the 2020 PAGE Indonesia ongoing work-plans. Additionally, BAPPENAS through its Directorate of Environmental Affairs is leading to push for green recovery through its Build Back Better with LCDI” Strategy.  

Learn more about PAGE work in Indonesia in our 2019 Annual Report

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KEY THEMATIC & SECTORAL AREAS

  • National development planning 
  • Green jobs and just transition 
  • Green Industry 
  • Food waste minimization 
  • Green and blue financing 

CAPACITY BUILDING

  • Green Economy Learning Assessment 
  • System thinking and System Dynamics Modelling training 

INDONESIA & PAGE BY NUMBERS

Policies Supported: 2

Assessments: 2 

Consultations & workshops: 4

National institutions & ministries partnering: 1

Initiatives providing co-financing: 1

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Supporting the LCDI

Supporting the LCDI

Phase 1 of the LCDI

PAGE provided support in identifying policy interventions for the green economy modelling exercise under the LCDI, which the national modelling team used for its simulations in the LCDI model. Completed in January 2019, this work formed the basis of LDCI Phase 1, with policy scenarios to be incorporated into the RPJMN 2020-2024. The modelling exercise is an essential contribution to the development of Indonesia’s RPJMN 2020-2024 and supports the Ministry of National Development Planning (BAPPENAS) to introduce systems thinking into national and regional development planning.

The modelling exercise was used as an input to the ground-breaking report “Low Carbon Development: A Paradigm Shift Towards a Green Economy in Indonesia”, launched on 26 March 2019 by BAPPENAS, showing how the country could gain tremendous economic benefits by transitioning to a low-carbon economy.

Phase 2 of the LCDI

With support from PAGE and other partners, BAPPENAS developed a framework for the implementation of the LCDI Phase 2, completed in July 2019. PAGE also assisted BAPPENAS to transfer the concept of the National Action Plan for Greenhouse Gas Emissions (Rencana Aksi Nasional-Gas Rumah Kaca) to the LCDI. By becoming part of the LCDI Phase 2 framework, the government will broaden this National Action Plan to incorporate socio-economic and other environmental impacts.

A side event at UNFCCC COP25 in Madrid in December 2019 on “Mainstreaming Low Carbon Development Economy into Policy Planning” drew attention from a global audience to the Indonesian experience in mainstreaming low-carbon development into policy planning.

Taking stock of current green economy initiatives

Taking stock of current green economy initiatives

PAGE conducted a stocktaking of green economy initiatives and policies, with a draft completed for review in December 2019. The study identified entry points for PAGE support in the implementation of LCDI policy scenarios, as well as existing challenges with the implementation at the national and regional level. These included:

  1. Supporting the translation of LCDI targets into specific sectoral policies at the national level;
  2. Enhancing the LCDI model and improving the database system development required for LCDI modelling;
  3. Supporting local governments to mainstream the national LCDI model within their RPJMD and build capacity for its utilization for the next term planning process;
  4. Developing a private sector engagement platform and incentives for the private sector to support the implementation of the LCDI; and
  5. Improving knowledge and awareness of LCDI amongst stakeholders.

Promoting green industry

Promoting green industry

On 22 October 2019, PAGE Indonesia carried out a validation workshop of the recently developed Green Industry and Trade Pre-Assessment. The assessment focuses on resource efficiency, energy intensity and other relevant indicators of the IGE, in three industry sectors - pulp and paper, cement, and food and beverage. The workshop was held together with BAPPENAS and other ministries, including the Ministry of Industry, the Ministry of Environment and Forestry, the Ministry of Energy and Mineral Resources and several industrial associations.

COUNTRY FOCAL POINTS

Partner Agency Focal PointsAmrei Horstbrink (UNITAR)
National CoordinatorDiah Ratna Pratiwi (UNDP)
Lead Agency Focal PointMarina Adel (UNDP)
Sarwat Chowdury (UNDP)
Md Abu Saieed (UNIDO)
Chengchen Qian (UNEP)
Cristina Martinez (ILO)
Government Focal PointsIrfan Darliazi Yananto, Ministry of National Development Planning (Bappenas)
Ir. Medrilzam, M.Prof.Econ, Ph.D Director of Environment Affairs | Ministry of National Development Planning (Bappenas)