04.4 indonesia's position and policy

7/27/2019 04.4 Indonesia's Position and Policy

1/74

UMM TEAM MALANG

JUNE - 2008


2/74

4 Indonesia Position & Role

1. Country Description2. Impact of Climate Change in Indonesia3. Source of Green House Gasses

4. Working Group on Climate Change5. Legal & Regulatory Framework6. National Development Planning7. Program for Mitigation

8. Technology Requirement9. Financing the Climate Change Strategy10. Energy status & Alternative Energy


3/74



4/74



5/74


Indonesia is located in the tropical belt, is thelargest and widest archipelago country in theworld, consist of 17,508 big and small islands,there are 5 big islands : Sumatera, Java, Borneo,Celebes and West Irian

There are two season in Indonesia , May to

October is dry season and October to April israiny season

Second worlds longest coast line (81.000 km)


6/74


Based on demography survey in 2000, the totalpopulation was 206 million, representing thefourth largest country in the world

With the population growth rate was 1,49percent.

Estimate population in 2006 was 220 million.


7/74



8/74


Climate Change Effects Impacts on Indonesia

Sea Level Rise

Ocean Warming

IncreasedTemperature

Increased Rainfall

IncreasedEvaporation

Increased TropicalStorms

Disappearing Small Islands

Salt Water Intrusion

Decline in Fisheries Harvest

Loss of Biodiversity

Increased Fire Risk

Increased Disease Risk, Range

Floods and Land Slides

Changes in Planting SeasonDrought, Food Security

Transport Vulnerability

Food and Water Scarcity


9/74


Deforestation rate (2000 2005) -> 2,8 MillionHa/year & Forest fire (West Borneo in 2006) -> lossof 91 Million USD (source: www.beritabumi.or.id)

Flood (February 2007) result in 8 Billion USD loss(source: www.detikfinance.com)

Landslide -> 80 Million USD/year Human health : Dengue, Malaria, Diarrhea

Rise of Sea Level Drought (Cirebon District in 2006) result in loss of

8.6Million USD (source:http://greenpena.blogspot.com)
http://www.beritabumi.or.id/http://www.detikfinance.com/http://greenpena.blogspot.com/http://greenpena.blogspot.com/http://www.detikfinance.com/http://www.beritabumi.or.id/


10/74


The disappearing of small Island -> within 2005 2007, 24 small islands disappear, the location:

3 island in Nanggroe Aceh Darussalam (NAD)

3 island in Papua

5 island in Riau

2 island in west sumatera

7 island in the coastal area of Jakarta

(source: Ministry of Oceanary & Fishery)


11/74



12/74


The availability of water is very dependent on the climate, due to the

limited supply of water (only covers about 37% of urban population

and 8% of rural population) causing people and industries use deep

groundwater resources land subsidence that creates areas

vulnerable to flood and salt water intrusion


13/74


JakartaCoastalRegionin 2050


14/74


During El Nino years (1994, 1997,2002,

2003, 2004 and 2006) shown that 8

reservoirs in Java have produced electricity

below normal capacities

During El Nino 1997 has caused serious

problems to coral reef ecosystems where

90-95% of coral reefs at the depth of 25mhave experienced coral bleaching


15/74


Poorest nations and poor groups are likely to be hardest hit bythe effects of climate change as they:

rely heavily on climate change-sensitive sectors (agricultureand fisheries)

Are less able to respond (lack of human, institution andfinancial capacity)

Achievement of the National Development goals and

Millennium Development Goals (MDG) see table


16/74

Changes in mean climate,

variability, extreme events

and sea level rise

Impact on poverty and

national development

planning targetsImpact on the eight MDG

Increased temperatureand changes in

precipitation reduce

agricultural and natural

resources

Change in precipitation,

run-off and variability

leads to greater waterstress

Increased incidence or

intensity of climate related

disasters lead to damage

to assets and

infrafstructure

Temperature, water and

vegetation changes

contribute to increase

prevalence of disease

Lowered industrialoutput and labour

productivity, high

inequality, impacts on

trade, and fiscal and

macro-economic

growth, and poverty-

reducing effects

Reduced productivity

and security of poor

peoples livelihood

assets, and reduced

access for the poor to

their livelihood assets

Less effective coping

strategies among the

poor, and increased

vulnerability of poor

people

1. Eradicate extreme poverty and hunger

Food security jeopardized, more intense disasters threaten livelihood

2. Achieve universal primary education

More vulnerable livelihoods means more children engaged in

employment; infrastructure damage from disasters

3. Promote gender equality and empower women

Women make up two-thirds of worlds poor and are more adversely

impacted by disasters.

4. Reduce child mortality

Children more vulnerable to malaria and other diseases, which are

spread more widely by climate change

5. Improve maternal health

Pregnant woman particularly susceptible to malaria

6. Combat HIV/ AIDS, malaria and other diseases

Increase prevalence of mosquito-bone diseases

7. Ensure environmental sustainabilityClimate change indication of unsustainable practices. Move toward

more energy-efficient model of consumption

8. Promote global Partnerships

Wider forums must acknowledge the role of climate change in

impacting MDGs


17/74


Based on Workshop on Climate Change and Health in South East Asian Countries :Kuala Lumpur, Malaysia


18/74



19/74



20/74



21/74


Transportation Industry Forestry Agriculture


22/74



23/74



24/74

Mitigation Post Kyoto ForestryAdaption EnergyFinancial Mech.Transfer of Technology

WasteOceanForestryAgricultureTransportationIndustryEnergy:

Working Group on Climate Change Activities: to undertake qualitativepolicies and measures that lead to the our response to Climate change,

i.e. to stabilize concentration of GHGs at the safe level.

Working Group of Transfer of Technology Activities: to further derivationand enrichment the previous project and to prioritize technology needs,and capacity building to assess technology needs, modalities to acquireand absorb them.

EXISTING INDONESIAN WORKING GROUP ONCLIMATE CHANGE

d i i i l


25/74


Ministry of Environments Ministry of Research and Technology Agency for the Assessment and Application of

Technology (BPPT) Governments Departments: Energy & MineralResources, Forestry, Agriculture, etc. Meteorology and Geophysical Agency Indonesia State Electricity Company Private Sectors Universities NGOs

d i i i l


26/74


I d i P i i & R l


27/74


I d i P iti & R l


28/74


Presidential Rule No.5, 2006 regarding NationalEnergy Policy, asp. on energy mix by the year2025

Presidential Decree No.10, 2005 on energyefficiency

Presidential Decree no. 1, 2006 regarding

Biofuel Utilization Program Act No. 6/1994 which stipulate the ratification of

UNFCCC

I d i P iti & R l


29/74


Act No. 23/1997 regarding EnvironmentalManagement

Ministrial Decree of Forestry No. 14/04regarding Afforestation/Refforestation Project

Ministrial Decree of Environment no. 53/03regarding Ministry of Environment as National

Committe of Climate Change

I d i P iti & R l


30/74


Ministrial Decree of Environment no. 206/05regarding Ministry of Environment as theIndonesia DNA

Government Regulation no. 4/2001 concerningControlling Environmental Damages and orPollution Associated with Forest and Land Fire

I d i P iti & R l


31/74

4 Indonesia Position & RoleLEGAL & REGULATORY FRAMEWORK FOR INDONESIA POWER SECTOR, INFRASTRUCTURE DEVELOPMENT & IMPLEMENTATION

DESCRIPTION PT. PLN (PERSERO)INFRASTRUCTURE

DEVELOPMENT LEGAL &REGULATORY FRAMEWORK

INDONESIA POWER SECTOR LEGAL & REGULATORY FRAMEWORK

POLICY,

STRATEGY,

NATIONAL

TARGET, AND

NATIONAL PLAN

IMPLEMENTING

RULES,

PROCEDURES

AND PLAN

IMPLEMEN-

TATION

COOPERATION

BETWEENGOVERNMENT ANDENTERPRISES FORDEVELOPMENT OFINFRASTRUCTURE

(PRESIDENTIALREGULATION NO67/

2005)

RISKMANAGEMENT

GUIDELINES FORINFRASTRUCTURE

DEVELOPMENT(MINISTRY OF

FINANCE

REGULATIONNO.38/PMK.01/2006)

ELECTRICITY LAW(GOVERNMENT OF INDONESIA LAW NO. 15 / 1985)

MODIFICATION OFGOVERNMENT REGULATION

NO 10/1989 SUBJECT,SUPPLY AND UTILIZATION OF

ELECTRICITY(GOVERNMENT REGULATION

NO.3/2005)

LEGALIZATION OFMODIFIED PLN ELECTRICITY

SUPPLY GENERAL PLAN/RUPTL 2006-2015

(MEMR DECREE NO. 2923K/30/MEM/2006)

NATIONAL ENERGY POLICY(PRESIDENTIAL REGULATION NO.5/2006)

COAL FIRED

POWER PLANTCRASH

PROGRAM

RENEWABLE ENERGYMEDIUM SCALE

CRITICAL AREAPOWER PURCHASE AND TRANSMISSION RENTAL

SUPPLY AND UTILIZATION OF BIOFUEL ASALTERNATIVE FUEL

(PRESIDENTIAL INSTRUCTION NO.1/2006)

LIQUEFIED COALS SUPPLY AND ITS

UTILIZATION(PRESIDENTIAL INSTRUCTION NO.2/2006)

ASSIGNMENT TO PLN FOR ACCELERATION OFCOAL FIRED POWER PLANTS DEVELOPMENT

(PRESIDENTIAL REGULATION NO. 71/2006)

ESTABLISHMENT OF COORDINATION TEAMFOR POWER PLANTS DEVELOPMENT.

(PRESIDENTIAL REGULATION NO,72/2006)

MEDIUM SCALE OFRENEWABLE ENERGY

POWER PLANT(MEMR REGULATION

NO. 002/2006)

PROCEDURE OF POWER

PURCHASE AND/ORTRANSMISSION RENTALELECTRICITY SUPPLY

FOR PUBLIC

(MEMR REGULATIONNO.001/2006)

GUIDELINES OF THEISSUANCE OF

ELECTRICITY BUSINESSLICENSE FOR

TRANSMISSIONTRANSPROVINCE OR

CONNECTED TO NATIONALGRID

(MEMR REGULATION NO.010/2005)

LIST OF POWER

SYSTEMS (AREAS)IN CRITICALCONDITION

(EMERGENCYCONDITION)

(MEMR REGULATIONNO. 206-12/40/600.2/

2006)

LIST OF POWERSYSTEMS (AREAS)

IN CRITICALCONDITION

(EMERGENCYCONDITION)

(MEMR

REGULATION NO.482-12/40/600.2/

2006)

NATIONALELECTRICITY

GENERAL PLAN 2006-2026

( MEMR DECREE NO.2270K/31/MEM/2006)

RENEWABLEENERGY

SUPPLY AND DEMANDBALANCE

INVESTMENTREQUIRMENT

PROJECT LIST

INFLUENCED BY

ARTICLE 5POINT 1

ARTICLE 2POINT 2

DERIVATION

ARTICLE 5POINT 1&2

POJECT DEVELOPMENTAND IMPLEMENTATION

TO OBTAIN GOVERNMENTSUPPORT/ GUARANTEE

CONSIDERING


32/74

Bahan Bakar Nabati(Biofuel) 5%

Panas Bumi 5%

Biomasa, Nuklir, Air,

Surya, Angin 5%

Batubara yang

Dicairkan (Coal

Liquefaction) 2%

Batubara 33%

Minyak Bumi 20%

Others

17%

Gas Bumi30%

PRIMARY ENERGY MIX 2005

National Energy Mix Target 2025(PERPRES NO. 5/2006)

Enhancing energy security & mitigating CO2emissions: to secure strategic reserve, to improveefficiency in energy production & use, to increasereliance on non fossil fuels and to sustain thedomestic supply of oil/gas (slower growth in fossilfuel-demand in oil/gas imports and in emissions).

Proposed energy technology use, diffusion anddeployment, increasing clean energy technologies.

Energy infrastructures and its time frame. Etc.

THE NATIONAL ENERGY ISSUESWhat is the SustainableRoad Map?

NATIONAL ENERGY TRAJECTORY

Minyak

Bumi

51.66%

Batubara

15.34%

Gas Bumi

28.57%

Tenaga Air

3.11%Panas Bumi

1.32%

t2?

t1?

t3?

t25EBT +

Presidential RuleNo. 5/2006



33/74




34/74


2010-2014National Mid-TermDevelopment Plan

(NMDPT)

Strategic Nat. Res & Env.Assessment (SNREA)for 2010-2014 NMTDP

INPUT DOCSBRIDGING DOCS

Integrating Climate Change to National

Development Planning Process

National

Communication,

National Sector

Strategy, etc.


35/74

Climate

ChangeProgram

MID TERM

DEVELOPMENT

PLAN

2004-2009

GOV WORKPLAN

2008

FUNDING

GOV

FUNDING

MID TERM

DEVELOPMENT PLAN

2010-2014

GOV WORKPLAN

2014

GOV WORKPLAN

2013

GOV WORKPLAN

2012

GOV WORKPLAN

2011

GOV WORKPLAN

2010

GOV WORKPLAN

2009

LOAN GRANT

COMM/

PRIVATE/

NGO/CSR

CDMDEBT

SWAP


36/74

NATIONAL DEVELOPMENT PLANNING AGENCY

BAPPENAS

NATIONAL DEVELOPMENT PLANNING RESPONSE TO

CLIMATE CHANGE

INTERNATIONAL

WORLD

IMPLEMENTATION

1. Agriculture2. Coastal and Small Island

3. Health

4. Transportation

5. Public Works

6. Human Settlements

7. Energy and Mining

8. Forestry

9. Environmental

10. Technology

11. Rehabilitation & Revilitation Peat

Land

12. Mainstreaming Decentralized

Disaster Risk Reduction

INDONESIA

CLIMATE CHANGE NATIONAL

ACTION PLANLIVING DOCUMENT

NATIONAL ACTION PLAN

IN FACING CLIMATE

CHANGE

MINISTRY OF ENVIROMENT

The Strategy of CarbonAbsorption Potential

Improvement and Strategy

of Carbon Emission

Reduction

MINISTRY OF SOCIAL

WELFARE



37/74


What is national development plan? Process to make development plans consist of long-term

development plan, medium-term development plan and annualdevelopment plan which will be implemented by state

institutions, private sector and community in all level of regions

Current regulations applied for development planning: Law No. 25/2004 about Development Planning Presidential Regulation No. 7/2005 about Medium-term National

Development Planning 2004-2009

Other national development plan policy relates to Climate Change: Millennium Development Goals (do not have legal status)



38/74




39/74


Environmental Policies are aimed to:

1. To mainstreaming sustainable development principles intoalldevelopment aspects;

2. Improve coordination among environmental institutions in nantionaland local level;

3. Increase the law enforcement effort to the poluters;

4. Increase the capacity of environmental institutions in national and

local level;5. Improve the awareness of community on environmental issues and

support community active participation to monitor environmentalquality;



40/74


Among 15 environmental policy objectives, 3 objectives

(No.5-7) are related to climate change issues:1. Improve urban air quality especially in Jakarta,

Surabaya,Bandung, and Medan, supported byimprovement of environmentally sound oftransportation system and management;

2.Reduction of ODS (Ozone Depleting Substances)gradually until 2010;

3. Improve national capacity in adapting climatechange issues into development aspects;



41/74


Target 9 : Integrate the principles of sustainabledevelopment into country policies andprogrammes and reverse the loss of

environmental resources

Target 10 : Halve, by 2015, the proportion ofpeople without sustainable access to safe

dringking water and basic sanitation

Target 11 : By 2020, to have achieved a significantimprovement in the lives of slum dwellers



42/74




43/74


To integrate the agenda of climate change adaptation to the National DevelopmentStrategy such as: Mid-Term & Long-Term Development Plan;

To re-observe and re-adjust initiative or program to be resilience to the climate

change;

To Institutionalize the climate information usage to enable climate risk mitigation

and management; To encourage local government to integrate the climate risk consideration into their

local development planning;

To strengthen information and knowledge to reduce climate risk in recent and in the

future;

To ascertained of the availability of internal resources and funding for adaptation

program and maximalize the utilization of available international funding; To choose for no-regret option, which is taking the adaptation act regardless for

example the non-occurence of climate change;

To encourage the establishment of national dialog to accelerate the implementation

process of climate change adaptation agenda in Indonesia.


MITIGATION ADAPTATION


44/74

4 Indonesia Position & RoleMITIGATION ADAPTATION

1. Toward Green Indonesia (MIH) &Aforestation (National forest and landrehabilitation)

2. Water Conservation (WatershedManagement, Well Absorption, Reservoir)

3. Forest Fire Master Plan Poverty DerivationEducation for Farmer (for not doing landclearing by land burning such as:government will supply fertilizer and

contribute good quality seed)4. Flood Management5. Reconstruction/redesign of irrigation

Agriculture6. Encouraging CDM Project increase by

sectoral approach

7. Mixed Energy Policies8. Free tax for clean technology equipments9. Energy Efficiency in the government

buildings10. Air Pollution Control for Transportation11. Self Sufficient Energy Village Program

1. Encourage MGA (Meteorologicaland Geophysical Agency) to havestation monitoring for weatherforecast More Accurate and RealisticNumber

2. Identify the vulnerable sectorsaffected by climate change.

3. Public Participation.4. Mainstreaming Adaptation Issue into

related policies sector; for reviewingthe 5--years Strategy Programme.5. Draft National Strategy on

Adaptation to Climate Change



45/74




46/74

4 do es a os t o & o e

The immediate objective: to enable Indonesia to identify national technology needs, capacity building to asses international technology availability, and modalities to acquire and absorb the appropriate technology.

Sectors in Existing Indonesian TNA Energy Sector Energy Industry Industry Sector Household and Commercial Sector

Transportation sector Non-Energy Sector Agriculture and Livestock Forestry

(Existing Indonesian TNA submited to UNFCCC on 2001)



47/74

4

MODALITIES OF TECHNOLOGY TRANSFER Institutional Establishment Regulation Development

Procedure of Transferring Technology The Role of Decentralization

System & Procedure Establishment Financial Arrangement Foreign Direct Investment Official Development Assistance The Global Environmental Facility Clean Development Mechanism Multilateral & Bilateral Agencies Regional Development Banks Etc.




48/74

4

Criteria for prioritizing technology needs Utilization of local resources

Rational utilization of resources

Socio-economic important

GHG reduction potential

Investment cost

Social acceptance

Minimum impact on environment

Methods for prioritization of technology needs Costbenefit and riskbenefit analyses




49/74

4

Indonesia listed barriers and measures sector-wise.Types of barriers totechnology transfer identified are: Economic / market Information/awareness Policy

Regulatory Institutional Human Technical Infrastructure

Indonesia expressed concern about the high investment costs of selected

mitigation options, which could translate into higher product prices andloss of competitiveness in the case of the energy sector. However, itidentified barriers only in the transport, forestry and agriculture sectors.




50/74

4

High Efficiency Power Generation: Clean Coal Technology, CHP Technology,etc.

Energy Efficiency in Industrial sector (cement, iron & steel, pulp & paper,fertilizer, textile, mining, lime calcination, chemical, etc.)

Energy Efficiency in Industrial Equipments (Industrial process, electricalmotor, boiler, compressor, furnace, Refrigeration, heater, room conditioning,

cooling tower, electrical system, combustion, pump, lighting, steamdistribution, waste heat recovery, etc. Energy consumption efficiency in transportation including using gas for

vehicles including improvement of public transportation Carbon Capture Sequestration (CCS) Cleaner Production Technology for Industry Renewable Energy: Biomass, Wind, Solar, Ocean, Geothermal, Hydro

electric, etc. Climate modification technology Climate monitoring & reporting system



51/74

4

Avoiding forest burning, avoiding deforestation, forest conservation andreforestation, etc.

Composting of agricultural waste, manure management, etc. Landfill management to avoid methane release Ocean Sequestration Technology for water resources management Industrial waste water treatment Industrial solid waste treatment (recovery, composting of palm free fruit

bunch.



52/74


53/74

53

Indonesia is already responding to this challenge in anticipation ofthe future consequences.

In 2007 and 2008, central government spending on environmentalprograms over 2006 levels to 6 trilion rupiah was doubled.

At the regional level, we have also nearly doubled spending to 6trillion Rupiah on reforestration and special funds for environmentand conservation.

Together, these funds amount to USD 1.4 billion spent onenvironment management, conservation and forest restoration.

In 2005, Indonesia also instituted a large increase in fuel prices byreducing subsidies that will encourage energy efficiency , whileprotecting the poor.


54/74

54

Indonesia(RPJP, RPJM,

RKP)

Donor

(Country Strategy/Program)

ClimateChange

JointPrograms

The support of developed countries on Climate Change Programall over the world should be in addition to their commitment tosupport MDGs achievement through ODA(0.7 % GNP)



55/74

Bilateral

JBIC

DFID

AusAID

DANIDA

Netherlands

EC

GTZNorway

CIDA

Sweden

MultilateralWolrd Bank

ADB

UNDP

O t h e r sIntl trust funds: GEF,Adaptation funds, CIF

Private Sectors

F i n a n c i n g

Bilateral

Multilateral

CDM

M e c h a n i s m s

Loan

Grant

G-to-G

Trust tee

Management

GoI host

TA & financial &managementsupport

CC Trust Fund

Mitigation & Adaptation

Public-private partnership

Policy Re-orientation

Climate-Proof Economy

Awareness raising

Community-Based Programs

Capacity Building

Training/Workshops

Piloting

Small-scale Investment

Policy Implementation

Execution of Policy/Strategy



56/74

UNFCCC Convention Article 11: grant and/or concession

Prefer to have ODA+

Paris Declaration ownership, donor harmonisation, governance,

In line with national interest and financing regulation: Long-term and Mid-term National Development Goals

State Law No. 17/2003 about State Finance and Foreign Loan and GrantRegulation (Government Regulation No.2/2007)



57/74

Non-UNFCCC mechanism: Grant from Bilateral Countries or Multilateral Institutions (ODA and

ODA+) Foreign Loan (ODA and ODA+):

Program Loan: only for budget/fiscal deficit

Sectoral Loan: emphasizing co-benefit approach betweendevelopment and climate change Trust Fund (both International and national)

UNFCCC mechanism: Global Environmental Facility (GEF)

Special Climate Change Fund (SCCF) Adaptation Fund (AF) Up-coming Reduction Emission from Deforestation and

Degradation (REDD) mechanism



58/74

CDM investment through Bilateral, Multilateral andUnilateral sources

PRIVATE SECTOR:

We should also look to encourage greater levels of privatesector involvement in mitigating and adapting strategies.Government can use fiscal instrument to encourage privatesector to invest in environmental friendly technology


59/74

59

Grant Debt swap

Trust Fund Soft Loan - concession


60/74

60

Steering Committee/Ministers

Program SteeringCommittee

Chair: GoICo-chair: Representative of Donor

Ministries/Agencies/Local Governments/

SOEs

SubGroup/Issue

SubGroup/Issue

SubGroup/Issue:

ClimateChange

Multi DonorTrust Fund

(MOU GOI-Donors)

Bilateral/Multilateral

Donors

ProgramDialogue

Policy Report Funding



61/74



62/74

Indonesia Energy Projection



63/74

Gas

Coal

WindWind

Thermal

Other

Oil



64/74

Gas

CoalOil

Wind

Wind



65/74



66/74



67/74



68/74



69/74



70/74

Presidential Decreed No. 1 / 2006

RegardingSupply & Usage of Bio Fuel as Alternative Energy



71/74



72/74



73/74



74/74

04.4 indonesia's position and policy

Documents