STRATEGIES FOR INCLUSIVE GREEN ECONOMY APPROACHES IN INDONESIA by LAKSMI DHEWANTHI Ministry of Environment Asia Regional Dialogue on Country Experiences and Ways Forward for Economic Decision-Makers, Bangkok, Sep 2012

2 LONG TERM DEVELOPMENT MISSION, Competitive Indonesia Just and Distributed Development Green and Everlasting Indonesia Indonesia as a Strong, Self- reliant Archipelagic Country base on National Interests Source: Bappenas, 2010 Vision “ Prosperous, Democratic and Just Indonesia” Mission  Continue Development to achieve Prosperous Indonesia  Strengthen Democratic Pillars  Strengthen Justice in every Aspect of Development

Pro-poor (poverty alleviation) Pro-jobs Pro-growth 2004 Added by Pro-environment 2007 Economic Growth 7% 2014 GHG Emission reduction 26% (+15%) Reduced biodiversity loss 2020

POLICIES as well as MARKET FAILURES (subsidized growth, distorted energy prices, no internalized of externalities) Reshape Financial Infrastructure Food Security Energy Security Miving from Single Track to Multiple Track Challenges INTERVENTIONS FOR MARKET CORRECTIONS AND CHANGING BEHAVIORS

National Priority and Action Plan PRIORITYFOCUS Land, Area Development and Agriculture Spatial Plan Infrastructure Research and Development Investment, Finance and Subsidy Food and Nutrition Adaptation to Climate Change Food Security Policy Restructuring of State Enterprises Energy Capacity Alternative Energy Oil and Gas Derivative Production Gas Conversion Energy Climate Change Environmental Degradation Control Early Warning System Capacity Building on Disaster Mitigation and Forest Fire Environmental and Disaster Management NATIONAL PRIORITY AND ACTION PLAN

GREEN ECONOMY- 3 component Expected behaviours for GREEN ECONOMY LOW CARBON AND LESS HARZARDOUS WASTE MAINTAIN NATURAL CARRYING CAPACITY SUSTAINABLE USE OF BIOLOGICAL DIVERSITY I. ROAD MAP OF LOW CARBON (National/Regional Action Plan on GHG emission Reduction (RAN GRK)) REDD+ II. Update IBSAP (Indonesia Biodiversity Strategic Action Plan) III. SPATIAL PLANNING (RTRWN/D) emphasizing on Environmental Carrying Capacity Source: Bappenas, 2012 Sustainable use of natural resources, internalizing cost of natural resource depletion/environmental degradation, efforts on alleviate the poverty, creating decent jobs, and ensuring sustainable economic growth”

Diagram modified from Emerton, L. et al. (2006) Sustainable Financing of Protected Areas, IUCN and Fischer, A. / Petersen, L. / Hubbert, W. (2004): Natural Resources and Governance: Incentives for Sustainable Resource Use, GTZ). Overview of development of incentive instruments in Indonesia (emphasized by Act 32/2009) 7

“The agenda should promote equitable development, sustainable growth with equity, and strengthened global partnership.” “The agenda should promote an optimal balance between economic growth, social equality, and environmental sustainability.” “Eventually, the post-2015 development agenda should lead to the attainment of a “zero global poverty rate” by the middle of 21st century.” How Indonesian views the future development agenda? Susilo Bambang Yudhoyono, President of Republic of Indonesia, 2012 AS CO-CHAIRS OF HIGH-LEVEL PANEL OF EMINENT PERSONS ON POST-2015 DEVELOPMENT AGENDA

9 Thank you For further information: Assistant Deputy Minister for Environmental Economic Deputy Minister for Environmental Governance, Ministry of Environment lunak, Tlp/Fax