Prasetyadi Utomo Ministry of Environment of Indonesia CD4CDM Workshop Pathumthani, Thailand 19 – 21 October, 2005 Indonesia’s Policy on CDM Implementation

National Policy on Climate Change Accelerate the development of industry and transportation with low emission level through the utilization of clean and efficient technology as well as renewable energy; Improve the potential of land and forestry to absorb greenhouse gases; Indonesia adopts international law as a national law to be detailed in the framework of regulation and institutions.

CDM Implementation in Indonesia Legal background: –Act No.: 23/1997 concerning Environmental Management; –Act No.6/94, Ratification to the UNFCCC; –Act No.17/04 Ratification to the Kyoto Protocol; –Min of Forestry Decree No.14/04 on A/R project. Institutional strengthening: –Establishment of National Commission on Climate Change (Ministerial decree No.53/03 –Establishment of the DNA Ministerial decree No.206/05) Active involvement of various stakeholders

National Committee on CDM Indonesian National CDM Authority (DNA) = ‘Komisi Nasional Mekanisme Pembangunan Bersih’ (KN-MPB) Established through Minister of Environment decree No.206 Year 2005

Organisation structure and supporting Elements of Indonesia’s DNA on CDM (KNMPB) KNMPB Secretariat Experts Technical Team Stakeholder Forum

Permanent Members Min of Environment Min of Energy & Mineral Resources Min of Forestry Min of Foreign Affairs Min of Industry Min of Transportation Min of Agriculture Min of Home Affairs National Development Planning Board

KNMPB: the Functions Mandatory function –Approving proposed CDM projects based on the national sustainable development criteria –Tracking the progress of PDD on CDM Exec Board Non-mandatory promotional function –Facilitating communication among investors and the proponent and other related parties –Facilitating capacity building in proposing and implementing CDM projects –Providing information to support CERs marketing and/or CERs potential

SD Criteria and Indicator for CDM Environmental Sustainability: –Environmental sustainability through conservation or diversification of natural resources –Local community health and safety Economic sustainability: –Income generate –Local community welfare –Investment flow Social sustainability: –Local community participation –No negative impact on community’s social integrity –Improve social facility Technical sustainability: –Transfer of technology –Improving indigenous/existing technology –Transfer of knowledge –Not used on experimental technology

National Strategy on CDM Implementation in Indonesia Institutional and legal strengthening Establish bilateral agreements with Annex 1 countries Improve coordination among central and local governments Develop networking among stakeholders (govn’t, NGO, univ, business, etc.) Improve public awareness, education, training; Provide access to information on climate change issue

Strategy on CDM Implementation No specific area for project type of CDM Highly support of using Renewable energy, alternative energy and clean technology Simplified approval procedure on CDM proposed Incentive scheme for CDM Project developer Promote CDM project potential through international event such as Carbon expo

Energy Policy (Action Plan for Sustainable Development in Indonesia) Phase out energy market distortion gradually; Promotion of the renewable energy use and development; Encourage society applying energy efficiency; Support on consumption of clean and efficient technology for industry and trade sector; Restructure prices of various energy type.

Policy in Non Energy Sector Sustainable forest management Improvement on agricultural system Application of biotechnology engineering to increase agricultural products Management of agricultural practices in less fertile land with dry land variety

Perspective on Future development of CDM Indonesia has a number of ‘promising’ potential CDM projects Indonesia has attracted Annex 1 countries to become the Host Country for CDM Increasing enthusiasms from local business player as well as other stakeholders in CDM Strengthened by the establishment of KNMPB (Indonesian DNA)

Further Information Deputy Assistant for Climate Change Impact Control Tel.: Fax.: Indonesia DNA: dna-cdm.menlh.go.id