Climate Change and Development Context
Indonesia, an archipelago of more than 17,000 islands[i] is the fourth most populous nation in the world. The country accommodates the world’s third largest area of rainforest[ii], which is one of the world’s richest biodiversity.[iii] However, climate-related hazards in Indonesia (e.g., extreme weather events, prolonged droughts, severe flood risk and sea level rise) have become progressively more intense. The impacts of climate change have heavily deteriorated the living condition of Indonesian and may cost the country approximately between 2.5 percent and 7 percent of GDP by the end of this century (World Bank, 2009).
The Government of Indonesia places high priority on climate change initiatives in its national development plan. It has also spent significant funds for adaptation due to the country’s extreme vulnerability to climate change impacts. In addition to deforestation and emissions from power plants and high energy intensity, El Nino and La Nina hit the country in 1998 and 2002, respectively, and resulted in the biggest forest and land fire in the country, which brought Indonesia is the world’s third largest emitter of greenhouse gases (GHGs).[iv][v]
In 2011, the Government of Indonesia released its National Action Plan for Greenhouse Gas Emission Reductions (Rencana Aksi Nasional-Gas Rumah Kaca or “RAN-GRK”) aiming to provide mitigation feasibility and financing sources in order to support the country to meet the national emission reduction goal within the framework of sustainable development. The RAN-GRK is aimed at targeting to reduce 26-41percent GHG emission below business-as-usual levels by 2020.
Key National Institutions, Policies and Initiatives
Key institutions: The National Development Planning Agency (Badan Perencanaan Pembangunan Nasional or “BAPPENAS”) was established in 2002 to lead formulation of development plans, policies and strategies including in response to climate change. It also acts as a coordinator to consult with related stakeholders, including the private sector and civil society for development of NAMAs.[vi]
The Ministry of Environment is responsible for the coordination of a National GHG Inventory System called as Sistem Inventarisasi Gas Rumah Kaca Nasional (SIGN). The SIGN’s approach is to collect national data through both line ministries and local governments in order to clarify data and calculation methods for improving the consistency of data.[vii]
In 2008, the National Council on Climate Change of Indonesia (Dewan Nasional Perubahan Iklim or “DNPI”) was set up to serve as a primary body for policy coordination on climate change. The President chairs the DNPI with Coordinating Ministers for Economic Affairs and for People’s Welfare serving as vice chairs, and 17 cabinet ministers cabinet ministers plus the Head of Agency for Meteorology, Climatology, and Geophysics as council members. The DNPI’s focus areas are climate change adaptation, mitigation, technology transfer, funding, forestry and land use change, caron trade mechanism, GHG inventory, and climate change scientific issues as well as capacity building. DNPI is also in charge of the Nusantara Carbon Scheme (NCS), an Indonesian emission reduction certification and registration scheme that facilitates voluntary carbon trading in Indonesia.[viii]
The Indonesian Climate Change Center (ICCC)[ix] is set up to utilize scientific studies and coordinate technical input related to climate change issues to support policy development.
The ICCC focuses on addressing carbon emissions from forests and peat lands for low emission development strategies (LEDS); measurement, reporting and verification (MRV); and climate resilience.
In response to the Norwegian Letter of Intent, the Indonesian President also created a higher-level REDD Task Force[x], which is responsible for the establishment of REDD+ financing mechanisms; the preparation of the MRV institutions and the effective implementation of the moratorium (CIFOR, 2011b). a REDD Plus Agency was recently established to manage the implementation of REDD+ in the country. In response to the Norwegian Letter of Intent, the Indonesian President also created a higher-level REDD Task Force[x], which is responsible for the establishment of REDD+ financing mechanisms; the preparation of the MRV institutions and the effective implementation of the moratorium (CIFOR, 2011b).
Policies and initiatives: Indonesia is in the second stage of the National Medium Term Development Plan 2010-2014 (Rencana Pembangunan Jangka Menengah Nasional, or RPJMN II), which is formulated in consideration of national commitments, including climate change. [xi]
The Indonesia Climate Change Sectoral Roadmap (ICCSR) aims to bridge the National Development Planning: Response to Climate Change into the 5-year RPJMN II. Launched in 2010, it outlines Indonesia's strategic long-term commitment of effective GHG mitigation and adaptation to climate change. It provides detailed policy guidance for climate change planning, programming and actions, focusing on the forestry, energy, industry, agriculture, transportation, coastal area, water, waste, and health sectors.
The Indonesia Climate Change Trust Fund (ICCTF) is a national funding entity supported by the state budget, grants from multi-donors (UK, Australia, Sweden), and private investment funds. The objectives of the ICCTF are to drive the country to a low-carbon economy and to assist the Government to increase the implementation effectiveness of climate change resilience actions. The main ICCTF funding mechanism is the ‘Innovation Fund’, which deploys to line ministries to overcome barriers for early program deployment. The “Transformation Fund” mechanism involves all available funding (i.e., public-private partnerships, loan and world capital market sources).[xii]
[iv] Indonesia: A Vulnerable Country in the Face of Climate Change, Global Majority E-Journal, Vol. 1, No. 1 (June 2010), pp. 31-45
[v] Indonesia Second National Communication 2010 (accessed 29 Nov 2013).
[vi] Development of the Indonesian NAMAs Framework (accessed 29 Nov 2013).
[vii] Study on Carbon Governance at Sub-national Level in Indonesia (accessed 29 Nov 2013).
[x] Letter of Intent between the Government of the Kingdom of Norway and the Government of the Republic of Indonesia on. “Cooperation on reducing greenhouse gas emission from deforestation and forest degradation" (accessed 29 Nov 2013).
[xi] Indonesia Second National Communication 2010
The Co-Chair of the Asia LEDS Partnership is a representative from the Indonesia National Council on Climate Change (DNPI).
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