SATYA WIDYA YUDHA

AIR POLLUTION AND ITS IMPLICATIONS FOR INDONESIA:CHALLENGES AND IMPERATIVES FOR CHANGE

AirQualityAsia High-Level Session

20 April 2017

Vice Chairman of the Energy Commission & Chairman of the Green Economy CaucusThe House of Representatives of the Republic of Indonesia

BACKGROUNDIndonesia’s Greenhouse Gas Emissions

Energy:45335%

Waste:887%IPPU:36

3%

Agriculture:665%

LULUCF:64750%

Emissions Contributions by Sector in 2010

(Million Tons of CO2e)42%

30%

22%

7%

Percentage of Energy Emissions

Power GenerationTransportationIndustryHousing

Indonesia is the 6th largest greenhouse gas emitter in the world and contributes 4.5% of total global greenhouse gas emissions (IEA 2015)

BACKGROUNDOverview and Context of Air Pollution in Indonesia

ü  Government’s burden on fuel subsidy (data for 2017): •  National consumption of subsidized fuels is 16.61 million for

gasoline; diesel (16 million KL); kerosene (0.6–0.69 million KL).

ü  Land transportation contributes around 12% of total national CO2 emissions, and almost 90%of urban air pollution (CO, HC, NOx, SOx, PM, O3).

ü  90% of transportation emissions comes from road transportation

ü  70% of city pollution comes from the transportation sector

ü  Challenges include Free Trade ASEAN Economic Community – AEC (2015), ASEAN MRA (2012) and UNECA Regulation: – The competitiveness of domestic oil and auto-industry in the sub regional market of ASEAN.

AIR POLLUTION AND ITS EFFECTSCase: 2015 Indonesian Forest Fires

From September to October 2015, daily estimated GHG emissions from fires in Indonesia surpassed average daily emissions from the entire US economy (approximately 15.95 Mt CO2 per day). A massive spike in emissions can be seen on October 14, when 4,719 fires were observed.

More than 75,000 people suffered from upper respiratory infections as a result of the haze. GHG emissions from 1 week of fire on 1.6% of Indonesia's land area = 5–10% of Indonesia's annual GHG emissions (Cifor).

AIR POLLUTION AND ITS EFFECTSCase: Jakarta 2010

The population of Jakarta is 9,607,787 (2010)57.8% of the population suffers from various air pollution-related diseases:

— 1,210,581 people suffer from asthmatic bronchiale (compare with 500,000 people from Ostro’s research in 1994)

— 173,487 people with bronchopneumonia— 2,449,986 people with ARI— 336,273 people with pneumonia— 153,724 people with COPD— 1,246,130 people with coronary artery diseases

Total health cost: IDR38.5 trillion / USD54 billion (compare with USD220 million in 1989 -> Resosudarmo & Napitupulu 2004)

AIR POLLUTION AND ITS EFFECTSCase: Acid rain in Jakarta, Tangerang and Bandung

•  Acid rain is an indicator of declining air quality associated with energy-related emissions and is caused by the combustion of fossil fuels that emits sulfur dioxide (SO2) and nitrogen oxide (NOx) when reacting with various chemical compounds in the atmosphere.

•  Acid rain has adverse affects for water ecosystems (disrupts biotic reproduction and endangers aquatic species), soil (reduces nutrient content, thins the amount of soil layer, disrupts vegetative growth), and buildings (accelerates the corrosion of limestone, marble, concrete bricks, and metals).

•  A 2000–2016 study conducted by the Ministry of Environment and Forestry’s R&D department found worryingly low (acidic) levels of pH in the rainwater of the cities of Jakarta (5.6–4.31), Tangerang (5.21–4.65), and Bandung (5.46–4.46).

•  The standard pH level for rainwater is 5.6.•  Rainwater in these cities also contains traces of sulfate, ammonia, nitrate,

potassium, magnesium, chloride, and sodium.•  PRIMARY SOURCE OF CONTAMINATION: vehicle and industrial

emissions.

AIR POLLUTION AND ITS EFFECTSExposure to Outdoor and Household Air Pollution

Outdoor air pollution in cities in Jakarta, Indonesia, annual mean PM2.5 (μg/m3) 2010

In 2010, Jakarta had an annual mean PM2.5 level that was above the WHO guideline value of 10 μg/m3.

29% (164,314 out of total 566,600) Attributable to Household Air Pollution

Percentage of Deaths From Ischaemic Heart Disease, Stroke, Lung Cancer, COPD, ARI (2012)

Source: WHO 2015

In Indonesia, about 45% percent of an estimated 25,300 child deaths due to acute lower respiratory infections is attributable to household air pollution.

VEHICLE FORECAST: 2030Source: Author’s estimation

MOVING FORWARD: POLICY

1.  Emissions Inventory and Monitoring as a baseline of the Air Pollution Control Planning City•  Ten cities are already doing the preparation for an inventory of

emissions:Palembang, Surakarta, Batam, Surabaya, Malang, Yogyakarta, Denpasar, Banjarmasin, Medan and Tangerang

2.  Improved Vehicle Technology and Fuel•  Encouraging the use of alternative materials (CNG, Bio Fuel, etc.)

ü  The use of CNG for public transport (Jakarta: bajaj and transjakarta; Palembang: Transmusi)

ü  The use of used cooking oil in Transpakuan in Bogor•  Encouraging policies emissions testing and vehicle maintenance•  Encouraging Fuel Efficiency (Eco-Driving)•  Use of Hybrid Technology, Electric, and Fuel Cell

Some basic things to be done to achieve the vision of “sustainable city/green city”

MOVING FORWARD: POLICYSome basic things to be done to achieve the vision of “sustainable city/green city”

3. Alternative Modes of Transportation•  Public Transportation (BRT, MRT, Rail Transportation)

BRT: Transjakarta, Transmusi, Transbatik Solo, Transpakuan (Bogor)

•  Non-Motorized Facilities (Pedestrian way, Bike Sharing)

4. Other Policies•  Structuring space (RTH, zoning, etc.)•  Setting work hours, traffic engineering•  Improved "parking rate"•  Car Free Day (coverage and intensity increased): Jakarta,

Bandung, Solo, etc.•  others

MOVING FORWARD: EURO 4 STANDARDNational Roadmap to 2025

•  Intensive dialogue about Roadmap Fuel Economy - Vehicle Emission Standard - Euro 4:–  A variety of multi-stakeholder consultation meetings and consignment–  Policy Dialogue "readiness refinery in implementing the Euro 4 standard in 2016":

•  Jakarta•  Balongan refinery•  Balikpapan refinery

•  Preparation of NA Vehicle Emissions Standard - Euro 4•  Implementation of Vehicle Emission Standard - Euro 4 in 2016 gradually:

–  Modifications Balongan and Balikpapan refinery to supply fuel berstandard Euro 4 in several major cities.–  The Ministry of Finance and the House of Representatives to discuss alternative financing / funding up grade / modification

Refinery.–  Donor agencies to help alternative financing / funding up grade / modification Refinery.–  Breathe Easy Jakarta Program tentang penerapan Vehicle Emission Standard Euro 4 di Jakarta dengan menggunakan BBG.

•  Implementation of Euro 4 nationally in 2021.•  Adoption of Euro 5 nationally in 2025.

MOVING FORWARD: EURO 4 STANDARDPreparation for Euro 4 Implementation

ü  Reduction of subsidized fuel by switching to using non-subsidized fuel

(Euro 4), New Vehicle Types.

ü  Automotive industry technology development (Euro 4 standard)

ü  Euro 4 fuel preparation (especially Sulfur Content of 50 ppm, and the

maximum content of bio-fuel/ethanol)

ü  Campaigning "Use of Low Sulfur Fuel", (the lower the sulfur, the more

efficient the fuel consumption, and the higher the concentration, the

higher the sulfur emissions, PM, CO, NOx)

MOVING FORWARD: EURO 4 STANDARDImplementation of Euro 4 in Indonesia

ü As of August 31, 2013, Euro 3 has been enacted for motorcycles so that two-wheeled vehicles must use a the Pertamax and Pertamax Plus types of gasoline

ü Euro 3 emission standards already apply to new vehicles because fuel is readily available for Euro 3

ü  Fuel (especially gasoline) to go Euro 4, recently stipulated in

Regulation of the Minister of Environment and Forestry No. 20 of 2017 in order to replace currently existing Euro 2 gasoline

OTHER TRANSPORTATION POLICIES

ü  Air pollution from mobile sources is not only caused by motor vehicles, but can also be caused by other modes of transportation. Starting in 2011 Deputy for the Mitigation of Mobile Sources of Air Pollution also addressed emissions from

transportation, rail, heavy equipment, military vehicles, ships and aircraft.ü  Policy drafted by the Ministry of Environment currently associated with the

transportations of non-vehicles, among others, are:•  quality standard for exhaust emissions of new types of heavy equipment;•  quality standard for exhaust emissions of heavy equipment already in

operation (in-use)•  quality standard for exhaust emissions of trains already in operation (in-use)

POSITIVE MARKET POTENTIAL

Indonesia ranks seventh overall out of 50 countries on the 2015 Top Markets Study (TMS) with the market for environmental technologies valued at USD

6.3 billion in 2016. (International Trade Administration, 2016)

Environmental technologies for air pollution control

SUMMARY

Adaptation•  National Action Plan on Climate Change Adaptation (RAN-API) as guidance for decision makers to

provide an inventory of near-term priority adaptation actions and to complement the current work on mainstreaming of adaptation.

Mitigation•  Presidential Regulation No. 61/2011 on the National Action Plan on Emission Reduction Plan (RAN-GRK)•  Regional Action Plan on Emission Reduction at Provincial levels (RAD-GRK) covering 32 provinces out of

33 provinces.•  Presidential Regulation No. 71/2011 on National GHG Inventory System•  Presidential Regulation No. 62/2013 on REDD + Agency.•  Coordinating Economy Ministerial Decree No. 67/2013 on Coordination Team for Technology Transfer•  Technology Need Assessment (TNA) on mitigation and adaptation focused on energy, forestry, waste (for

mitigation) and food security, water resources, and coastal vulnerability (for adaptation)•  Establishment of National Designated Entity (NDE) functioned as a liaison agency between Technology

Centre and Network and local stakeholders in implementing technology transfer•  Implementation of technology transfer project ideas through FIRM Initiative focused on energy and

transportation.Capacity Building•  National Strategy on Human Resource Development for Climate Change ActionsFinance•  Ministerial Decisions and Regulations to incentivize climate change actions at national and sub-national

level through fiscal policy framework including tax, investment, and feed-in tariff on geothermal.

Policies and Institutional Arrangements

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