INCLUSIVE GREEN GROWTH STRATEGY FOR AGRICULTURE IN INDONESIA · INCLUSIVE GREEN GROWTH STRATEGY FOR...

KEMENTERIAN PERENCANAAN PEMBANGUNAN NASIONAL/BADAN PERENCANAAN PEMBANGUNAN NASIONAL

Endah MurniningtyasDeputy Minister for Natural Resources and Environment

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International Conference, PEHEPIBogor, 27-29 August 2014

INCLUSIVE GREEN GROWTH STRATEGY FOR AGRICULTURE IN

INDONESIA

KEMENTERIAN PPN/BAPPENAS

I. SUSTAINABLE DEVELOPMENT IN INDONESIA’S DEVELOPMENT PLAN

II. INCLUSIVE GREEN STRATEGY FOR AGRICULTURE DEVELOPMENT

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OUTLINE


1. SUSTAINABILITY IS IN THE WAY OF LIFE OF INDONESIAN PEOPLE AND EXPLICITLY STATED IS THE NATION’S VISION: Dev. Mission #7 - Mewujudkan Indonesia Asri dan Lestari – Sustainable development Mission

2. The Current Long term Development Plan 2005-2025 implemented in 4 medium term development plans (RPJMN)

3. Concrete implementation is started in the 2nd RPJMN 2010-2014 and will be continued on the next phase.

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I. SUSTAINABLE DEVELOPMENT IN INDONESIA’S DEVELOPMENT PLAN


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CONCRETE IMPLEMENTATION:4 DEVELOPMENT STRATEGY IN RPJMN 2010-2014

• PRO POOR

• PRO ENVI-RONMENT

• PRO JOBS

• PRO GROWTH

SUSTAINABLE GROWTH WITH

EQUITYNewest 2007


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PRO-GROWTH, PRO-JOBS, PRO-POOR

Source: Central Statistical Agency

GDP Growth

36,15 35,139,3

37,1734,96

32,53 31,02 30,02 29,13

16,66 15,9717,75 16,58 15,42 14,15 13,33 12,4911,96

0

5

10

15

20

25

30

35

40

45

2004 2005 2006 2007 2008 2009 2010 2011 2012

Jumlah Penduduk Miskin (juta jiwa)

• Sustaining a positive economic growth, eventhough relatively stay at 4-6%

• Employment grows but absolute number of unemployed people is still relatively big.

• Poverty decline but not as fast as its should be absolute number of poor people is high

Year Labor force (millions)

Employed(millions)

Unemployed (milllions)

Unemploy-ment rate (%)

2005 105,80 94,95 10,85 10,26

2006 106,28 95,18 11,10 10,45

2007 108,13 97,58 10,55 9,75

2008 111,48 102,05 9,43 8,46

2009 113,74 104,49 9,26 8,14

2010 116,00 107,41 8,59 7,41

2011 119,40 111,28 8,12 6,80

2012 120,41 112,80 7,61 6,32

2013 121,19 114,02 7,17 5,92


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1. Since 1972: sustainable development was introduced - Implementation: through environmental Laws and standard many challenges

2. CONSTRUCTIVE APPROACH:a. 2004 putting: Sustainable development as development mission in the Long Term

Development Plan 2005-2025b. 2009: Committed to reducing GHG emission: 26% from BAU by 2020 with own effort and

41% by international support.c. Medium Term Development Plan 2010-2014:

i. Sustainable development is mainstreamed into all development aspectii. Climate Change as cross sectoral program.

PRO ENVIRONMENT

1. Climate Change Council (DNPI) – rep. of global climate change talks and negotiations.2. REDD+ Task Force: (i) moratorium; (ii) One map. 3. 2011: National Action Plan for reducing GHG emission – as Presidential Regulations

61/2011 (RAN GRK) and its GHG inventory in Perpres 71/2011.4. 2012: 32 Local Action Plan on GHG Emissiion Reduction (RAD GRK)5. 2013: 10Y Framework on Sustainable Consumption and Productions (SCP) launched

on the Earth Day in Jakarta

More concrete actions:

KEMENTERIAN PERENCANAAN PEMBANGUNAN NASIONAL/BADAN PERENCANAAN PEMBANGUNAN NASIONAL

www.bappenas.go.id

NATIONAL ACTIONS PLAN ON GHG EMISSION REDUCTION

Pres. Decree No. 61/2011 Mitigation Action (RAN GRK)

and Pres. Decree No.71/2011 on GHG Inventory

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32RAD GRKs

1. How is carbon emission situation in the region – level – in what sector, activities?

2. What can Local Government do to reduce emission-program-activities?

3. Impact on income and local economy what are the alternatives and new income sources?

4. Capacity: institutions and HR needed for M & A at the government level, universities, NGO and community?

http://www.bappenas.go.id


NATIONAL ACTION PLAN ON CC MITIGATION AND ADAPTATION

PROVINCIAL ACTION PLAN ON CC

MITIGATION AND ADAPTATION 1


MITIGATION AND ADAPTATION 2


MITIGATION AND ADAPTATION 3 etc

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Framework for implementation on the ground

National Coordinating Team

Prov. Team Prov team Prov team

Secretariate

NCT

TM2

TM3

NGO and Expert Panel

TM1

(1) The Action Plan: Central and Provinces (33) (2) Coordination Team

(3) Working with the stakeholders

SEC

Experts/Univ

Expert/Univ

Expert/Univ

Experts/Univ

(4) The Secretariate

ICCTF

VM NDP /Bappenas

Social Pillar1. Equity2. Health3. Education4. Security5. Housing6. Population

Economic Pillar1. Economic

Structure2. Consumption

& Production Pattern

Environment Pillar

1. Atmosfir2. Land3. Coastal an

Marine4. Clean Water 5. Biodiversity

Institutional Pillar

1. Institutions, Regulatory Framework

2. Delivery Mechanism

3. Capacity

Framework for Construction of Sustainable Development Indicators, September, 2001

MDGGovernance

Green Economy

Environment and Biodiversity

SUSTAINABLE DEVELOPMENT

THE MEDIUM AND LONG TERM SUSTAINABLE PATH

Indonesia achieved most of

the MDG goals prior and track.

Room for Improvement and GHG emission reductions provide a good opportunity to a more systematic development on this pillar.

GHG emission provide a good momentum to:1. Developing SCP2. Valuing the nature

(environmental services and biodiversity values) and externalities.

3. Internalize environmental externalities into the economy.

On going process of adjustment


PLAN FOR THE NEXT MEDIUM TERM DEVELOPMENT GOAL

GHG Emission Reduction low

carbon development

Sustainable Consumption &

Production (SCP)Green

Economy......Sustainable Development

Accelerate reduction of water and land

pollutions

• Resource efficiency• Sustainable production• Sustainable consumption

Green procurementGreen standard

• Sustainace Consumption and Production (SCP)

• Economic Structure (green and new green sources of revenue)

Green financingGreen bankingGreen jobs

1.Mitigation Plan: RAN GRK – Pres. Decree 61/2011

2.GHG Inventory Pres. Decree 71/2011.

3.Adaptation Plan

Green Development

1. Earth Day – Launching of 10 Y Framework of SCP

2. Action on SCP – priority: Green Building, Green Public Procurement and Green Tourism

1.Fiscal Instrument for Green Economy

2.Pricing Issue

ROADMAP GREEN BUSINESS (private sector-KADIN) 10

current MTDP 2015-2019 Long term


on going (2012)

10Y FRAMEWORK FOR SUSTAINABLE CONSUMPTION AND PRODUCTIONS (SCP)

PRODUCTION:1. AGRICULTURE

2. ENERGY AND MINING3. INDUSTRY

4. CONSTRUCTIONS: BUILDING & OTHERS

4. SERVICES SECTOR: FINANCE, TOURISM, ENV. SERVICES,

EXPERTISE/CONSULTANCY

CONSUMPTION:1. HOUSEHOLD2. CORPORATE

3. LIVING: CITY, STYLE....

LAW AND REGULATIONS: RULES, PROCUREMENT, STANDARDS

SCI-TECH: Green technologi dan knowledge

HRD: CAPACITY AND COMPETENCIES NEEDED FOR SCP IMPLEMENTATION

DATA AND INFORMATION: COMMUNICATION, INFORMATION & DATA BASE11


Source: MP3EI (2011)

! "

#"

$" %"

&"

' "

Land-based Products & Energy Mining&Energy Agriculture, Farming &

Fisheries

Natural & Human Resources

Tourism & Food Security

Industry & Service

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2

4

65

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6 Economic Corridors

ACCELERATION AND EXPANSION OF ECONOMIC GROWTH/MP3EI:1. 6 ECONOMIC CORRIDORS2. DOMESTIC CONNECTIVITY3. HRD AND INNOCATION: LOCAL


Eonomic Corridors

Growth Centers

Investment level

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Greening the Master Plan

I. SEA on MP3EI

2. SEA on Economic Corridors

3. SEA on Growth Centers

Environmental Impact

Assessment

IN COOPERATION WITH DANIDA AND

GGGI


OTHER EFFORTS

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1. Developing framework and mechanism to monitor environment:

2. Data and indicators for Environment Quality – relates with behavior, program and activities in the development program important for linking program-acitivities and institution in charge and budget Local Government –Ministries – Central Statistics Agency..... Environment Survey

3. Capacity: measure, monitor, enforcement.

BPLH Kab/kota BPLHD Provinsi Kantor Eko-Region (6)

Kementerian Lingkungan Hidup


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TECHNOCRATIC DRAFT OF RPJMN 2015-2019

3 IMPORTANT TRIGGERS:

1. SUSTAINABLE DEVELOPMENT PEOPLE-PROFIT-PLANET, SUPPORTED BY THE RIGHT INSTITUTIONS

2. LOW MIC GROWTH PATH MUST HELP TO AVOID MIDDLE INCOME TRAP

3. DEMOGRAFIC BONUS 2025-2030 BONUS OR BURDEN?


AEC, BONUS DEMOGRAFI, POST 2015 (SDG), CLIMATE CHANGE

Politics, Lawand Security Economy Social

WelfareNR and

EnvironmentLocal/RegionalDevelopment

• Bureaucraticreform

• Law Enforcement

• AntiCorruption

• Democracy• Domestic

Stability

• Structural Tranformation

• Resilience: Food, Energy and Water

• Infrastructure Development

• Inovation

• Human resources Quality

• Poverty• Equity• Employment• Social

SecuritySystem

• NR and biodiversity

• Ocean and marine

• Climate Change and Disater Management

• Spatial equity

• MinimumStandard Services (SPM)

• Urbanization• Desentralizat

ion

Implementation Framework/Delivery Mechanism

Financing Framework:Government and Non Gov.

Budget

Regulation Framework

Institutional Framework

Mandate from RPJP: Ensuring comprehensive development with focuses on economic competitiveness based on NR and quality

of HR suported by increased innovation capacity.

LONGTERM: AVOID MIT(in 2030, if economic growth

maintain at 6-8%/year)

RT RPJMN 2015-2019 important to strenthen foundation to avoid

MIT

• Comprehensive reform is needed

• Not Business as Usual• Sustianble principles • Integrated apporach and

implementation

6 development agenda in the RPJMN 2015-2019

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STRATEGIC ISSUESPOLITICS, LAW AND HUMAN

RIGHT• Food Security• Energy security• Water Security

ECONOMY SOCIAL AFFAIRS

• Democracy Consolidation

• Bureaucratic reform and Capacity in Public institutions

• Combating Corruptions

• MEF and Strengthening Defence Industry

• Public Safety and Domestic Security

• Marine and Ocean Development

• Economy of Biodiversity and Environment Quality

• NR Conservation, Environemntal Quality , CC and Disaster Management

• Industry• Labor Competitiveness• SMEs and Cooperatives

• Science , Technology and Innovation

• Health Reform: • Reduction of Infant and

Mother mortality • Population program – Fam,

planning• Education Reform

• Domestic Logistic and Distribtuioon• National Connectivity:

• Inter regional balance• Support Economic Growth• City Mass Transportation

• Basic Infrastructure (MDG): • National Electrification • Water and Sanitation• Housing and Settlement

• Accelerated Poverty Reduction

• Social Protection:• Labor• Health

• Regional development, Backward region and border

• Rural Development • Disaster Management

Slide - 17


II. INCLUSIVE GREEN STRATEGY FOR AGRICULTURE

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Broadening “commodity” base finding and developing new economy base –environment services and biodiversity values:1. Expanding along traditional commodities: new use and values on current

commodity – reducing waste and make new products (waste into money)2. New “commodity”:

a. Green energyb. Environmental services economy – economy that is generated from

“transaction of environmental good and services”:i. Carbon absorbtion and sink services generated by forest and other land

cover ii. Economic activities from nature: ecotourism and cultural tourism,

including local craft developmentb. Economy of biodiversity – develop bioprospecting both land base and ocean

base.c. Economic creatives: agriculture, both tangible/commodity and intangible –

services is part of this fast growing sectors.d. Green jobs: new profession due to development of green activities

opportunity for educated labor forces19

GREEN as opportunity to broadening growth in a more sustainable way


Internalize green and sustainable management : PROFIT-PEOPLE-PLANETa. Expanding use – efficient use of resources b. Internalize environment friendly practices

– minimum/zero waste SUSTAINABLE AGRICULTURE

c. Developing new values – new products new values/benefit/profit

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INCLUSIVE GREEN STRATEGY


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NATURAL RESOURCES AND ENVIRONEMNT DEVELOPMENT

• FOOD SECURITY• ENERGY SECURITY• WATER SECURITY

SECURING FOOD, ENERGY AND WATER

• Agroindustry: cpo, rubber, cacao and cofee; and organic products• Agroforestry: indutrial forest, community forest (FMU based)• Sustainable fishery• Economy of biodiversity: “jamu”, herbal suplement, herbal

cosmetics• Ecotourism & creative industry: forest, agro-tourism, marine-

tourism, culiniary/food

IMPROVING VALUE ADDED OF THE PRIMARY

SECTOR

• FOREST CONSERVATION & MANAGEMENT: forst borders within spatial plan; FMU (KPH) for protected forest, conservation forest and production forest

• ENVIROMNETAL MANAGEMENT• CLIMATE CHANGE AND DISASTER MANAGEMENT

PROTECTING NATURAL RESOURCES,

ENVIRONMENT AND DISASTER MANAGEMENT

• Sovereignity and National Jusrisdiction• Ocean Economy: fish and marine industry, infrastructure and

ocean connectivity, new potentials• Ocean quality, carrying capacity and sustainability • Marine culture, HRD and ocean technology• Fisherman and Coastal Community Welfare

ENHANCING OCEAN DEVELOPMENT

Spatial plan - physical

Carrying capacity –environment quality


THANK YOU

Books:o Indonesia’s Sustainable Development: i. Progress on Key Policies; ii.

Sustainable Development Practices, Bappenas-KLH 2012o Pengembangan Konsep Green Economy, Deputi SDALH Bappenas, 2014

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LONG TERM DEVELOPMENT VISION2005-2025

INDONESIA SELF RELIANT, DEVELOPED, EQUITABLE AND PROSPEREOUS

8 Development missions:

1. Realizing a society that has Noble Morals, Ethics, and that is Cultured and Civilized2. Realizing a Competitive Nation3. Realizing Indonesia that is Democratic Based on the Rule of Law4. Realizing Indonesia that is Secure, Peaceful, and United5. Realizing Development that is More Equitable and Just

6. Realizing Beautiful and Sustainable Indonesia7. Realizing Indonesia as an Archipelago Nation that is Self-Reliant, Advanced, Strong, and

based on the National Interest8. Realizing Indonesia that has an Active Role in International Relations

SUSTAINABILITY IS IN THE WAY OF LIFE OF INDONESIAN PEOPLE AND EXPLICITLY STATED IS THE NATION’S VISION

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Development Vision 2005-2025INDONESIA Self reliant, Developed, Equitable and Properous

LONG TERM DEVELOPMENT PLAN2005-2025

• NR based economy• Quality of HRD• Innovation

Slide - 24

LAW No. 17/2007: 4 medium term development plans (RPJMNs)

Keywords:• NR based economy• Quality of HRD• InnovationKeywords:

• NR based economy• Quality of HRD• Innovation

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