Prasetyadi Utomo

Ministry of Environment of IndonesiaCD4CDM 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

ExpertsTechnicalTeam

StakeholderForum

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.: +62 21 8517164

Fax.: +62 21 85902521

E-mail : climate@menlh.go.id

Indonesia DNA: dna-cdm.menlh.go.id