UMM TEAM – MALANG JUNE - 2008. 4 – Indonesia Position & Role 1. Country Description 2. Impact of...

UMM TEAM – MALANGJUNE - 2008

4 – Indonesia Position & Role4 – Indonesia Position & Role

1. Country Description2. Impact of Climate Change in Indonesia3. Source of Green House Gasses4. Working Group on Climate Change5. Legal & Regulatory Framework 6. National Development Planning7. Program for Mitigation8. Technology Requirement9. Financing the Climate Change Strategy10. Energy status & Alternative Energy


Indonesia is located in the tropical belt, is the largest and widest archipelago country in the world, consist of 17,508 big and small islands, there are 5 big islands : Sumatera, Java, Borneo, Celebes and West Irian

There are two season in Indonesia , May to October is dry season and October to April is rainy season

Second world’s longest coast line (81.000 km)


Based on demography survey in 2000, the total population was 206 million, representing the fourth largest country in the world

With the population growth rate was 1,49 percent.

Estimate population in 2006 was 220 million.


Climate Change Effects

Impacts on Indonesia

Sea Level Rise

Ocean Warming

Increased Temperature

Increased Rainfall

Increased Evaporation

Increased Tropical Storms

Disappearing Small Islands

Salt Water Intrusion

Decline in Fisheries Harvest

Loss of Biodiversity

Increased Fire Risk

Increased Disease Risk, Range

Floods and Land Slides

Changes in Planting Season

Drought, Food Security

Transport Vulnerability

Food and Water Scarcity


Deforestation rate (2000 – 2005) -> 2,8 Million Ha/year & Forest fire (West Borneo in 2006) -> loss of 91 Million USD (source: www.beritabumi.or.id)

Flood (February 2007) result in 8 Billion USD loss (source: www.detikfinance.com)

Landslide -> 80 Million USD/year Human health : Dengue, Malaria, Diarrhea Rise of Sea Level Drought (Cirebon District in 2006) result in

loss of 8.6Million USD (source: http://greenpena.blogspot.com)

http://www.beritabumi.or.id/

http://www.detikfinance.com/

http://greenpena.blogspot.com/


The disappearing of small Island -> within 2005 – 2007, 24 small islands disappear, the location: 3 island in Nanggroe Aceh Darussalam (NAD) 3 island in Papua 5 island in Riau 2 island in west sumatera 7 island in the coastal area of Jakarta

(source: Ministry of Oceanary & Fishery)


The availability of water is very dependent on the climate, due to the limited supply of water (only covers about 37% of urban population and 8% of rural population) causing people and industries use deep groundwater resources land subsidence that creates areas vulnerable to flood and salt water intrusion


JakartaCoastalRegionin 2050


During El Nino years (1994, 1997,2002, 2003, 2004 and 2006) shown that 8 reservoirs in Java have produced electricity below normal capacities

During El Nino 1997 has caused serious problems to coral reef ecosystems where 90-95% of coral reefs at the depth of 25m have experienced coral bleaching


Poorest nations and poor groups are likely to be hardest hit by the effects of climate change as they: rely heavily on climate change-sensitive sectors

(agriculture and fisheries)Are less able to respond (lack of human, institution

and financial capacity)

Achievement of the National Development goals and Millennium Development Goals (MDG) – see table

Changes in mean climate, variability, extreme events

and sea level rise

Impact on poverty and national development

planning targetsImpact on the eight MDG

Increased temperature and changes in precipitation reduce agricultural and natural resources

Change in precipitation, run-off and variability leads to greater water stress

Increased incidence or intensity of climate related disasters lead to damage to assets and infrafstructure

Temperature, water and vegetation changes contribute to increase prevalence of disease

Lowered industrial output and labour productivity, high inequality, impacts on trade, and fiscal and macro-economic growth, and poverty-reducing effects

Reduced productivity and security of poor people’s livelihood assets, and reduced access for the poor to their livelihood assets

Less effective coping strategies among the poor, and increased vulnerability of poor people

1. Eradicate extreme poverty and hunger

Food security jeopardized, more intense disasters threaten livelihood

2. Achieve universal primary education

More vulnerable livelihoods means more children engaged in employment; infrastructure damage from disasters

3. Promote gender equality and empower women

Women make up two-thirds of world’s poor and are more adversely impacted by disasters.

4. Reduce child mortality

Children more vulnerable to malaria and other diseases, which are spread more widely by climate change

5. Improve maternal health

Pregnant woman particularly susceptible to malaria

6. Combat HIV/ AIDS, malaria and other diseases

Increase prevalence of mosquito-bone diseases

7. Ensure environmental sustainability

Climate change indication of unsustainable practices. Move toward more energy-efficient model of consumption

8. Promote global Partnerships

Wider forums must acknowledge the role of climate change in impacting MDGs


Based on Workshop on Climate Change and Health in South East Asian Countries : Kuala Lumpur, Malaysia


Transportation IndustryForestryAgriculture

Mitigation Post Kyoto ForestryAdaption Energy

Financial Mech. Transfer of Technology

Waste Ocean

Forestry

Agriculture

Transportation

Industry

Energy:

Working Group on Climate Change Activities: to undertake qualitative policies and measures that lead to the our response to Climate change, i.e. to stabilize concentration of GHGs at the safe level.

Working Group of Transfer of Technology Activities: to further derivation and enrichment the previous project and to prioritize technology needs, and capacity building to assess technology needs, modalities to acquire and absorb them.

EXISTING INDONESIAN WORKING GROUP ON CLIMATE CHANGE


Ministry of EnvironmentsMinistry of Research and TechnologyAgency for the Assessment and

Application of Technology (BPPT)Governments Departments: Energy &

Mineral Resources, Forestry, Agriculture, etc.

Meteorology and Geophysical Agency Indonesia State Electricity CompanyPrivate SectorsUniversitiesNGOs


Presidential Rule No.5, 2006 regarding National Energy Policy, asp. on energy mix by the year 2025

Presidential Decree No.10, 2005 on energy efficiency

Presidential Decree no. 1, 2006 regarding Biofuel Utilization Program

Act No. 6/1994 which stipulate the ratification of UNFCCC


Act No. 23/1997 regarding Environmental Management

Ministrial Decree of Forestry No. 14/04 regarding Afforestation/Refforestation Project

Ministrial Decree of Environment no. 53/03 regarding Ministry of Environment as National Committe of Climate Change


Ministrial Decree of Environment no. 206/05 regarding Ministry of Environment as the Indonesia DNA

Government Regulation no. 4/2001 concerning Controlling Environmental Damages and or Pollution Associated with Forest and Land Fire

4 – Indonesia Position & Role4 – Indonesia Position & RoleLEGAL & REGULATORY FRAMEWORK FOR INDONESIA POWER SECTOR, INFRASTRUCTURE DEVELOPMENT & IMPLEMENTATION

DESCRIPTION PT. PLN (PERSERO)INFRASTRUCTURE

DEVELOPMENT LEGAL & REGULATORY FRAMEWORK

INDONESIA POWER SECTOR LEGAL & REGULATORY FRAMEWORK

POLICY, STRATEGY, NATIONAL

TARGET, AND NATIONAL PLAN

IMPLEMENTING RULES,

PROCEDURES AND PLAN

IMPLEMEN-TATION

COOPERATION BETWEEN

GOVERNMENT AND ENTERPRISES FOR DEVELOPMENT OF INFRASTRUCTURE

(PRESIDENTIAL REGULATION NO67/

2005)<P>

RISK MANAGEMENT

GUIDELINES FOR INFRASTRUCTURE

DEVELOPMENT(MINISTRY OF

FINANCE REGULATION

NO.38/PMK.01/2006)<Q>

ELECTRICITY LAW(GOVERNMENT OF INDONESIA LAW NO. 15 / 1985)

<A>

MODIFICATION OF GOVERNMENT REGULATION

NO 10/1989 SUBJECT, SUPPLY AND UTILIZATION OF

ELECTRICITY(GOVERNMENT REGULATION

NO.3/2005)<B>

LEGALIZATION OF MODIFIED PLN ELECTRICITY

SUPPLY GENERAL PLAN/ RUPTL 2006-2015

(MEMR DECREE NO. 2923K/30/MEM/2006)

<I>

NATIONAL ENERGY POLICY(PRESIDENTIAL REGULATION NO.5/2006)

<D>

COAL FIRED POWER PLANT

CRASH PROGRAM

RENEWABLE ENERGY MEDIUM SCALE

CRITICAL AREAPOWER PURCHASE AND TRANSMISSION RENTAL

SUPPLY AND UTILIZATION OF BIOFUEL AS ALTERNATIVE FUEL

(PRESIDENTIAL INSTRUCTION NO.1/2006)<G>

LIQUEFIED COAL’S SUPPLY AND ITS UTILIZATION

(PRESIDENTIAL INSTRUCTION NO.2/2006)<H>

ASSIGNMENT TO PLN FOR ACCELERATION OF COAL FIRED POWER PLANTS DEVELOPMENT

(PRESIDENTIAL REGULATION NO. 71/2006)<E>

ESTABLISHMENT OF COORDINATION TEAM FOR POWER PLANTS DEVELOPMENT.

(PRESIDENTIAL REGULATION NO,72/2006)<F>

MEDIUM SCALE OF RENEWABLE ENERGY

POWER PLANT(MEMR REGULATION

NO. 002/2006)<O>

PROCEDURE OF POWER PURCHASE AND/OR

TRANSMISSION RENTAL ELECTRICITY SUPPLY

FOR PUBLIC(MEMR REGULATION

NO.001/2006)<J>

GUIDELINES OF THE ISSUANCE OF

ELECTRICITY BUSINESS LICENSE FOR

TRANSMISSION TRANSPROVINCE OR

CONNECTED TO NATIONAL GRID

(MEMR REGULATION NO. 010/2005)

<L>

LIST OF POWER SYSTEMS (AREAS)

IN CRITICAL CONDITION

(EMERGENCY CONDITION)

(MEMR REGULATION NO. 206-12/40/600.2/

2006)<M>

LIST OF POWER SYSTEMS (AREAS)

IN CRITICAL CONDITION

(EMERGENCY CONDITION)

(MEMR REGULATION NO. 482-12/40/600.2/

2006)<N>

NATIONAL ELECTRICITY

GENERAL PLAN 2006-2026

( MEMR DECREE NO. 2270K/31/MEM/2006)

<C>

RENEWABLE ENERGY

· SUPPLY AND DEMAND BALANCE

· INVESTMENT REQUIRMENT

· PROJECT LIST

INFLUENCED BY

ARTICLE 5POINT 1

ARTICLE 2POINT 2

DERIVATION

ARTICLE 5POINT 1&2

POJECT DEVELOPMENT AND IMPLEMENTATION

TO OBTAIN GOVERNMENT SUPPORT/ GUARANTEE

CONSIDERING

Bahan Bakar Nabati(Biofuel) 5%

Panas Bumi 5%

Biomasa, Nuklir, Air,Surya, Angin 5%

Batubara yangDicairkan (CoalLiquefaction) 2%

Batubara 33%

Minyak Bumi 20%

Others 17%

Gas Bumi 30%

PRIMARY ENERGY MIX 2005

National Energy Mix Target 2025

(PERPRES NO. 5/2006)

• Enhancing energy security & mitigating CO2 emissions: to secure strategic reserve, to improve efficiency in energy production & use, to increase reliance on non fossil fuels and to sustain the domestic supply of oil/gas (slower growth in fossil fuel-demand in oil/gas imports and in emissions).

• Proposed energy technology use, diffusion and deployment, increasing clean energy technologies.

• Energy infrastructures and its time frame.• Etc.

THE NATIONAL ENERGY ISSUES

What is the Sustainable Road Map?

NATIONAL ENERGY TRAJECTORY

Minyak Bumi

51.66%

Batubara15.34%

Gas Bumi28.57%

Tenaga Air3.11%

Panas Bumi1.32%

≤

≥

≥

≥

≥

≥

≥

≥

t2?

t1?

t3?

t25EBT +

Presidential Rule No. 5/2006


2010-2014National Mid-Term Development Plan

(NMDPT)

Strategic Nat. Res & Env. Assessment (SNREA)for 2010-2014 NMTDP

INPUT DOCSBRIDGING DOCS

Integrating Climate Change to National Development Planning Process

National Communication, National SectorStrategy, etc.

ClimateChangeProgram

MID TERMDEVELOPMENT

PLAN2004-2009

GOV WORKPLAN2008

FUNDING

GOVFUNDING

MID TERMDEVELOPMENT PLAN

2010-2014

GOV WORKPLAN2014

GOV WORKPLAN2013

GOV WORKPLAN2012

GOV WORKPLAN2011

GOV WORKPLAN2010

GOV WORKPLAN2009

LOAN GRANTCOMM/

PRIVATE/NGO/CSR

CDM DEBTSWAP

NATIONAL DEVELOPMENT PLANNING AGENCYBAPPENAS

“NATIONAL DEVELOPMENT PLANNING RESPONSE TO CLIMATE CHANGE”

INTERNATIONAL WORLD

IMPLEMENTATION

1. Agriculture2. Coastal and Small Island3. Health4. Transportation5. Public Works6. Human Settlements7. Energy and Mining8. Forestry9. Environmental10. Technology11. Rehabilitation & Revilitation Peat

Land12. Mainstreaming Decentralized

Disaster Risk Reduction

INDONESIA

CLIMATE CHANGE NATIONAL ACTION PLAN

LIVING DOCUMENT

“NATIONAL ACTION PLAN IN FACING CLIMATE

CHANGE”MINISTRY OF ENVIROMENT

“The Strategy of Carbon Absorption Potential

Improvement and Strategy of Carbon Emission

Reduction”MINISTRY OF SOCIAL

WELFARE


What is national development plan? Process to make development plans consist of long-term

development plan, medium-term development plan and annual development plan which will be implemented by state institutions, private sector and community in all level of regions

Current regulations applied for development planning: Law No. 25/2004 about Development Planning Presidential Regulation No. 7/2005 about Medium-term

National Development Planning 2004-2009

Other national development plan policy relates to Climate Change:

Millennium Development Goals (do not have legal status)


Environmental Policies are aimed to:

1. To mainstreaming sustainable development principles into alldevelopment aspects;

2. Improve coordination among environmental institutions in nantional and local level;

3. Increase the law enforcement effort to the poluters;

4. Increase the capacity of environmental institutions in national and local level;

5. Improve the awareness of community on environmental issues and support community active participation to monitor environmental quality;


Among 15 environmental policy objectives, 3 objectives

(No.5-7) are related to climate change issues:1.Improve urban air quality especially in Jakarta,

Surabaya,Bandung, and Medan, supported by improvement of environmentally sound of transportation system and management;

2.Reduction of ODS (Ozone Depleting Substances) gradually until 2010;

3.Improve national capacity in adapting climate change issues into development aspects;


Target 9 : Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources

Target 10 : Halve, by 2015, the proportion of people without sustainable access to safe dringking water and basic sanitation

Target 11 : By 2020, to have achieved a significant improvement in the lives of slum dwellers


To integrate the agenda of climate change adaptation to the National Development Strategy such as: Mid-Term & Long-Term Development Plan;

To re-observe and re-adjust initiative or program to be resilience to the climate change;

To Institutionalize the climate information usage to enable climate risk mitigation and management;

To encourage local government to integrate the climate risk consideration into their local development planning;

To strengthen information and knowledge to reduce climate risk in recent and in the future;

To ascertained of the availability of internal resources and funding for adaptation program and maximalize the utilization of available international funding;

To choose for no-regret option, which is taking the adaptation act regardless for example the non-occurence of climate change;

To encourage the establishment of national dialog to accelerate the implementation process of climate change adaptation agenda in Indonesia.

4 – Indonesia Position & Role4 – Indonesia Position & RoleMITIGATION ADAPTATION

1. Toward Green Indonesia (MIH) & Aforestation (National forest and land rehabilitation)

2. Water Conservation (Watershed Management, Well Absorption, Reservoir)

3. Forest Fire Master Plan Poverty Derivation Education for Farmer (for not doing land clearing by land burning such as: government will supply fertilizer and contribute good quality seed)

4. Flood Management5. Reconstruction/redesign of

irrigation Agriculture6. Encouraging CDM Project increase

by sectoral approach7. Mixed Energy Policies 8. Free tax for clean technology

equipments9. Energy Efficiency in the government

buildings10.Air Pollution Control for

Transportation11.Self Sufficient Energy Village

Program

1. Encourage MGA (Meteorological and Geophysical Agency) to have station monitoring for weather forecast More Accurate and Realistic Number

2. Identify the vulnerable sectors affected by climate change.

3. Public Participation.4. Mainstreaming Adaptation

Issue into related policies sector; for reviewing the 5--years Strategy Programme.

5. Draft National Strategy on Adaptation to Climate Change


The immediate objective: to enable Indonesia to identify national technology needs, capacity building to asses international technology

availability, and modalities to acquire and absorb the appropriate technology.

Sectors in Existing Indonesian TNA Energy Sector

Energy Industry Industry Sector Household and Commercial Sector Transportation sector

Non-Energy Sector Agriculture and Livestock Forestry

(Existing Indonesian TNA submited to UNFCCC on 2001)


MODALITIES OF TECHNOLOGY TRANSFER Institutional Establishment Regulation Development

▪ Procedure of Transferring Technology ▪ The Role of Decentralization ▪ System & Procedure Establishment

Financial Arrangement Foreign Direct Investment Official Development Assistance The Global Environmental Facility Clean Development Mechanism Multilateral & Bilateral Agencies Regional Development Banks Etc.



Criteria for prioritizing technology needs Utilization of local resources Rational utilization of resources Socio-economic important GHG reduction potential Investment cost Social acceptance Minimum impact on environment

Methods for prioritization of technology needs Cost–benefit and risk–benefit analyses



Indonesia listed barriers and measures sector-wise. Types of barriers to technology transfer identified are: Economic / market Information/awareness Policy Regulatory Institutional Human Technical Infrastructure

Indonesia expressed concern about the high investment costs of selected mitigation options, which could translate into higher product prices and loss of competitiveness in the case of the energy sector. However, it identified barriers only in the transport, forestry and agriculture sectors.



High Efficiency Power Generation: Clean Coal Technology, CHP Technology, etc.

Energy Efficiency in Industrial sector (cement, iron & steel, pulp & paper, fertilizer, textile, mining, lime calcination, chemical, etc.)

Energy Efficiency in Industrial Equipments (Industrial process, electrical motor, boiler, compressor, furnace, Refrigeration, heater, room conditioning, cooling tower, electrical system, combustion, pump, lighting, steam distribution, waste heat recovery, etc.

Energy consumption efficiency in transportation including using gas for vehicles including improvement of public transportation

Carbon Capture Sequestration (CCS) Cleaner Production Technology for Industry Renewable Energy: Biomass, Wind, Solar, Ocean, Geothermal,

Hydro electric, etc. Climate modification technology Climate monitoring & reporting system


Avoiding forest burning, avoiding deforestation, forest conservation and reforestation, etc.

Composting of agricultural waste, manure management, etc. Landfill management to avoid methane release Ocean Sequestration Technology for water resources management Industrial waste water treatment Industrial solid waste treatment (recovery, composting of

palm free fruit bunch.

53

Indonesia is already responding to this challenge in anticipation of the future consequences.

In 2007 and 2008, central government spending on environmental programs over 2006 levels to 6 trilion rupiah was doubled.

At the regional level, we have also nearly doubled spending to 6 trillion Rupiah on reforestration and special funds for environment and conservation.

Together, these funds amount to USD 1.4 billion spent on environment management, conservation and forest restoration.

In 2005, Indonesia also instituted a large increase in fuel prices by reducing subsidies that will encourage energy efficiency , while protecting the poor.

54

Indonesia (RPJP, RPJM,

RKP)

Donor(Country Strategy/

Program)

Climate Change

Joint Programs

The support of developed countries on Climate Change Program all over the world should be in addition to their commitment to support MDG’s achievement through ODA(0.7 % GNP)


Bilateral

JBIC

DFIDAusAIDDANIDANetherlandsECGTZNorwayCIDASweden

MultilateralWolrd BankADBUNDP

O t h e r sInt’l trust funds: GEF, Adaptation funds, CIFPrivate Sectors

F i n a n c i n g

BilateralMultilateral

CDM

M e c h a n i s m s

LoanGrant

G-to-G

Trust teeManagement

GoI hostTA & financial & management support

CC Trust Fund

Mitigation & Adaptation

Public-private partnership

Policy Re-orientation

Climate-Proof Economy

Awareness raising

Community-Based Programs

Capacity Building

Training/Workshops

Piloting

Small-scale Investment

Policy Implementation

Execution of Policy/Strategy


UNFCCC Convention Article 11: grant and/or concession… Prefer to have ODA+

Paris Declaration ownership, donor harmonisation, governance,…

In line with national interest and financing regulation: Long-term and Mid-term National Development Goals State Law No. 17/2003 about State Finance and Foreign Loan

and Grant Regulation (Government Regulation No.2/2007)


Non-UNFCCC mechanism: Grant from Bilateral Countries or Multilateral

Institutions (ODA and ODA+) Foreign Loan (ODA and ODA+):

▪ Program Loan: only for budget/fiscal deficit▪ Sectoral Loan: emphasizing co-benefit approach

between development and climate change▪ Trust Fund (both International and national)

UNFCCC mechanism: Global Environmental Facility (GEF) Special Climate Change Fund (SCCF) Adaptation Fund (AF) Up-coming Reduction Emission from Deforestation and

Degradation (REDD) mechanism


CDM investment through Bilateral, Multilateral and Unilateral sources

PRIVATE SECTOR: We should also look to encourage greater

levels of private sector involvement in mitigating and adapting strategies. Government can use fiscal instrument to encourage private sector to invest in environmental friendly technology

59

Grant Debt swapTrust Fund Soft Loan - concession

60

Steering Committee/Ministers

Program Steering Committee

Chair: GoICo-chair: Representative of Donor

Ministries/Agencies/Local Governments/

SOEs

SubGroup/Issue

SubGroup/Issue

SubGroup/Issue:

ClimateChange

Multi DonorTrust Fund

(MOU GOI-Donors)

Bilateral/Multilateral

Donors

Program Dialogue

Policy Report Funding


Indonesia Energy Projection


Gas

Coal

WindWindTherma

l

Other

Oil


GasCoalOilWindWind


Presidential Decreed No. 1 / 2006Regarding

Supply & Usage of Bio Fuel as Alternative Energy

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