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Indonesia’s Pathway to a Green Economy

 Indonesia’s strategic longterm development plan (2005-2025) aims to achieve a “green and ever-lasting Indonesia.”  This objective is further pursued in Indonesia’s second medium term development plan (2010-2014)  which contains specific policies and goals on mainstreaming sustainable development and natural resource and environmental management.

See Indonesia's Country Study Summary

The Second United Indonesia Cabinet launched a green economy program as part of its sustainable development plan which is pro-growth, pro-job, and  pro-poor. To support the implementation of green economics, programs have been drawn up on food resilience by implementing sustainable agriculture, sustainable forestry management, efficiency and renewable energy usage, clean technology support, waste management, efficient and low carbon transportation management and green infrastructure development.1

Specific policies include reforms of subsidies for electricity industries to reduce greenhouse gas emissions, reforms of fuels subsidies making them more targeted, new policy instruments for the promotion of renewable energy such as geothermal and other clean energies, as well as incentives for industries which promote environmental friendly products. Indonesia has voluntarily committed to reducing greenhouse gas emissions or carbon intensity per unit of GDP by 2020. Indonesia is committed to reducing its greenhouse gas emissions by 26%, and up to 41% with international support, by 2020. In addition, the Government of Indonesia has introduced the Indonesia Climate Change Sectoral Roadmap with the  objective to mainstream climate change in the Indonesian national mid-term development plan.

Indonesia launched a $6.3 billion (Rp 73.3 trillion) fiscal stimulus in February 2009 adding up to 1.4 per cent of 2008 GDP. Around 7% of the total stimulus consisted of funds to boost energy-saving investments. Another 17% was invested in building roads in villages and municipalities, and developing irrigation schemes to encourage employment.

Indonesia signed the Manila Declaration on Green Industry - in the framework of an international conference held in the Philippines in September 2009 - along more than 20 signatories from Asian countries. In this declaration, government representatives express their determination to establish policies and regulatory and institutional frameworks that are favourable to a shift towards resourceefficient and low-carbon industries. The Declaration also encourages an intensified transfer of cleaner production technologies and promotes an increased use of renewable energy, among others.

To view the Manila Declaration on Green Industry in Asia, please click here


Partnership with UNEP on Green Economy

UNEP is partnering with Indonesia to undertake economic assessments of green investments in select sectors including agriculture, tourism and buildings. In addition, a major collaborative initiative on REDD+ aims to leverage the potential of the forest sector to drive a green economy transformation in Indonesia.

In September 2010, Indonesia Ministry of Environment and UNEP co-hosted a national workshop on “Mobilizing the public and private sector of Indonesia towards a Resource Efficient and Green Economy”, in Jakarta. The outcome of the workshop was the adoption of a ministerial statement which outlines priority areas for partnership with  UNEP and other UN agencies in promoting lowcarbon, resource-efficient development in Indonesia.

Other UNEP related initiatives

Green jobs initiative

In the framework of the Green Jobs Project in Asia, the International Labour Organisation (ILO) seeks to assist Indonesia alongside four other Asian countries in shifting to a low-carbon, environmentally friendly and climate resilient economy that helps to speed up job recovery, decrease social gaps, support development goals, as well as realize decent work. It will contribute directly to national programs and initiatives relating to climate change, environment and recovery from the economic crisis.

For more information on the programme in Indonesia click here

Technology Needs Assessments

UNEP, on behalf of the UNFCCC and the GEF, is implementing a new round of Technology Needs Assessments (TNAs) with objectives that go beyond identifying technology needs narrowly. The TNAs will lead to the development of a national Technology Action Plan (TAP) that prioritizes technologies, recommends an enabling framework for the diffusion  of these technologies and facilitates identification of good technology transfer projects and their links to relevant financing sources. The TAP will systematically address practical actions necessary to re-duce or remove policy, finance and technology related barriers.

For more information, please click here 

What Indonesian Leaders have said about the Green Economy

H.E. Susilo Bambang Yudhoyono President of the Republic of Indonesia:

(...)"The global financial crisis has shown that the current model of development was not in line with global needs and needed redesigning to promote sustainable livelihood. Achieving progress in that regard required changing the pattern of production and consumption so that it was based on the sustainable development principle; establishing more ambitious targets to combat biodiversity loss; reorienting development to accommodate the green economy paradigm; adopting a unified concept of global environmental management"(...) 

H.E. Susilo Bambang Yudhoyono, President of the Republic of Indonesia, Opening remarks at the 11th Special Session of the UNEP Governing Council/Global Ministerial Environment Forum, 24 February 2010, Bali Indonesia