This presentation given by K. Obidzinski, H. Komarudin, A. Dermawan and A. Andrianto focuses on the the gap between development targets and ENV sustainability and the way to harmonize DEV and ENV agendas. It also aims to stimulate discussion about the relationship between DEV and Climate Change initiatives in the province. Kalimantan is one of Indonesia’s 6 economic centers. The main economic activities are the extraction of energy and mineral resources, timer and the cultivation of oil palms. But MP3EI (Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia)-goals, clash with environmental sustainability. Concerns exist especially relating to concessions for oil palm plantations, timber plantations and coal mining, since they would affect several M Ha of forest land. The circumstances call for a “green economy” approach, whose challenges are still to be overcome.

1. THINKING beyond the canopy
“Green development” in Indonesia:
harmonizing land-based investment and GHG
emissions in East Kalimantan
14 October 2013, Samarinda
Obidzinski K., Komarudin H., Dermawan A., Andrianto A.

2. THINKING beyond the canopy
Objectives
•Take stock of development and GHG mitigation objectives
•Stimulate discussion about the relationship between DEV and Climate
Change initiatives in the province
•Ask questions about the gap between development targets and ENV
sustainability
•Is there are a gap? If so, how to bridge? How to harmonize DEV and
ENV agendas?
•Food for thought for Group Discussion

3. THINKING beyond the canopy
Indonesia Today
Source:
McKinsey
2012

4. THINKING beyond the canopy
….and in 2030
Source:
McKinsey
2012

5. THINKING beyond the canopy
MP3EI: quantum leap forward
Source: MP3EI

6. THINKING beyond the canopy
USD 160 BN in overall investment
Kalimantan
Source: MP3EI

7. THINKING beyond the canopy
Emphasis on resource extraction
and processing

8. THINKING beyond the canopy
MP3EI Kalimantan
Source: MP3EI

9. THINKING beyond the canopy
But there are some problems
Source:
Strategic Asia
2012

10. THINKING beyond the canopy
Calls for a greener approach

11. THINKING beyond the canopy
Steps towards a greener approach
•National 25% GHG emission reduction target
•RAN-GRK
•DDPI Kaltim
•RAD-GRK – Kaltim has ist strategy set yes Heru?
•Pokja REDD -- SRAP Implementasi REDD+ Kaltim
•Kaltim Green
•OMFIT
KOMPAS: Aspek Lingkungan Diadopsi MP3EI,7 July 2012
BISNIS INDONESIA: MP3EI Usulan konsep ekonomi hijau disambut baik, 12
August 2012
TRIBUN KALTIM: Dokumen MP3EI di Kaltim Tak Bahas Aspek Sosial dan
Lingkungan, 19 November 2012
BAPPENAS: MP3EI Hijau Tidak Hambat Investasi….. selama ini perusahaan
sudah memiliki rencana bisnis yang ramah lingkungan (greening), 16 Jan
2013

12. THINKING beyond the canopy
“Green Economy”
•Allows for: economic growth but significantly
reduces environmental risks and ecological
scarcities
•Understands that:
We are reaching limits in our use of the
natural
ENV and SOC costs of our current
economic model must be taken into account
in devising future development solutions
Need for a balance between growth,
income, jobs and equity

13. THINKING beyond the canopy
“Green economy” challenges in East
Kalimantan
•Oil palm
•Timber plantations HTI
•Mining
•Food estate development
•Infrastructure

14. THINKING beyond the canopy
“Green economy” challenges: oil
palm
Source: MP3EI

15. THINKING beyond the canopy
“Green development” challenges:
oil palm

16. THINKING beyond the canopy
Oil Palm in East Kalimantan

17. THINKING beyond the canopy
•1M Ha of oil palm
already achieved
•Nearly 1M Ha of
forest in oil palm
concessions
Oil palm concessions on:
land cover area_ha
Intact natural forest 165,592.75
Mangroves 34,274.25
Logged forests 651,877.50
Intact natural forest on peat 57,846.25
Logged forest on peat 79,758.25
total 989,349.00
•3.7M Ha
allocated for oil
palm
•1M Ha under
HGU

18. THINKING beyond the canopy
“Green development” challenges:
oil palm
More extensification
or intensification?

19. THINKING beyond the canopy
“Green development” challenges: oil
palm
But we know where it is;
how to make use of it a
scale?
Source: SRAP Kaltim
2012

20. THINKING beyond the canopy
“Green challenges”: oil palm

21. THINKING beyond the canopy
“Green development” challenges:
HTI

22. THINKING beyond the canopy
Timber
plantations
HTI
Industrial timber plantation concessions on:
Land cover area_ha
Intact natural forest 14,073.50
Mangroves 1,937.50
Logged forests 308,431.25
Intact natural forest on peat 6,078.75
Logged forest on peat 47,626.75
total 378,147.75
•Land allocated for
HTI 1.7 M Ha
•Planted HTI 0.4 M
Ha
•Remaining natural
forest within HTI
concessions 0.4 M
Ha

23. THINKING beyond the canopy
“Green development” challenges:
Coal Mining
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
1998 2000 2002 2004 2006 2008 2010 2012
West Kalimantan
Central Kalimantan
East Kalimantan
South Kalimantan

24. THINKING beyond the canopy
Coal Mining
Mining concessions on:
land cover area_ha
Intact natural forest 190,612.50
Mangroves 8,121.25
Logged forests 1,085,216.25
Intact natural forest on peat 7,500.75
Logged forest on peat 23,190.25
total 1,314,641.00
•Nearly 5 M Ha
Allocated for mining
•Most of production
from 1.5 M Ha of
PKP2B
•1.3M Ha of
remaining forest
cover –– in IUP

25. THINKING beyond the canopy
“Green development” challenges:
Coal Mining

26. THINKING beyond the canopy
“Green development” challenges:
Coal Mining
Total mining scar area increased from 55,872 ha in 2000 to 180,743 ha in
2010

27. THINKING beyond the canopy
“Green
development”
challenges:
Food Estate

28. THINKING beyond the canopy
“Green development” challenges:
Infrastructure

29. THINKING beyond the canopy
“Green
development”
challenges:
Infrastructure

30. THINKING beyond the canopy
Are roads a low carbon choice?
Source: Prabhu 2012
•Efficient water
transport and
railways are
cheaper and
with much lower
emissions
•Low pop
density makes
air transport an
attractive option

31. THINKING beyond the canopy
“Green development” challenges:
food for though
•Oil palm: is 1 M Ha enough? Extensification or intensification? If Extensifiation, how to
stimulate the use of lahan kritis? How to retain the remaing natural forest? What rules &
incentives? If Intensification, what support measures?
Timber plantations HTI: How much HTI does Kaltim need? 0.5 M ha of HTI = nearly 2 M m3
in MAI and 7 M m3 in production
Intensification: MAI/ha in Brazil 2-3 times higher; how to achieve this in Kaltim/Indonesia? How
to retain the remaing natural forest? Extensifiation, how to stimulate the use of lahan kritis?
Coal Mining: Does Kaltim need 4-5 M ha of mining concessions and 1,500 permits? How to
control this? How to improve reclamation of ex-mining pits (2500); how to advance CCS; how
to add value and minimize the ara exploited (coal liquefaction)
Food Estates: How best can Kaltim Food Estate contribute to the national goal of food
security? How much does it help with self-sufficiency? Are shipping and value chains in place?
How is local food production, incomes, and livelihoods affected?
Infrastructure: Does Kaltim need extensive road network in remote areas with few people?
These involve extremely high costs of development and maintenance; Could water, rail, and
air transport be a viable alternatives? Could existing road plans be modified to minimize ENV
impact?