THINKING beyond the canopy
“Green development” in Indonesia:
harmonizing land-based investment and GHG
emissions in East K...
THINKING beyond the canopy
Objectives
•Take stock of development and GHG mitigation objectives
•Stimulate discussion about...
THINKING beyond the canopy
Indonesia Today
Source:
McKinsey
2012
THINKING beyond the canopy
….and in 2030
Source:
McKinsey
2012
THINKING beyond the canopy
MP3EI: quantum leap forward
Source: MP3EI
THINKING beyond the canopy
USD 160 BN in overall investment
Kalimantan
Source: MP3EI
THINKING beyond the canopy
Emphasis on resource extraction
and processing
THINKING beyond the canopy
MP3EI Kalimantan
Source: MP3EI
THINKING beyond the canopy
But there are some problems
Source:
Strategic Asia
2012
THINKING beyond the canopy
Calls for a greener approach
THINKING beyond the canopy
Steps towards a greener approach
•National 25% GHG emission reduction target
•RAN-GRK
•DDPI Kal...
THINKING beyond the canopy
“Green Economy”
•Allows for: economic growth but significantly
reduces environmental risks and ...
THINKING beyond the canopy
“Green economy” challenges in East
Kalimantan
•Oil palm
•Timber plantations HTI
•Mining
•Food e...
THINKING beyond the canopy
“Green economy” challenges: oil
palm
Source: MP3EI
THINKING beyond the canopy
“Green development” challenges:
oil palm
THINKING beyond the canopy
Oil Palm in East Kalimantan
THINKING beyond the canopy
•1M Ha of oil palm
already achieved
•Nearly 1M Ha of
forest in oil palm
concessions
Oil palm co...
THINKING beyond the canopy
“Green development” challenges:
oil palm
More extensification
or intensification?
THINKING beyond the canopy
“Green development” challenges: oil
palm
But we know where it is;
how to make use of it a
scale...
THINKING beyond the canopy
“Green challenges”: oil palm
THINKING beyond the canopy
“Green development” challenges:
HTI
THINKING beyond the canopy
Timber
plantations
HTI
Industrial timber plantation concessions on:
Land cover area_ha
Intact n...
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...
THINKING beyond the canopy
Coal Mining
Mining concessions on:
land cover area_ha
Intact natural forest 190,612.50
Mangrove...
THINKING beyond the canopy
“Green development” challenges:
Coal Mining
THINKING beyond the canopy
“Green development” challenges:
Coal Mining
Total mining scar area increased from 55,872 ha in ...
THINKING beyond the canopy
“Green
development”
challenges:
Food Estate
THINKING beyond the canopy
“Green development” challenges:
Infrastructure
THINKING beyond the canopy
“Green
development”
challenges:
Infrastructure
THINKING beyond the canopy
Are roads a low carbon choice?
Source: Prabhu 2012
•Efficient water
transport and
railways are
...
THINKING beyond the canopy
“Green development” challenges:
food for though
•Oil palm: is 1 M Ha enough? Extensification or...
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“Green development” in Indonesia: harmonizing land-based investment and GHG emissions in East Kalimantan

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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.

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“Green development” in Indonesia: harmonizing land-based investment and GHG emissions in East Kalimantan

  1. 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. 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. 3. THINKING beyond the canopy Indonesia Today Source: McKinsey 2012
  4. 4. THINKING beyond the canopy ….and in 2030 Source: McKinsey 2012
  5. 5. THINKING beyond the canopy MP3EI: quantum leap forward Source: MP3EI
  6. 6. THINKING beyond the canopy USD 160 BN in overall investment Kalimantan Source: MP3EI
  7. 7. THINKING beyond the canopy Emphasis on resource extraction and processing
  8. 8. THINKING beyond the canopy MP3EI Kalimantan Source: MP3EI
  9. 9. THINKING beyond the canopy But there are some problems Source: Strategic Asia 2012
  10. 10. THINKING beyond the canopy Calls for a greener approach
  11. 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. 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. 13. THINKING beyond the canopy “Green economy” challenges in East Kalimantan •Oil palm •Timber plantations HTI •Mining •Food estate development •Infrastructure
  14. 14. THINKING beyond the canopy “Green economy” challenges: oil palm Source: MP3EI
  15. 15. THINKING beyond the canopy “Green development” challenges: oil palm
  16. 16. THINKING beyond the canopy Oil Palm in East Kalimantan
  17. 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. 18. THINKING beyond the canopy “Green development” challenges: oil palm More extensification or intensification?
  19. 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. 20. THINKING beyond the canopy “Green challenges”: oil palm
  21. 21. THINKING beyond the canopy “Green development” challenges: HTI
  22. 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. 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. 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. 25. THINKING beyond the canopy “Green development” challenges: Coal Mining
  26. 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. 27. THINKING beyond the canopy “Green development” challenges: Food Estate
  28. 28. THINKING beyond the canopy “Green development” challenges: Infrastructure
  29. 29. THINKING beyond the canopy “Green development” challenges: Infrastructure
  30. 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. 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?

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