SlideShare a Scribd company logo

Session 1 - Noor Syaifudin - Indonesia

OECD Governance
OECD Governance
OECD GovernanceOECD Governance

Climate Finance Policy in Indonesia Green Budgeting Virtual Meeting - 17 March 2020

Session 1 - Noor Syaifudin - Indonesia

1 of 22
CLIMATE FINANCE POLICY IN
INDONESIA
CENTER FOR CLIMATE FINANCE AND MULTILATERAL POLICY
FISCAL POLICY AGENCY
MINISTRY OF FINANCE
Noor Syaifudin
Center for Climate Finance and Multilateral Policy
17 March 2020
2
Observed global temperature change and modeled response
to stylized anthropogenic emission and forcing pathways
(IPCC,2018)
Global average temperature anomaly
(IPCC,2018)
Global Land-Ocean Temperature Index 1880-2020
(NASA)
THE RISE OF CLIMATE
CHANGE
§ Climate change is a natural phenomenon caused by
the accumulation of increased levels of GHG
emissions in the atmosphere due to human behavior.
§ Based on data from NASA and IPCC, trend of earth’s
temperature are increasing. That will trigger climate
cycle anomalies such as erratic and extreme rainfall,
prolonged drought season, the increase of
3
INDONESIA’S VISION IN 2045: BECOMES A
DEVELOPED COUNTRY
Infrastructure
HR improvement on R&D, education, health,
& social safety net system.
Human Resources Quality
Technology & innovation in supporting
industry development
Technology
Public service quality & business process
improvement
Government Bureaucracy
Quality Infrastructure to support mobility &
boost national development
Good governance in spatial planning
management with integrated system
Spatial Planning
Sound State Budget as a key
modality for Indonesia 2045
Economic & Finance Resources
BUSINESS
Driven by
Services Sector
73%
Source: Bappenas,
Kemenkeu
POPULATION
Million
People319
ECONOMIC STRUCTURE
Shifting to
High Value Added
Sectors
ECONOMY
5World
Top
PRODUCTIVITY
Productive
Age 47%
MIDDLE INCOME
Middle
Income70%
URBAN
Lived in
Urban Area73% US$23.199
PER CAPITA INCOME
Per Capita Income
Economy
Fiscal Policy Theme in 2020:
“State Budget (APBN) as Accelerator of National
Competitiveness through Innovation and
Strengthening the Quality of Human Capital”
Indonesia’s economic growth is one of the most stable among other
countries, supported with credible fiscal management & structural
reforms. In ensuring sustainable growth and cope with the global
challenges, the Government of Indonesia has strong commitment
facing global issues, such as discourse on FED rates issue, trade wars,
fluctuations in commodity prices, climate change, and other issues to
ensure our national sustainable development.
To Reach Our Vision in 2045, We Also Need to Accomplish Two
Important Agendas in 2030 Related to Climate Change
4
ROAD TO 2045
2019 2030 2045
NDC
SUSTAINABLE
DEVELOPMENT GOALS
(SDGs)
INDONESIA
NATIONALLY DETERMINED
CONTRIBUTIONS (NDC)
Indonesia’s commitment on SDGs and Climate Change also in line
with RPJMN 2014-2019, Sustainable Development Goals (Perpres
No. 59/2017), Nawa Cita, and RPJMN 2020-2024.
5
7 Development Agenda in RPJMN 2020-2024
1. Strengthening Economic Resilience for Quality Growth
2. Developing Areas to Reduce Inequality
3. Improving Human Resources Quality and Competitiveness
4. Mental Revolution and Cultural Development
5. Strengthening Infrastructure to Support Economic Development and Basic Services
6. Building the Environment, Enhancing Disaster Resilience and Climate Change
7. Strengthening Politics, Law, Defense, and Security and also Public Service Transformation
6
Climate Change in Indonesia has affected various economic sectors such as water resources, marine and fisheries,
agriculture, forestry, urban and rural areas, and health. The value of economic losses that will be borne by Indonesia in
2050 due to climate change and ecological disasters could reach Rp132 trillion, equivalent to 1.4 percent of the current
value of Indonesia's GDP (USAID, 2016)
More than 3,9 million people in 105 municipalities/cities
in Java and Nusa Tenggara experienced drought in 2017
Source: BNPB, 2017
Climate change has triggered the risk of
hydrometeorological disasters, about 80% of disasters in
Indonesia are hydrometeorological disasters
Source: NDC, 2016.
17,4% of the area in Jakarta was affected by flood which
caused of death of 23 people and more than 65.000
victims of evacuation (January 2014).
Source: Asian Development Bank Institute, 2016
INDONESIA’S
VULNERABILITY TO THE
IMPACT OF CLIMATE
CHANGE
The 4 major natural disasters that occurred in Indonesia were floods, droughts, hurricanes, and landslides. The number
of flood and drought events has increased in the last few decades. In 2005-2015, Indonesia experienced 15,458
disasters. 80% of disasters are categorized as hydro-meteorological disasters such as floods, hurricanes, extreme sea
waves, forest and land fires, drought, and extreme weather while the rest is categorized as a geological disaster.
Temperature level in Indonesia 1960-2000
“When we act immediately to
tackle climate change, we
automatically moving towards
achieving two important agendas
in 2030 (SDGs and NDC)”

Recommended

Session 3 Martin Baur and Pierre Alain Bruchez- Swtizerland
Session 3  Martin Baur and Pierre Alain Bruchez- SwtizerlandSession 3  Martin Baur and Pierre Alain Bruchez- Swtizerland
Session 3 Martin Baur and Pierre Alain Bruchez- SwtizerlandOECD Governance
 
Session 2 - Raphael Jachnik and Mauro Migotto
Session 2 - Raphael Jachnik and Mauro MigottoSession 2 - Raphael Jachnik and Mauro Migotto
Session 2 - Raphael Jachnik and Mauro MigottoOECD Governance
 
Session 3 - Jim Ebdon - Ireland
Session 3 - Jim Ebdon - IrelandSession 3 - Jim Ebdon - Ireland
Session 3 - Jim Ebdon - IrelandOECD Governance
 
Session 2 - Vincent Marcus
Session 2 - Vincent MarcusSession 2 - Vincent Marcus
Session 2 - Vincent MarcusOECD Governance
 
Session 3 Stephanie Pamies - European Commission
Session 3 Stephanie Pamies - European CommissionSession 3 Stephanie Pamies - European Commission
Session 3 Stephanie Pamies - European CommissionOECD Governance
 
Session 1 - Ken Cleary Green Budgeting in Ireland
Session 1 - Ken Cleary  Green Budgeting in IrelandSession 1 - Ken Cleary  Green Budgeting in Ireland
Session 1 - Ken Cleary Green Budgeting in IrelandOECD Governance
 
Session 2 Adrian Fozzard
Session 2  Adrian Fozzard Session 2  Adrian Fozzard
Session 2 Adrian Fozzard OECD Governance
 
Session 2 - Thomas Beloe - UNDP
Session 2  - Thomas Beloe - UNDPSession 2  - Thomas Beloe - UNDP
Session 2 - Thomas Beloe - UNDPOECD Governance
 

More Related Content

What's hot

Long-term fiscal sustainability... -- Sandra Batten, United Kingdom
Long-term fiscal sustainability... -- Sandra Batten, United KingdomLong-term fiscal sustainability... -- Sandra Batten, United Kingdom
Long-term fiscal sustainability... -- Sandra Batten, United KingdomOECD Governance
 
Long-term fiscal sustainability -- Martin Baur, Switzerland
Long-term fiscal sustainability -- Martin Baur, SwitzerlandLong-term fiscal sustainability -- Martin Baur, Switzerland
Long-term fiscal sustainability -- Martin Baur, SwitzerlandOECD Governance
 
Session 1 - Scherie Nicol and Juliane Jansen - OECD
Session 1 - Scherie Nicol and Juliane Jansen - OECDSession 1 - Scherie Nicol and Juliane Jansen - OECD
Session 1 - Scherie Nicol and Juliane Jansen - OECDOECD Governance
 
Towards green budgeting: a roadmap -- Alexandre Godzinksi, France
Towards green budgeting: a roadmap -- Alexandre Godzinksi, FranceTowards green budgeting: a roadmap -- Alexandre Godzinksi, France
Towards green budgeting: a roadmap -- Alexandre Godzinksi, FranceOECD Governance
 
Session 1 - OECD - Scherie Nicol
Session 1  - OECD - Scherie NicolSession 1  - OECD - Scherie Nicol
Session 1 - OECD - Scherie NicolOECD Governance
 
Applying a green lens -- Assia Elgouacem, OECD
Applying a green lens -- Assia Elgouacem, OECDApplying a green lens -- Assia Elgouacem, OECD
Applying a green lens -- Assia Elgouacem, OECDOECD Governance
 
Applying a green lens -- Cornelius Rhein, EC
Applying a green lens -- Cornelius Rhein, ECApplying a green lens -- Cornelius Rhein, EC
Applying a green lens -- Cornelius Rhein, ECOECD Governance
 
Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...
Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...
Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...OECD Environment
 
Towards green budgeting: a roadmap -- Murray Petrie, New Zealand
Towards green budgeting: a roadmap -- Murray Petrie, New ZealandTowards green budgeting: a roadmap -- Murray Petrie, New Zealand
Towards green budgeting: a roadmap -- Murray Petrie, New ZealandOECD Governance
 
Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...
Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...
Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...OECD Environment
 
Towards green budgeting: a roadmap -- Juliane Jansen, OECD
Towards green budgeting: a roadmap -- Juliane Jansen, OECDTowards green budgeting: a roadmap -- Juliane Jansen, OECD
Towards green budgeting: a roadmap -- Juliane Jansen, OECDOECD Governance
 
Calculating the environmental impacts of public action -- Jonas Teusch, OECD
Calculating the environmental impacts of public action -- Jonas Teusch, OECDCalculating the environmental impacts of public action -- Jonas Teusch, OECD
Calculating the environmental impacts of public action -- Jonas Teusch, OECDOECD Governance
 
Calculating the environmental impacts of public action -- Nils Axel Braathen,...
Calculating the environmental impacts of public action -- Nils Axel Braathen,...Calculating the environmental impacts of public action -- Nils Axel Braathen,...
Calculating the environmental impacts of public action -- Nils Axel Braathen,...OECD Governance
 
First meeting of the OECD Task Force on Climate Change Adaptation presentatio...
First meeting of the OECD Task Force on Climate Change Adaptation presentatio...First meeting of the OECD Task Force on Climate Change Adaptation presentatio...
First meeting of the OECD Task Force on Climate Change Adaptation presentatio...OECD Environment
 
Session 2 - Ireland - Laura Kevany
Session 2   - Ireland - Laura KevanySession 2   - Ireland - Laura Kevany
Session 2 - Ireland - Laura KevanyOECD Governance
 
Calculating the environmental impacts of public action - Ian Thom, United Kin...
Calculating the environmental impacts of public action - Ian Thom, United Kin...Calculating the environmental impacts of public action - Ian Thom, United Kin...
Calculating the environmental impacts of public action - Ian Thom, United Kin...OECD Governance
 
Presentation- Fourth meeting of the Task Force on Climate Change adaptation -...
Presentation- Fourth meeting of the Task Force on Climate Change adaptation -...Presentation- Fourth meeting of the Task Force on Climate Change adaptation -...
Presentation- Fourth meeting of the Task Force on Climate Change adaptation -...OECD Environment
 
Presentation - Measuring progress in implementing national adaptation policie...
Presentation - Measuring progress in implementing national adaptation policie...Presentation - Measuring progress in implementing national adaptation policie...
Presentation - Measuring progress in implementing national adaptation policie...OECD Environment
 
Applying a green lens -- Laura KEVANY, Ireland
Applying a green lens -- Laura KEVANY, IrelandApplying a green lens -- Laura KEVANY, Ireland
Applying a green lens -- Laura KEVANY, IrelandOECD Governance
 
Session 2 - France - Benjamin Carantino
Session 2 - France - Benjamin CarantinoSession 2 - France - Benjamin Carantino
Session 2 - France - Benjamin CarantinoOECD Governance
 

What's hot (20)

Long-term fiscal sustainability... -- Sandra Batten, United Kingdom
Long-term fiscal sustainability... -- Sandra Batten, United KingdomLong-term fiscal sustainability... -- Sandra Batten, United Kingdom
Long-term fiscal sustainability... -- Sandra Batten, United Kingdom
 
Long-term fiscal sustainability -- Martin Baur, Switzerland
Long-term fiscal sustainability -- Martin Baur, SwitzerlandLong-term fiscal sustainability -- Martin Baur, Switzerland
Long-term fiscal sustainability -- Martin Baur, Switzerland
 
Session 1 - Scherie Nicol and Juliane Jansen - OECD
Session 1 - Scherie Nicol and Juliane Jansen - OECDSession 1 - Scherie Nicol and Juliane Jansen - OECD
Session 1 - Scherie Nicol and Juliane Jansen - OECD
 
Towards green budgeting: a roadmap -- Alexandre Godzinksi, France
Towards green budgeting: a roadmap -- Alexandre Godzinksi, FranceTowards green budgeting: a roadmap -- Alexandre Godzinksi, France
Towards green budgeting: a roadmap -- Alexandre Godzinksi, France
 
Session 1 - OECD - Scherie Nicol
Session 1  - OECD - Scherie NicolSession 1  - OECD - Scherie Nicol
Session 1 - OECD - Scherie Nicol
 
Applying a green lens -- Assia Elgouacem, OECD
Applying a green lens -- Assia Elgouacem, OECDApplying a green lens -- Assia Elgouacem, OECD
Applying a green lens -- Assia Elgouacem, OECD
 
Applying a green lens -- Cornelius Rhein, EC
Applying a green lens -- Cornelius Rhein, ECApplying a green lens -- Cornelius Rhein, EC
Applying a green lens -- Cornelius Rhein, EC
 
Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...
Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...
Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...
 
Towards green budgeting: a roadmap -- Murray Petrie, New Zealand
Towards green budgeting: a roadmap -- Murray Petrie, New ZealandTowards green budgeting: a roadmap -- Murray Petrie, New Zealand
Towards green budgeting: a roadmap -- Murray Petrie, New Zealand
 
Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...
Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...
Presentation- Fourth meeting of the Task Force on Climate Change Adaptation -...
 
Towards green budgeting: a roadmap -- Juliane Jansen, OECD
Towards green budgeting: a roadmap -- Juliane Jansen, OECDTowards green budgeting: a roadmap -- Juliane Jansen, OECD
Towards green budgeting: a roadmap -- Juliane Jansen, OECD
 
Calculating the environmental impacts of public action -- Jonas Teusch, OECD
Calculating the environmental impacts of public action -- Jonas Teusch, OECDCalculating the environmental impacts of public action -- Jonas Teusch, OECD
Calculating the environmental impacts of public action -- Jonas Teusch, OECD
 
Calculating the environmental impacts of public action -- Nils Axel Braathen,...
Calculating the environmental impacts of public action -- Nils Axel Braathen,...Calculating the environmental impacts of public action -- Nils Axel Braathen,...
Calculating the environmental impacts of public action -- Nils Axel Braathen,...
 
First meeting of the OECD Task Force on Climate Change Adaptation presentatio...
First meeting of the OECD Task Force on Climate Change Adaptation presentatio...First meeting of the OECD Task Force on Climate Change Adaptation presentatio...
First meeting of the OECD Task Force on Climate Change Adaptation presentatio...
 
Session 2 - Ireland - Laura Kevany
Session 2   - Ireland - Laura KevanySession 2   - Ireland - Laura Kevany
Session 2 - Ireland - Laura Kevany
 
Calculating the environmental impacts of public action - Ian Thom, United Kin...
Calculating the environmental impacts of public action - Ian Thom, United Kin...Calculating the environmental impacts of public action - Ian Thom, United Kin...
Calculating the environmental impacts of public action - Ian Thom, United Kin...
 
Presentation- Fourth meeting of the Task Force on Climate Change adaptation -...
Presentation- Fourth meeting of the Task Force on Climate Change adaptation -...Presentation- Fourth meeting of the Task Force on Climate Change adaptation -...
Presentation- Fourth meeting of the Task Force on Climate Change adaptation -...
 
Presentation - Measuring progress in implementing national adaptation policie...
Presentation - Measuring progress in implementing national adaptation policie...Presentation - Measuring progress in implementing national adaptation policie...
Presentation - Measuring progress in implementing national adaptation policie...
 
Applying a green lens -- Laura KEVANY, Ireland
Applying a green lens -- Laura KEVANY, IrelandApplying a green lens -- Laura KEVANY, Ireland
Applying a green lens -- Laura KEVANY, Ireland
 
Session 2 - France - Benjamin Carantino
Session 2 - France - Benjamin CarantinoSession 2 - France - Benjamin Carantino
Session 2 - France - Benjamin Carantino
 

Similar to Session 1 - Noor Syaifudin - Indonesia

Green budgeting - Kunta Nugraha, Indonesia
Green budgeting - Kunta Nugraha, IndonesiaGreen budgeting - Kunta Nugraha, Indonesia
Green budgeting - Kunta Nugraha, IndonesiaOECD Governance
 
Ethiopia's updated Nationally Determined Contributions JULY 2021 Submission_.pdf
Ethiopia's updated Nationally Determined Contributions JULY 2021 Submission_.pdfEthiopia's updated Nationally Determined Contributions JULY 2021 Submission_.pdf
Ethiopia's updated Nationally Determined Contributions JULY 2021 Submission_.pdfAbraham Lebeza
 
Green Industry Policy in support of Net-Zero Emission achievements: Astika An...
Green Industry Policy in support of Net-Zero Emission achievements: Astika An...Green Industry Policy in support of Net-Zero Emission achievements: Astika An...
Green Industry Policy in support of Net-Zero Emission achievements: Astika An...OECD Environment
 
Sectoral and-regional-mobilisation-to-support-the-achievement-of-indonesia’s-...
Sectoral and-regional-mobilisation-to-support-the-achievement-of-indonesia’s-...Sectoral and-regional-mobilisation-to-support-the-achievement-of-indonesia’s-...
Sectoral and-regional-mobilisation-to-support-the-achievement-of-indonesia’s-...OECD Environment
 
ZICO-Law_Green-Publication-1.0_July-2020.pdf
ZICO-Law_Green-Publication-1.0_July-2020.pdfZICO-Law_Green-Publication-1.0_July-2020.pdf
ZICO-Law_Green-Publication-1.0_July-2020.pdfssuser49fabb
 
Al Azhar - International Seminar on Science, Technology and Innovations
Al Azhar - International Seminar on Science, Technology and InnovationsAl Azhar - International Seminar on Science, Technology and Innovations
Al Azhar - International Seminar on Science, Technology and Innovationspariatmono
 
CCXG Forum, March 2021, Michael Okumu
CCXG Forum, March 2021, Michael OkumuCCXG Forum, March 2021, Michael Okumu
CCXG Forum, March 2021, Michael OkumuOECD Environment
 
Mid-century, Long-term Low Greenhouse Gas Emission Development Strategy
Mid-century, Long-term Low Greenhouse Gas Emission Development StrategyMid-century, Long-term Low Greenhouse Gas Emission Development Strategy
Mid-century, Long-term Low Greenhouse Gas Emission Development StrategyKitipan Kitbamroong Ph.D. CISA
 
NAP process and Bangladesh
NAP process and BangladeshNAP process and Bangladesh
NAP process and BangladeshNAP Events
 
DFID India climate change overview Feb 2005 v2
DFID India climate change overview Feb 2005 v2DFID India climate change overview Feb 2005 v2
DFID India climate change overview Feb 2005 v2Dr Seán Doolan, MBA
 
CCXG Forum, September 2020, Medrilzam Medrilzam
CCXG Forum, September 2020, Medrilzam MedrilzamCCXG Forum, September 2020, Medrilzam Medrilzam
CCXG Forum, September 2020, Medrilzam MedrilzamOECD Environment
 
rajendra pachauri.presentation.final.ppt
rajendra pachauri.presentation.final.pptrajendra pachauri.presentation.final.ppt
rajendra pachauri.presentation.final.pptAbdirahmanYusufAli1
 
SUSTAINABLE AND GREEN SOCIO-ENVIRONMENTAL GROWTH
SUSTAINABLE AND GREEN SOCIO-ENVIRONMENTAL GROWTHSUSTAINABLE AND GREEN SOCIO-ENVIRONMENTAL GROWTH
SUSTAINABLE AND GREEN SOCIO-ENVIRONMENTAL GROWTHSanglapAdhikary
 
RPN 2022 Manila: Session 2.3 Yusuf Suryanto Bappenas.pdf
RPN 2022 Manila: Session 2.3 Yusuf Suryanto Bappenas.pdfRPN 2022 Manila: Session 2.3 Yusuf Suryanto Bappenas.pdf
RPN 2022 Manila: Session 2.3 Yusuf Suryanto Bappenas.pdfOECD Environment
 
Dr pachauris bio economy presentation aug12 2013
Dr pachauris bio economy presentation aug12 2013Dr pachauris bio economy presentation aug12 2013
Dr pachauris bio economy presentation aug12 2013koliforum
 
2.1.2 Country approaches in designing the formulation of NAPs - Thailand
2.1.2 Country approaches in designing the formulation of NAPs - Thailand2.1.2 Country approaches in designing the formulation of NAPs - Thailand
2.1.2 Country approaches in designing the formulation of NAPs - ThailandNAP Events
 
Dr pachauris bio economy presentation aug12 2013
Dr pachauris bio economy presentation aug12 2013Dr pachauris bio economy presentation aug12 2013
Dr pachauris bio economy presentation aug12 2013Katri Vuorjoki
 

Similar to Session 1 - Noor Syaifudin - Indonesia (20)

Green budgeting - Kunta Nugraha, Indonesia
Green budgeting - Kunta Nugraha, IndonesiaGreen budgeting - Kunta Nugraha, Indonesia
Green budgeting - Kunta Nugraha, Indonesia
 
Ethiopia's updated Nationally Determined Contributions JULY 2021 Submission_.pdf
Ethiopia's updated Nationally Determined Contributions JULY 2021 Submission_.pdfEthiopia's updated Nationally Determined Contributions JULY 2021 Submission_.pdf
Ethiopia's updated Nationally Determined Contributions JULY 2021 Submission_.pdf
 
NDC of sri lanka
NDC of sri lankaNDC of sri lanka
NDC of sri lanka
 
Green Industry Policy in support of Net-Zero Emission achievements: Astika An...
Green Industry Policy in support of Net-Zero Emission achievements: Astika An...Green Industry Policy in support of Net-Zero Emission achievements: Astika An...
Green Industry Policy in support of Net-Zero Emission achievements: Astika An...
 
Sectoral and-regional-mobilisation-to-support-the-achievement-of-indonesia’s-...
Sectoral and-regional-mobilisation-to-support-the-achievement-of-indonesia’s-...Sectoral and-regional-mobilisation-to-support-the-achievement-of-indonesia’s-...
Sectoral and-regional-mobilisation-to-support-the-achievement-of-indonesia’s-...
 
W5 PIE-ISU TERKINI.pptx
W5 PIE-ISU TERKINI.pptxW5 PIE-ISU TERKINI.pptx
W5 PIE-ISU TERKINI.pptx
 
ZICO-Law_Green-Publication-1.0_July-2020.pdf
ZICO-Law_Green-Publication-1.0_July-2020.pdfZICO-Law_Green-Publication-1.0_July-2020.pdf
ZICO-Law_Green-Publication-1.0_July-2020.pdf
 
Al Azhar - International Seminar on Science, Technology and Innovations
Al Azhar - International Seminar on Science, Technology and InnovationsAl Azhar - International Seminar on Science, Technology and Innovations
Al Azhar - International Seminar on Science, Technology and Innovations
 
CCXG Forum, March 2021, Michael Okumu
CCXG Forum, March 2021, Michael OkumuCCXG Forum, March 2021, Michael Okumu
CCXG Forum, March 2021, Michael Okumu
 
Mid-century, Long-term Low Greenhouse Gas Emission Development Strategy
Mid-century, Long-term Low Greenhouse Gas Emission Development StrategyMid-century, Long-term Low Greenhouse Gas Emission Development Strategy
Mid-century, Long-term Low Greenhouse Gas Emission Development Strategy
 
NAP process and Bangladesh
NAP process and BangladeshNAP process and Bangladesh
NAP process and Bangladesh
 
DFID India climate change overview Feb 2005 v2
DFID India climate change overview Feb 2005 v2DFID India climate change overview Feb 2005 v2
DFID India climate change overview Feb 2005 v2
 
CCXG Forum, September 2020, Medrilzam Medrilzam
CCXG Forum, September 2020, Medrilzam MedrilzamCCXG Forum, September 2020, Medrilzam Medrilzam
CCXG Forum, September 2020, Medrilzam Medrilzam
 
rajendra pachauri.presentation.final.ppt
rajendra pachauri.presentation.final.pptrajendra pachauri.presentation.final.ppt
rajendra pachauri.presentation.final.ppt
 
SUSTAINABLE AND GREEN SOCIO-ENVIRONMENTAL GROWTH
SUSTAINABLE AND GREEN SOCIO-ENVIRONMENTAL GROWTHSUSTAINABLE AND GREEN SOCIO-ENVIRONMENTAL GROWTH
SUSTAINABLE AND GREEN SOCIO-ENVIRONMENTAL GROWTH
 
IFPRI-TAAS-ICAR- Climate Risks in achieving SDG's: Policies and Institutions ...
IFPRI-TAAS-ICAR- Climate Risks in achieving SDG's: Policies and Institutions ...IFPRI-TAAS-ICAR- Climate Risks in achieving SDG's: Policies and Institutions ...
IFPRI-TAAS-ICAR- Climate Risks in achieving SDG's: Policies and Institutions ...
 
RPN 2022 Manila: Session 2.3 Yusuf Suryanto Bappenas.pdf
RPN 2022 Manila: Session 2.3 Yusuf Suryanto Bappenas.pdfRPN 2022 Manila: Session 2.3 Yusuf Suryanto Bappenas.pdf
RPN 2022 Manila: Session 2.3 Yusuf Suryanto Bappenas.pdf
 
Dr pachauris bio economy presentation aug12 2013
Dr pachauris bio economy presentation aug12 2013Dr pachauris bio economy presentation aug12 2013
Dr pachauris bio economy presentation aug12 2013
 
2.1.2 Country approaches in designing the formulation of NAPs - Thailand
2.1.2 Country approaches in designing the formulation of NAPs - Thailand2.1.2 Country approaches in designing the formulation of NAPs - Thailand
2.1.2 Country approaches in designing the formulation of NAPs - Thailand
 
Dr pachauris bio economy presentation aug12 2013
Dr pachauris bio economy presentation aug12 2013Dr pachauris bio economy presentation aug12 2013
Dr pachauris bio economy presentation aug12 2013
 

More from OECD Governance

Public Integrity Indicators Slides
Public Integrity Indicators SlidesPublic Integrity Indicators Slides
Public Integrity Indicators SlidesOECD Governance
 
Summary of the OECD expert meeting: Construction Risk Management in Infrastru...
Summary of the OECD expert meeting: Construction Risk Management in Infrastru...Summary of the OECD expert meeting: Construction Risk Management in Infrastru...
Summary of the OECD expert meeting: Construction Risk Management in Infrastru...OECD Governance
 
Using AI led assurance to deliver projects on time and on budget - D. Amratia...
Using AI led assurance to deliver projects on time and on budget - D. Amratia...Using AI led assurance to deliver projects on time and on budget - D. Amratia...
Using AI led assurance to deliver projects on time and on budget - D. Amratia...OECD Governance
 
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE)
 ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE) ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE)
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE)OECD Governance
 
Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...
Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...
Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...OECD Governance
 
Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...
Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...
Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...OECD Governance
 
Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...
Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...
Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...OECD Governance
 
ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...
ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...
ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...OECD Governance
 
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, StockholmECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, StockholmOECD Governance
 
EPEC's perception of market developments - E. Farquharson, Principal Adviser,...
EPEC's perception of market developments - E. Farquharson, Principal Adviser,...EPEC's perception of market developments - E. Farquharson, Principal Adviser,...
EPEC's perception of market developments - E. Farquharson, Principal Adviser,...OECD Governance
 
Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...
Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...
Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...OECD Governance
 
New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...
New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...
New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...OECD Governance
 
Executive Agency of the Dutch Ministry of Infrastructure and Water Management...
Executive Agency of the Dutch Ministry of Infrastructure and Water Management...Executive Agency of the Dutch Ministry of Infrastructure and Water Management...
Executive Agency of the Dutch Ministry of Infrastructure and Water Management...OECD Governance
 
Presentation of OECD Government at a Glance 2023
Presentation of OECD Government at a Glance 2023Presentation of OECD Government at a Glance 2023
Presentation of OECD Government at a Glance 2023OECD Governance
 
The Protection and Promotion of Civic Space: Strengthening Alignment with Int...
The Protection and Promotion of Civic Space: Strengthening Alignment with Int...The Protection and Promotion of Civic Space: Strengthening Alignment with Int...
The Protection and Promotion of Civic Space: Strengthening Alignment with Int...OECD Governance
 
Digital Government Review Türkiye - Assessment and Recommendations
Digital Government Review Türkiye - Assessment and RecommendationsDigital Government Review Türkiye - Assessment and Recommendations
Digital Government Review Türkiye - Assessment and RecommendationsOECD Governance
 
Buliding-Financial-Resilience-to climate-Impacts.pdf
Buliding-Financial-Resilience-to climate-Impacts.pdfBuliding-Financial-Resilience-to climate-Impacts.pdf
Buliding-Financial-Resilience-to climate-Impacts.pdfOECD Governance
 
Session-7-OECD-Strengthening-climate.pptx
Session-7-OECD-Strengthening-climate.pptxSession-7-OECD-Strengthening-climate.pptx
Session-7-OECD-Strengthening-climate.pptxOECD Governance
 
Session-6-Building-Financial-Resilience.pptx
Session-6-Building-Financial-Resilience.pptxSession-6-Building-Financial-Resilience.pptx
Session-6-Building-Financial-Resilience.pptxOECD Governance
 
Session-5-Assurance-on-sustainability-Peter-Welch.pptx
Session-5-Assurance-on-sustainability-Peter-Welch.pptxSession-5-Assurance-on-sustainability-Peter-Welch.pptx
Session-5-Assurance-on-sustainability-Peter-Welch.pptxOECD Governance
 

More from OECD Governance (20)

Public Integrity Indicators Slides
Public Integrity Indicators SlidesPublic Integrity Indicators Slides
Public Integrity Indicators Slides
 
Summary of the OECD expert meeting: Construction Risk Management in Infrastru...
Summary of the OECD expert meeting: Construction Risk Management in Infrastru...Summary of the OECD expert meeting: Construction Risk Management in Infrastru...
Summary of the OECD expert meeting: Construction Risk Management in Infrastru...
 
Using AI led assurance to deliver projects on time and on budget - D. Amratia...
Using AI led assurance to deliver projects on time and on budget - D. Amratia...Using AI led assurance to deliver projects on time and on budget - D. Amratia...
Using AI led assurance to deliver projects on time and on budget - D. Amratia...
 
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE)
 ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE) ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE)
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE)
 
Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...
Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...
Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...
 
Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...
Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...
Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...
 
Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...
Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...
Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...
 
ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...
ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...
ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...
 
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, StockholmECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm
 
EPEC's perception of market developments - E. Farquharson, Principal Adviser,...
EPEC's perception of market developments - E. Farquharson, Principal Adviser,...EPEC's perception of market developments - E. Farquharson, Principal Adviser,...
EPEC's perception of market developments - E. Farquharson, Principal Adviser,...
 
Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...
Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...
Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...
 
New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...
New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...
New Jersey Wind Port - J. Kennedy, New Jersey Economic Development Authority ...
 
Executive Agency of the Dutch Ministry of Infrastructure and Water Management...
Executive Agency of the Dutch Ministry of Infrastructure and Water Management...Executive Agency of the Dutch Ministry of Infrastructure and Water Management...
Executive Agency of the Dutch Ministry of Infrastructure and Water Management...
 
Presentation of OECD Government at a Glance 2023
Presentation of OECD Government at a Glance 2023Presentation of OECD Government at a Glance 2023
Presentation of OECD Government at a Glance 2023
 
The Protection and Promotion of Civic Space: Strengthening Alignment with Int...
The Protection and Promotion of Civic Space: Strengthening Alignment with Int...The Protection and Promotion of Civic Space: Strengthening Alignment with Int...
The Protection and Promotion of Civic Space: Strengthening Alignment with Int...
 
Digital Government Review Türkiye - Assessment and Recommendations
Digital Government Review Türkiye - Assessment and RecommendationsDigital Government Review Türkiye - Assessment and Recommendations
Digital Government Review Türkiye - Assessment and Recommendations
 
Buliding-Financial-Resilience-to climate-Impacts.pdf
Buliding-Financial-Resilience-to climate-Impacts.pdfBuliding-Financial-Resilience-to climate-Impacts.pdf
Buliding-Financial-Resilience-to climate-Impacts.pdf
 
Session-7-OECD-Strengthening-climate.pptx
Session-7-OECD-Strengthening-climate.pptxSession-7-OECD-Strengthening-climate.pptx
Session-7-OECD-Strengthening-climate.pptx
 
Session-6-Building-Financial-Resilience.pptx
Session-6-Building-Financial-Resilience.pptxSession-6-Building-Financial-Resilience.pptx
Session-6-Building-Financial-Resilience.pptx
 
Session-5-Assurance-on-sustainability-Peter-Welch.pptx
Session-5-Assurance-on-sustainability-Peter-Welch.pptxSession-5-Assurance-on-sustainability-Peter-Welch.pptx
Session-5-Assurance-on-sustainability-Peter-Welch.pptx
 

Session 1 - Noor Syaifudin - Indonesia

  • 1. CLIMATE FINANCE POLICY IN INDONESIA CENTER FOR CLIMATE FINANCE AND MULTILATERAL POLICY FISCAL POLICY AGENCY MINISTRY OF FINANCE Noor Syaifudin Center for Climate Finance and Multilateral Policy 17 March 2020
  • 2. 2 Observed global temperature change and modeled response to stylized anthropogenic emission and forcing pathways (IPCC,2018) Global average temperature anomaly (IPCC,2018) Global Land-Ocean Temperature Index 1880-2020 (NASA) THE RISE OF CLIMATE CHANGE § Climate change is a natural phenomenon caused by the accumulation of increased levels of GHG emissions in the atmosphere due to human behavior. § Based on data from NASA and IPCC, trend of earth’s temperature are increasing. That will trigger climate cycle anomalies such as erratic and extreme rainfall, prolonged drought season, the increase of
  • 3. 3 INDONESIA’S VISION IN 2045: BECOMES A DEVELOPED COUNTRY Infrastructure HR improvement on R&D, education, health, & social safety net system. Human Resources Quality Technology & innovation in supporting industry development Technology Public service quality & business process improvement Government Bureaucracy Quality Infrastructure to support mobility & boost national development Good governance in spatial planning management with integrated system Spatial Planning Sound State Budget as a key modality for Indonesia 2045 Economic & Finance Resources BUSINESS Driven by Services Sector 73% Source: Bappenas, Kemenkeu POPULATION Million People319 ECONOMIC STRUCTURE Shifting to High Value Added Sectors ECONOMY 5World Top PRODUCTIVITY Productive Age 47% MIDDLE INCOME Middle Income70% URBAN Lived in Urban Area73% US$23.199 PER CAPITA INCOME Per Capita Income Economy Fiscal Policy Theme in 2020: “State Budget (APBN) as Accelerator of National Competitiveness through Innovation and Strengthening the Quality of Human Capital” Indonesia’s economic growth is one of the most stable among other countries, supported with credible fiscal management & structural reforms. In ensuring sustainable growth and cope with the global challenges, the Government of Indonesia has strong commitment facing global issues, such as discourse on FED rates issue, trade wars, fluctuations in commodity prices, climate change, and other issues to ensure our national sustainable development.
  • 4. To Reach Our Vision in 2045, We Also Need to Accomplish Two Important Agendas in 2030 Related to Climate Change 4 ROAD TO 2045 2019 2030 2045 NDC SUSTAINABLE DEVELOPMENT GOALS (SDGs) INDONESIA NATIONALLY DETERMINED CONTRIBUTIONS (NDC) Indonesia’s commitment on SDGs and Climate Change also in line with RPJMN 2014-2019, Sustainable Development Goals (Perpres No. 59/2017), Nawa Cita, and RPJMN 2020-2024.
  • 5. 5 7 Development Agenda in RPJMN 2020-2024 1. Strengthening Economic Resilience for Quality Growth 2. Developing Areas to Reduce Inequality 3. Improving Human Resources Quality and Competitiveness 4. Mental Revolution and Cultural Development 5. Strengthening Infrastructure to Support Economic Development and Basic Services 6. Building the Environment, Enhancing Disaster Resilience and Climate Change 7. Strengthening Politics, Law, Defense, and Security and also Public Service Transformation
  • 6. 6 Climate Change in Indonesia has affected various economic sectors such as water resources, marine and fisheries, agriculture, forestry, urban and rural areas, and health. The value of economic losses that will be borne by Indonesia in 2050 due to climate change and ecological disasters could reach Rp132 trillion, equivalent to 1.4 percent of the current value of Indonesia's GDP (USAID, 2016) More than 3,9 million people in 105 municipalities/cities in Java and Nusa Tenggara experienced drought in 2017 Source: BNPB, 2017 Climate change has triggered the risk of hydrometeorological disasters, about 80% of disasters in Indonesia are hydrometeorological disasters Source: NDC, 2016. 17,4% of the area in Jakarta was affected by flood which caused of death of 23 people and more than 65.000 victims of evacuation (January 2014). Source: Asian Development Bank Institute, 2016 INDONESIA’S VULNERABILITY TO THE IMPACT OF CLIMATE CHANGE The 4 major natural disasters that occurred in Indonesia were floods, droughts, hurricanes, and landslides. The number of flood and drought events has increased in the last few decades. In 2005-2015, Indonesia experienced 15,458 disasters. 80% of disasters are categorized as hydro-meteorological disasters such as floods, hurricanes, extreme sea waves, forest and land fires, drought, and extreme weather while the rest is categorized as a geological disaster. Temperature level in Indonesia 1960-2000 “When we act immediately to tackle climate change, we automatically moving towards achieving two important agendas in 2030 (SDGs and NDC)”
  • 7. 7 1997 2011 National Action Plan on GHG Emission Reduction (RAN-GRK) Ratification of Kyoto Protocol into UU No. 17/2004 2007 BALI - INDONESIA Indonesia hosted UNFCCC-COP 2007 Ratification of UNFCCC into UU No. 6/1994 1992 1994 2004 2014 National Action Plan on Adaptation (RAN-API) 2015 Paris Agreement ND C Submission of Nationally Determined Contribution (NDC) 2016 Ratification of Paris Agreement into UU No. 16/2016 2016 The Implementation of Climate Budget Tagging (CBT) 2016 Submission of the 2nd BUR to UNFCCC 2018 2019 Climate Change as Development Agenda in RPJMN 2020-2024 Commitment on Katowice Package 2018 OUR COMMITMENT AND EXPERIENCES ON CLIMATE CHANGE ACTIONS
  • 8. 8 Based on Paris Agreement dan Indonesia’s Nationally Determined Contribution (NDC-Indonesia) 29% Indonesia has committed to reduce emission by 2030 (unconditional scenario) International support (conditional scenario) and 41% LIVELIHOOD Health, Settlement, and Infrastructure ECOSYSTEM SUPPORTING SYSTEM Land and Forestry Energy (314 Miton of CO2e) Waste (11 Mton CO2e) Agriculture 9 Mton of CO2e IPPU (2,75 Mton CO2e) 59,6% 37,7% 1,3% 1,1% 0,3% (497 Mton of CO2e) GoI COMMITMENT ON CLIMATE CHANGE IN NDC ECONOMY Food and Energy Security EMISSION REDUCTION TARGET PER SECTOR SPECIAL TERRITORY Cities, Coastal, and Small Islands ADAPTATION AREA:
  • 9. 9 INDONESIA’S FISCAL POLICY TO TACKLE CLIMATE CHANGE Taxation Policy to Boost Investment in Climate Action State Spending for Mitigation and Adaptation Action Green Financing for climate resilience and emission reduction projectsGreen Financing
  • 10. 10 Taxation Policy to Boost Investment in Climate Action Tax Holiday (PMK 150/2018) Reduction of corporate income tax by 100% for new and renewable energy infrastructure (pioneering industry) Tax Allowance (PP 78 Tahun 2019) Income tax facilities for certain business fields in certain areas Income Tax Borne by Government (UU APBN; PMK 179/2013) The income tax is borne by the government for geothermal business activities Exemption on Import Duty (PMK 176/2009 s.t.d.d. PMK 188/2015) Exemption on machinery. goods and materials import. VAT Exemption (PP 81/2015) Exemption on import and handover machinery & equipment not including spare parts. Exemption on Import Duty (PMK 177/2007) Exemption on import of goods for geothermal activities provided to certain business entities. Pertamina. and Geo Dipa Energi. Exclusion of Collection for Income Tax Article 22 (PMK 34/2017 stdd PMK 110/2018) Exclusion for import of goods in geothermal activities Taxation & Customs Facilities (PMK 21/2010) Granted for the activity of utilizing renewable energy sources (tax allowance. exemption from collecting Income Tax article 22. exempting VAT. and exempting import duties).
  • 11. 11 Taxation Policy to Boost Investment in Climate Action 11 PIONEERING INDUSTRY COVERAGE Upstream metal based industry: steel/non-steel Oil and Gas refining industry with or without Petroleum. natural gas. and coal based petrochemical industry Organic Basic Chemical Industry from agricultural. plantation. or forestry products Inorganic Basic Chemical Industry Main Raw Material for Pharmaceutical Industry Irradiated. Electromedic. or Electrotherapy Equipment Manufacturing Industry Main Components for Electronic or Telematics Equipment Manufacturing Industry Machine and Main Components Manufacturing Industry Robotics Component Manufacturing Industry that support the Machinery Manufacturing Industry Main Components in Electric Power Generation Machines Manufacturing Industry Main Components in Automotive Manufacturing Industry Main Components of Vessel Manufacturing Industry Main Components of Aircraft Manufacturing Industry and Aerospace Complementary Industry Main Components of Railway Manufacturing Industry Agriculture. Plantation. or Forestry Based Manufacturing Industries that Produce Pulp Digital Economy which includes data processing. hosting. and activities related to it Economy Infrastructure New and Renewable Energy Power Plant
  • 12. 12 CLIMATE BUDGET PERFORMANCE State Spending for Mitigation and Adaptation Action In 2019, Government allocated IDR95,8 trillion for climate action. Meanwhile, based on Indonesia 2nd Biennial Update Report (BUR), Indonesia needs around IDR 3.307,2 trillion (USD 228,1 million) for implementing climate action in 2018 to 2030, or about IDR 254,4 trillion (USD 17.55 million) annually. STATE BUDGET (APBN) FINANCING NEEDS 2016 2017 2018 2019 72,4 95,6 109,7 95,8 RpTrillion 4,5% 4,9% 3,5% 3,9% Portion on State Budget (%) Climate Budget Allocation in APBN Output Output from Climate Budget 263 159 276 209 2016 2017 2018 2019 102 Adaptation 263 Mitigation 159 Mitigation 140 Adaptation 136 Mitigation 131 Mitigation
  • 13. 13 Climate Financing for SDGs and Climate Actions Green Financing INOVATIVE FINANCING: GREEN SUKUK 13 Global Green Sukuk (5 Years): First Issuance Geographical distribution Investor type distribution Green investor participation The first issue is March 2018 worth USD 1.25 Billion. The second issue was in February 2019 with a value of USD 750 million. Green Sukuk is an instrument to finance government programs related to Climate Change Actions. including supporting Sustainable Development Goals (SDGs). Indonesia received 8 international awards from the issuance of Green Sukuk GREEN SUKUK RETAILGLOBAL GREEN SUKUK The Ministry of Finance Indonesia launched the Green Sukuk Retail (Sukuk Savings) on November 1. 2019. • The government issued the first retail green sukuk (saving retail) on November 1st. 2019. There is the first time sukuk that carries the environmental theme (green sukuk) offered to individual investors (retail). • Total volume of Green Sukuk Retail purchase orders that have been set is IDR 1,46 trillion with total 7.735 investors. • Millennial investors are the most investors in Green Sukuk Retail with total 3.950 investors (51,07%).
  • 14. 14 GREEN SUKUK SECTORS SUSTAINABLE RESOURCE MANAGEMENT • Sustainable management of natural resources • Conservation of habitats and biodiversity GREEN TOURISM • New tourism areas development that are in line with the principles of green tourism • Optimization supporting infrastructure to encourage sustainable tourism SUSTAINABLE AGRICULTURE • Development of sustainable agriculture and methods such as organic farming. low pesticides. R&D for climate-resistant seeds. and energy efficiency in agriculture • Subsidy mechanism for agricultural insurance WASTE TO ENERGY AND WASTE MANAGEMENT • Development of waste management • processing waste into renewable energy • Rehabilitation of landfills RENEWABLE ENERGY • New renewable energy generation and transmission • Research and development of products and technologies for renewable energy generation. including turbines and solar panels. ENVIRONMENTALLY FRIENDLY TECHNOLOGY (FOR ELECTRICITY GENERATION) • Increase the energy efficiency of infrastructure to reduce energy consumption below 10% of the average national energy consumption. • Research and development of products and technologies to reduce energy consumption CLIMATE CHANGE RECILIENCY (DISASTER IMPACTED AREA) • Research to encourage technological innovation that supports sustainability • Food security • Flood mitigation • Drought risk management • Health management SUSTAINABLE TRANSPORTATION • Development of an environmentally friendly transportation system • Increased energy efficiency (which reduces energy consumption by around 10%) • Improved transportation network that meets climate resiliency standards GREEN BUILDING • Development of green buildings in accordance with Greenship developed by the Green Building Council in Indonesia FINANCING FRAMEWORK OF GREEN SUKUK The results of each Green Bonds and Green Sukuk will be used exclusively for funding (in the form of budget allocations / subsidies / new projects / refinancing) green projects of the following sectors: *Untuk menghindari keraguan dalam hal apapun. proyek hijau yang memenuhi syarat tidak meliputi: a) kapasitas pembangkit listrik berbasis bahan bakar fosil baru; b) pembangkit listrik tenaga air berksala besar (kapasitas >30MW) dengan area penampungan tambahan besar; dan c) aset berbasis nuklir atau terkait dengan nuklir. Climate Financing for SDGs and Climate Actions Green Financing
  • 15. 15 MITIGATION AND ADAPTATION UNDERLYING ASSETS OF THE FIRST GREEN SUKUK ISSUANCE (2018) Ministry of Transportation Minister For Public Works and Settlements Ministry of Energy and Mineral Resources Renewable EnergyResiliency of areas at risk due to disasters caused by climate change Sustainable Transportation Waste to Energy and Wasre Management Environmentally friendly technology for electricity generation UNDERLYING SECTORS MINISTRY/INSTITUTION Climate Financing for SDGs and Climate Actions Green Financing
  • 16. 16 ENVIRONMENT FUND AGENCY/BPDLH AS LOW CARBON DEVELOPMENT AGENT “We need to maintain and develop the development strategy so that Indonesia’s economy able to grow higher. tackling poverty. and inclusive development. However. our commitment to reduce GHG emissions could still be done. We from the Ministry of Finance are ready to support the implementation of BPDLH with good governance and optimum efficiency. Because humans without nature are destitute.” -Sri Mulyani. Menteri Keuangan RI- Source of Fund Development partners (multilateral. bilateral. non-government) Revenue from Government Services and Investment Non-Tax Revenue Funding Scheme Grant Loan Subsidy Carbon Trade MINISTRIES THAT INVOLVED SOURCE AND FUNDING SCHEME BPDLH aims to support conservation and environmental management. biodiversity management. and addressing the impact of climate changeOFFICIAL CEREMONY OF BPDLH (9 OCTOBER 2019) Climate Financing for SDGs and Climate Actions Green Financing
  • 17. 17 SDG INDONESIA ONE InvestorContributionProduct Donor (Philanthropy) and Impact/Climate Funds Donor. Impact/Climate Funds and Development Banks Commercial Banks and Institutional Investor Institutional Investor and Developer Equity. Equity- Linked Investment Equity Financing Grant (Project Preparation. Technical Assistance. Research) SDG Development Facilities SDG De-Risking Facilities Concessional Loan. First- Loss Facility. Interest Subsidy. Guarantee Premium Subsidy. VGF etc. Financing Facilities Senior Loan. Subordinated Loan SDG Indonesia One (Managed by PT SMI) Contribution: Grant. Technical Assistance Contribution : Loan, grant Contribution : Loan. Bond. Sukuk Contribution : Equity SDG Projects Objective: Support pre-construction project development Objective: Project de-risking (improving bankability) Objective: Construction / post- construction finance Objective: Investment in high impact / new frontier SDG sector SDG INDONESIA ONE FUNDING SCHEME SDG Indonesia One is a blended finance platform managed by PT. Sarana Multi Infrastruktur (SMI) to facilitate philanthropic involvement, international donor agencies, aid allocation, green investors, commercial banks, Multilateral Development Banks (MDBs), etc. Health. Education. Renewable Energy. and Infrastructure (transportation. water & waste management)* *potential to be expanded SDG INDONESIA ONE PRIORITY SECTORS SDG Indonesia One will manage & utilize the fund amount to USD2.46 billion* to facilitate 93 projects worth USD18.2 billion. *from 26 development partners (as per October. 2019) SDG Indonesia One is an innovative financing instrument that supports infrastructure development in achieving 16 of the 17 SDG objectives Climate Financing for SDGs and Climate Actions Green Financing
  • 18. 18 GREEN CLIMATE FUND (GCF) Fiscal Policy Agency representing the Minister of Finance as National Designated Authority (NDA) of Green Climate Fund (GCF)-Indonesia based on Minister of Finance Decree No.756/KMK.10/2017 THE ROLE OF FISCAL POLICY AGENCY AS NDA-GCF Strategic leadership of GCF activities in Indonesia Develop Country Program with Line Ministries and State Agencies Nominate national entities to get accreditation from GCF Issuance of No Objection letter Lead the implementation of the Readiness and Preparatory Support Program (RPSP) GCF OBJECTIVES Climate Financing for SDGs and Climate Actions Green Financing
  • 19. 19 Projects/Programs Approved by the GCF Readiness Facility FundingProposal GCF Readiness Program to strengthen NDA and AE institutional capacity 1 Project Preparation Facility of Semarang’s Bus Rapid Transit 2 Funding Scheme (in million USD) Geothermal Resource Risk Mitigation Facility (GREM) Funding facility program for the development of geothermal energy that specifically de-risk the development stage. Implementation will be with PT SMI as executing entity. GCF Funding : USD 100 mil Co-financing : USD 310 mil 3 Grant : US$ 850 ,000 Grant : US$ 788,000 Climate Investor One (CIO) Pendanaan GCF : USD 100 mil Co-financing : USD 721,5 mil Blended finance facility with different funding scheme for each stages (development, construction, and implementation). Implemented in 11 countries, and Indonesia is expected to access minimum of USD 43.9 mil out of the total project amount. Funding Scheme (in million USD) 4 Climate Financing for SDGs and Climate Actions Green Financing
  • 20. THE WAY FORWARDCBT is expected to be the integrated in national budgeting system (with the DG Budget and Ministry of National Development). CBT is also to be developed in the regional level CBT system is expected to enable the climate finance instruments (e.g. Green Sukuk, Green Project-Based Sukuk, GCF, EFT etc) The need for better nation-wide cooperation and governance to achieve NDC targets. The need to develop innovative climate finance through the use of state budget to leverage private finance.
  • 21. 21 Ways Forward CBT is expected to be the integrated in national budgeting system (with the DG Budget and Ministry of National Development). CBT is also to be developed in the regional level CBT system is expected to enable the climate finance instruments (e.g. Green Sukuk, Green Project-Based Sukuk, GCF, EFT etc) The need for better nation-wide cooperation and governance to achieve NDC targets. The need to develop innovative climate finance through the use of state budget to leverage private finance.
  • 22. THANK YOU CENTER FOR CLIMATE FINANCE AND MULTILATERAL POLICY FISCAL POLICY AGENCY MINISTRY OF FINANCE