Overview of Government of Indonesia – GGGI Green Growth Program - Presentation by Kurnya Roesad, GGGI Indonesia

1. Overview of Government of Indonesia –
GGGI Green Growth Program
OECD-MINISTRY OF FINANCE INDONESIA
ALIGNING POLICIES FOR THE TRANSITION TO A LOW-CARBON
ECONOMY:
Reconciling Environmental, Social and Economic Objectives
November 4-5, 2015 // Novotel Bogor, Indonesia

2. Thailand
Cambodia
Vietnam
Mekong
Philippines
Indonesia
Pacific Islands
Country Sector/Programs
Cambodia
Green Growth Planning
Green urban development
program
Indonesia
Green Growth Planning
Green Growth Roadmap
Green growth assessment tools
Pacific Islands
Green Growth Planning
Integrating Green Growth Fiji:
Framework into Planning and
Budget Plans
Vanuatu: Green and inclusive
energy reform
Philippines
Green Growth Planning;
Adaptation
Climate resilient growth planning:
Ecotown Framework
Thailand
Mitigation
Climate Change Master Plan
focusing on key industrial sectors
Vietnam
Green Growth Planning
Green urban development
Water resource management in
Mekong Delta
Projects in Southeast Asia and the Pacific

3. 3
Indonesia: Overview of GoI-GGGI Green Growth
Program Phase 1 (2012-2015)
Country-level goal Component-level activities
“To promote Green
Growth in Indonesia
that recognizes the
value of natural capital,
improves resilience,
builds local economies
and is inclusive and
equitable.”
Green Growth Program
1
Greening the
planning
process
2
REDD+ for
green
growth
3
Sub-national
engagement
• 1A: National ‘Green Growth Roadmap’
• 1B: Green growth assessment tools
• 1C: Prioritization of green technologies
• National REDD+ support
• Sub-national REDD+ support
• Green growth mainstreamed in
Central and East Kalimantan

4. 4
Government of Indonesia - GGGI Green Growth ProgramGGP Component 1A
Assessing and designing for green investment: GGAP
Mainstreaming green growth in policy,
planning, and investment
• The Green Growth Assessment Process (GGAP) is an overarching process that applies good practice use of
tools for achieving green growth project outcomes.

5. 5
Government of Indonesia - GGGI Green Growth ProgramGGP Component 1A
The roadmap is a high-level, evidence-based guide to planning and implementing green growth in
Indonesia
Part 1 builds the
case for moving to
a growth
trajectory that is
more resource
and energy
efficient,
environmentally
friendly, and
socially equitable.
Part 2 presents
the various
opportunities for
green growth as
well as current
projects and
initiatives in key
economic
sectors.
Part 3 describes the
overarching policy
and planning
processes and
presents methods,
tools, and indicators
to measure and
monitor green
growth
performance.
Part 4 brings the
preceding
together into an
action plan to
deliver green
growth in
Indonesia in the
short, medium
and longer term,
to 2050.
Mainstreaming Green Growth at Macro
Level: The Green Growth Roadmap

6. 6
Government of Indonesia - GGGI Green Growth ProgramGGP Component 1A
Assessing and designing for green investment: extended Cost-Benefit Analysis
Mainstreaming green growth in policy,
planning, and investment at project level
$
Baseline
Green Growth
Scenario
Incremental benefits
Incremental benefits
Incremental benefits
Project is green, but there are opportunities to
enhance the green growth performance further.
Project is not green, but re-design of the project in
line with green growth assessment will make it
greener.
Project is not green, and while re-design will reduce
the negative impact of project, it may require a
major re-think in order to meet minimum standards.
• Extended Cost-Benefit Analyses quantitatively weigh up the relative costs and benefits of a potential decision
• This helps to capture the full impacts of policies and investments from an economic, social and environmental
perspective, including the benefits of avoided damages
• They can be powerful tools with which to suggest alternative options (e.g. green growth) to the current
situation
* The horizontal line represents the minimum threshold at which a
project can be considered to be contributing to a green economy.

7. 7
• Series of four extended Cost Benefit
Analysis (eCBA)
 Technical report
 Model
 Policy summary booklet
 Training and validation workshops
Identified monetary benefits of proposed
policy interventions:
KEK Maloy – 3.8 billion USD
KSN Mamminasata – 355 million USD
ERC Katingan – 9.9 billion USD
Mainstreaming green growth in policy,
planning, and investment at project level

8. • Application of extended Cost Benefit Analisis (eCBA) to identify better green growth outcomes in four infrastructure and
forestry/land-use projects
• Calculation of monetary values of benefits and costs associated with business as usual and green growth scenarios
• eCBA goes beyond narrow financial considerations and includes wider social and environmental benefits and costs
• eCBA is a useful planning tool to assess green growth outcomes of infrastructure projects at early stage (can complement
EIA and CBA in PPP projects)
Green Growth Assessment of Capital
Projects
eCBA Studies Benefits (NPV) Policy barriers and enablers : examples
Regulatory issues Fiscal and financial incentives
KIPI Maloy
Natural resource processing
industries
Infrastructure: energy, road,
transport, port
USD 3.8 Billion or 10% of regional
GDP
Reform of energy pricing system and
feed in tariff
Clarification of palm oil certification
process and legal status
Support adequate feed in tariff for
renewable energy (biomass)
Tax exemptions for renewable
energy capital equipment
KSN Mamminasata
Fishery
Reforestation / Clean Water
Waste Management
Renewable Energy
USD 355 Million or 6% of regional
GDP
Clearer regulation on waste
management
Matching spatial and land use plans
Ecosystem services levies
Subsidy for waste reduction
Tax relief for investment in waste to
energy equipment Financial support
for local fish meal industry
ERC Project Katingan
Ecosytem Restoration and
Conservation
USD 9.9 Billion Streamlining and improving
transparency of ERC licensing
Clear spatial plan under One Map
Initiative
Support of stable national carbon
price
Fiscal incentives for local
governments to support ERC
Renewable Energy Options in
Kalimantan
Assessing 4 individual RE
projects
USD 1-9 billion or 3-16% of regional
GDP ( benefits of projects scaled up
to Kalimantan corridor)
Transparency in grid expansion plans
Reform of energy pricing system and
feed in tariff
Debt guarantees and capital grants
to renewable energy developers
Capacity building for project design
expertise
G8GP Component 1A8

9. 9
Government of Indonesia - GGGI Green Growth ProgramGGP Component 1A
Monitoring and measuring green growth performance
Indicators to measure government policies, measures and opportunities (e.g. taxes, subsidies and
regulations)
Indicatorstomeasurethe
environmentalqualityoflife(e.g.air
quality)
Sustainable
development
pillar
Economic Social Environmental
Normative
green growth
outcome
Sustained Economic Growth Equitable and Inclusive
Growth
Healthy Natural Capital Providing Ecosystem Services
GHG reduction
Stock
 GDP (PPP)
 Gross capital formation
 FDI
 Working population
R Debt
 Poverty headcount
R Population
R Population living in land
area where elevation is
below 5 meters
 Forested area
 GEF index for biodiversity
 Mammal species threatened
 Marine protected areas
 Fish species threatened
 Healthy coral reef area
 Fish stocks
R Primary energy reserves
 Forested area
 GHGs
Flow
 GDP growth (% yoy)
 Total factor productivity
(% growth)
 Formal employment
 Informal employment
 Unemployment
 Underemployment
 HDI
R Gini coefficient
R Access to electricity
R Access to public health
clinics
R Access to internet
 Fishery production
R Deforestation rate
R Primary energy consumption
R Water stress index
R Freshwater withdrawals
R Deforestation
rate
Notes:
R = Indicator that is an element of the resilience outcome
1 2 3 4
Key: Correspondence with
OECD conceptual
measurement framework
This “dashboard”
of macro and
micro indicators
can measure
progress against
different green
growth outcomes.
This reflects the
complexities of
measuring green
growth.
The same set of
indicators should
filter down from
national to a
regional and
district level in
order that
information can
be aggregated.
Potential Areas of Collaboration

10. 10
Phase II Design (2016-2019)
Program structure agreed with BAPPENAS