1. CLIMATE TRACKING SYSTEM
INDONESIAN EXPERIENCE
Presented in OECD Working group Environment
Paris, 19-20 May 2015

2. OUTLINE:
1. BACKGROUND
2. DEFINITION
3. SYSTEM AND DATA COMPILATION
4. CONCLUSION

3. BACKGROUND
1. INTERNAL FACTORS:
* accountability and transparancy
• quality of spending with Performance based Budgeting system
• Fiscal Policy Credibility with the Green Planning and Budgeting
Strategy
2. EXTERNAL FACTORS:
* pilot countries for mitigations and biodiversity Financial Initiative
* Donor coordinations and effectiveness

4. DEFINITION
Climate Change related activities:
• Only activities that directly or indirectly reduce greenhouse gas
emissions or increase resilience to climate change, and
• Activities in which the reduction of GHG emissions related to
climate resilience or activities specified in the documentation of
the program as a destination or a benefit (such as output
indicators).
• For public expenditures through Ministries’ Budget plan are
classified to direct and non direct activities, both are tagged.
• 2 classification of public expenditures related to climate are :
a. National Budget
b. Sub-national Budget

5. CLIMATE CHANGE AND BIODIVERSITY ACTION PLAN
CLIMATE CHANGE
MITIGATION ACTION
PLAN
CLIMATE CHANGE
ADAPTATION ACTION
PLAN
BIODIVERSITY
ACTION PLAN

6. DEFINITION (2)
Does not include activities:
1. manufacturing / production equipment for the generation of
renewable energy and R & D activities for these technologies;
2. fuel conversion: a shift from coal or oil to gas in energy production;
3. increase the efficiency of power plants to fossil fuels;
4. technology-based co-production of fossil fuels that generate
electricity in addition to providing cooling / heating;
5. manufacturing / production equipment that is more efficient and R
& D activities for green technology;
6. the addition / expansion of the road network to reduce traffic;
7. application of speed limits on the highway to reduce emissions in
the driving / driving.

7. DEFINITION (3)

8. 8
all activities related to research,
management data and documentation of
biodiversity, management ownership for
country;
all activities related to development benefits
of biodiversity to support national
competitiveness economic growth and
social welfare.
All activities related to maintenance,
protection and restoration of biodiversity
All activities related to enhance the
capacity of managing biodiversity
integrated and partisipatif approach
DEFINITION (4)
Based on IBSAP, activities for biodiversiy can be
classified into 4 types, each type can be consist of :
a. Direct Cost : all activities which have direct
impact to biodiversity based on each
classificaton
b. Indirect Cost : all activities which have not
direct impact to biodiversity but give support
to main activity implementation
1
2
3
4

9. DEFINITION (5)
INTERNATIONAL DEVELOPMENT PARTNERS/ODA
The DAC defines ODA as “those flows to countries and territories on the Development Assistance
Committee (DAC) List of ODA Recipients and to multilateral institutions which are:
i. provided by official agencies, including state and local governments, or by their executive
agencies; and
ii. each transaction of which:
a. is administered with the promotion of the economic development and welfare of
developing countries as its main objective; and
b. is concessional in character and conveys a grant element of at least 25% (calculated at
a rate of discount of 10%)
3 different characteristics of International fund flows:
1. On Budget - On Treasury (recommended by Ministry of Finance)
2. On Budget – Off Treasury
3. Off Budget – On Treasury
4. Off Budget – Off Treasury

10. Collected data on disbursements of public climate
finance in 2011
 coded 12 000 lines of state budget for 11 key ministries
 checked databases on intl. climate finance
 surveyed 25 international development partners
 reviewed national data on local government transfers and a
case study for one region
 literature review of 46 state-owned enterprises
 conducted many interviews with stakeholders.
SYSTEM AND DATA COMPILATION

11. Agriculture
Forestry
Energy
Transport
Waste (water)
Industry
Disaster Risk
Management
Infrastructure
SYSTEM AND DATA COMPILATION
THE LANDSCAPE FRAMEWORK

12. At what level budget marking for climate expenditure
should be done?
Agreed  at the activity level
In reality  expenditure items e.g. related to RAN GRK
are scattered under different activities
Example from KPH, two activities:
 2283 Pemantauan Usaha Kehutanan  6 out of 609
expenditure items – based on component
 2287 Program Peningkatan Usaha Kawasan  21 out of 60
expenditure items – based on component
SYSTEM AND DATA COMPILATION

13. Performance
Indicators
Performance
Indicators
Line Ministry/Agency Budget Document
Program
Activity
Component
Sub Component
Account
(6 digit)
Detail Item
Outcome
Output
Budget themes :
1. MDG’s-1 : Poverty Alleviation;
2. MDG’s-2 : Basic Education;
3. MDG’s-3 : Gender Equality and Women
Empowerment;
4. MDG’s-4 : Child Mortality Rate;
5. MDG’s-5 : Mother Health;
6. MDG’s-6 : HIV/AIDS, Malaria, and Other
Diseases Alleviation;
7. MDG’s-7 : Environment and Climate Change;
8. MDG’s-8 : Global Cooperation;
9. Infrastructure;
10. Public Private Partnership;
11. South-South and Triangular Cooperation.
Climate Change
Mitigaton

14. SYSTEM AND DATA COMPILATION
1. Setting
definitions
•Set a working definition for climate
finance
2. Applying
definitions
•Identify activities in state budget that
fall under the proposed definition
3.
Verification
•Confirm coding results with each
respective agency
STATE BUDGET (APBN)

15. SYSTEM AND DATA COMPILATION
LOCAL GOVERNMENT BUDGET (APBD)
1. Setting
definitions
•Set a working definition for climate
finance
2.
Applying
definitions
•Access local budget data
3. Applying
definitions
•Identify activities in local budget that fall
under the proposed definition
4.
Verification
•Confirm coding results with each respective
agency

16. National data:
• General reporting and tracking systems are in place, but need to
increase the capacity and
• Enhance information on local governments’ climate finance
Source
Frequent
update
on nat.
level
Disbursemen
t
Climate
markers
Impl.
Partner
Why using it at all?
Nat.
APBN
X X X X Budget marking system on
the way
APBD
X On national level only
data on deconcentration/
co-administration
PUBLIC CLIMATE FINANCE DATA

17. INTERNATIONAL PUBLIC FINANCE DATABASES
SOURCES
TYPE OF FUND Available from Database
APBN (central govt
expenditures)
APBD (sub national govt
expenditures)
Funding department MoF-Internal database on
loans and grants
APBN
APBD
DG Financing and Risk
Management (former
Debt Management Unit)
BAPPENAS-internal
database on loans and
grants
Multi donors and
Overseas Donor
Assistances
http://stats.oecd.org/Inde
x.aspx?DataSetCode=RIO
MARKERS#
Organisation for Economic
Co-operation and
Development (OECD)
Creditor Reporting System
(CRS) Rio Markers

18. International Databases
Not clear whether/when OECD disbursement data will be sufficiently
robust in the future.
National databases:
General reporting and tracking systems are in place, but need to be
enhanced by climate markers,
Improve reporting so the government can better oversee and manage
flows.
Source
Frequen
t update
Disburse
ment
Rio
Markers
Project
level
Impl.
Partner
clear?
Why using it at all?
Intl.
OECD/
others
X X X Identifies climate
finance
Nat.
MoFinance-
DMU
X X X X
BAPPENAS
X X X Identifies disbursement
year
INTERNATIONAL CLIMATE FINANCE DATABASES

19. CONCLUSION (1)
Enhance
tracking &
reporting
Scale up
climate
finance Address blockages in flows to and
through national funds, multilateral
devt partners, revolving funds and
local transfers.
Develop the self compliances for
implementators and strengthen the
systems for tagging of climate finance
in the national budget.
Improve administration and reporting
of international climate finance so the
government canoversee and manage
flows through the country system
Enhance information on local
government, we are currently working
to develop the budget tagging system
for local govt.