Green Investment Magazine Volume 1/2013

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Green Investment Magazine Volume 1/2013

  1. 1. 1 • FORUM GRUP DISCUSSIAN VOLUME I/ 2013 Investment-Innovation-Productivity Rachmat Witoelar PRESIDENT’S SPECIAL ENVOY FOR CLIMATE CHANGE/ EXECUTIVE CHAIR OF THE NATIONAL COUNCIL ON CLIMATE CHANGE (DNPI) Indonesia is approaching a critical time with political transition in 2014 and pre 2020 and beyond 2020 climate change negotiations. 64 GREEN INNOVATION Increasing Awareness and Initiatives in Green Building Green Pathways for The Future Indonesia Rachmat Gobel CEO OF PANASONIC GOBEL GROUP Master Helmsman’s Concerns on Green Energy Investment-Innovation-Productivity
  2. 2. 2 • FORUM GRUP DISCUSSIAN 3 • FORUM GRUP DISCUSSIAN The major demographic changes in Indonesia are (i) rapid urbanization, which may result in 65 percent of the population living in urban areas by 2050; (ii) population growth, which will continue for several decades at least, but at a progressively slower rate; (iii) changing age structure, which in recent decades has produced a growing bulge in the working ages but in future will lead to a growing proportion of elderly; and (iv) the changing socioeconomic composition of the population with a steadily growing “middle class.” These changes need to be taken into account in constructing business as usual scenarios and in developing mitigation policies (Population Dynamics and Human Dimension of Climate Change Indonesia, 2012) Investment-Innovation-Productivity Investment-Innovation-Productivity
  3. 3. 4 5 • EDITORIAL NOTES • EDITORIAL NOTES Green Transformation: INVEST, INNOVATE AND BE PRODUCTIVE Greetings and a warm welcome to our very first issue of Green Investment, Innovation and Productivity Magazine! Over the past two years we, the Green Investment Innovation and Productivity (GIIP) Initiatives, have been providing a host of inspiring and insightful ideas, knowledge as well as lesson learnt from policy makers, business entities and practitioners in realizing green actions on the ground. “Green Economy Pathway of The Future Indonesia” is a relevant and contextual issue for Indonesia for a couple of reasons: firstly, we are really concerned about the future direction of government policies as we are approaching a political transition in 2014. The certainty and sustainaibility of the future direction as well as a strong institutional foundation will ensure long-term commitment to engage in the green economy. Secondly, looking ahead at global and regional economy dynamics such as the climate change regime and the upcoming ASEAN integration into One Community Nation in 2015, we encourage the government to prepare relevant policies and regulations to that end. Thirdly, looking back on the most recent economic challenges, green economy direction will also create a wide range of opportunities in creating new jobs with high values. Therefore, putting green jobs in the dialogue will contribute to a better and healthy Indonesian environment in the future. This edition outlines two important issues: energy efficiency and conservation, and sustainable landscape management. Energy is one of the most important aspects for human beings in daily activities. We use energy everyday for transportation, heating and cooling rooms, lighting, and others. However, our primary source of energy through burning fossil fuels is limited. For that reason, it is important for individuals, companies, and entire communities to start reducing energy consumption for daily use. Once we reduce our energy consumption, we also support the government program to reduce GHG emissions. Energy conservation and efficiency are some of the many mitigation actions to reduce GHG emissions. Energy conservation includes any human behavior that can result in less energy consumption. In addition, energy efficiency involves technologies that use less energy to perform the same function. Energy conservation and efficiency can also contribute to greater national security by reducing demand for foreign energy resources. Therefore, a commitment is needed from all stakeholders including government, private sectors, NGOs, and others. Sustainable landscape management is a concept/practice that elaborates environmental, economy, and society aspects in an integrated manner. The implementation of sustainable landscape management can protect the natural resources, and provide benefits to humans. In addition, sustainable management is designed to be both attractive and in balance with the local climate and environment. Several benefits from sustainable landscape management are carbon sequestration, clean air and water, habitat restoration, and increase energy efficiency. The sustainable landscape management needs to look at different scenarios such as policy, engineering, finance, and engagement. However, its implementation could face several barriers in Indonesia such as governance, economic, and social challenges. To solve the barriers we need commitments from all key stakeholders, to translate the concept into commitments that are suitable to the current condition. We couldn’t be more excited to have reached this point. Please take some time to get to know the outline of our magazine. You will notice the five categories: green pathways, green innovations, green champions, green insights, and facts and figures. Within each category, there are articles for you to enjoy. We are honored to share the work of so many committed and thoughtful people. We look forward to our reader’s responses. Feedback may be chanelled on our website, www. greeninvestmentindonesia.net We’ll be following these topics. If you come across interesting new materials, let us know. We will include your case study in an upcoming issues of GIIP Magazine. We appreciate your support and are so happy to have you as a reader of GIIP Magazine. With warmest thanks, Farhan Helmy, Editor in Chief ISTIMEWA Investment-Innovation-Productivity Investment-Innovation-Productivity
  4. 4. 6 7 • CONTENTS Contents • CONTENTS Green Insights 42 Interview Advancing Low-emission, Climate-resilient Development Across Asia 16-41 SHUTTERSTOCK SOF Rachmat Witoelar Rachmat Gobel MAS DOC. JAPAN EMBASSY Yoshinori Katori Asia, a continent consisting of 46 countries with a population of more than 4.2 billion people, or about 60 percent of the global total, has experienced the fastest economic growth of any region in the world in recent decades. Green Investment Forum SOF DOC. JICA Jusman Syafii Djamal Atsushi Sasaki IST Nurjaman Mochtar Green Champions 50 54 DOC. GIIP Green Pathways: The Future Indonesia IST SHUTTERSTOCK Contributors VOLUME I/ 2013 Investment-Innovation-Productivity Rachmat Witoelar PRESIDENT’S SPECIAL ENVOY FOR CLIMATE CHANGE/ EXECUTIVE CHAIR OF THE NATIONAL COUNCIL ON CLIMATE CHANGE (DNPI) Indonesia is approaching a critical time with political transition in 2014 and pre 2020 and beyond 2020 climate change negotiations. 47 8 GHG Mitigation Action and the Future of Biofuel Industry 60 64 Better Sustainable Landscape Management Needed Large deforested areas, accumulations of garbage in urban as well as in rural areas, severe flood, damaged coral reef are among concerns raised by speakers and participants of Focus Group Discussion on “Energy Conservation and Efficiency” on July 2, 2013. 64 12 SHUTTERSTOCK A Need for Concerted Effort: Energy Conservation and Efficiency 72 82 84 88 Green Highlights Investment-Innovation-Productivity GREEN INNOVATION Increasing Awareness and Initiatives in Green Building Book Review Increasing Awareness and Initiatives in Green Building Respect and Love The Nature “ I’ve seen a stop to excessive fishing and coral harvesting, and even in Bontang, Kalimantan, with rampant large scale mining, there are serious activities to maintain forest function” In a bid to encourage the industry to be more environmentally aware, Matsushita Gobel Foundation and the Japan International Cooperation Agency (JICA) hosted the Green Investment Forum. Green Pathways NADINE CHANDRAWINATA Green Pathways for The Future Indonesia Rachmat Gobel CEO OF PANASONIC GOBEL GROUP Master Helmsman’s Concerns on Green Energy Doddy S. Sukadri Sandra Artissa Khananusit Panjaitan DNPI and Low Emission Development Strategies (LEDS) Partnership. Asia LEDS Partnership Secretariat. Adrian Muhammad Peter van C Hayes Farid Rooij Australian Indonesia National Climate Change Center University National Council on Climate Change (DNPI) ILO Indonesia Facts & Figures Green Investment Magazine is joinly published by National Council on Climate Change (DNPI) in cooperation with Japan International Cooperation Agency (JICA) and Matsushita Gobel Foundation (MGF). Network Updates Contact Address: Gedung BPPT I Lt. 16 Jalan M.H. Thamrin 8, Jakarta 10340, Indonesia Tel. +62 21 3190 4635 Photo Gallery Cover National Monument (Monas) and surrounding areas indicate the challenge of spartial reenginering to cope with population dynamics and climate change impacts. (photo credit: Budiali G) www.greeninvestmentindonesia.net @greenIIP greenIIP, email: greenIIP@ greeninvestmentindonesia.net Investment-Innovation-Productivity ADVISORY BOARD Rachmat Witoelar, Agus Tagor, Agus Purnomo, Amanda Katili Niode, Rachmat Gobel, Jusman Syafii Djamal, Atsushi Sasaki, Farhan Helmy (Secretary). EDITORIAL BOARD Farhan Helmy, Amanda Katili Niode, Titi Murni Resdiana, Masato Kawanishi, Jun Ichihara, Matsuura Kazuki, Ricky Rachmadi. EDITOR IN CHIEF Farhan Helmy. EDITORS Jon Respati, Yudhiarma MK, AG Sofyan, Teguh Prasetyo. LAYOUT AND ILLUSTRATOR Sugara Adi. PORTAL Alfan Nasrulloh, Fahmi Januar. PROJECT MANAGEMENT Aviana MS Tjokro. PROJECT ASSISTANTS Manami Iida, Indra Sucahyo, Dewi Aprianti, Irmawati Batavia, Jesslyn Tandella, Astri Indirawati, Bramantyo Dewantoputra, Soraya Soemadiredja.
  5. 5. 8 9 • GREEN PATHWAYS Better Sustainable Landscape Management Needed Large deforested areas, garbage accumulation as well as in rural areas, severe floods, damaged coral reefs are among concerns raised by speakers and participants of Focus Group Discussion on “Energy Conservation and Efficiency” on July 2, 2013. S peakers and participants shared common views that environmental damages and degradation are highly visible on the Indonesian landscape, recalling the necessity to engage the society into greener behavior and practices. The discussion featured four speakers who presented experiences in some projects enlightening the situation on the ground, showing critical elements of landscape management, the challenges they met and the lessons learned through these experiences. The experts and practitioners from both private and public sectors gathered in the Focus Group Discussion (FGD) also came up with ideas about ways and possible actions needed to get better results from Sustainable Landscape Management. Engaging Stakeholders in a Sustainable Forest Management Indonesia’s rain forest is currently undergoing a high deforestation rate. Working on a project in the Berbak area, in Jambi, M. Budi Kuncoro, Green Prosperity Manager at Millennium Challenge Account (MCA Indonesia) develops innovative ways to preserve forests. Particularly, Kuncoro proposed ideas of environmental preservation and the tools that could be used to merge environmental sustainability and the economic development of communities living from these resources. The forest in the Berbak area is divided into several zones, • GREEN PATHWAYS each dedicated to a specific utilization including: National Park, production forest, protected forest and the community national park (known as “tahura”). Logging companies and communities utilizing these resources in an unsustainable way, leading to fast deforestation and damaging the biodiversity and landscape. Field experiences have shown how policy and technology interventions can improve the land management. Building canals, dams and fishing corridors can ensure better water management. Land accessibility for villagers make a huge difference in terms of yield productivity. Also, engaging them in forest management (in activities such as patrolling against illegal logging) greatly contributes to sustainability in the area. Developing sustainable cultures and aquaculture activities in the area contribute to reduction rate of deforestation. Economic and environmental services are mutually enforced in these cultures. However, implementing such development plans and applying planning tools is challenging. Aligning administrative jurisdictions and defining formal land use zones with deserved biophysical features of the landscape is not easy. It requires a Participative Land-Use Planning (PLUP) approach engaging all the stakeholders in a dialog to arrive at common goals and collective solutions to achieve them. At the same time, spatial certainty has to be guaranteed in order to provide accurate information on the allowable land-use. Information on clear licensing procedures to investors is also needed to increase their business confidence. DOC. GIIP M. Budi Kuncoro Green Prosperity Director MCA Indonesia Investment-Innovation-Productivity Investment-Innovation-Productivity BUDIALI G
  6. 6. 10 11 • GREEN PATHWAYS • GREEN PATHWAYS credits. Solutions are proposed to limit detrimental practices, such as replacing local corn planting culture which put great pressures on the land fertility with higher economic value plants like cocoa. The projects provide benefits to local communities including new employment possibilities thanks to the project based on a “ground truthing activity”. Heri Yunara Conducted a feasibility study REDD+ model project for the Gorontalo Applying REDD+ Program at Sub-National Levels In Sulawesi, data shows drastic shrinking of forested areas over the past 20 years. Deforestation is mainly caused by unsustainable agricultural activities characterized by irresponsible land clearing and prevalence of forest fires associated with it, or improper cutting off trees on steep slope zones that cause capacity reduction of water infiltration into the soil. The projects engaged by MGF enjoy full supports from both Indonesian and Japanese government . First Hands Encounter With West Java’s Environmental Issues Another interesting initiative discussed during the FGD sessions was the “Fortuga Expedition”, a three months field trip made by members of the Bandung Technology Institute (ITB), from South to North coast of Java, aiming at seizing local environmental problems and finding ways to solve them. Starting from the South Coast, the team encountered damage caused by intense mining activities,. But the expedition also got information about Chevron’s CSR program restoration of a biological corridor from the Mount Halimun to the Balak National Park, in West Java through replanting about 250,000 trees in the area. DOC. GIIP Investing in planting material enterprises can greatly increase the production of appropriate yielding crop varieties of small-scale farmers The REDD+ program aiming at reducing carbon emissions from deforestation constitutes an important component of sustainable land management. The latest version of this program integrates elements of land conservation and sustainable forest management. The expedition was concerned about the negative impacts of tourism on the fragile ecosystem of Gede Pangrango National Park, near Bogor, where visitor awareness of environmental issues need to be increased. At the Citarum watershed to Cisanti Lake, pictures show dreadful scenes of deforested areas subject to landslides and degradations. Samples collected in Majalaya showed high levels of industrial pollution. The team were also confronted with piles of domestic waste that constitutes a great threat to the environment. Shocking pictures of the Batujajar Bridge, Bogor, shows the sad image of a river literally covered by garbage. Heri Yunara, an activist with the Matsushita Gobel Foundation, conducted a feasibility study of a REDD+ project at the Gorontalo region, North Sulawesi.. Using the MRV as the measurement tool, the MGF team works on 5 projects, which objective is reducing 100,000 metric tons of CO2 emission/year. The project shall be extended to cover the whole Sulawesi by 2016, contributing to more than 1,300,000 tons CO2 reductions/ year making the project to become sub-national REDD+ project in Sulawesi. Ending at Citarum Mouth, at about 30km east to Jakarta, the expedition learned about intensive mangrove destruction, and the rehabilitation initiatives conducted by environmental groups. Going offshore from the Jakarta Bay, the expedition found that the Thousands Islands region, a touristic area consisting of more than 300 small islands off Jakarta coast, is facing serious consequences from global warming and water pollution causing coastal abrasion and coral reef damage. This situation requires serious attention from the government to prevent the problems from worsening. The model also aims at helping local government to conduct capacity building activities for the communities on the implementation of the project and providing incentives to encourage a sustainable use of forest resources in the forms of subsidies and carbon The trip very useful to raise awareness about environmental threats happening near home. The expedition also has confirmed the participants’ interest in reforestation, mangrove protection and coral rehabilitation programs. They are currently developing Investment-Innovation-Productivity DOC. GIIP Green Landscape. Raising awareness about environmental Threats 100,000,000 Carbon Stock (t-CO2) DOC. GIIP The field survey will be supported by two satellites that will be launched in the coming years in order to monitor the land condition, resources management practices and natural disasters threat. The MGF project also installs solar power panels to provide basic lighting needs for the villagers emigrated from deforested areas. Yunara said more Japanese aid in solar panel is expected for regions that lack of electricity including providing power for medical-clinics.. Iwan Hignasto 80,000,000 60,000,000 40,000,000 20,000,000 0 DOC. GIIP Citarum-Ciliwung Expedition 2013 1990 Reference site methods and tools to overcome the environmental problems. 2000 2010 year Project site Based on the historical trends of carbon stock changes (in red), Reference Emissions Levels can be established. Model Project may reduce 30,000 t-CO2/year. With success rate of 70%, approx 20,000 t-CO2/year is expected. A Better Water Management to Limit Flood in the City The city of Jakarta receives 2,300 mm of rain water a year. However, with a population reaching more than 10 million, the clean water demand is estimated at 737, 3 million cubic meter per year. Serious water shortages hit during the dry season. Landscapes around the city have been severely damaged due to human activities. Tea gardens planted during the Dutch colonization accelerated deforestation, and therefore trees could not assure their role in the water cycle. According one of participants in the forum, Jakarta’s water issue mainly relies in land-use changes made without considering conservation. Authorities still resolve flood in the same devastating way-horizontal drainage method-letting water flow to the sea. Canals within the city rapidly overflow with heavy rain. A new approach has to be put forward to solve floods. It is necessary to adopt a more global concept of “Total Conservation”, taking into account landscape conservation aspects (through plantations for example) and the city’s own characteristics. There needs to be a change from horizontal to a vertical drainage. The FGD proposed concrete realizations to be done in different parts of the city. Dams, ponder systems and rain harvesting should be developed in the northern part of the city, localized on the sea. Floods could be reduced by increasing green spaces (to 30%) and blue spaces (to 12%) in the South of the city. The area of Depok, Bogor and Puncok should welcome the realization of a vertical tunnel reaching about 300 meters. Such realizations could greatly impact floods and the devastating consequences for Jakarta’s inhabitants.• Investment-Innovation-Productivity
  7. 7. 12 • GREEN PATHWAYS 13 • GREEN PATHWAYS a need for concerted effort: Energy Conservation and Efficiency Energy conservation and efficiency is the main topic discussed in the second Focus Group Discussion (FGD) on 2 July 2013. SHUTTERSTOCK Investment-Innovation-Productivity Investment-Innovation-Productivity
  8. 8. 14 15 • GREEN PATHWAYS be addressed by the project. Whereas strong commitment and support from local authorities are necessary, the program administrators also hope to get support from the central government as part of the national efforts in transforming the economy into green economy. Green Buildings Save Money From Energy Efficiency and Help Protect Environment. Another interesting topic was the development of ‘Green Building’, an emerging concept and practice with large potentials to make great impacts on reducing global warming and protecting the environment by developing environmentally responsible and highly energy efficient buildings The concept implies energy efficiency and using environmentally non-intrusive materials are imperatives to make the building “green”. The qualifying criteria for green building are not limited to the chosen materials, the energy settings and the construction process but also considering the aspects of building maintenance and operation. Green building qualification or rating is also applicable for renovated buildings, in which case the evaluation includes examining the (old building) demolition activities to ensure that it meets the criteria Sustainable Landscape Management. Speakers and participants of FGD are discussing matters related to sustainable landscape management S peakers and participants shared their views on the responses to the challenges of reducing CO2, by taking initiative and to obtain economic gains and at the same time protect the environment. The discussions revealed many ways how the national and global community can meet the challenges, from simply replacing incandescent bulbs into more energy efficient LEDS, to sophisticated projects that require big investments. But to ensure effective results of all those measures, there to be needs governments’ strong goverment commitment which translates the commitment into to be effective policies that support the public initiatives. There needs to be international collaborations to achieve the goals, as no single country in the world can solve the global problems. The followings are some of the interesting topic discussed in the FGD. One of the projects engaged by this movement in Indonesia is promoting the use of highly efficient LED (light-emitting diode) bulbs to replace the traditional lighting bulbs for public lighting in two Indonesian cities, Balikpapan and Bogor. Working closely with local authorities, the organization seeks to embed LEDs use in the cities’ administration policies and regulations to ensure its successful and consistent implementation. In doing so, it hopes to accelerate the transition towards a low carbon society in the urban centers. ICLEI has been involved in a three year long program to identify priorities for reducing carbon emissions in cities and urban areas.. The project’s scope is not limited to power efficiency issues but also with other urban issues like waste management. The project enjoys full support from city administrations that saw it as a ‘green cause’. Reducing Energy Consumption In the Public Service Improving energy efficiency in public lighting system is one of the ways to reduce energy consumption in cities. This issue was brought up by ICLEI a movement of 1200 cities in the world to promote the concept of sustainable cities. Balikpapan and Bogor were chosen as “model cities” for its relatively modest sizes and complexity representing typical small cities in Indonesia. Upon successful outcomes in the two small cities, the project aims to include four “satellite cities” around big cities in Indonesia to joining the program. Discussions are currently being made to define the cities’ needs and priorities to Investment-Innovation-Productivity DOC. GIIP In Indonesia, the green building concept is advocated and promoted by the Green Building Council Indonesia (GBCI) a chapter of the World Green Building Council based in the USA.. The organization conduct assessment and rating procedures, capacity building for relevant stakeholders leading to awarding “greenship” certification, and general awareness programs for the general public about the aspects of green building. GBCI has engaged in discussions with relevant stakeholders including government agencies to advocate mandatory application of the concept in line with the efforts to reduce GHG emission reduction and preserve the environment. GBCI ensures transparency of the rating process using tools that are clearly understood by stakeholders. This will ensure objectivity of the rating applied. The rating process involved active design to ensure optimum energy efficiency is properly considered and the building meets sustainability imperatives. Typical aspects of concern for green building include lighting, air conditioning, and environmentally friendly technology. Assessing old and existing buildings poses greater challenges to GBCI to conduct the rating procedures as their original design most likely did not consider the aspects critical to green buildings.. For 2012, GBCI targeted saving over 6 million KWh electricity reducing almost 6,000 ton of CO2. The 2013 target is set at 34 Million ton of CO2, which will involve certification of 50 buildings covering a total 50 000 m2 built area or alternatively 121 buildings with a total coverage of 20 000m2. The main barrier of green building development and transformations are the relatively higher investment to build new green buildings or transform old buildings to meet green buildings criteria. While people are willing to do something to • GREEN PATHWAYS reduce their electricity bills, most of them are not ready adopt the entire criteria of green buildings for their property. Most people do not want to consider to making green investments unless they se an economic benefit. To overcome this barrier, time and hard work is required by all proponents of the green building concept to raise awareness among stakeholders including building owners, contractors, designers, government and politicians of the great prospects of green buildings in contributing to the national target to reduce significant amount of GHG emission. Energy Efficiency Pays The government vision in reducing long term energy demands gives significant room to energy efficiency (EE) measures. To justify the validity of this vision, a recently conducted energy audit by the Ministry of Energy and Mineral Resources (ESDM) of 481 companies between 2010 and 2012 to assess energy efficiency potentials in those companies indicated that companies implementing the basic recommendations for energy efficiency could make significant economic gains. At the government levels, the audit showed that the financial savings resulting from energy efficiency investments were much higher than the amount of the investment. For example, replacing 2,8 million traditional street lights bulbs with energy efficient LEDs would need a total investment of 14 billion IDR over 10 years period, while the value of the energy saved by the replacement would be about 90 million IDR . In addition to save 17,1 million IDR on strict electricity, there would be less costs for light replacement and subsidy savings. Also, reducing the energy demand would slow the need for new power plant and contribute to reduction of GHG emissions. The main issue is about how to find funds. While Clean Development Mechanism (CDM) could a good solution, the price of CERs dropped to 0,5 EUR, which greatly limits its potential. The main source of funding today is the voluntary market: in 2012, 101 million tonnes of carbon offset have been contracted for future delivery. This represents a 4% increase compared to 2011. The overall market value decreased compared to 2011 with a volume-weighted average price of 5.9/ tCO2e today (against 6.2 in ). Offset buyers are mainly companies willing to reduce their externalities, often in the frame of their CSR policies. Research programs and Clean Technology Fund constitute another way to fund energy efficiency. Donors are developing such projects such as the ADB Private Sector Geothermal program or the IFC Energy Efficiency and Renewables. According to a participant from South Pole Carbon, the Ministry of Finance is interested in providing funding for the energy efficiency projects as long as they lead to energy subsidies reduction. In addition to proper savings allowed by energy efficiency initiatives (estimated at 1,7 billion IDR/ year), the MoFhopes to reduce subsidies as well; a 790 billion IDR investment in EE would lead to a 300 billion reduction of energy subsidies.• Investment-Innovation-Productivity
  9. 9. 16 17 • INTERVIEW Rachmat Witoelar • INTERVIEW President’s Special Envoy for Climate Change Executive Chair of the National Council on Climate Change (DNPI) Indonesian Climate Change challenges While the international community generally appreciates Indonesia’s commitment to reducing its GHG emission significantly, many people on the ground were rather skeptical about the effective implementation of this goal. A great deal of people saw the statement made about 2 years ago by President Susilo Bambang Yudoyono (SBY) to reduce 26 - 41% of the emission as no more than an image building campaign that is an obvious ‘signature’ of the two term administration. But the government seems to mean business by establishing a national plan for the implementation of the plan, the National Action Plan for Climate Change Mitigation ( RAN-GRK), announced early last year despite the seemingly serious plan, skepticism remains. One important argument for such skepticism is because the government does not seem to fully consider the complexity of carbon emission. To meet the overall objective of the carbon emission reduction, the plan must be embedded the overall national development strategy. Failing to do it has resulted in the government’s inconsistencies when it comes to making effective policies to meet the development objectives. Another reason for the skepticism is that legislative politicians rarely speak or initiate discourses on the issues of climate change. Perhaps their lack of interest in climate change issues is rooted in their lack of knowledge of the issues. Skeptics say politicians in Senayan seem to consider the issues as primarily the domain of the government, while on the government side, they find the efforts in dealing with climate change as half-heartedly implemented. This is evidenced by the lack of effective authority held by the Ministry of Environment that should the primary agency to deal with the complex climate issues. This ministry currently does not demonstrate the effective authority to spur all the national stakeholders to do what it takes to mitigate climate change impacts and to adapt to new climate parameters. GIIP spoke with Rachmat Witoelar, a senior politician under Suharto Administration, and currently Executive Chair of the National Council on Climate Change (DNPI), to get first hand information about the current national efforts in coping with climate change issue. Mr Witoelar shared his views on the current status of Indonesia climate change issues and on his expectations of Indonesian climate change, global current and future mitigation and adaptation efforts. SOF Investment-Innovation-Productivity Investment-Innovation-Productivity
  10. 10. 18 19 • INTERVIEW • INTERVIEW In the global perspective, I believe Indonesia has shown a strong commitment to coping with global warming and climate change issues by planning to lower GHG emissions up to 41% by 2020 based on international collaboration, as President SBY had announced it to the world about two years ago. SOF What are the main concerns in coping with climate change issues in Indonesia and the challenges that the government is currently facing? archipelago located in the tropics global climate change, but of course we can not deal with these issues unilaterally. The Government is greatly concerned about global climate change issues, while at the same time it has to meet the challenges of building a strong national economy amidst the fast depletion of global natural resources and a growing population. At the national level, I have great concern about the slow and meager responses of relevant, if not all, government agencies to the national efforts in mitigating and adapting into the negative impact of climate change, while the impacts are evidently experienced by Indonesia today. The whole world should share a common vision and responsibilities in saving the planet, though each country has its own responsibility based on its specific conditions and capacity. In my view the government needs even stronger political will to deal with the looming danger of climate change, and to do what it takes to prevent serious devastation to our country and protect our people from the negative impacts to development and sustainability. We should realize that being the world largest I think most of us are beginning to realize and feel the real impact of global climate change in our daily life in our country. Many climate anomalies that triggered more severe natural disasters have happened globally , and Indonesia has its share in experiencing them. In the global perspective, I believe Indonesia has shown a strong commitment to coping with global warming and climate change issues by planning to lower GHG emissions up to 41% by 2020 through international collaboration, as President SBY had announced to the world about two years ago. The increasing prevalence of natural Investment-Innovation-Productivity disasters and their severity could disrupt or at least influence (negatively) the economies of many countries including Indonesia. What are, in your view, the government’s achievements in terms of policies and implementation to deal with climate change? As I said, as a developing country, Indonesia has put itself as the forefront of global efforts by commuting to reduce GHG emission at relatively significant level. The world applauded this commitment as not so many countries, including highly industrialized ones, are making such clear and significant commitments (in that respect). Indonesia’s significant target to reduce GHG5 generally receives positive responses from some industrialized countries and the UN bodies. This resulte in various initiatives (proposed), including plans associated with REDD+ programs to deal with climate change mitigation and adaptation activities in Indonesia. Such initiatives, include the recently (2010) established partnership with Norwegian government to deal with deforestations issues. I hope more of those initiatives will be established and properly implemented in the near future. Other achievements like the establishment of RAN-GRK last year seems to go unnoticed by the general public, perhaps because the media have not paid great attention to it. I must admit, however, that establishing a plan is one thing, but the effective and consistent implementation of it is another matter. What we are lacking here is a comprehensive monitoring and reporting system which could provide the information to the public, about the up to date status of the national efforts in combating climate change. Such data should also be translated into plain language to make it comprehensible by the general public. What are your views about the current responses of Indonesia’s industrial sector toward greening the country’s economy? Industry plays a strategic role in transforming Indonesia’s economy towards “a green economy”, by embedding sustainability thinking into their business strategy. Not only industry but all the economic sectors must contribute to building the fundamentals of green economy. Particularly, industry should strive for producing truly “green” products in the sense of making it part of the greater efforts to make the whole national economy sustainable, and resilient against negative impacts of climate change. From my perspective, to make the transformation into green economy, the government should be more serious and effective in dealing with the climate change mitigation and adaptation. Policies and regulations necessary to govern these issues must be effective and consistent to ensure that all stakeholders adhere to it. The regulations must also clearly stipulate incentives and disincentives to stimulate the public initiatives to produce positive impacts. Investment-Innovation-Productivity It seems that there is currently some public skepticism about Indonesia’s serious commitment in coping with climate change in the long run. What are your expectations of the future governments in this respect? I believe it is high time for Indonesia to have a Law on Climate Change to provide a stronger legal umbrella for all the policies and regulations needed to cope with the issue. I sincerely hope that the next year’s general elections will produce strong leaders in government and longterm thinking statesman, like legislators at the House of Representatives (DPR) who will work hard to tackle the pressing issues related to global warming and climate change. Therefore I hope that the law will be produced in the near future. I know that some major political parties have expressed their intentions to deal with climate change issues more seriously in the next administration. I believe that the public or constituents are supportive to this idea. As I said, to make our country and society sustainable, there needs to be
  11. 11. 20 a clear vision, strategy and long-term plan that must be consistently implemented. I hope the next government will better realize this and act upon accordingly to get things done properly. You mentioned two big challenges related to the agreement to lower emission before and after. Second, by 2015 the ASEAN will turn into One Community Nation. How should Indonesia respond to the targets and challenges? Indonesia should have integrated economic and social policies both locally and globally. In addition, Indonesia should intensify discussions globally to make the policies for easy implementation 21 • INTERVIEW by the public in the perspective as stated in the climate change convention that was ratified in 1994. These are long-term policies. Indonesia is approaching a critical time with political transition in 2014 and pre 2020 and beyond 2020 climate change negotiations. The green economy and associated investments are also a matter of institutional transformation. This transformation presents a huge opportunity for developing countries to maintain high economy growth while keeping GHG emissions low. It poses enormous challenges in terms of a long term vision, leadership, and strong engagements among sectors. In addition, the upcoming ASEAN Integration into One Community Nation 2015 will also lead to the same direction. This requires the transformation of green economy ideas into viably sustainable and feasible actions that encompass policies and direct practical actions. You mentioned earlier that Indonesia needs to have a strong Law on Climate Change. Could you elaborate why do you think that such law is needed? Indonesia is approaching a critical time with political transition in 2014 and pre 2020 and beyond 2020 climate change negotiations. As I said, we need a stronger legal basis to implement policies on climate change, therefore DNPI currently sees the urgency of such law to ensure that all efforts related to mitigation of and adaption to climate change imperatives are legally protected. A number of developed countries including the EU, the UK and, New Zealand, have already enacted laws on climate change. Some developing countries like China, Colombia and the Philippines also have such laws. With that law, these countries could support the creation rigorous and legally based efforts to tackle climate change to protect national resources. Indonesia should also have similar laws to better protect its resources for future generations. In addition, the law would also provide a strong legal basis for the government to transform the economy into sustainable and resilient economy. Climate change is one of the most important triggers for conducting an economic transformation. You wrote on recent paper “Study on Population Dynamics and the Human Dimensions of Climate Change,” about the importance of transforming the economy into green (sustainable) economy, and to do this, the government should make climate change issues to be part of the national development policies. Would you share about it to our readers? DNPI has identified various options to Investment-Innovation-Productivity • INTERVIEW reduce GHG emissions, including the need to implement serious and systematic drives toward energy efficiency in all sectors. For example, energy efficiency in urban areas through better evidence-based spatial planning and allied interventions could produce enormous results in reducing the national energy consumption and increasing conservation. DNPI also sees the need for revitalizing the national family planning program to make a major contribution to GHG mitigations efforts over the next 40 years and beyond. It is also important to invest heavily in the education of today’s youth as an essential component of a successful transformation into a green, sustainable economy. In my opinion, much can be done to promote the benefits of green choices and sustainable lifestyles to help mitigate the current steep rise in the country’s carbon intensity, especially among the youth. How do you think DNPI could help the government stimulate the public and private sectors to engage activities in climate change mitigation and adaptation? The government and the private sector face common challenges in combating climate change to provide the necessary and conducive conditions for sustainable growth. Only by productive cooperation can we achieve our common goals. By engaging in cooperation with the Investment-Innovation-Productivity private sector DNPI can help promote the investments and innovations that are essential elements in driving the economy towards sustainable development. Combining these two elements will create a new market for ‘green’ goods, services and employment. Significant investment is needed to ensure the institutional transformation toward maintaining a high economic growth which at the same time lowering GHG emission. Innovation plays a critical role in finding new ways toward sustainable production and consumption. Through cooperation with public and private sectors at national and international level involving experts and practitioners from diverse areas and Industries, DNPI can maintain frank dialogue, share knowledge, experiences and best practices on various issues related to climate change impacts, mitigation and adaptation. Currently DNPI maintains a partnership with Matsushita Gobel Foundation, the Embassy of Japan in Indonesia and the Japan International Cooperation Agency (JICA) to engage in various activities related to climate change mitigation and adaption, including capacity building activities. DNPI greatly appreciates Matsushita Gobel Foundation, the Embassy of Japan to Indonesia and JICA and thankful for their consistent and continuous support for this cause.•
  12. 12. 22 23 • INTERVIEW • INTERVIEW With determination to do everything for the development of the industry, Rachmat Gobel, CEO Panasonic Gobel Indonesia Group has a good record in the survival of electronic manufacturing Indonesia. His success lies in combination of resilience and discipline. Even his big concerns are mainly focused on the development of other industries in Indonesia. His dedication to brought him recognition, in 2011 he was awarded the prestigious Asian Productivity Organization Regional Award for contributions to improving productivity in Indonesia’s industrial sector from the Asian Productivity Organization, Tokyo, Japan. He is also one of the private sector leaders in introducing sustainable development through Green Productivity forging strategic partnerships with the rest of Asia and the Pacific. He identified the urgent need of the industry to help strengthen the country’s energy resilience while coping with prevailing environment issues in the industrial sector. His significant work to improve Indonesia’s industrial sector and extensive promotion of new and renewable energy was rewarded with an appointment as Chairman of the Indonesian Renewable Energy Society (METI) Rachmat Gobel shares his views on energy and environmental issues to Green Magazine at his office in Jakarta. Indonesia is facing crucial problems in the energy and environmental sectors. How have Japanese firms including PT Panasonic Indonesia coped with the prevailing problems in the two issues’? MAS Rachmat Gobel CEO PANASONIC GOBEL INDONESIA GROUP Master Helmsman’s Green Energy Concerns Japanese firms are mostly aware of the importance of anticipating the energy crisis and moving forwards toward the achievement of energy resilience. Energy issues are inseparable with environmental issues especially related to climate change. There has been an increasing urgency in the industrial sector to develop environmentally-friendly technology. As part of the Japanese government’s policy, Panasonic Indonesia has made a strong commitment to be at the forefront as a green and innovation company. We see manufacturers in Japan as risk takers for the sake of becoming green and innovation companies. Japanese manufacturers, like those in other parts of the world, actually still feel the pinch of economic slowdown. However, the industrial firms in Japan and a number of Japanese companies in Indonesia are risk takers, becoming green and innovative companies with large Investment-Innovation-Productivity investments to ‘transform the industry into a green industry’. Companies there in Japan as well as Panasonic Indonesia, have gone through various changes for innovation and further turned into green companies in all production lines. There have been wide range of changes especially in production. Our products are made with the use of environmentfriendly raw materials. Our factories have also improved energy process to reduce gas emission. Secondly, we have strived to improve productivity and efficiency. Thirdly, we create good quality products. Fourthly, the company provides better health services for our employees. Fifthly, the company’s human resources are morally better with high responsibility in managing natural resources. The company has already taken into account, efficiency in the use of energy, ranging from hydro, oil, gas to electricity. To that end, we set up rules of the games for all of us in Panasonic to go ahead together for efficiency as the company’s Investment-Innovation-Productivity movement and with strong corporate culture for the benefit of all including other industries. In turn it will also strengthen our competitiveness in terms of cost efficiency and others. Panasonic is as also a company with strong leadership and with a great commitment to preserve the environment. We are not only a company for the sake of employment as it may cause new problems. Employment by the company without having strong commitment and responsibilities has no added value. Our human resources may fail to achieve improvements in all aspects for the company and the nation. We encourage our employees not to only think about their own benefits but also for the success of all in the company and contribution for the nation. Industrial firms in Indonesia should play bigger role to preserve the environment starting from improving their industrial waste treatment facilities. Otherwise, bad environment within and outside companies’ premises will affect employees’ health and productivity. We should have better rules of the games
  13. 13. 24 25 • INTERVIEW • INTERVIEW The company has already taken into account of efficiency in the use of energy, ranging from hydro, oil, gas to electricity. MAS to make all stakeholders in the industrial sector help the government deal with environmental problems including climate change. Environmental issues and connectivity among the ASEAN members countries have come to the surface in recent ASEAN and APEC summit forums. How do you see the benefits of Indonesia by participating in the forums especially in terms of improving productivity, competiveness and concerted effort to cope with climate change? Certainly Indonesia has taken many benefits from the ASEAN and APEC Summit forums. Indonesia and other members have agreed to accelerate physical, institutional, and people-topeople connectivity. The industrial sector benefits economically and environmentally from greener power policy. We from the industrial sector can help the government cope with frequent and more intense extreme weather events due to climate change caused by carbon emissions. Indonesia as part of Southeast Asia with its rapid economic and population growth should play an important role in the global solution and make low carbon emissions achievable. For sure, connectivity can reduce production and transportation costs, strengthening regional supply chains as well. For the industry cost efficiency is a crucial factor to survive. There have been calls from global movements for reducing the dependency on fossil fuels by increasing the contribution of renewable energies. We in Indonesia have tried to intensify the use of new and renewable energy for outlying or remote regions to operate renewable energy based power plants using solar or wind energy. We are also encouraged to fully utilize renewable energy for the benefits of all the ASEAN member countries. Indonesia is endowed with rich natural resources to become a leading player for clean, renewable energies in the Investment-Innovation-Productivity South Asia. Renewable energies are more competitive than coal. We should fully utilize indigenous local resources and create more employment. With the use of more renewables, Indonesia has an economic advantage. The industry as a partner of the government will also offer solutions, not become a burden. We, the industry can help the country to reduce dependence on fossil fuels like oil and coal. To that end, we keep on developing environment-friendly technology for our manufactures. We also keep on developing recycling technology within the company and encourage similar concerns to other industries to do likewise. It is time for Indonesia to gradually switch to the use of renewable energy sources. However, we still face bureaucratic constraints. What is the Role of METI in proposing regulation to the government? Indonesia has large potential of new and renewable energy such as wind, solar, hydro and geothermal. Indonesia is home to around 40 percent of the world’s geothermal energy reserves. Indonesia also has up to 75,500 megawatts of estimated hydropower resources and generates 4.80 kWh per m2 per day in solar power potential. With the big potential of new and renewable energy, the Indonesian government set targets to generate 6.7 gigawatts of installed renewable energy capacity by 2025. However, Indonesia’s transition towards renewable is not smooth as expected to meet this target. This underperformance is due to the insufficient extent of the government’s effort to provide incentives to investors wishing to venture to the country’s renewable resources. It is related to a certain extent with a lack of awareness. Apparently the government’s improved political will is needed to reap benefits from the country’s renewable energy potential. The government must have a better understanding of the importance of renewable energy and ready to shift its mindset away from its current focus on fossil energy. Do you see the need for Indonesia to have more regulations for energy resilience and environment? There have been efforts to issue more regulations in addition to a number of regulations on energy and environment already in force. However we should not only make regulations to blame someone only, but more importantly we must keep on socializing the importance of the regulations and its implementation to the public. It is the role of the industrial sector to help the government manage energy and the environment. Players in the industry should be more active in its cooperation with the government. The industry a partner for the government especially in energy resilience and the environmental Investment-Innovation-Productivity preservation among others by promoting green industry concepts. The industry is also developing recycling technology to significantly reduce industrial wastes. Are there any expectations for the future role of the industry in Indonesia and in the global context? Indonesia has the potential to develop strategic industries in the fields of renewable energy and energy efficiency technologies. METI sees the need to extensively develop research on new and renewable energy in Indonesia. Hopefully, the encouraging development in the field will make renewable energy more financially viable. The government and the industry, needs the introduction and application of more consistent policies within the real sector and greater collaboration with the foreign countries in the energy sector. There should be more bilateral cooperation in developing green energy.•
  14. 14. 26 Yoshinori Katori 27 • INTERVIEW • INTERVIEW Ambassador of Japan to Indonesia Joint Crediting Mechanism (JCM) A New Initiative Promoted by Japan Below is an article by HE Yoshinori Katori, the Ambassador of Japan to Indonesia. First of all, I would like to extend my heartfelt congratulations on introducing the first edition of this magazine by Indonesian National Council on Climate Change (DNPI). I am convinced that this magazine will contribute to raising public awareness on climate change problems and provide useful insights on how to cope with the challenges associated with it. I am witnessing significant progress in developing climate change policies in Indonesia. The Government of Indonesia has developed the National Action Plan for GHG Emission Reduction (RANGRK) by setting a voluntary target of 26% emission reduction from BAU to be achieved by 2020 (or 41% with international assistance). The government is currently also embarking on a strategic project aiming to establishing the country’s GHG Inventory. DOC. JAPAN EMBASSY Yoshinori Katori (left) and his Indonesian counterpart Rizal Lukman attending joint press release upon the completion of signing of JCM bilateral document between Indonesia and Japan (Aug 30, 2013) Global actions for combating climate change and promoting a low carbon society are vital to evade great catastrophic impacts to human civilization on this planet. Japan is introducing a new mechanism, Joint Crediting Mechanism (JCM), in order to promote development of low carbon society. This new mechanism is expected to be of useful means, as are other credit schemes like CDM, to achieve the ultimate goals of global climate change mitigation. Investment-Innovation-Productivity Along with these efforts, it is important to explore ways to implement concrete activities on the ground towards achieving the objectives of sustainable development (the “green growth”), particularly by mobilizing new technology and securing the necessary funds from the private sector and other national and international sources. This strategy was one of the main subjects discussed in the Second “East Asia Low Carbon Growth Partnership Dialogue” held in Tokyo in May this year. And for the purposes of disseminating and promoting low carbon technologies the Government of Japan has proposed the establishment of “Joint Crediting Mechanism (JCM)”. It is our great pleasure to announce that Japan signed a bilateral document with Indonesia on the establishment of JCM on August 26, 2013. Similar documents have also been agreed upon so far with seven other countries, i.e. Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Viet Nam, and Laos. JCM is one of the measures to help facilitate green investment, and boost innovation as well as productivity. Therefore, I’m particularly pleased that GREEN magazine has chosen JCM as a main topic in its first edition. What is JCM? In order to effectively address the issues of climate change, it is necessary to achieve low-carbon growth at a global scale through mobilization of green (low carbon) technologies and finance which enables expansion of markets for green products and services. These factors are crucial to accelerate the development of renewable energy; build more efficient power generation systems; produce various low carbon products like energy efficient home electronics, low and emission-free vehicles and other low carbon products; and to deploy energy-efficient manufacturing processes. JCM is a new scheme that Japan is currently promoting in order to help support various projects using low carbon technologies, develop low carbon products and services as well as implement carbon mitigation actions, which, overall, is expected to contribute to sustainable development in developing countries. From Japan’s perspectives, the GHG emission reductions achieved by the JCM in partner countries will help Japan to achieve its emission reduction target. The bilateral JCM will stimulate and boost the transfer of low carbon technologies and improve mitigation actions faster and in more flexible way according to the particular condition of the partner countries. I would like to stress that the JCM will be implemented to ensure transparency, credibility as well as environmental integrity. Chart 1 shows how the JCM works. Why JCM? The Clean Development Mechanism (CDM) has been serving as an incentive to mobilize private investment associated with low carbon development. However, the mechanism is also considered difficult and cumbersome to implement, because of the complex and long process necessary to get the approval of CDM administrators as well as the requirement for “additionality”. As a result, CDM is not necessarily considered as serving efficiently for those countries that require it most. To mitigate climate change, it is imperative Investment-Innovation-Productivity
  15. 15. 28 29 • INTERVIEW that GHG emission reduction is implemented by all countries in the world. Therefore, it is of utmost importance to create a new mechanism that can complement CDM in order to achieve their goals. both governments, plays a significant role in administering the mechanism. The JC develops rules and guidelines, approves the proposed methodologies, designates the third-party entities (TPEs), registers JCM projects, and finally decides the amount of credits to be issued. The first JC meeting for Indonesia was held in October 2013 in Jakarta. How does JCM operate? • INTERVIEW TPE is supposed to validate the proposed projects and verify the amount of GHG emission reductions or removals. The role of each government is to issue the credits to its registry, based on the notifications from the Joint Committee. The diagrams (chart 2, 3) show the basic concept of the operation of JCM, while some details of its operation can vary depending on the conditions of the partner countries. Under JCM, the Joint Committee (JC), which consists of representatives from Photo: 1st Joint Committee between Indonesia and Japan (Oct 16-17, 2013) Japan Government • Issuance of credits •Request issuance of credits Project Participants • Implementation & monitoring of projects Joint Committee •Notifies (Secretariat) registration of projects • Develops/revises the rules, guidelines and methodologies •Reports • Registers projects issuance of • Discusses the credits implementation of JCM Host Country •Notifies registration of projects •Reports issuance of credits Government • Issuance of credits DOC. JAPAN EMBASSY (Subject to further consideration and discussion with host countries) Conduct policy consultations •Request registration of projects •Submit PDD /monitoring report Third party entities •Inform results of validation /verification • Validate projects • Verify amount of GHG emission reductions or removals chart 2. Basic scheme of the JCM •Request registration of projects •Submit PDD /monitoring report •Inform results of validation /verification Interested parties can find related information including rules and guidelines adopted by Joint Committee on “New Market Mechanism Platform” website http://www.mmechanisms.org/e/initiatives/ index.html •Request issuance of credits Project Participants • Implementation & monitoring of projects What are the features of the JCM? JCM is basically designed using CDM as its main reference, but it is intended to be more simple, practical and flexible as you can compare in chart 4. For example, a JCM project is validated based on eligibility criteria, whereas in CDM case a project must be assessed concerning its additionality. The criteria are defined in the methodology approved by the Joint Committee, and describe requirements for e.g. energy efficiency of the products to be used. By using the eligibility criteria, we can simplify the validation process and reduce the risks of rejection of the projects. Besides, in order to reduce monitoring burden, default values can be widely used in a conservative manner. JCM starts as a non-tradable credit type mechanism. Hence, credits cannot be traded internationally for the time being. However, the governments of Japan and Indonesia will closely monitor and discuss the mechanism to move into transition to a tradable credit mechanism at the earliest possible time, taking into account the overall situations and experience of JCM implementation as it progresses. Projects qualified for JCM In the case of CDM, projects in some sectors such as energy-saving home electronics and highly efficient coal-fired power generation are difficult to implement. JCM is expected to Investment-Innovation-Productivity Governance JCM - “de-centralized” structure (Each Government, Joint Committee) CDM -“centralized” structure (CMP, CDM Executive Board) Sector/project Coverage - Broader coverage - Specific projects are difficult to implement in practice (e.g. USC coal-fired power generation) Validation of projects - In addition to DOEs, ISO14065 certification bodies can conduct - Checking whether a proposed project fits eligibility criteria which can be examined objectively - Spreadsheet are provided - Default values can be used in conservative manner when monitored parameters are limited. - Only DOEs can conduct - Assessment of additionality of each proposed project against hypothetical scenarios - The entity which validated the project can conduct verification - Validation & verification can be conducted simultaneously - In principle, the entity which validated the project can not conduct verification - Validation & verification must be conducted separately Calculation of Emission Reductions Verification of projects - Various formulas are listed - Strict requirements for measurement of parameters chart 4. Key features of the JCM in comparison with the CDM cover a broader scope of projects than that of CDM. While JCM projects are to be decided by the Joint Committee, projects for energy-efficiency, renewable energy and REDD+ are expected to qualify for JCM in Indonesia. We are now working to determine the necessary rules and guidelines for a smooth and efficient implementation of the JCM between Indonesia and Japan. Therefore, no project has been approved yet under the JCM with Indonesia. However, many Japanese companies have been conducting feasibility studies or pilot activities on potential JCM projects with Indonesian partners. Investment-Innovation-Productivity Future Expectation In Japan, there are a number of companies that can contribute to low carbon growth in Indonesia with leading technologies. I am certain that the implementation of the JCM will contribute to more investment and further dissemination of low carbon technologies from Japan to Indonesia. The JCM with Indonesia has just begun and we still have much work to do. But I am convinced that the JCM will lead to win-win cooperation between our two countries that will contribute to the global strives for climate change mitigation.•
  16. 16. 30 31 • FORUM GRUP DISCUSSIAN Jusman Syafii Djamal • INTERVIEW chairperson of Matsushita Gobel Foundation (MGF) Industries should be the driving force Trained in Aeronautical Design Technology, Jusman Syafii Djamal joined the National Team for the Evaluation of Transportation Safety and Security in 2007. This has brought him to a position as Minister for Transportation (2007 – 2009) in President Susilo Bambang Yudoyono’s first term Cabinet. His scientific background led him to being named a member of the National Innovation Committee (KIN) by the government in 2010. Jusman is currently the Chairperson of Matsushita Gobel Foundation (MGF) and serving as a Chairman of the Board of Commissaries with P.T. Telkom. Indonesia. On behalf of MGF, Jusman enthusiastically shared his views on climate change issues, green economy and energy resilience. He looked at Indonesia’s challenges in climate change issues and its impacts on the country’s current and long-term socio-economic development. He shares the world scientific community’s views that global warming caused by modern human activities is the real culprit of climate change. Climate change is real and has to be dealt with seriously by the entire global community before it become irreversible and disastrous to the planet and the human civilization. In addition to climate change, Indonesia is also faced with the depletion of oil and other fossil-based energy sources. Industries, therefore, are expected to use more environment–friendly energy. Investment-Innovation-Productivity SOF Investment-Innovation-Productivity
  17. 17. 32 33 • INTERVIEW • INTERVIEW We as a nation need to transform ourselves into a green economy with more innovation, higher productivity and achievements. SOF How do you see role of the industry in coping with the challenges on environmental preservation and energy resilience? Industries, especially the energy intensive ones, have been using a great deal of the energy supply available on the planet. Their productive activities have left huge carbon prints causing damages to the environment and global warming. It is only natural that they must play an important role in the country’s and global efforts in curbing the excessive CO2 emission to avert the global climate catastrophe associated with climate change. Industries must be one of the driving forces in the government’s efforts to mitigate climate change. They should position themselves as a partner to the government in many respects to help achieve the goals of the national climate change mitigation programs. Industries’ involvement in the programs could be in the area of environment preservation and in the national endeavors to ensure energy security and resilience Industries’ business strategies and operations must be aligned to the national government’s programs of green economy transformation to reap the maximum benefits for the people of Indonesia. Industries must nurture innovations to improve low carbon productivity. This will include using more renewable energy to reduce CO2 emissions caused by burning fossil fuels. The Agro industry sector should undertake more intensive research and innovation to improve food productivity and enable national and global food resilience, as global warming is seriously disturbing global food productivity and posing clean water supply challenges in many part of the world, especially in developing countries. Rapid urbanization in developing countries also put pressure on food productivity and clean water supply systems, as more and more land are being converted into housing and urban facilities. All of these require industries to realign their operating strategy to support the national government‘s climate change mitigation programs and undertakings. What should the government accomplish by the transformation into green economy? One of the important things the Investment-Innovation-Productivity government should do is to prevent and protect the people from consuming products and services, ether those produced domestically or imported ones, that are produced not in compliance with green economy requirements. This could be accomplished through strong policy and effective regulations which ensure all economic sectors’ compliance to the green principles. I believe that it is much better to serve our national interests by filtering nongreen products produced or imported using green criteria, rather than spending tax-payers’ money for various measures to protect environment and the people’s health. Protection against the flow of nongreen products could be accomplished through various non tariffs barriers to prevent unwanted products entering the domestic market. This kind of measure may become the only option that the national government could use in the near future to protect national markets against foreign products, as regional economic integration is the clear trend of the future. Regional integration treaties compel national government to open the country’s market by allowing free and open market mechanisms to prevail. Another aspect of domestic market protections against the flow of non-green products is imposing National Industrial Standards to products and services traded and distributed in the domestic market. The government must ensure that the products and services meet the national standards. But establishing such national standards will take time and face great challenges as Indonesian industrial system is still overwhelmingly characterized by import substitution. The MGF is collaborating with JICA and the DNPI to hold regular discussions and workshops on climate change and other green issues. What do you expects from such events to help create public awareness on climate change issues? I find that holding regular discussions is an excellent way to exchange knowledge, experience and best practices among stakeholders about climate change and green economy. We invite participants from various background and expertises to share views and build up useful networks to create common awareness and understanding about climate change and the compelling need to green economy transformation. Through the for a hope to narrow gaps between (academic) knowledge about climate change and green issues and Investment-Innovation-Productivity the need to get programs effectively implemented on the ground, and hope along the way to find best solutions and benchmark in meeting the challenges. We hope through our discussions, that experts will share their scientific findings and professional experience to government and practioners and the government will better explain its policies and regulations to other stakeholders, all aimed at improving solutions to solve the common problems associated with climate change. We also hope the discussions will inspire participants to be more committed to the cause of climate change mitigation and have better impacts in their respective capacity in meeting the common challenges.•
  18. 18. 34 35 • INTERVIEW • INTERVIEW Atsushi Sasaki Chief Representative of Japan International Cooperation Agency (JICA) DOC.JICA JICA: Combating Climate Change Needs Involvement of All Citizen Investment-Innovation-Productivity Climate change is already happening now. We can increasingly see, feel and experience it all over the world. Experts say mitigation may be too late now as the window of opportunity for keeping the global warming at acceptable levels is nearly closed, while the world community is failing to come to a real consensus about how to tackle it. Mr Atsushi Sasaki, Chief Representative of Japan International Cooperation Agency (JICA) to Indonesia, shared his opinion to GREEN about the common challenges being faced by the world, particularly in what a country like Indonesia could do best to address climate change. In the perspective of a donor organization like JICA, how do you see Indonesia’s challenges in dealing with the climate change? Firstly, I think that the international community highly appreciates the efforts being made by the government of Indonesia in setting the target of GHG emission reduction by 26 percent on its own and up to 41 percent with international assistance, both compared to the state of BAU (business as usual). With these efforts Indonesia is moving toward greening its economy. But I understand it is not an easy task to promote the green economy while the country is making significant economic growth that might absorb a large amount of conventional energy in the process. With such pace of economic development, lifestyles are focused on keeping up with the elements of modernity, and that demands more conventional energy use. I also understand Investment-Innovation-Productivity that it is not an easy task to cope with the prevalent natural disasters in the country, many of which can be directly associated to climate change. In my opinion, the government of Indonesia needs not only to develop policies and plans in dealing with the problems, but also need to implement them effectively and with adequate fiscal support. In this respect, I observe that the government of Indonesia has already
  19. 19. 36 37 • INTERVIEW economic growth, job creation and green development, we could use the good example of national parks; some national parks in Indonesia are working to preserve the natural environment, providing added value which enables them to promote eco-tourism. In addition, Indonesia has a large potential in developing renewable energy such as geothermal and hydropower. The development of these resources will contribute to not only addressing climate change issues but also promoting economic development and employment through fostering local industries and the sustainable supply of power. DOC.JICA Indonesia’s forest and peat land area is the one of the largest in the world, and Indonesia possesses some largest renewable energy sources in the world. developed policies and plans, and the issue now is how to implement them seriously and consistently together with all stakeholders. How should Indonesia create conducive conditions for the industrial sector to motivate them to do what it is necessary to mitigate climate change? Allow me to share Japan’s experience in coping with the challenges to meet its energy needs. After the oil crisis in 1973, Japan, with a very low energy selfsufficiency rate, started to consider more seriously about how to use energy as efficiently as possible. The government of Japan engaged in dialogue with the private sector, promoted energy saving policies that resulted in the manufacturing of energy efficient products with high international competitiveness. Through the implementation of the government policies to combine restrictions with fiscal incentives for energy efficient products and processes, a high level of energy efficiency has been realized in most of Investment-Innovation-Productivity industrial facilities as well as products such as automobiles, home appliances, etc. Taking Japan’s experience into account, Indonesia might be advised to develop and implement similar policies to those of Japan based upon dialogue with the private sector. The strong leadership of high-level government officials is essential; otherwise, the ministries and agencies concerned may not easily agree on setting policies as in many cases they may have different opinions. The industrial sector apparently plays an important role in transforming the current economy into a green one. Which industrial sectors do you think should be involved to help Indonesia optimize efforts in dealing with climate change issues, while at the same time produce added value to the economic growth, keep the environment clean and help create more jobs? To tackle the complex issue of climate change, we need to involve all people; they must have their own roles in addressing the issue. When we think of balancing There have been some anxieties among national and international communities about the continuity of efforts in GHG emission reduction in the long-run, especially with the imminent political transition from legislative and presidential elections in 2014. What is your opinion about it? I believe that the importance of addressing climate change issues is well recognized and understood by all Indonesian leaders, and that they know what to do domestically as well as what kind of role this country should play in the international society. • INTERVIEW develop policies associated with climate change mitigation and adaptation, and providing assistance in implementing the policies. In the context of clean energy development, JICA is provides support to improve the system of geothermal power development as well as developing advanced technology of bio-energy applicable to Indonesia through the practice of joint researches. We realize that developing renewable energy takes a relatively long time. In that respect, JICA supports the development of a high efficiency (super critical) coal power plant, which enables the effective use of abundant coal resources, and the promotion of utilizing cutting-edge technology such as carbon capture and storage. These activities are expected to help Indonesia realize green economy with stable electricity supply and optimal energy mix. How do you see the role of mass media in Indonesia to support the implementation of green economy? It is absolutely necessary to increase people’s awareness of the environment and climate change issues to promote green economy, and of course the role of mass media is indispensable. It will take a long time to increase the awareness of the people, but unfortunately the issues of environment and climate change are not always attractive subjects to be covered by mass media. In this regard, those who provide information to mass media must do their best to make it attractive to people; at the same time, taking into account social significance, mass media should be urged to cooperate with sources of such relevant information. What do you expect from Indonesia’s role in global climate change mitigation? Indonesia’s forest and peat land area is one of the largest in the world, and Indonesia possesses some of the largest renewable energy sources in the world. With the world’s fourth largest population as well as its high economic growth rate recently, it is no doubt that the core country in ASEAN is Indonesia, whose policies have impact significantly on the world. I expect Indonesia to play a leading role in addressing climate change issues, and JICA will continue to work together with people in Indonesia in a variety of sectors related to climate change.• There have been ideas among experts and intellectuals about the imminent need of having a national law on climate change in line with the global context of mitigation of and adaption to climate change. Do you support such an idea, particularly in the Indonesian context? In my opinion, it is more important that the leaders are highly committed and engage into serious actions to combat climate change, and motivate all citizens to support the actions at their own capacity, rather than having a law or not. Do you see an encouraging development in green initiatives in Indonesia, and how do you think JICA could do to support these? We are happy to support and contribute to Indonesia’s green initiatives. We are doing this for example by supporting the development of Mass Rapid Transportation (MRT) systems in Jakarta, the introduction of innovative public transportation system and the development of infrastructure with cutting-edge technology. JICA is also supporting various ministries within the government of Indonesia to DOC. JICA Investment-Innovation-Productivity
  20. 20. 38 39 • INTERVIEW • INTERVIEW The Nusa Dua Commitment declared by the Indonesia Editor in Chief Forum ( IECF) on June 14, 2013, at Nusa Dua, Bali, is to remind mass media in Indonesia on the importance of building a strong Indonesia in all respects of a modern civilized state. The Forum produced nine commitments related to the needs of addressing the environmental and energy issues properly and effectively. IECF, established on July 19, 2012, represents almost all Indonesian Editor in Chief of Printed and Electronic media, pledged support to the national efforts in preserving the environment, in maximizing renewable energy development and deployment, and in energy conservation through energy efficiency actions to achieve national security. All of these efforts should be consistently and effectively implemented to foster national sustainable and equitable development . By making the commitments, the Forum shows mass media’s serious concerns on the issues of climat change mitigation an adaptation as well as on the imminent global energy crisis that could pose a serious threat to the global sustainability. The Forum also appreciates the initiatives taken by the National Council for Climate Change (DNPI) in collaboration with Matsushita Gobel Foundation and Japan International Cooperation Agency (JICA) to hold Focus Group Discussions on the issues of climate change and green economy and for inviting the IECF to participate in the discussions. At the Bali gathering, Nurjaman Mochtar, Chairman of IECF who is also the Editor in Chief of two major TV channels, SCTV and Indosiar, shared his thoughts on those issues and on the strategic role of mass media in publishing and providing ‘checked and balanced’ information concerning the progresses of the national and global efforts in coping with the issues. IST Nurjaman Mochtar Chairman of Indonesia Editor IN CHIEF Forum (FORUM PEMRED) Mass Media Should Expand Climate Change and Green Economy COVERAGE Investment-Innovation-Productivity What are IECF standpoints in dealing with the issue of climate change? Our standpoint is clear that in coping with this global issue, stakeholders need to think and work together to solve the problems . It is undeniable to all of us that human activities are causing environmental damages which lead to global warming and climate change. We are also witnessing strong indications of the growing uncertainty in the global climate pattern which triggers increasing prevalence of serious natural disasters. When we talk about green investment we should see it not only as a measure to avert the negative impacts of climate change, but we must also see its potentials of producing benefits for sustainability. Therefore mass media must endeavor to see all aspects of measures taken by stakeholders, be it government, private sector or nongovernment organizations. Do you see that concrete steps have been already taken to solving the problems? Sure, I saw concrete steps that have been taken by the government and other stakeholders to address the issues of climate change, though frankly I would like to see more serious and consistent Investment-Innovation-Productivity measures be taken particularly by the government to spur all stakeholders to engage in climate change mitigation and adaptations acttivities. The government strategic plan stated in the RAN-GRK must be implemented consistently At the Bali gathering the Forum agreed along with all related stakeholder to mitigate the on-going damage to the environment by taking the necessary actions in our own capacity to remedy such damages and to prevent such damages from reoccurring. Unfortunaely there are many concepts and terminology used to discuss the
  21. 21. 40 41 • INTERVIEW • INTERVIEW I believe that in this respect the mass media should excersise their role objectively and in responsible ways in line with the principles of press freedom that we enjoy today. DOC. JICA climate change issues that the general public may not comprehend those technical jargons, which preclude them from understanding the whole matters. Climate change is a multisectoral issue, so we need to involve all relevant sectors to find the solution to the problems. It is the mass media’s primary role and responsibility in diseminating the information as reliably and as accurately as possible to the public. The mass media should strive to encourage the public to take relevant actions which could contribute to mitigating the impacts of climate change of the government efforts to mitigate the the impacts of climate change. Mr. Rachmat Gobel of Panasonic Indonesia is among the ones who give full support to green economy transformation. I saw representatives of industrial sectors actively participate in many discussions at national and international forums including the FGD initiated by DNPI, Matsushita Gobel Foundation and JICA. Again, in this respect I see that mass media should play its genuine role in informing the public about the strategic role of industries in helping to solve the climate change problems. I believe that in this respect mass media should excersise their role objectively and in responsible ways in line with the principles of press freedom that we enjoy today thanks to the democratic system that our country follows. For example, the industry, particularly the energy sector, should be more active in making the country less dependent on fossil fuels. But the government should give industry ample opportunities and the necessary incentives to drive the private sector to developing healthy renewable energy businesses. Other industries should respond by improving their energy efficiency measures and reduce GHG emissions How about the role of industrial sector to Green Economy transformation? We have spoken with many businessmen in Indonesia about climate change, and I believe that they are in support I belive that one of the options the Investment-Innovation-Productivity government could take in providing incentive to public and private sectors, is to present awards to companies that distinctly contribute to greening the economy. Such awards are inspiring, and educate other businesses to apply the same principle. Mass media can help herald such award winning companies to stimulate others to follow the good examples. How do you respond to the view by some environmentalists and green observers that Mass Media is less interested in covering climate change issues? I think that the view is not entirely correct. Though it should be admitted that not all medias have given enough space in their publication for discussing the issues, generally mass media do not refuse to cover climate change issues. To improve and expand the coverage, I think the sources also have to improve the quality of their information to entice the press to cover it in their publications. In this respect I think the Nusa Dua commitment is clear enough in its aim to remedy the negative views about mass media’s lack of interest in climate change issues. should respond to the climate issues, of course within their respective capacity. Besides, climate change issues may be seen as less important by the Indonesian press mainly because the news sources fail to make it attractive for example, the issues of green investment and renewable energy. Nevertheless, on behalf of IECF, I’d like to invite everybody who are concerned about “green issues” to engage the mass media to help dissiminate the information to the public. We are always open to discuss the issues with anyone seriously concerned about it. We hope that the current global trend in the development clean technology and green economy transformation will continue well into the end of this century to provide a solid ground for building low carbon society and save the planet. What do you think of the global initiatives in addressing the climate change? To address the problems of climate change we need global commitment and concrete supports by all members of the global community. The green Investment Program is one of the many strategic steps to be taken by the global economy. An appeal by concerned businessman like Rachmat Gobel to scale up green invesments is obviously a good example of how members of the community Do you have an important message to convey to our readers? We wish to see much clearer clear blue prints of how the government will address the climate change issues. We also want see all government policies and measures in this context be implemented effectively and on consistent basis to make real impacts to the causes. In the next national congress that we hope to hold in December 2013, IECF will focus on the direction of the national sustainable and equitable developments toward celebrating the 100th anniversary of Indonesia Independence. We expect to cover the long term strategy for national development, including the handling of the climate change.• Investment-Innovation-Productivity
  22. 22. 42 43 • GREEN INSIGHTS • GREEN INSIGHTS Advancing Low-emission, Climate-resilient Development Across Asia Doddy S. Sukadri and Sandra Khananusit Doddy Sukadri is a member of the Indonesia National Council on Climate Change and is Co-Chair of the Asia Low Emission Development Strategies (LEDS) Partnership. Sandra Khananusit serves as part of the Asia LEDS Partnership Secretariat. SHUTTERSTOCK Background Asia, a continent consisting of 46 countries with a population of more than 4.2 billion people, or about 60 percent of the global total1, has experienced the fastest economic growth of any region in the world in recent decades. With the exception of several developed countries, notably Japan, Asian countries are undergoing rapid economic growth and industrialization, contributing to improved living standards and a better life for millions. About fifty percent of Asians live in cities and over the next 30 years Asian cities will grow by another 1.1 billion people.2 However, characterized by exposed land areas—such as islands, deltas, coastal regions, and steep slopes—and rapid urbanization leading to high population densities, many Asian 1 “World population”, Wikipedia. http://en.wikipedia.org/wiki/World_population 2 “Accessing Asia: Air Pollution and Greenhouse Gas Emissions from Road Transport and Electricity”.http://cleanairinitiative.org/portal/node/11573. Investment-Innovation-Productivity Investment-Innovation-Productivity
  23. 23. 44 45 • GREEN INSIGHTS To avoid the worst impacts of climate change, such as more extreme weather, reduced agricultural productivity, and rising sea levels, GHG emissions must be cut in half by 2050. Yet they are expected to double in that time frame without concerted global action. Source: International Energy Agency, Tracking Clean Energy Progress, Energy Technology • GREEN INSIGHTS What is the goal of the Asia LEDS Partnership? To advance the development of country-led strategic plans to promote economic growth while reducing GHG emissions—without causing unintended adverse trade-offs to other environmental pressures—in the Asia region. SHUTTERSTOCK What are Low Emission Development Strategies, or LEDS? LEDS are country-led strategic planning frameworks to promote climate-resilient economic growth while simultaneously reducing GHG emissions over the long-term. LEDS carries the same general meaning as low-carbon development strategies, low-emission climate-resilient development strategies, and green growth strategies. While LEDS focus on reducing GHG emissions, effective LEDS frameworks should work to ensure that climate resilience and adaptation are fully considered in near- and long-term planning. cities and countries are now more vulnerable to the impacts of climate change. In many countries substantial gaps exist between the rich and the poor, with a significant number of people still living in poverty. In addition, economic trends have led to an increased demand for electricity and transportation. As a result, air pollution is worsening and greenhouse gas (GHG) emissions are rising rapidly. The Big Challenge: Closing the Emissions Gap An Intergovernmental Panel on Climate Change special report indicated that for more than a decade, the increasing rate of CO2 released into the atmosphere has reached a point that is dangerous to both human well-being and continued economic growth.3   A continuing concern over an “emissions gap” was expressed at the 2012 United Nations Climate Change Conference in Doha, when Parties of the United Nations Framework Convention on Climate Change (UNFCCC) agreed on the need for urgent action “…towards the deep reduction in global greenhouse gas emissions to hold the increase in global average temperature below 2°C above pre-industrial levels and to attain a global peaking of global greenhouse gas emissions as soon as possible.”4 At the 2013 UNFCCC Bonn Climate Change Conference in June, Parties continued to discuss how to close the emission gap. At the climate change workshop organized by UNFCCC, Ron Benioff, Director of the Low Emission Development Strategies (LEDS) Global Partnership, addressed this issue with his presentation “LEDS Global Partnership: Advancing Climate-Resilient Low- 3 Carbon Dioxide Capture and Storage. Intergovernmental Panel on Climate Change (IPCC), 2005.  4 United Nations Framework Convention on Climate Change. Ad Hoc Working Group on Long-term Cooperative Action under the Convention. Fifteenth session, part two, Doha, 27 November 2012. http:// www3.unog.ch/dohaclimatechange/sites/default/files/FCCC_AWGLCA_2012_L.0004_ENG.pdf Investment-Innovation-Productivity Emission Development around the World”.5 He shared experiences over the past two years working with 116 countries on how LEDS could help countries decouple economic growth from emissions and resource use. He presented examples on how LEDS could be a viable path forward, supporting economic growth by creating new jobs, fostering sustainable production, and creating new green businesses, while at the same time reducing carbon emissions and reducing poverty. Developing Asian countries face a challenge of achieving sustainable economic development and improving living standards, while simultaneously reducing the rate of growth in GHG emissions. Low-carbon, climate-resilient development, commonly described as “green growth”, is viewed as the most effective means of meeting both objectives. Low emission development strategies provide strategic planning, analytical, and policy processes to promote economic growth while achieving significant, long-term emission reductions in key sectors. The Asia LEDS Partnership The LEDS Global Partnership encompasses three regional platforms—in Asia, Latin America, and Africa—all of which aim to strengthen and support capacities, learning, and coordination of LEDS and green growth activities at the country, regional, and global levels. The Asia LEDS Partnership is the largest 5 United Nations Framework Convention on Climate Change. Ad Hoc Working Group on the Durban Platform for Enhanced Action. Second session (ADP 2), Bonn, Germany, 29 April – 3 May 2013. Workshop on Low-emission Development Opportunities, Tuesday, 30 April, 2013. http://unfccc.int/files/bodies/awg/application/pdf/adp2_workshop2_leds_30042013.pdf regional platform of the LEDS Global Partnership in terms of its membership. The Asia LEDS Partnership was launched in September 2012 at the first Asia LEDS Forum in Bangkok, Thailand, which convened more than 170 representatives from 17 Asian governments, regional and international development organizations, nongovernmental organizations (NGO), businesses, and others active in LEDS in Asia. At the Forum, participants helped to catalogue progress, prioritize regional needs, and identify collaborative activities to achieve a vision of Asia as a region of robust economic progress and low GHG emissions, with countries adopting and implementing LEDS and green growth practices across all sectors. Currently, representatives from over a dozen Asian countries are actively engaged, as well as numerous international partners and NGOs. The objectives of the Asia LEDS Partnership are four-fold: (1) to facilitate enhanced collaboration among those actively engaged in LEDS in the region, including working to maximize results while minimizing duplication; (2) to identify and disseminate tools, models, approaches, and best practices in priority LEDS topics to enable application across the region; (3) to foster capacity building of practitioners to make Asia a leader in designing and implementing LEDS and green growth; and (4) to strengthen support for LEDS across Asia by catalyzing leaders of change and raising awareness about the benefits and methods of promoting LEDS. One of the primary mechanisms to achieve these objectives is regional peer-to-peer exchange on experiences and lessons in fostering LEDS. Asian countries are implementing a wide variety of policies and initiatives that support low-emission growth, and Investment-Innovation-Productivity

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