The document discusses governance challenges for sustainable development in Indonesia. It notes that Indonesia struggled with economic crisis, poverty, and environmental degradation. Past governance in Indonesia used a top-down approach and lacked coordination between stakeholders. Moving forward, the document recommends democratic, transparent and accountable governance at all levels with participation of stakeholders to promote sustainable development. It also calls for adequate resources for institutions working on sustainable development and establishment of national multi-stakeholder forums.

1. GOVERNANCE FORGOVERNANCE FOR
SUSTAINABLE DEVELOPMENTSUSTAINABLE DEVELOPMENT
An INDONESIAN CaseAn INDONESIAN Case
IPDN KEMENDAGRIIPDN KEMENDAGRI
COURTESYCOURTESY
Liana BratasidaLiana Bratasida
Deputy Minister for Environmental ConservationDeputy Minister for Environmental Conservation
Ministry of Environment, The Republic of IndonesiaMinistry of Environment, The Republic of Indonesia

2. WSSD - 2002WSSD - 2002
The results from Johannesburg :The results from Johannesburg :
 Political DeclarationPolitical Declaration
 Plan of ImplementationPlan of Implementation
 Partnership InitiativePartnership Initiative

3. Plan of Implementation ofPlan of Implementation of
WSSDWSSD
 Poverty eradicationPoverty eradication
 Changing unsustainable patterns ofChanging unsustainable patterns of
production and consumption, andproduction and consumption, and
 Protecting and managing the naturalProtecting and managing the natural
resource base of economic and socialresource base of economic and social
developmentdevelopment
 HealthHealth
 EnergyEnergy

4. Sustainable
Development
WEHAB
Plan of Implementation
M.D.G.s
Partnership
Agenda 21
Sustainable DevelopmentSustainable Development
Which way to go now ?Which way to go now ?

5. Developing Country ExperiencesDeveloping Country Experiences
Monetary/economic crisis which influenced :Monetary/economic crisis which influenced :
• The policy and governance in SDThe policy and governance in SD
• The economic and social conditionThe economic and social condition
• People living in povertyPeople living in poverty has increasedhas increased
significantlysignificantly
(with income less than US $ 1 / day)(with income less than US $ 1 / day)
• Environmental condition become worseEnvironmental condition become worse

6. The Reality in IndonesiaThe Reality in Indonesia
- Before -- Before -
Indonesia was one of the Asian miracle,Indonesia was one of the Asian miracle,
i.e. its success in family planning andi.e. its success in family planning and
poverty eradication.poverty eradication.
Such indicator :Such indicator :
• Income per capita improvementIncome per capita improvement
• Reduction rate of inflationReduction rate of inflation
• Basic living standards, particularly in healthBasic living standards, particularly in health
and educationand education

7. The Reality in IndonesiaThe Reality in Indonesia
- Today -- Today -
Indonesia has not fully recovered from theIndonesia has not fully recovered from the
crisis caused :crisis caused :
 Factories and business closed downFactories and business closed down
 Children had to leave schoolChildren had to leave school
 Scarcities of basic people needsScarcities of basic people needs
 Violation of the law and lawViolation of the law and law
enforcement is not adequateenforcement is not adequate

8. The Reality in IndonesiaThe Reality in Indonesia
- case -- case -
Indonesia was suffering from the El NinoIndonesia was suffering from the El Nino
which has a detrimental effect to the socialwhich has a detrimental effect to the social
and environmental conditions, i.e :and environmental conditions, i.e :
 Food shortageFood shortage
 Forest and land fireForest and land fire
 Endanger the health (respiratoryEndanger the health (respiratory
risk)risk)

9. PAST GOVERNACE IN INDONESIAPAST GOVERNACE IN INDONESIA
Reflected that:Reflected that:
 Policy was developed on top-downPolicy was developed on top-down
approach and centralizedapproach and centralized
 Bureaucratic atmosphereBureaucratic atmosphere

10. The Characteristic of PastThe Characteristic of Past
Development in IndonesiaDevelopment in Indonesia
Showed that:Showed that:
 Industrialization was followed byIndustrialization was followed by
urbanization triggered by socio-urbanization triggered by socio-
cultural processcultural process
 Insecurity of an urban environmentInsecurity of an urban environment

11. KEY WEAKNESSKEY WEAKNESS
 Discrepancy between commitments andDiscrepancy between commitments and
actionaction
 Inadequate level of integration ofInadequate level of integration of
environmental considerations into theenvironmental considerations into the
mainstream of decision makingmainstream of decision making
 Inadequate of holistic approaches toInadequate of holistic approaches to
global environmental managementglobal environmental management
 Impacts of globalizationImpacts of globalization

12. KEY WEAKNESSKEY WEAKNESS
 Lack of coordination among stakeholderLack of coordination among stakeholder
involvedinvolved
 Confusion in translating the decentralizationConfusion in translating the decentralization
spiritspirit
 Low of multi-stakeholder group’sLow of multi-stakeholder group’s
participatoryparticipatory
 Environmental Institutions are youngerEnvironmental Institutions are younger
compared to otherscompared to others

13. Milestones in Indonesia
65 97 9892 02
Economic Crisis
Rio Summit
WSSD Johannsberg
Good governance
Economic Development +
Environmental Institutions: less priority
?
Indonesia: Asian Miracle
Reformation

14. Milestones in IndonesiaMilestones in Indonesia
 1998: Reformation era1998: Reformation era
 Law No. 22/1999: Regional GovernmentsLaw No. 22/1999: Regional Governments
 Law No. 25/1999: Fiscal Balance betweenLaw No. 25/1999: Fiscal Balance between
Central Government and the regionsCentral Government and the regions
 Law No. 9/1998: Freedom of PublicLaw No. 9/1998: Freedom of Public
Expression of ViewsExpression of Views

15. Milestones in IndonesiaMilestones in Indonesia
 Law No. 28/1999: Clean GovernanceLaw No. 28/1999: Clean Governance
and Free From Corruption, Collusionand Free From Corruption, Collusion
and Nepotismand Nepotism
 Law No. 39/1999: Human RightsLaw No. 39/1999: Human Rights
 Law No. 20/1999: LaborLaw No. 20/1999: Labor
Unions/Worker UnionsUnions/Worker Unions

16. SUSTAINABLE DEVELOPMENT
GP
EconomicEconomic
EnvironmentEnvironment
SocialSocial
EST
INSTITUTIONAL DEVELOPMENT
HRD
IS

17. Good GovernanceGood Governance
 Definition:Definition: a process through which institutions,a process through which institutions,
corporation and citizen groups organize theircorporation and citizen groups organize their
interests, exercise their rights and obligations andinterests, exercise their rights and obligations and
mediate their differencesmediate their differences
 The Frame work consists of :The Frame work consists of :
- Social and economic systems- Social and economic systems
- Legal and political structures- Legal and political structures
 Characteristics: participation, transparency,Characteristics: participation, transparency,
responsibility, rule of law, civil service effectiveness,responsibility, rule of law, civil service effectiveness,
gender equality, efficiency, strategic vision,gender equality, efficiency, strategic vision,
accountability and predictabilityaccountability and predictability

18. •Poverty
•Exploitation of
Natural resources
•Industrialization
•Urbanization
Environment
Set back of environmental
management
Good
Governance
Demand
Supply
INDONESIAN NEEDS FORINDONESIAN NEEDS FOR
GOOD GOVERNANCEGOOD GOVERNANCE
Sustainable Development

19. Environmental GovernanceEnvironmental Governance
The integration of the social, economicThe integration of the social, economic
and environmental dimensions inand environmental dimensions in
corporate and public decision-making,corporate and public decision-making,
within a governance framework thatwithin a governance framework that
ensures transparency, accountability,ensures transparency, accountability,
responsive, full participation andresponsive, full participation and
responsibility, bringing together under theresponsibility, bringing together under the
heading of governance for sustainableheading of governance for sustainable
developmentdevelopment

20. 1. No adverse environmental impact
2. Environmentally sound technology transfer
3. Stakeholders’ participation
4. Respect of Customary Right (land tenure)
5. Increased employment
6. Community development program
7. Capacity building improvement
8. Local economic benefits
9. Equitable distribution of benefits
10.No net increase in external debt burden
Development of SD C & IDevelopment of SD C & I

21. PLAN OF IMPLEMENTATIONPLAN OF IMPLEMENTATION
Key Governance outcame :Key Governance outcame :
The plan of implementation onThe plan of implementation on
“Institutional Framework for“Institutional Framework for
Sustainable Development”Sustainable Development”
present commitments which supportpresent commitments which support
enhancing government system for SD at all levelsenhancing government system for SD at all levels

22. Plan of ImplementationPlan of Implementation
Chapter X : Good GovernanceChapter X : Good Governance
 Domestic/ National level:Domestic/ National level:
• Sound environmental, social andSound environmental, social and
economic policieseconomic policies
• The rule of lawThe rule of law
• Democratic institutionDemocratic institution
• Anti – CorruptionAnti – Corruption
• Gender equalityGender equality
• An enabling environment for investmentAn enabling environment for investment

23. Plan of ImplementationPlan of Implementation
Chapter X : Good Governance Cont’dChapter X : Good Governance Cont’d
 International level:International level:
Minimizing the gap betweenMinimizing the gap between
developed and developing countriesdeveloped and developing countries
in regards to:in regards to:
• FinanceFinance
• Technology transferTechnology transfer
• Debt and tradeDebt and trade
• Full participation of developing countriesFull participation of developing countries
in global decision makingin global decision making

24. SUSTAINABLE DEVELOPMENTSUSTAINABLE DEVELOPMENT
Local
Governance
National
Governance
International
Governance
INTERDEPENDENCY: ETHICSINTERDEPENDENCY: ETHICS
Secure development
In the local scope Secure development
In the national
scope Secure macroeconomic,
Cooperation among
countries, reducing gaps

25. Recommendation ActionRecommendation Action
 Democracy, transparent and accountableDemocracy, transparent and accountable
governance and administration in all sectors ofgovernance and administration in all sectors of
societysociety
 The responsibility in promoting andThe responsibility in promoting and
implementation of policies in sustainableimplementation of policies in sustainable
development should be the responsibility of alldevelopment should be the responsibility of all
stakeholdersstakeholders
 Participation of the public and all the stakeholdersParticipation of the public and all the stakeholders
especially the business world and the local peopleespecially the business world and the local people
should be encouragedshould be encouraged

26. Recommendation ActionRecommendation Action
 The government at local as well asThe government at local as well as
national level should be able to identifynational level should be able to identify
the needs of peoplethe needs of people
 Legislative body should be able to overseeLegislative body should be able to oversee
the actions of the government andthe actions of the government and
promote an accountable and transparentpromote an accountable and transparent
system of governance.system of governance.

27.  Legislative body contribute fully toLegislative body contribute fully to
promoting a democratic culture whichpromoting a democratic culture which
fosters respect for human rights andfosters respect for human rights and
fundamental freedomsfundamental freedoms
 Adequate resources must be madeAdequate resources must be made
available to all national institutions thatavailable to all national institutions that
are working to further progress inare working to further progress in
sustainable developmentsustainable development
 Government should be encouraged toGovernment should be encouraged to
facilitate the establishment of nationalfacilitate the establishment of national
multi-stakeholder forummulti-stakeholder forum
Recommendation ActionRecommendation Action