Attracting Private Investment for Indonesia’s Green Recovery: High-level Launch of the Clean Energy Finance and Investment Policy Review of Indonesia

1. Webinar “Attracting Private Investment for Indonesia’s Green Recovery”
Launch of the Clean Energy Finance and Investment Policy Review of Indonesia.
June 28th, 2021
ld1

2. Slide 1
ld1 laksmi dhewanthi, 6/28/2021

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▪ Indonesian NDC Target
(Nationally Determined
Contribution) 2030 :
Emission reduction 29%
▪ In order to achieve NDC
Target, Indonesia
strengthening the
Climate Change Policy in
the financial mobilization
and support
NDC SECTORS 2030
Agriculture
Peat & Forest
Waste Industry
Energy &
Transport
Proposed
in 2020
Marine & Fishery
Presidential decree 61/2011

4. COMMITMENT ON CLIMATE ACTIONS: MITIGATION
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COMMITMENT ON CLIMATE ACTIONS: ADAPTATION
Economic Resiliance
Life System Resiliance
Ecosystem Resiliance
Special Territory ResiliaAnce
Supporting System
Food Security &
Energy Sovereignty
Health, Settlement, &
Infrastructure
Cities, Coastal, &
Small Islands
1. Integrate the climate
imperative into
structural reform and
broader national
development strategies
2. Speed up collective
and national efforts
towards full
implementation of
the Paris Agreement
3. Realise GHG
mitigation potential
across the economy
INDONESIA
NDC
Policy
Messages
Source: Ministry of Finance, 2019
TIME FOR ACTIONS  TIME TO MOBILISE THE RESOUCES

5. INDONESIAN NDC ROADMAP
Collective Mitigation Action at the national and sub national level
TARGET 29%, and
up to 41%
AFOLU
MOEF
Province
Private
sector
Energy
MMR,
Transport,
Industry
Province Private
sector
Waste
MOEF, MOPW,
Industry
Province/
District
Private
sector
Agriculture
MOA
Province
/district
Private
sector
IPPU
Industry
Private
sector
17,2% 11% 0,38% 0,32% 0,1% Trace
TARGET NDC/SECTOR (%)
MINISTERIAL/SECTOR
TARGET ACHIEVEMENT:
o REGISTER ON SRN
o VERIFIED
o NO DOUBLE
COUNTING
Sources: NDC Roadmap. 2021

6. ENERGY : GHG EMISSION REDUCTION TARGET 2030
ENERGY
314 MILL. TON CO2E
Energy Efficiency
42.76 Mill. Ton CO2E
Renewable Energy
183.66 Mill. Ton CO2E
Clean Energy
75.00 Mill. Ton CO2E
Fuel Switching
9.59 Mill. Ton CO2E
AFOLU
5.00 MILL. TON CO2E
Sources: NDC Roadmap. 2021
COMMERCIAL
HOUSEHOLD
INDUSTRY
TRANSPORTATION
INDUSTRY
POWER
TRANSPORTATION
POWER HOUSEHOLD
Energy mitigation action financial need to achieve target:
o Renewable Energy Power Plant = IDN Rp 1,688 Bill.
o Non Electrical Renewable Energy = IDN Rp 84 Bill.
o Low Carbon Coal Power Plant = IDN Rp 1,619 Bill.
o Methane gas conversion to LPG = IDN Rp 17 Bill.
o Energy Conservation = IDN Rp 92 Bill.

7. NDC Target 2030 – Climate Change Projection (2021-2050) for ADAPTATION
Ecosystem
Ecosystem services damage
Historical: 5,69% - 26,75%b PDB
Projection 31,72%a PDB
Disaster
Historical: 6,21%c PDB
(up to 30,83%)
Hydrometeorological disaster
Food
Health
Energy
Water
Life basic need
lost 2,87% PDB
(0,66% - 3,45%a PDB)
Affected by climate change
Calculation is
conducted on the
baseline the year 2010
(1991 – 2020)
PDB 2010 ID Rp 7.399 T
PDB 2019 ID Rp 15.883 T
Prediction PDB 2020 (Target ↑5,3% from
20019)
ID Rp 16.725 T
Lost Potential* (PDB 2020)
d(Rp 110,38 – 577,01 T) – 4.328,38 T
Impacted by
Climate
change only
Climate change +
ecosystem damage +
disaster
*for supporting the need of adaptation action 2021
– 2050
a Climate projection scenario
b Global analytical based on Costanza et al. 2014
C Historical analysis based on DIBI BNPB
d lost potential combined with other related field Sources: NDC Adaptation Roadmap. 2021

8. Implementation and Development of Environmental & Economic Instrument
to support NDC Implementation (IELH 46/2017)
NDC Implementation
Strategy
Development Framework and Natural Resources Utilization
`
7
PARIS
AGREEMENT
ELEMENT

9. CLIMATE FINANCE RESOURCES MOBILIZATION
Financing and Investment Challenge
The Climate action needs a strategy policy and
financing collaboration among the stakeholder
in the local and global level such as
government (central and sub-national),
business entities (private), NGO and CSOs,
communities and other stakeholders
SCALING UP CLIMATE FINANCE
The government budget will not able to meet
and support the financing need for adaptation
and mitigation actions at national, regional or
sub national level

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