Indonesia

Indonesia

Geopolitical Informations

Capital
Jakarta
Population
261.1 million (2016)
Total area
1,904,569 km2

Main legislative bodies

  • Majelis Permusyawaratan Rakyat Republik Indonesia, MPR-RI (People's Consultative Assembly of the Republic of Indonesia)

Latest News

Japan and Indonesia put Tokyo’s first bilateral offset project in practice

The Japanese Environment Minister announced the government’s offer of energy-saving technology to Indonesia in exchange for greenhouse gas emissions rights, The Japan Times reported on Tuesday (Nov. 4). This energy saving/trading scheme is part of the Bilateral Offset Credit Mechanism (BOCM), a method of implementation under the Joint Crediting Mechanisms (JCM). The JCM aims to “diffusion of read more…

SPECIAL COP23: Powering Past Coal Alliance puts pressure on major coal consumers

The UK and Canada have launched the “Powering Past Coal Alliance” at COP23 in Bonn. The coalition unites a number of governments, businesses and read more...

SPECIAL COP23: High-level segment to step up last days’ efforts in Bonn

The high-level segment of the Bonn Climate Change Conference opened its works yesterday afternoon (Nov. 15th) with an official event at the presence of read more...

Climate Policy Facts

Emissions

Year Total GHG Emissions Excluding LUCF ( MtCO2e) Total GHG Emissions Excluding LUCF Per Capita ( tCO2e Per Capita) Total GHG Emissions Excluding LUCF Per GDP ( tCO2e / Million $ GDP)
1990 436.01 2.44 568.01
1991 457.51 2.52 547.17
1992 472.43 2.55 526.96
1993 494.23 2.63 513.99
1994 509.43 2.67 492.65
1995 537.9 2.77 479.9
1996 557.94 2.83 462.43
1997 580.47 2.9 459.5
1998 582.33 2.87 530.63
1999 603.84 2.93 545.92
2000 606.93 2.9 522.98
2001 637.48 3.01 530
2002 654.51 3.04 520.72
2003 694.1 3.18 527.03
2004 708.35 3.2 512.08
2005 723.79 3.22 495.06
2006 744.29 3.27 482.54
2007 761.89 3.3 464.48
2008 760.78 3.25 437.49
2009 778.94 3.28 428.12
2010 814.71 3.39 421.54
2011 834.58 3.42 405.5

The line chart shows the country’s carbon emissions by year, expressed in million tonnes of CO2 equivalent (MtCO2e) for emission totals, and in tonnes of CO2 equivalent (tCO2e) for per capita and per dollar of GDP values. It is based on data from CAIT platform provided by the World Resource Insititute, and updated regularly with the most recent data available.

By selecting or deselecting each item, you can compare or give prominence to particular emission trends.

Energy

Energy Source Production (ktoe) TPES (ktoe)
Coal 255731,117 29791,565
Oil 44493,618 77180,949
Natural gas 67266,257 34975,383
Nuclear 0 0
Hydro 1100,714 1100,714
Geothermal 16191,213 16191,213
Solar thermal 0 0
Solar photovoltaics 0,258 0,258
Tide, wave, ocean 0 0
Wind 0,43 0,43
Biomass 53724,77 53724,77
Biofuels 1720,111 342,152
Waste 22,352 22,352

The double-doughnut chart shows the country’s energy production and TPES (Total Primary Energy Supply), expressed in thousand tonnes of oil equivalent (ktoe). It is built on data from the Organisation for Economic Cooperation and Development/International Energy Agency libraries, and updated regularly with the most recent data available.

The INNER RING represents the country’s energy production from each energy source, corresponding to the quantities of fuels extracted or produced.

The OUTER RING shows the country’s total primary energy supply of each fuel. It represents the net quantities of fuels made available on the domestic market, after foreign transfers and trading. According to IEA’s definition, TPES equals production plus imports minus exports minus international bunkers plus or minus stock changes.

Differences between production and TPES are significant as they highlight the actual country’s behaviour in the matter of a given energy source. Production values and TPES values of the same energy source may vary widely, especially in case of the much-traded fossil fuels.

Energy data refers to year 2012.

National Policy

BACKGROUND INFORMATION

Indonesia is a presidential representative democratic republic with a multi-party system. The legal system can be characterised as a custom and Islamic law system, with major influences from the Dutch system due to colonial history. The legislative branch is bicameral and consists of the House of People’s Representatives (DPR) and the House of Regional Representatives (DPD). The merger of the two is called the People’s Consultative Assembly (MPR). The DPR and the President discuss and approve bills, which may stem from the DPR, the DPD or from the President. However, there are many different legislative instruments, which are classified according to their significance. At the upper end of the hierarchy comes the Constitution of 1945, which was revised substantially between 1999 and 2002. Then, MPR Resolutions and customary laws follow as well as Government Regulations Substituting a Law and common Government Regulations. Finally, Presidential Decrees and Regional Regulation represent the lower end of the hierarchy.

The last elections for the DPR and the DPD have taken place in 2014. The next elections are planned for 2019. The current President of Indonesia is Joko Widodo, who is both Head of State and Head of Government. Widodo was elected for a five-year term in 2014.

CIMATE CHANGE

In 2015, Indonesia did submit its INDCs to the UN Framework Convention on Climate Change (UNFCCC), in advance to the COP21 in Paris (see International Policy).

Indonesia has a wide array of climate legislation. However, most instruments are regulations and decrees, which are at the lower end of the hierarchy of legislation as described above. It has proven difficult to pass comprehensive climate change legislation in the MPR or the DPR. The current president Widodo stated repeatedly his commitments to reduce carbon emissions.

Presidential Decree 16/2015 on the Structure of the Environment and Forestry Ministry
With the decree, the government merged the Ministry of Forestry and the Ministry of Environment into a single ministry, the Ministry of Environment and Forestry. The Ministry of Environment (MOE) was Indonesia’s central environmental authority. It had an overall responsibility for the environment, including strategy formation, legislation and policy formulation, and establishing quality standards. It supervised and supported provincial and local authorities in environmental management and the implementation of national policies and regulation. The Ministry of Forestry (MoFor) was responsible for managing the national forest estate. With the support of the Ministry of Environment, initial steps in the REDD+ process were undertaken, such as setting up the Indonesia Forest Climate Alliance in 2007.
In addition, the decree revokes both the Presidential Regulation 46/2008 on the National Council on Climate Change and the Presidential Decree 62/2013 on Management Agency for Reduction of Greenhouse Gas Emission from Deforestation, Forest and Peat land Degradation. The National Council on Climate Change (NCCC or DNPI) and the REDD+ Agency, which evolved from the REDD+ Task Force following the 2013 Decree, were absorbed by the Ministry for Environment and Forestry and became part of a Directorate General of Climate Change. The NCCC was charged with formulating and monitoring the implementation of both climate change adaptation and mitigation policies, and with coordinating international positions. It consisted of 17 ministers and was chaired by the President. It included Working Units on adaptation, mitigation, technology transfer, climate finance, post-Kyoto 2012, and Forestry and Land Use Conversion. As a consequence, the Presidential Decree 16/2015 assigns to the Directorate General of Climate Change (Direktorat Jenderal Pengendalian Perubahan) the task of organizing the formulation and implementation of policy in the field of climate change, including mitigation, adaptation, the reduction and elimination of ozone depleting substances, the mobilisation of resources, the development of a GHG inventory, monitoring, reporting and verification (MRV) of climate change and the control of land and forest fire.
Full document available as pdf (in Bahasa).

National Medium-Term Development Plan (RIJPMN) 2015-2019
The National Medium-Term Development Plan represents the Indonesian development programme and central planning document over the next few years. Accordingly, a green economy shall be built to provide for inclusive and sustainable growth, to improve the state of the environment, to mitigate natural disasters and to tackle climate change. In accordance with the National Action Plan to Reduce Greenhouse Gas Emissions (see below), the plan calls for GHG emission reductions in the sectors of forestry and peatlands, agriculture, energy and transportation, industry and waste to contribute to achieving the objective of cutting GHG emissions by 26 percent below business as usual (BAU) by 2020. The plan supports the development of green cities, aims to eradicate illegal logging, strives to improve governance of natural resources, provides for an increase of community participation in forest management and intends to increase community resilience to climate change in 15 vulnerable areas as defined in the National Adaptation Plan on Climate Change (see below). In addition, it launches various regional initiatives. However, this includes also the development of coal commodity downstream in Sumatra and Kalimantan. Furthermore, the plan seeks to provide affordable and reliable energy to the citizens, which is seen mainly through the paradigm of promoting fossil fuels.
Similarly, the Nawa Cita (Nine Priority Agenda) framework, which sets several development priorities, is supposed to be consistent with the low-carbon and climate-resilient development path. Generally, it aims at protecting Indonesia’s citizens, encouraging rural and regional development, improving the quality of life, and enhancing productivity and global competitiveness.

Regulation of the Minister of Environment 15/2013 on the Guideline for MRV Implementation
The Regulation operationalised the Presidential Regulation 71/2011, which set out that GHG emission reduction calculation shall be conducted through a national GHG inventories system managed by the Minister of Environment.

Presidential Decree 61/2011 on the National Action Plan for Greenhouse Gas Emission Reduction (RAN-GRK)
Indonesia’s National Action Plan For Reducing Greenhouse Gas Emissions (Rencana Nasional Penurunan Emisi Gas Rumah Kaca, RAN-GRK) provides the basis for the implementation of GHG emission reduction activities by various ministries and institutions as well as the regional governments. The Plan establishes the targets of a 26 percent reduction in GHG emissions below the BAU level by 2020 based on unilateral actions and a reduction of up to 41% below the BAU scenario if adequate international support will be furnished to the Government. These targets had already been announced by the former Indonesian President Yudyohono at the G20 summit in 2009. The unconditional emission reduction target is translated into sectoral targets for five strategic sectors by 2020: forestry and peat land (672-1039 MtCO2e), agriculture (8-11 MtCO2e), energy and transportation (38-1056 MtCO2e), industry (1-5 MtCO2e), and waste management (48-78 MtCO2e). During the announcement of the target at the G20 summit, seven mitigation actions were mentioned: sustainable peatland management, reducing the rate of deforestation, carbon sequestration projects, energy efficiency promotion, alternative and renewable energy sources, reduction of solid and liquid waste and shifting to low-emission transportation modes. The RAN-GRK includes around 70 programmes and activities in the above-mentioned sectors. Moreover, the plan provides for more targeted taxation and investment policies as well as for awareness raising policies. Besides, according to the Plan, programmes and activities, particularly Nationally Appropriate Management Activities (NAMAs) will be prioritised if funding is already secured, irrespective of the source (international support, state budget, regional budget, private sector or communities).
Beyond that, the regulation obliges governors to develop their own Local Action Plan for Greenhouse Gas Emission Reduction (RAD-GRK) to reduce GHG emission in their respective province. According to a report by Indonesian Ministry of National Development Planning, the government in cooperation with local authorities has developed 33 Provincial RAD-GRK ratified by a Governor Regulation.
Full document available as pdf.

Climate Change Trust Fund 2010
In 2010, the Indonesian Climate Change Trust Fund was established. The fund is led and managed by the government, pooling and coordinating funds from various sources, such as international donors and the private sector, to finance the country’s climate change policies and programmes.
In general, the National Development Agency reported that Indonesia has spent US-$ 17.5 billion for climate change activities in the period from 2007 to 2014. In the period from 2015 to 2019, an amount of US-$ 55 billion has been allocated. The fourth most populous country intends to continue to provide a significant amount of national funding for the implementation of mitigation and adaptation actions in the period from 2020 on.

Climate Change Sectoral Roadmap 2010
The roadmap specifies measures to be taken in single sectors addressing climate change. It was launched by the planning agency BAPPENAS.

Law concerning Meteorology, Climatology and Geophysics 2009 and Presidential Regulation 71/2011 on the Implementation of a National GHG Inventory
The law obligates the development of a GHG inventory, which shall contribute to the development of further policies to tackle climate change. The regulation further specified the guidelines and responsibilities for the development of the inventories.

National Action Plan Addressing Climate Change RAN-MAPI 2007
RAN-MAPI, which was prepared in 2007 when India hosted COP13 in Bali, is a general guide to be used by multiple Indonesian institutions to provide for a coordinated and integrated approach to addressing climate change. The plan lists the regulatory efforts to be implemented for tackling climate change in categories, including short-term and long-term implementations. The Plan is incorporated into Indonesia’s Long Term Development Action Plan 2005-2025 and the Medium-Term Development Action Plan (see above).
Full document available as pdf.

ENERGY

Mainly executive instruments are used in Indonesia to promote renewable energies rather than passing legislation through the parliament. Nonetheless, the regional economic heavyweight and largest energy consumer in South-East Asia has made several achievements, as set out in the Renewables 2017 Global Status Report of REN21. Accordingly, Indonesia added most geothermal power capacity in 2016 in the world. After the U.S. and the Philippines, Indonesia has the third largest total geothermal power capacity. In addition, the world’s tenth largest economy in terms of purchasing power parity and national income was also ranked third in biodiesel production on the globe. However, many national and international NGOs and other civil society organisations oppose a plenitude of renewable energy projects, especially geothermal power development and biofuels, because of adverse consequences such as deforestation contradicting the forest conservation objectives of the country. Moreover, renewable energies and low-carbon development efforts remain largely dependent on international support and access to finance.
After primary energy consumption has already doubled between 2004 and 2014 with energy demand growing by more than 8 percent annually, energy and electricity demand are expected to continue to increase substantially over the next decades due to a growing economy and population growth. In 2013, about 49 million Indonesians, equalling to 19 percent of the population, still lacked access to electricity and modern energy devices. By 2020, the government seeks to provide electricity to 99 percent of the population.
Despite significant potential for renewable energies (estimated 76 GW hydropower, 33 GW biomass and 28 GW geothermal power (highest in the world) next to solar and wind power), fossil fuel dominate Indonesia’s energy system. Since 2012, Indonesia is also the biggest coal exporter in the world. In 2015, exports amounted to 366 million tonnes and coal reserves add up to approximately 32 billion tonnes, but economically retrievable sources may be depleted already by the mid-2030s. Also in 2012, Indonesia became a net importer of oil and natural gas. Nevertheless, 20 percent of all exports in that year were oil and gas, contributing for 24 percent of state revenues. Moreover, Indonesia remains the biggest natural gas supplier in South-East Asia, exporting around 45 percent of its production. Predictions foresee a large increase of coal-fired power plants (five-fold increase until 2035), whereas the expansion of renewables will be much more moderate.

Providing affordable and reliable is a key priority of the Indonesian government as described above in the descriptions of the Medium-Term Development Plan. As a result, high fossil fuel subsidies were a major impediment for the development of renewable energies. Subsidies amounted to 7 to 25 percent of annual public expenditures between 2005 and 2013. For instance, in 2012, expenditures for fossil fuel subsidies accounted for 4 percent of GDP or US-$ 36 billion. Reforms of the subsidies had been on the political agenda since the 1990s. However, the Asian financial crisis triggered civil unrest forcing the president at the time to resign. A reform in 2005 was undertaken simultaneously with awareness campaigns, social spending in infrastructure and education as well as support payments for poor people. In 2014, fuel subsidies have been almost completely abolished. Only minimal subsidies remain for public transportation and underprivileged fishermen. As a result, energy subsidies decreased to US-$ 4 billion in 2016.

In addition, several further obstacles for the expansion of renewable energies have been identified. These include for instance the highly decentralised political system and limited local capacity, high levels of corruption and inter-ministerial conflicts. As a result, investments into renewable energies are still conceived as risky. Furthermore, the lengthy permit process and the lack of technical expertise act as barriers. In addition, there are conflicts with other sectors, such as agriculture (in case of hydropower) and forestry (in case of geothermal power; see above and below). Last but not least, the lack of data on the availability of renewable resources represents a formidable hurdle for the implementation of projects.

Regulation 12/2017 on the Utilisation of Renewable Energy for the Provision of Power
The regulations establishes feed-in tariffs and tax incentives to promote solar, wind and hydropower as well as bioenergy, waste-to-energy and geothermal development. The tariff is limited to 85 percent of the electricity supply costs in the region where the project is executed and at 100 percent for geothermal and waste-to-energy initiatives.
Full document available here.

Electricity Supply Business Plan 2016-2025
The Plan defines a target of adding 80.5 GW new power capacity. Thereof, 25 GW shall stem from coal-fired power plants, around 15 GW from hydropower projects, 11 GW from geothermal power and 5 GW from solar power.

Law on Geothermal Energy 2003 (last revised in 2014)
The law regulates the management and development of geothermal energy sources for direct and indirect utilisation. The amendment of 2014 defines geothermal activities as fundamentally different from mining and other natural resources exploitation. Therefore, restrictions that have applied to geothermal activities in the time before are now invalid. Consequently, geothermal activity can also be carried out in forest conservation areas. This represents a significant step, as 80 percent of geothermal sources are located in forest areas under protection. Additionally, the law sets the basis for tendering geothermal projects and requires geothermal power plant developers to pass a certain share of their revenues to local communities.
The law builds upon earlier provisions, such as the Ministerial Regulation 01/2012 on Accelerating the Development of Geothermal Energy Supply, Ministerial Regulation 15/2010, Ministerial Regulation 14/2008 and Government Regulation 59/2007.

Government regulation 79/2014 on National Energy Policy
The regulation aims to gradually reduce the country’s reliance on fossil fuels and to boost renewable energy consumption. For this purpose, it sets out optimal primary energy mix targets for 2025 and 2050:

  • New and renewable energy sources (this term includes also nuclear power, hydrogen and coal bed methane contributions as well as liquefied and gasified coal installations) shall make a contribution of at least 23 percent in 2025 to the primary energy mix and at least 31 percent in 2050;
  • Oil is supposed to contribute a share of less than 25 percent in 2025 and less than 20 percent in 2050;
  • Coal shall represent at least 30 percent of the total energy consumption in 2025 and at least 25 percent in 2050;
  • Natural gas is supposed to add at least 22 percent to the primary energy mix in 2025 and at least 24 percent in 2050.

Full document available as pdf (in Bahasa).

Ministerial Regulation 15/2010 Regarding the 10,000 MW Cash Programme
The regulation provides for a second programme for the expansion of energy production after a first programme had been launched in 2006. While the first programme concentrated mainly on coal-fired power plants, the second programme puts a stronger emphasis on geothermal development. However, progress and additions have been much slower than anticipated.

Ministerial Regulation 32/2008 on Biofuels Supply, Utilisation and Trading
The regulation sets a mandatory utilisation framework in the transportation, industrial, commercial and power generation sectors for biodiesel, bioethanol and bio-oil from 2009 to 2025. At minimum, the share of biodiesel shall be increased in diesel fuel consumption to 20 percent by 2025 based on 1-2 percent in 2008 in the different sectors. The regulation builds upon the Presidential Instruction 1/2006 on Biofuel Development, which contained instructions for different governance levels to promote the development of biofuels, and the National Biofuel Roadmap 2006-2025 (see below).
Full document available as pdf (in Bahasa) or described on the IEA policy database.

Energy Law 2007
The Energy Law is a general legal framework for energy policies. It lays down the principles of sustainable development, environmental preservation and energy resilience in the national energy management. As such, it requires the diversification of the energy mix as well as the conservation of energy. Moreover, the law draws attention to new and renewable energy development, including the target to increase the share of renewable from 4.3 percent in 2005 to 15 percent in 2025. Concerning this matter, it also aims to improve the quality of storage and transmission. Besides, the law requires that energy be provided for under-developed, remote and rural areas, mainly with renewable energies. However, diesel generators remain the dominant source in off-grid areas despite a rising number of solar home systems provided. Beyond that, it promotes energy efficiency, including concrete measures, such as the creation of an inventory of energy resources as a basis for further actions. Furthermore, the law defines responsibilities for all levels of government (central and regional) for energy conservation and mandates the establishment of the National Energy Council (NEC).

Government Regulation 26/2006 on Electricity Supply and Utilisation
The regulation regulates the supply and utilisation of electricity, prioritising the use of renewable energy for power generation.

Presidential Decree 10/2006 on National Biofuel Roadmap 2006 – 2025
The Presidential Decree 10/2006 is meant to accelerate the use of biofuels as a replacement of fossil-based fuels. To do so, the Ministry of Energy and Mineral Resources created the National Team for Biofuel Development (TIMNAS BBP). The National Team created the Biofuel Road Map, which established a specific agenda for biofuel production and utilisation targets from 2006 to 2025. Accordingly, biofuels are supposed to make a contribution of 5 percent in the energy mix by 2025. Biodiesel use in diesel fuel consumption shall be increased to 20 percent and bioethanol use in gasoline consumption to 15 percent by the same year.
More information available on IEA policy database here.

Presidential Regulation 5/2006 on National Energy Policy
The regulation aims to reduce the dependency on fossil fuels, to increase the use of renewable energies and to ensure energy independence by optimising the energy mix. As a consequence, the value of energy elasticity (percentage change in energy consumption to achieve one percent change in GDP) shall be less than one in 2025. Moreover, the regulation sets multiple national targets in order to achieve an optimal energy mix by 2020: (i) less than 20 percent from oil; (ii) more than 30 percent from gas; (iii) more than 33 percent from coal; (iv) more than 5 percent from biofuel; (v) more than 5 percent from geothermal; (vi) more than 5 percent from other renewable energies, especially biomass, nuclear, microhydro, solar and wind power; and (vi) more than 2 percent from liquefied coal.
Full regulation accessible here or as pdf.

National Energy Management Blueprint (Blueprint PEN) 2005
The Blueprint PEN represents a comprehensive development plan for the energy sectors. It includes the aim to achieve a share of 15 percent renewable energies in electricity demand by 2025. For this purpose, capacities of 500 MW solar energy and 5,000 MW geothermal energy shall be installed until 2025. Moreover, the National Energy Board is supposed to consider the possibility and feasibility of nuclear power plants. Further, 41 percent of total primary energy supply shall be saved compared to BAU in 2025 through energy efficiency and conservation measures.

Ministerial Decree 2/2004 on Green Energy Policy
The decree sets a framework policy for renewable energy development and energy conservation measures, covering investment and funding policy, incentives, energy pricing, human resource development, information, standardisation and certification, R&D and institutionalisation of renewable energies.

Governmental Regulation 70/2009 on Energy Conservation
The regulation was issued based on the energy conservation provisions in the Energy Law 2007 (see above). Regulatory measures included are the formulation of a National Energy Conservation Master Plan (RIKEN, Rencana Induk Konservasi Energi Nasional); mandatory energy-efficiency standards and energy labelling; government incentives, including tax exemptions and fiscal incentives for imports of energy-saving equipment and appliances as well as special low interest rates for investments in energy conservation; government disincentives, including written notices to comply, public announcements of non-compliance, monetary fines and reductions in energy supply for non-compliance.
The RIKEN has to be updated every five years and is overseen by the NEC. The target of the master plan is to reduce energy intensity (unit of energy per unit of GDP) by one percent annually until 2025. Moreover, energy conservation targets are defined for households and the commercial sector (15 percent), industry (17 percent) and transportation (20 percent) to be achieved until 2025. RIKEN includes implementation guidelines, such as the mandatory assignment of an energy manager and energy auditing for large energy consumers with a final energy consumption of 6000 toe (tonnes of oil equivalent) per year or more as well as a respective energy conservation programme for these companies. Additionally, there are also public-private partnership programmes on energy conservation. Moreover, voluntary energy efficiency standards and energy labelling are part of the RIKEN.

Presidential Instructions 2/2008 Regulating Energy and Water Efficiency
The instructions apply to the implementation of energy and water efficiency measures in public buildings. As such, it optimises a policy established by the National Taskforce for Energy and Water Efficiency. The instructions also demand research, planning and the preparation of respective policies, strategies and programmes. In addition, it requires monitoring and reporting of activities.

TRANSPORTATION

Transportation is the third largest source of energy-related CO2 emissions. The sector is particularly challenging, as there is a sharply increasing urbanisation and motorisation trend with significantly higher congestion in cities. Under the BAU scenario, road transport emissions are projected to increase seven-fold until 2030.
Biofuel policies, which relate to a large extent to the transport sector, have already been described in the section on the energy policies (see above).

Sustainable Urban Transport Programme (SUTRI NAMA) 2012
The Programme was developed by the Ministry of Transport in cooperation with the German Federal Enterprise for International Cooperation (GIZ) and builds on the 2011 National Action Plan to reduce GHG emissions (see above). It contains two phases: First, pilot projects shall be developed in seven cities between 2015 and 2019. Afterwards, full implementation shall be ensue from 2020 to 2030. The following measures and technologies of urban transport are foreseen in the respective projects:

  • Public transport system improvements (system reform, network, management and operation)
  • Investment in energy efficient vehicles (buses)
  • Investment in infrastructure (e.g. bus stops, pedestrian infrastructure and parking metres)
  • Integrated planning, parking management and informal bus system/private vehicle regulation.

More information is available here.

AFOLU

Indonesia is home to extensive tropical rainforests with high biodiversity, high carbon stock values and energy and mineral resources. Deforestation represents the main source of GHG emissions in Indonesia with a share of around 60 percent over the last decade according to the national inventory report of Indonesia. However, whereas governmental data show stable deforestation levels over that time period, independent assessments indicate a strong increase in deforestation rates. In any case, the reduction of emissions from the land sector is pivotal in Indonesia.

The Ministry of Forestry and Environment and its Directorate General of Climate Change are primarily responsible for addressing forest emissions. As described above, the REDD+ Agency was merged with the National Council on Climate Change to form the Directorate General of Climate Change. The REDD+ Agency used to be the world’s first cabinet-level institution working specifically on deforestation and forest degradation, conservation, the sustainable management of forests and the enhancement of forest carbon stocks.

In general, the pledge of Norway to provide US-$ 1 billion over seven years for cutting emissions from deforestation and forest degradation and implementing Indonesia’s REDD+ strategy has acted as a stimulus for a more comprehensive legislation on climate change in the forestry sector. This includes the creation of an institution to monitor Indonesia’s REDD+ plans and an independent MRV system for forest and peat-related GHG emissions, following Decree 62/2013 Regarding a Managing Agency for the Reduction of Emissions from Deforestation and Degradation of Forest and Peat Lands. This agency was also tasked with developing a national strategy for the implementation of REDD+, defining REDD+ safeguards, establishing the standards and methodologies to measure GHG emissions, and coordinating law enforcement with regard to REDD+. In addition, already before the Minister of Forestry Regulation 68/2008 on Implementation of Demonstration Activities Reducing Carbon Emissions from Deforestation and Forest Degradation provided an important impetus for setting up respective structures and activities.
In 2011, the Presidential Instruction 10/2011 issued a moratorium on new forestry licences and the development of peat land for two years, which was extended through Presidential Instruction 6/2013 for another two years. The moratorium exempts existing concessions, secondary forests and projects of significance such as geothermal, oil and natural gas production. However, enforcement and land tenure issues remain challenging, which is why independent assessments indicate a strong increase in emissions despite these measures. In addition, stare decisis the conversion of degraded forests formerly under protection into commercial timberland is currently allowed. Thus, Indonesia still has to confront problems of illegal logging, protection of indigenous rights and forest degradation. Otherwise, Indonesia may be the only main deforesting country with a strong increase in deforestation in the period up to 2030. Under present trends, as much as 25 percent of forest area could get lost until 2030.

The main references for managing forest resources in Indonesia are the Law 41/1999 on Forestry (full document available here or as pdf ) and Law 5/1990 on Biodiversity Conservation. Furthermore, Law 37/2014 on Soil and Water Conservation requires sustainable agriculture and land use.

Moreover, in 2007, the Indonesian Ministry of Forestry (MoF) developed a Roadmap for the Revitalisation of the Forest Industry aimed at tackling, among other issues, insufficient supply of raw material and over-capacity in processing.

WASTE

Law 18/2008 on Waste Management
The law regulates national waste management “on the principle of responsibility, sustainability, profitability, justice, awareness, togetherness, safety, security, and economic value”, with the goal of increasing “public health and environmental quality as well as to utilize waste as energy source”.
Full document available as pdf.

ADAPTATION

Indonesia has the second longest coastline of all countries in the world. This is worsened by a rapid urbanisation trend with cities mainly located at the coast. As a result, sea level rise may affect up to 42 million people living in low-lying coastal zones.

Ministerial Regulation 33/2016 Guideline for the Development of a National Adaptation Plan (NAP)
The regulation lays the basis for the creation of the Indonesian NAP and allows sub-national governments to formulate their own Sub-National Adaptation Plans (Sub-NAPs).

National Action Plan for Climate Change Adaptation RAN-API 2012
The main objective of Indonesia’s National Action Plan for Climate Change Adaptation, which was developed by the Ministry of National Development Planning and the National Development Planning Agency, is the implementation of a sustainable development system that is highly resilient to the impacts of climate change. The plan does not have any formal legal basis but represents for instance an important input for the National Medium-Term Development Plan (see above). The plan is intended to provide guidance for the mainstreaming climate change adaptation issues in the national development planning process, for sectoral and cross-sectoral climate change adaptation action, for short-term priority adaptation actions to attract attention and support from international funding, and for the different sectors and local governments in developing synergised adaptation actions and efforts to build more effective communication and coordination systems. Thereby, adaptation programmes and activities are formulated for the short-term (until 2014), medium-term (2015-2019) and the long-term (2020-2025). Targets including sub-targets, strategies, and detailed action plans are laid out for three key objectives: (i) economic resilience (reduction of deforestation while ensuring food security; utilisation of degraded land or renewable energies, and improved energy efficiency and consumption patterns to ensure energy security), (ii) livelihood resilience (early warning systems, awareness campaigns; health programmes; disaster preparedness; capacity building; identification of vulnerable areas; conflict prevention; and improvement of settlements, infrastructure and services) and ecosystem resilience (ecosystem conservation and restoration and social forestry). In addition, there are special areas of consideration to increase resilience, namely climate-resilient urban areas, and coastal and small island areas.
A synthesis report of the RAN-API is available as pdf.

Government Regulation 37/2012 on Watershed Management
The regulation aims to enhance watershed carrying capacity and thus to ensure water security and to prevent flooding as an adaptation measure to climate change.

 

References and links

Website of the Indonesian Ministry of Environment and Forestry (Kementarian Lingkungan Hidup dan Kehutanan)

Indonesian State government portal

Website set up on behalf of the Directorate for Transportation, the State Ministry of Planning of Indonesia (BAPPENAS) and the Ministry of Transportation of Indonesia

Former website of the Indonesian National Council on Climate Change (NCCC or DNPI, Dewan Nasional Perubahan Iklim)

Former website of the Indonesian National Center of National Action Plan for Greenhouse Gas Reduction (Sekretariat RAN-GRK)

Website of the Indonesian Climate Change Trust Fund (ICCTF)

Website of the Indonesian National Energy Council

Ministry of National Development and Planning/National Development Planning Agency (BAPPENAS), Progress of addressing Climate Change in Indonesia 2010-2014, September 2014.

International Energy Agency, Energy Policies Beyond IEA Countries: Indonesia 2015, February 2015. Accessible here or summary as pdf.

International Energy Agency webpage dedicated to Indonesia’s climate and energy policies

Country profile of Indonesia on the website of the Grantham Institute on Climate Change and the Environment

Forest Trends, Indonesia’s Legal Timber Supply Gap and Implications for Expansion of Milling Capacity: A Review of the Road Map for the Revitalization of the Forest Industry, Phase 1, February 2015. Accessible here or as pdf.

Marquardt, J. (2016): ‘Indonesia: A Long Way to Low-Carbon Development’. In: Roehrkasten, S., Thielges, S. and Quitzow, R. (eds.), ‘Sustainable Energy in the G20. Prospects for a Global Energy Transition’, pp. 64-69, IASS Study, Institute for Advanced Sustainability Studies (IASS), Potsdam.

International Policy

General features

  • Party to the UNFCCC (non-Annex I)
    • Date of signature: 05 June 1992
    • Date of ratification: 23 August 1994
    • Date of entry into force: 21 November 1994
  • Party to the Kyoto Protocol (no binding emission reduction target)
    • Date of signature: 13 July 1998
    • Date of ratification: 03 December 2004
    • Date of entry into force: 03 March 2005
    • Date of Acceptance Doha Amendment: 30 September 2014
  • Signatory to the Copenhagen Accord (26% reduction in GHG emissions below the business-as-usual (BAU) level by 2020 based on unilateral actions; reduction of up to 41% below BAU if adequate international support were made available to the Government of Indonesia (target detailed in the National Action Plan for Reducing Greenhouse Gas Emissions RAN-GRK; see National Policy section)
  • Party to the Paris Agreement:
    • Date of signature: 22 April 2016
    • Date of ratification: 31 October 2016
    • Date of entry into force: 30 November 2016
  • Post-2020 action:
    • Intended Nationally Determined Contribution (INDC) submitted in advance of the COP21, in 2015 (for more information on INDCs see here). Following the ratification and the entry into force of the Paris Agreement, the INDC has become Indonesia’s first Nationally Determined Contribution (NDC). Main actions include:
      • Unconditional goal of reducing emissions by 29 percent until 2030 compared to the BAU scenario
      • Conditional goal of reducing emissions by 41 percent until 2030 compared to BAU scenario under the condition of international assistance, especially through “bilateral cooperation covering technology development and transfer, capacity building, payment for performance mechanisms, technical cooperation and access to financial resources”
      • Nationwide coverage with the sectors of energy, waste, industry, agriculture and forestry. Included GHGs are CO2, CH4 and N2O. IPCC metrics were applied and methodologies are described for establishing the baseline. BAU emissions and emission reductions are quantified for the single sectors.
      • “Indonesia also considers to work on finding the peaking time of national GHG emissions.”
      • Development of a comprehensive strategy for the waste management sector.
      • Implementation of enhanced actions to study and map vulnerabilities and to strengthen institutional capacity of climate policies
      • Reducing risks on al development sectors (agriculture, water, energy security, forestry, maritime and fisheries, health, public services, infrastructure and urban system) by 2030 through local capacity strengthening, improved knowledge management, convergent policy on climate change adaptation and disaster risks reduction, and the application of adaptive technology.
      • Comprehensive legal harmonisation of all relevant matters related to climate change.
      • Integrated National Transparency framework shall be applied during implementation.
      • Indonesia may be host of projects of the cooperative mechanisms under Article 6 of the Paris Agreement. Also results-based payments under the REDD+ strategy may be used for contributing to emission reduction targets.
      • The NDC includes the ‘Indonesia Low Carbon and Climate Resilience Strategy’.
      • The Climate Action Tracker rates Indonesia’s NDC as “medium” (almost “inadequate”), indicating that it is not in line with the below 2°C target, let alone 1.5°C. With currently implemented policies, Indonesia is on track to meet its unconditional 2030 target and may even meet the conditional target.

Bilateral Cooperation

  • Indonesia is a member of the G20 and the Major Economies Forum on Energy and Climate (MEF).
  • Indonesia is part of a number of bilateral arrangements in relation to capacity building and emissions reductions.
    • The Indonesian and Australian governments have worked closely in technology and information sharing, strengthening Indonesia’s institutions and capacity through initiatives such as the Indonesia-Australia Forests and Climate Partnership.
    • Indonesia is part of Japan Joint Crediting Mechanism (JCM) programme, a system of bilateral agreements that allow Japanese companies to earn carbon credits by financing GHG emission reduction projects in developing countries.
    • Norway-Indonesia partnership on REDD+: The two countries have signed a letter of intent under which Norway supports Indonesia’s efforts to reduce greenhouse gas emissions from deforestation and degradation of forests and peat lands. Norway supports efforts with up to US-$ 1 billion based on Indonesia’s performance, over the course of the next 7- 8 years. More information on the Indonesia-Norway REDD+ Partnership is available on the website of the Norwegian Embassy in Indonesia.
    • The Danish and the Indonesian government cooperate in knowledge exchange about renewable energy technologies and related policies and regulations.
  • In 2016, the Bali Centre for Excellence for Clean Energy was established. It aims to attract international collaboration for renewable energy and energy efficiency. International events, such as the Bali Clean Energy Forum, are organised as part of the initiative.
  • Indonesia is a member of International Renewable Energy Agency (IRENA) and one of the first associated members of the International Energy Agency (IEA). In addition, Indonesia has joined Mission Innovation at COP21 and thus pledged to double its expenditures for R&D into clean energy technologies until 2020.
  • Moreover, Indonesia is a member of the Global Methane Initiative (GMI), which aims to reduce methane emissions.
  • Indonesia supports the ASEAN Plan of Action for Energy Cooperation. The plan aims to increase the share of renewable energies to 23 percent by 2025 in the ASEAN energy mix, reduce energy intensity by 20 percent until 2020 based on 2005 levels, enhance awareness, foster R&D networks across the region and increase the commercial utilisation of biofuels. However, the Indonesian government has yet to demonstrate how it intends to actually implement the ambitious plan.
  • At the city level, Jakarta is part of the C40 Cities Network steering committee. Cities such as Medan, Yogyakarta and Surabaya are members of Local Governments for Sustainability (ICLEI). Bogor and Balikpapan have become model cities under the international Urban Low Emissions Development Strategies programme due to energy efficiency principles and waste-to-energy projects.

Negotiating position

At an international level, Indonesia is a member of the G-77 and China. In general, the country is a strong advocate for the inclusion of REDD+ and an active participant in negotiations in relation to cooperative and market mechanisms in particular.

Indonesia was hosting the COP13 on climate change in Bali, which resulted in the Bali Roadmap on climate change.