East Kalimantan s Green Growth Planning and Action, and Linkages with National Development Priorities

Transcription

1 East Kalimantan s Green Growth Planning and Action, and Linkages with National Development Priorities Parallel Session H : Integrating planning and action at the national and sub-national levels Asia Low Emission Development Strategies (LEDS) Forum 2014 Yogyakarta November

2 2 Overview of East Kalimantan Socio-Economy Condition

3 3 EGR : 7,42% 1. In , EK economic growth was based on natural resources and dominated by primary sector. 2. Contribution of oil and gas sector were decreasing due to the absence of new well and the decreasing of production 3. Within the last decade, non oil and gas sectors contribution is increasing 4. Non oil and gas sectors dominated by coal and the price is low at the moment Forestry EGR : 5,41% Oil and gas EGR : 3,94% Coal EGR : 1,59%

4 EAST KALIMANTAN ECONOMIC STRUCTURE Distribution of Regional Gross Domestic Product (%) r) 2012 *) 2013 **) 1.49 Mining Manufacture including Oil and Gas Forestry Within the last decade, the role of non oil and gas sector in East Kalimantan has been increasing, especially coal mining. Meanwhile the contribution of renewable economy sector such as agriculture and service are still low, economic structure of East Kalimantan 61.8 % came from the mining (coal) and oil and gas sector Contribution from forestry sector has declined in the economic structure of East Kalimantan, in 2013 the sub- sectors of forestry 4 contribute total only 1.49 % compared to 9.29 % in the 1975 )

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6 6 Economic Transformation Policy Based on Renewable Resources Mainstreaming Climate Change Issue and Green Economy Implementation within Province Development Planning

7 Sensitive to the volatility of oil and gas and coal commodity prices Strengthen the competitiveness based on local sustainable resource is an initiation stage that placed the foundation of East Kalimantan ECONOMIC TRANSFORMATION Renewable resources based Economy Innovation and differentiation based economy 2050? Present Revenue Reinvestment of Revenue from natural resources to develop human resource and region infrastructure Economy based on non renewable resources ECONOMIC TRANSFORMATION POLICY BASED ON RENEWABLE RESOURCES

8 SITUATION EXPECTED BY EAST KALIMANAN IN 2030 THROUGH ECONOMY TRANSFORMATION IS NO MORE DEPENDENCY TO OIL, GAS AND COAL 8 East Kalimantan Economic structure in 2030 Without Transformation ECONOMIC STRUCTURE East Kalimantan Economic structure in 2030 With Transformation Unbalanced economic structure among mining and other sectors. Industry tend to decreasing with proportion 9% in Agriculture sector only able to contribute 4%. Mining sector is still dominated, however its proportion not moving from 51 % as in Strategy: The development of the derivatives product from plantation, crop and mining industries as a transformation direction towards balanced economy Industrial sector is going to be the main basis of economy with proportion of 42%. Trading and service sector contribute to 20%, mining 17% and agriculture 10%

9 9 ECONOMY TRANFORMATION STAGES TOWARD KALTIM MAJU 2030 INITIATION PERIOD CAPACITY DEVELOPMENT PERIOD VALUE ADDED ENHANCEMENT PERIOD INDUSTRIAL DEVELOPMENT PERIOD ECONOMIC INNOVATION DEVELOPMENT PERIOD Mid Term Planning Period covered two phases of economic transformation : Capacity development period and increasing the value added period Economic growth: 1,59% Unemployment rate : 7,94% Economic growth: 5,20% Unemployment rate Poverty rate : 5,00% Co2 Emission: 1250 * Inflation: 5,50 % Economic growth: 8-10% Unemployment rate : 4-6% Poverty rate : 3-4% Co2 Emission: 1000* Inflation: 5,00 % Poverty rate : 6,06% Economic growth: 2,28% Co 2 Emission: 1500* Unemployment rate : 11,22% Inflation : 9,65 % Poverty rate : 7,73% Inflation : 4,31% Note : * = ton CO 2 eq/1 mio USD GDP

10 East Kalimantan Mid Term Development Plan VISION & MISSION VISION Establishing a Prosporous and Equitable East Kalimantan, based on agroindustry and environmentally friendly energy 10 FOCUS OBJECTIVE MISSION 1. Human Resources 2. Economic Competitiveness 3. Infrastructures 4. Governance 5. Environment Realizing the quality of human resources that are independent and highly competitive Achieving community-based economic competitiveness, based on natural resources and renewable energy Providing good quality and equally basic infrastructure for the community Establishing professional, transparent and public service-oriented governance Delivering good quality and healthy environment, with perspective of climate change 10

11 East Kalimantan GHG Emission Reduction Plan THE VISION : Establishing a Prosporous and Equitable East Kalimantan, based on agroindustry and environmentally friendly energy 2nd Mission : Achieving the community-based economic competitiveness, built on natural resources and renewable energy 5th Mission : Delivering good quality and healthy environment, with perspective of climate change 11 Target in 2020 Target in 2018 Reduce emission by 19,073 % from baseline (equal to 1,41 Giga Ton, where land base sector contribute 1,1 Giga ton) Reduce emission Intensity to Tons/million US$ of GDP Sector contributions to GHG reduction Low GHG plan Set scenarios Proportionately allocate quotas to the sectors that need to reduce GHGs that each add up to the target, based on emissions levels and reduction potential Set out the policies that will allow sectors to achieve their quota of GHG reduction Set scenarios that plot emissions reduction for each policy over the timeframe of the carbon budgets to track progress against policies

12 Adoption of Green Growth Indicators on East Kalimantan RPJMD Income per kapita (54,65 Mio IDR) 8. Inflation rate (5,5 ± 1%) 8. Purchasing Power Parity (IDR. 807,823) 9. Gini Index (0,32) 14. Infrastructure Service Satisfaction Index (7) 6. Poverty rate (5 %) 7. Unemployment rate (5,11%) Goal 2: improving public welfare and equity income Goal 6: Improve environment quality Social, econom ic and environmental resilience Inclusive and equitable growth Goal 4: Improve basic infrastructure quality 18.Environment Quality Index (80) 19. Emission Intensity ( 1,250 ton CO 2 /mio USD GDP) Greenhouse gas emission reduction GREEN GROWTH Healthy and productive ecosystems providing services Sustained economic growth Goal 6: Improve environment quality Goal 3: Increase Green Economic Growth Rate 13. New and Renewable Energy Mix ( 3%) 12. Rice Sufficiency Ratio 100 %) Legend : Green Growth Indicators Goal on RPJMD Target and Indicators on RPJMD 10. Economic Growth Rate (4,7-5,3%) 10. Non Oil & Gas Economic Growth Rate (8,3-8,9 %) 10. Non Oil/ Gas and non Coal Economic Growth Rate (8,2-8,6 %) 11. Agricultural Sector Contribution ( 10 %) The Goals might be attached in more than one green growth outcome, it depends from which perspective we see the goal

13 Adoption of Green Growth Indicators to RPJMD of East Kalimantan GOAL TARGET ON 2018 STRATEGY POLICY DIRECTION OUTCOME 2nd MISSION : Achieving community based economic competitiveness based on natural resources and renewable energy Increase qualified economic growth Increase agriculture sector contribution Increase development and utilization of renewable energy Increase community satisfaction with basic infrastructure services Good Quality Economic Growth 2013 : 1,59% 2018 : 4,7 5,30% Agricultural Sector Contribution 2013 : 6,59% 2018 : 10% Renewable Energy Mix 2013 : 0,02% 2018 : 3% Infrastructure Service Satisfaction Index (ISSI) 2013 : : 7 Accelerating Economic Transformation Agribusiness Development Environmentally friendly energy needs Improve basic infrastructure quality Develop new economic growth centers (integrated upstream downstream process) Strengthening regional chain of agribusiness Increase new energy and renewable energy mix (increase electrification ratio) Improve quality and capacity of infrastructure & transportation (Maloy & other industrials & growth centers) 5th MISSION : Delivering a good and healthy quality of environment with the perspective of climate change Increase environmental quality index Reducing GHG emission Environment Quality Index 2013 : 78, : 82 Emission Intensity (ton CO 2 /mio USD GDP 2013: : 1250 Improve environmental quality Developed low emission and high valued-added economic sector Improve management & licensing on forest & land, better plan on spatial utilization, degraded land, air & water quality Applied Green Economy concept & strategy, GHG emission reduction Investment realizations value, palm oil area (Ha), number of core processing industries, number of derivative product Total area for leading commodities, farm area, contribution of non oil-gas manufacturing industries to GDP % of mix new & renewable energy, Biogas installation, electrification ratio, village with electricity (%) number of road developed (%, >10 ton, districts), toll road development, commodity and passengers quantity, Total area rehabilitated, spatial implementation score, mangrove replanting, emission reduction Districts/Cities that mainstreaming GHG in their development plan, data on emission level that can be measured and verified GG INDICATOR Sustained Growth Economic Equitable & Inclusive Healthy Natural Capital Providing Ecosystem Services: GHG Reduction Resilience 13

14 14 Thank You Contact : Dr. Rusmadi, MS (Head of East Kalimantan Regional Development Planning Agency/Acting Regional Secretary of East Kalimantan Province, INDONESIA) - masrus2000@yahoo.com Ujang Rachmad, M.Sc (head of Economic Section, East Kalimantan Regional Development Planning Agency INDONESIA) 0edzank@yahoo.com