INDONESIA'S EXPERIENCES IN THE COMPILATION OF ENVIRONMENTAL ECONOMIC ACCOUNTS
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1 BPS Statistics Indonesia INDONESIA'S EXPERIENCES IN THE COMPILATION OF ENVIRONMENTAL ECONOMIC ACCOUNTS Etjih Tasriah BPS Statistics Statistics Indonesia HISTORY OF SUSTAINABLE INDICTORS COMPILATION IN INDONESIA ENVIRONMENTALLY ADJUSTED NATIONAL INCOME (1989, World Research Institute (WRI) for Indonesia) GENUINE SAVING (2010, BAPPENAS, ESP2 DANIDA) SYSTEM OF INTEGRATED ENVIRONMENTAL AND ECONOMIC ACCOUNTING (SEEA) (1997 present, BPS Statistics Indonesia) (c) BPS Statistics Indonesia,
2 ENVIRONMENTALLY ADJUSTED NATIONAL INCOME In 1989, World Research for Indonesia (WRI) conducted a pioneer exercise to compute natural accounting. The account (capital and flow account) showed changes in the stocks of natural (oil, forest and soil). Natural coverage and valuation method: Oil and forest (timber) Net price (rents are determined by the international commodity price less all factor cost occurred in extraction). Soil Physical loss valued using loss of agricultural output GENUINE SAVING Genuine Saving is calculated by subtracting from conventional saving, the value of liquidation of all kind of assets, man made and natural. It can be viewed as sustainability indicator that adjusted saving by: Depreciation of produced assets Depletion of non renewable natural Depletion of renewable natural Environmental degradation GS less than 0 indicates non sustainability region. (c) BPS Statistics Indonesia,
3 SYSTEM OF ENVIRONMENT AND ECONOMIC ACCOUNT (SEEA INDONESIA) 7,000,000 Million Rupiah 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 GDP EDP Green GDP 1,000,000 Source of Data Data Type Limitation Ministry of Energy and Mineral Resources Ministry of Forestry Statistics Indonesia Others Mineral resource Mineral production Forest area Timber production National account aggregates Coverage is limited to 9 significant natural in Indonesia: crude oil, natural gas, coal, bauxite, tin, gold, silver, nickel ore, and timber wood Financial reports of mining & forestry corporations ENVIRONMENT STATISTICS PUBLICATION 1. Environment Statistics of Indonesia (Annual, since 1982) 2. Statistics on Marine and Coastal Resources (Annual, since 2004) CONTENTS Natural environment: situation of forest, fish, water, biodiversities, mineral, natural disasters, solid waste, etc Social environment: related to many dimensions of social issues including social prosperity problems and social resilient Availability of mangroves, coral reefs, sea grass, fishery related issues, sea water quality, and the situation of socioeconomic infrastructure among coastal villages 3. Indicator of Indonesia Combination of several data related to sustainable Sustainable development. Indicators used in line with recommendation Development from Commission on Sustainable Development within the Framework of Driving Force State Response (DSR). Data including: poverty, governance, health related issues, education, demography, atmosphere, land used, freshwater, biodiversity, global economic partnership, consumption pattern, etc. (c) BPS Statistics Indonesia,
4 PUBLICATION 4. Indicators resulted from Survey on the Behavior toward Caring on Environment (2012) 5. Environment statistics compiled from village based data collection CONTENTS Identify the knowledge and behavior of household members toward daily caring on environment. Data collection related to several dimensions of development, including data on environment (every 3 years) Data on environment disaster for example: In 2011 of all 78,609 villages: 7,521 villages experienced land slide, 14,732 villages experienced flood; 1,609 village with tide; 554 villages experienced forest fire; 2,105 villages with dryness. MOVING FORWARD September 2013: Initiate partnership & networking among government institutions Introduce Framework for Development of Environmental Statistic (FDES) to subject matter areas Implement SEEA 2012 by module approach 2014 (c) BPS Statistics Indonesia,
5 THE SEEA CENTRAL FRAMEWORK ACCOUNTS 1. Flow accounts: supply and use tables for products, natural inputs and residuals (e.g. waste, wastewater) generated by economic activities. physical (e.g. m 2 of water) and/or monetary values (e.g. permits to access water, cost of wastewater treatment, etc.) 2. Stock accounts for environmental assets: natural and land physical (e.g. fish stocks and changes in stocks) and/or monetary values (e.g. value of natural capital, depletion) 3. Activity / purpose accounts that explicitly identify environmental transactions already existing in the SNA. e.g. Environmental Protection Expenditure (EPE) accounts, environmental taxes and subsidies 4. Combined physical and monetary accounts that bring together physical and monetary information for derivation indicators, including depletion adjusted aggregates g Feasible using SUT Feasible expanding scope eg. Land, cultivated agriculture, etc. Unsure (?) Feasible COVERAGE OF ASSETS ACCOUNT IN SEEA INDONESIA Environmental assets Mineral and energy Oh Other biological i l Land Soil Timber Aquatic Water Oil Cultivated timber Cultivated aquatic Surface water Natural gas Natural timber Natural aquatic Groundwater Coal and peat Soil water Non metallic mineral Metallic mineral *) Note: Asset accounts for these environmental assets have been compiled (c) BPS Statistics Indonesia,
6 ISSUES IN IMPLEMENTING SEEA 2012 Valuation method Valuation for natural can be difficult, especially when discount rate is used to compute Net Present Value (NPV) of Natural Resources. Environment Goods and Services Sector (EGSS) SEEA Central Framework only provide broad structure of EGSS, no correspondence tables yet to ISIC and/or CPC Include both specialist and non specialist producers, how to capture nonspecialist producers activity? Supply and Use Tables (SUT) & Physical SUT (PSUT) To construct monetary SUT of natural resource is challenging, but it can be done using existing (SNA) SUT The real challenge is constructing physical supply and use tables of a particular natural resource. (c) BPS Statistics Indonesia,
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