Valuing and Accounting for the Environment: National Policy Consideration in Indonesia

Transcription

1 Valuing and Accounting for the Environment: National Policy Consideration in Indonesia Tri Dewi Virgiyanti Directorate of Environment The Ministry of National Development Planning The Republic of Indonesia Valuing and Accounting for the Environment in the Asia Pacific Region Workshop. UNEP, SANDEE, UN ESCAP. Bangkok Thailand, 8 10 October Overview Background History and Milestones Indonesia National Development Plan Proposed Activities Conclusions 1

2 Background Contribution: 24.8% of GDP from the management of natural resources Unsustainable development has reduced the carrying capacity and the natural resource availability Exploitation of land and marine resources Archipelagic nation with the largest waters, the highest number of islands, and the second longest coastal line in the world Located in the equator between two continents and two oceans Natural resources and biodiversity in land, sea, air and space A More Sustainable development is needed planning to prevent the crises of water, food and energy History and Milestones In the early 1980s The initial incorporation of the environment in National Account at the BPS (Central Bureau of Statistics) under Kusmadi Saleh Environmental lbl Balance Sheet System was introduced (timber and mineral) 2

3 History and Milestones 2000 Net Adjusted Saving and Green GDP (as a satellite account) were introduced; Net Adjusted Account was used by World Bank. 2009: Law no. 32 ON Protection & Management Of The Environment endorsed the development of GREEN GDP/GRDP 2013 Partnerships, such as Wealth Accounting and the Valuation of Ecosystem Services (WAVES), are initiated in development planning and national account. Indonesia National Development Plan 3

4 NATIONAL PRIORITY 1 Bureaucracy Reform and Good Governance 2 Education 3 Health National Priority Poverty Alleviation 5 Food Security 6 Infrastructure 7 Investment Climate 8 Energy 9 Environment and Disaster Management (incl. Climate Change) 10 Culture, Creativity and Technology Innovation 11 Disadvantaged, Borders and Post-Conflict Areas 12 Politic, Law and Security 13 Economic Development 14 Social Welfare NATIONAL PRIORITY AND ACTION PLAN PRIORITY FOCUS Food Security Land, Area Development and Agriculture Spatial Plan Infrastructure Research and Development Investment, Finance and Subsidy Food and Nutrition Adaptation to Climate Change Energy Policy Restructuring of State Enterprises Energy Capacity Alternative Energy Oil and Gas Derivative Production Gas Conversion Environmental and Disaster Management Climate Change Environmental Degradation Control Early Warning System Capacity Building on Disaster Mitigation and Forest Fire 8 4

5 Comparison of GDP, HDI and EQI in Indonesia Provinces Ranking PDRB Ranking IIPM Ranking IKLH Sustainable Development Indicators Existing environmental indicator (institutionalized) i i used is Environmental Quality Index water, air and land (based on limited data) Future indicators pursued: Macro: GDP Depletion = Green GDP + Human Development Investment with enrichment of relation of EQI, HDI and GDP (Provinces) Micro: EQI environmental quality (water, air, and land) 5

6 Learning and socialization Proposed Activities Piloting at the national level Piloting at the provincial level Deepening macro economic sustainability indicator Outreach and institutionalization Learning and Socialization Learning by doing through the System for Integrated Environmental and Economics Accounting (SEEA) and the Framework for the Development of Environmental Statistics (FDES). The National Bureau of Statistics (BPS) published Sistem Terintegrasi Neraca Lingkungan dan Ekonomi Indonesia, a contextualized SEEA. Undertaking socialization activities of SEEA and FDES internally and to ministries/agencies 6

7 Piloting at the national level A national level piloting program with a focus confined on two accounts Mineral Account (Oil and gas, coal) Energy Account (Renewable and non renewable) Other possibilities for piloting: energy and landbased sector, weighing up the trade off between shallowness and depth as well data (un)availability Piloting at the provincial level Selecting one particular province, for instance East Kalimantan Completing Green GDP and undertaking Natural Resource Rent Extraction Analysis Proposing Regional Incentive Mechanism (RIM) policies i for the province on the basis of its Green GDP and rent extraction of natural resources 7

8 Deepening Sustainability Indicator Deepening Macro economic Sustainability Indicator Long term plan to achieve Expanding the Sectors/areas to be included in the account Outreach and Institutionalization Opportunity to integrate it with the next Medium Term Development Plan ( ) Integrate with Strategic Plan of Line Ministries (data will come from these Ministries) Regional and Provincial Levels Data Analysis and SEEA in National Bureau of Statistics (BPS) 8

9 Concluding remarks There has been a basis to further build up the valuation and accounting for the environment as well as possibilities for piloting and incorporation into policies in Indonesia Recent high level policy committment will lead to increased focussed on envirinomental economic accounting to guide planning processes Insitutional and Human Resource Capacity, Data collection and quality is still a challenge need to be addressed 9