Chapter 7. Climate Change Policy-Making Process in Indonesia

This Resume is adopted from Book; Climate Change in Asia: Prespectives in the Future Climate Regime. Edited by Yasuko Kameyama, Agus P. Sari, Moekti H. Soejachmoen and Norichika Kanie. United Nations University Press. 2008


Country Profile

  1. Archipelago country with 17,000 islands, 191 million ha. Estimated 241.9 million peoples (July 2005), with population increase rate 1.45% per year. (
  2. Severe economic crisis in 1997-1998. Major export goods, petroleum, natural gas and oil. GDP growth increased to 5.1% in 2004, and was projected to be 5.5% in 2005 and 6% in 2006 (Asian Development Bank, 2005)
  3. Poverty is one of the most important problems, 50% of population below the poverty line. 7.5% of population have income below $ 1/day (1990-2002) and 52.4% have income below $ 2 / day. HDI in 2004 the poorest 10% population had 3.6% share of income and consumption, while the richest 10% had 28.5% share (UNDP, 2004)
  4. The People’s Consultative Assembly (MPR) has the authority to amend and enact the constitution. The People’s Representative Council (DPR) holds legisative, budgeting and oversights function, and establish law. President is entitled to submit bill to DPR, bill shall be discussed by the DPR and the President to reach joint approval. In a reform program, Indonesia has begun to decentralize the power of the central government, parliaments, and heads of government.
  5. The State Ministry of Environment (KLH) support the President on environmental issues, it’s has responsible to make policy, coordinating, monitoring, controlling environment based on existing regulations / laws
  6. The implementation of environmental policy at regional level are managed by Center of Environmental Management (PPLH). There are 5 PPLH in 5 regions (Sumatera, Java, Kalimantan, Bali-Nusa Tenggara, and Sulawesi-Maluku-Papua). The Regional Environmental Impact Management Agency at provincial / perfecture level.


Indonesia and Climate Change

Indonesia GHG emissions

  1. Indonesia highly dependent on energy, 692 kg of oil equivalent / capita (2000) and growing to 737 kg oil equivalent / capita in 2002 (World Bank 2006). Electricity consumption increased from 384 kWh / capita (2000) to 411 kWh / capita in 2002. These condition increased GHG emission
  2. In 1990’s several studies on GHG were carried out, particulary in forecasting and abatement cost in energy and forestry sectors. In 2001 KLH conducted a national strategy study (NSS), NSS contain historical data (1990-1994) and projected data (1995-2020 ) on GHG emissions.
  3. Indonesia emissions are forecast to grow 2% each year over the next 2 decades (from CO2 and N2O from energy, industry, forestry, and land and agriculture sectors)
  4. Between 1990 & 1994 Indonesia emissions of the GHGs CO2, CH4 and N2O grew at rate 1.8% / year, with CO2 approx 70% of total emissions. In 1990 and 1994, the energy demand sectors accounted for approx 35-60% of total emissions . Forestry 20-50% and agriculture 15-25%. Fluctuations is caused by changes in the rate of forest harvesting.
  5. Delft Hydraulic indicated Indonesia as the worlds third largest GHG emitter (Hooijer, 2006) from land use, land use change, and forestry.


Climate Vulnerability

  1. Based on Goddard Institute for Space Study, Indonesia would doubling CO2 for increase rainfall by 7-33% in the Citarum watershed, temperature will increase 0.03-0.04 degree C throughout the archipelagos (Asian Development Bank, 2004)
  2. Water supply outside Java are relatively good, based on calculated water balances using 1995 data, watersheds in Java were much vulnerable to climate change than those outside Java
  3. In the agricultural sector, production will decline due to flooding, erossion during the rainy season and accelerated evaporation during the dry season. Increased precipitation would accelerate soil erotion, and rapid siltation reduce the lifetime of reservoirs and irrigation canals.
  4. Change of vegetation will influence species diversity, animal migration is possible related to increased temperature and rainfall changes.
  5. Marine ecosystem will warming of 0.2-2.5 degree C, it may effect water circulation, segmenting food chain; destruction or redistribution of wetlands; heightened precipitation may accelerate soil erosion, polluting fisheries; rising seas may submerge natural barriers which currently protect coastlines from severe tropical storms.
  6. The global sea-level rise predicted by the IPCC, 7-50 cm by 2070, will influence economic loss in Indonesia as archipelagos country, as many big citieas are located in the coastal area, including Jakarta


Indonesia in International Climate Agreements

  1. Indonesia signed the UNFCCC and ratified it through Law No. 6 / 1994
  2. The Government of Indonesia signed the Kyoto Protocol in 1997, but it took 7 years before the Protocol was ratified by the House of Representatives (DPR), but finally after academic paper provided, DPR enacted Law No. 17/2004 and the Secretary of state signed the law 28 july 2004


Institutional Arrangements

  1. KLH established the National Commission on Climate Change in 1992 through Ministerial Decree No. 35/MENKLH/8/1992
  2. National Commission on Climate Change, chaired by KLH, is an advisory body that provides assistance to the government of Indonesia in crafting policies and general guidence on how to anticipate the impact of climate change. But, this body has not been functioning as expected
  3. The Indonesian DNA (Designated National Authority) was establised on July 21, 2005. Main role is to approve proposed CDM (Clean Development Management) project on condition that they fulfill Indonsia’s sustainable development criteria


Main Stakeholders

  1. The KLH is Indonesian national focal point and active part of the Indonesian delegation during the UNFCCC and Kyoto Protocol negotiation process, and also plays active role in capacity building and awareness raising with respect to climate change relative issues.
  2. According to Article 31 of Presidential Decree No. 9 / 2005, the Ministry of Foreign Affairs assists the president in administering the government’s duty in the field of international politics and diplomacy
  3. The National Development Planning and Agency is tasked with formulating a national development plan by coordinating with other government institution
  4. The Ministry of Energy and Mineral Resources has established team for the CDM in the energy sector
  5. The Ministry of Forestry, in strategic plan (2005-2009), will bw actively involved in the implementation of international conventions under the UNFCCC and support related policy formulation in the forestry sector
  6. The Ministry of Agriculture, Industry, Transportation and Public Works, Home Affairs also plays an important part.
  7. 8. 9. 10. 11. 12. 13. 14. International donor agencies and other international institutions have also played a large role in shaping climate-related national policies and programmes in Indonesia (World Bank, Asian Development Bank / ADB, The Deuttsche Gesellschaft fur Technische Zusammenarbeit / German Technical Cooperation / GTZ, The Japanesse Ministry of Economy cooperation with Japanesse Ministry of The Environment and the Ministry of Foreign Affairs, JICA, UNDP, NGO’s like Yayasan Pelangi Indonesia, WWF, Yayasan Bina Usaha Lingkungan, the Center for International Forestry Research, and The Indonesian Red Cross also put climate-related considerations in its disaster management programmes.





Beyond 2012
Indonesia in Climate Negotiation Evaluated

  1. Indonesia belongs to the Group of 77 and China, its the main coalition of developing countries. G77 + China is to insist on developed countries cutting their own emissions before requiring developing countries to do the same. This group also demand financial assistance and technology transfer from developed countries
  2. Indonesia has not played a significant role in international climate change negotiations, but this situation gradually changing. Indonesia has started to voice its position in writing to the UNFCCC secretariat, as orally during negotiation events, especially in issues related to reducing emissions from deforestation in developing countries (REDD)
  3. Lack of proper and adequate preparation prior to the negotiation has been the major constraints, those are familiar with the topics are not the ones who carry out the negotiations and no oportunity is available to transfer their knowledge adequately to the real negotiator
  4. Successfull negotitator must be equipped with excellent negotiating skills, capability in political analysis and sufficient knowledge of the subject, these three qualities do not exist in one person.
  5. Climate-change-related issues are very various and need coordination among different sectors and institution.
  6. Climate change issues are still not a priority, so it has been difficult to obtain commitments from policy-makers.
  7. As the host for COP13 and COP/MOP3, Indonesia has prepared more seriously for climate negotiations. KLH has initiated 7 working groups to assist the government in shaping its position on their respective subjects, namely adaptation, forestry, financial mecanishms, mitigtion (CDM) , energy, post-2012 and technology transfer


Issues in Climate Negotiation

  1. Indonesia has always participated in International climate negotiation, but in domestic progrees has relatively slow, because inadequate knowledge and capacity of human resources on climate change issues
  2. Indonesia ir trying to cathcup with countrie whode CDM implementation has progressed further, such as India and China. But, CDM procedures considered to be too complex and costly. Developed countries are only interested in purchasing CERs, not investing in CDM projects.
  3. Indonesia does not have a clear adaptation strategy, thus it does not have a strong position during the negotiation process.
  4. Indonesia stated in Article 4.8 of the Kyoto Protocol: Whoever will be appointed as the entity entrusted for Adaptation Fund, it’s Indonesia’s preference to have entity entrusted which could provide flexible modalities which will ensure a balanced access to resources given the level of funds available.
  5. Technology transfer from implementation of CDM projects has not been satisfactory, the implementation of technology transfer is far from sufficient.
  6. Indonesia is one of the biggest GHG emitters, therefore, Indonesia must come up with a clear strategy. The Ministry of Forestry has been very active in following the issue, and similarly the REDD issue that will also included in the dialogue of future climate negotitations.
  7. Regarding its position, Indonesia stated that REDD requires contributing from the international comunity.
  8. Indonesia proposed that deforestation should refers to the loss of forest due to human activities, including conversion of forest to other uses that have lower carbon stocks and loss due to continuous degradation resulting from repeated fires and illegal logging.
  9. Indonesia has also suggested an approach for determining the amount of compensation / incentive in REDD, and another mecanishm to account for any other efforts that reduce emissions from LULUCF or enhance carbon stocks from LULUCF but which are not eligible for afforestation / reforestation CDM and REDD mecanishm .
  10. Concerning its position on post-Kyoto, Indonesia will give more attention to adaptation issues since its considered to be among the most vulnerable countries affected by climate change.
  11. Indonesia is considering an internal voluntary target to reduce its GHG emissions, based on the country’s need to develop.
  12. Indonesia believes that Annex I countries commitments must be met first, prior to asking for developeing countries commitment, Indonesia will take action to mitigate GHG emissions to assist Annex I countries in meeting their target.
  13. In principle, Indonesia is of the view that any participation by developing countries must not jeopardize non-Annex I economic development and must support sustainable development in non-Annex I countries.


The Way Forward

  1. Indonesia must continously and regularly make preparations for the negotiation, the capacity of delegation members should be developed to give them better knowledge on the subject and good political analysis and negotiations skills.
  2. Previous capacity-building programmes must be evaluated and the needs assessed, not only targeted at members of the delegation but also other stakeholders at national and local levels. Climate clearing-house must be established that can be easily accessed by stakeholders who requires climate data and information.
  3. Climate change must considered as a framework not just an issu; thus it should be integrated in development policies, awareness must be raise among high-level politicians. Study on the beyond 2012 regime and its advantages and disadvantages for Indonesia must be conducted to support policy -making and international negotiation process.
  4. Being the host for COP13 and COP/MOP3, indonesia automatically assigned the presidency of both conference. The Ministry of Environment as the president will have the opportunity to show the leadership in directing the negotiation process. Indonesia must begin bilateral dialogue with key parties in the negotiations, both developed and developing countries, including US and Australia.

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