Green Recovery Roadmap Indonesia 2021–2024 Building Back Better Low Carbon Development Post-Covid19
Author: MINISTRY OF NATIONAL DEVELOPMENT PLANNING/BAPPENAS Category: 'Featured, Ekonomi Hijau Published: 2021 Country: Indonesia Language: English DownloadThere is a critical need for economic stimulus initiatives in Indonesia to help the nation recover from the impacts of the COVID19 pandemic. Green recovery initiatives (those that not only revive growth and create jobs but also reduce carbon dependency, protect ecosystems, and alleviate poverty) have a substantial role to play. Green recovery initiatives can enable strong economic growth and sustain and create jobs for middleand- low-income earning families and are better for the environment, notably climate change mitigation and adaptation, biodiversity conservation, and healthy cities. This Roadmap serves to deliver two key post-COVID green recovery Outcomes. The first outcome is to see green recovery initiatives acknowledged as priorities in Indonesia’s national development planning and budgeting processes. The second outcome is that there are sufficient funding pathways secured to sustain longer-term green economy development. A key challenge is that under current circumstances, green recovery initiatives are not prioritised in Indonesia’s post-COVID19 economic stimulus program, and more generally, in Indonesia’s national budgeting processes. During the pandemic, the Indonesian government allocated Rp 744.75 trillion (over 2020 and 2021) for COVID19 impact management and a National Economic Recovery fund (PEN). Out of this amount, the allocation for low carbon development initiatives was Rp 7.03 trillion or less than 2% of the total pandemic response budget.
There are five main reasons why green recovery initiatives are not prioritised in the Indonesian national budgeting processes. First, green economy initiatives are generally perceived as longer-term and, thus, inherently less urgent. Second, the Indonesian government’s financial resources are limited, particularly in this time of crisis. Third, there are weak inter- and intra-sectoral and ministerial synergies that constrain the development and funding of green recovery initiatives. Fourth, there is limited political pressure on Indonesia’s legislative body to value green economy principles. Fifth, the PEN has not prioritised green recovery initiatives. This Roadmap sets out a framework to address these challenges to prioritising green recovery initiatives in the Indonesian national budgeting processes. Five strategies are presented to address the five challenges (listed in Table 2). An action plan is proposed in Table 3 to enact the strategies. The action plan includes 12 actions and eight corresponding milestones. The action plan is to be implemented over four phases from 2021 (Respond), 2022 (Recovery), 2023 (Recovery and Reevaluate) and 2024 (Reward). The action plan includes a Stakeholder Engagement Plan (Table 4) and three sector-specific pilot projects (Table 5). The first pilot project is in the waste sector. The initiative provides stimulus for 7,500 waste sector micro, small and medium enterprises through the soft loans and safeguard programs to develop waste management performance improvements. The second pilot project is in the energy sector and involves installing rooftop solar panels on 70 government buildings up to 14MW installed capacity in total (with the option to extend to more government buildings). The third pilot project aims to increase the productivity of plantation crops, increase the income level of farmers through the provision of direct cash assistance at a time when crops have not yet produced, and reduce the negative impacts of deforestation driven by smallholder farmers trying to improve their agricultural yields. In total, these three pilot projects should sustain and create more than 300,000 jobs in the next three years and avoid more than 400 million tCO2e over 25 years