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Economic Aspects | Natural Resource Aspects | Institutional Aspects | Social Aspects |Indonesia

ECONOMIC ASPECTS OF SUSTAINABLE DEVELOPMENT IN INDONESIA

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INTERNATIONAL COOPERATION

Decision-Making: Coordinating Bodies   

No information is available.

Decision Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

No information is available.

Decision-Making: Major Groups involvement

No information is available.

Programmes and Projects 

Indonesia's commitments to sustainable development cannot be undertaken alone. Certainly international cooperation is part of this effort. Indonesia has actively participated in GEF programs both at the government as well as NGO level. For instance, Indonesia is developing an Integrated Conservation and Development Program in national parks such as the Kerinci Seblat National Park in Sumatera. Some programs under the cleaner production drive are supported by GTZ, UNEP, and the Australian and Canadian governments.

Status   

No information is available.

Challenges  

No information is available.

Capacity-building, Education, Training and Awareness-raising   

No information is available.

Information   

No information is available.

Research and Technologies   

No information is available.

Financing   

No information is available.

Cooperation

Indonesia is also active in regional cooperation such as ASEAN cooperation on the environment. In recognizing the importance of UNCED, the Fourth Meeting of ASOEN held in July 1993 in Bangkok, agreed on the need for a new ASEAN Action Plan. With the support provided by UNEP and ESCAP, and in consultation with all member countries, The ASEAN Strategic Plan of Action on the Environment was endorsed and adopted. Various sections of this report highlights such international and regional cooperation programs.

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This information was provided by the Government of Indonesia to the fifth session of the United Nations Commission on Sustainable Development. Last Update: April 1997.

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TRADE

Decision-Making: Coordinating Bodies   

No information is available.

Decision Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

Indonesian Agenda 21 addresses the issues of the global trade system, economic instruments and environmental audit. According to the Indonesian Agenda 21 the basic strategy is the integration of environmental components into a comprehensive economic development and accounting strategy. This strategy includes: 1) a global trade system which utilizes domestic markets as a component of the global market, through environmentally-sound trade principles; and 2) industrial development which supports the trade system, without disrupting environmental functions through the application of quality standardization or environmental standardization. The following Program Areas (priority areas) are proposed in the Inonesian Agenda 21:

All actions within the above Program Areas require human resources as the main motivator of environmentally-sound national economic growth and development.

Decision-Making: Major Groups involvement

No information is available.

Programmes and Projects

No information is available.

Status 

Average economic growth during REPELITA VI (Five Year Development Plan) has averaged 6.2% per annum, led by the industrial sector (Outside of gas and oil, the industry sector has grown recently by more than 10% per annum). The combination of high economic growth and declining birth rate are expected to increase the Indonesian per capita income fourfold by the end of the Second Long Term Development Plan. This economic growth is also expected to cause major increases in pollution, as discussed earlier.
Recent economic growth has occurred in the context of regional and global trade liberalization - Indonesia is a member/signatory of key global and regional multilateral trade organizations such as the World Trade Organization (WTO), the 17 member Asia Pacific Economic Cooperation (APEC) and the Association of South-East Asian Nations (ASEAN). All of these associations have and will continue to have the effect of opening Indonesia's economy to the world and of gradually reducing Indonesia's protective tariff and non-tariff barriers. (The ASEAN agreement includes the abolition of non-tariff barriers and the reduction of industrial tariffs to less than 5% by 2003) The effects of such changes on Indonesia's economy, human services and prospects for sustainable development are wide ranging, multifaceted and significant.

Challenges  

No information is available.

Capacity-building, Education, Training and Awareness-raising   

No information is available.

Information   

No information is available.

Research and Technologies   

No information is available.

Financing   

No information is available.

Cooperation  

No information is available.

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This information was provided by the Government of Indonesia to the fifth session of the United Nations Commission on Sustainable Development. Last Update: April 1997.

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CHANGING CONSUMPTION PATTERNS

Decision-Making: Coordinating Bodies   

No information is available.

Decision Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

Indonesian Agenda 21 urges to develop a national policy and implement a strategy in order to change production and consumption patterns, through the following Program Areas (priority areas):

Decision-Making: Major Groups involvement

No information is available.

Programmes and Projects

No information is available.

Status 

Population growth, urbanization and development will all transform Indonesia's consumption patterns. Indonesia's basic needs of food, potable, agricultural and industrial water, clothing, housing and energy will increase dramatically in the coming decades. Energy use in Indonesia, for example, has increased 9.5% annually since the commencement of the First Long Term Development Plan - this increase compares with a 2% annual increase in energy use globally and a 4% increase annually among ASEAN nations in the same time period.
There is no explicit policy on sustainable production and consumption patterns. Consumption patterns pertaining to nutrition and health are the main problems in Indonesia. On the other hand, consumptive lifestyles are increasingly evident in urban areas, characterized by emphasis on image and glamour, as opposed to utility. This trend is facilitated by the information era, where information is no longer a means but an end product. Environmental issues such as pollution, degradation of lands, and depletion of natural resources will tend to increase along with excessive production and consumption patterns.

Challenges  

No information is available.

Capacity-building, Education, Training and Awareness-raising   

No information is available.

Information   

No information is available.

Research and Technologies   

No information is available.

Financing   

No information is available.

Cooperation  

No information is available.

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This information was provided by the Government of Indonesia to the fifth session of the United Nations Commission on Sustainable Development. Last Update: April 1997.

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FINANCING

No information is available.

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For information on participating States in the Global Environment Facility, click here:

For information about issues and projects in Asia and and the Pacific from the World Bank, click here:

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TECHNOLOGY

Biotechnology

Decision-Making: Coordinating Bodies   

No information is available.

Decision Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

According to Indonesian Agenda 21, biotechnology development must be focused on providing solutions to agriculture, health and environment issues, which are a priority in Indonesia. However, for a biotechnology approach to be successful, it must be supported by infrastructure development, an increase in national biotechnology capacity, and the development of biosafety aspects intended to prevent negative impacts of biotechnology.
In the Indonesian Agenda 21 the achievement of these objectives is described and analyzed in the following five Program Areas (priority areas):

Related to natural resources management is the application of modern biotechnology, including genetic engineering. Biotechnology has potential to increase knowledge and value of the biological diversity if used in a safe manner. In the future, Indonesia plans to develop capacity in biotechnology particularly in the field of agriculture, medicine and environmental management. However, recognizing the potential environmental impact of biotechnology, Indonesia has also taken initial steps to develop the biosafety procedure for research and releases in the country as well as for the import of modified living organisms which may have adverse impact upon its biodiversity and human health. For this purpose Indonesia has been active in the negotiations for an international Biosafety protocol under the auspices of the UN Convention on Biodiversity.

Decision-Making: Major Groups involvement

No information is available.

Programmes and Projects   

No information is available.

Status   

No information is available.

Challenges  

No information is available..

Capacity-building, Education, Training and Awareness-raising   

No information is available.

Information   

No information is available.

Financing   

No information is available.

Cooperation

No information is available.

 

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This information was provided by the Government of Indonesia to the fifth session of the United Nations Commission on Sustainable Development. Last Update: April 1997.

Click here to link to the Biosafety Information Network and Advisory Service (BINAS), a service of the United Nations Industrial Development Organization (UNIDO), which monitors global developments in regulatory issues in biotechnology.

Click here to go to the Web Site of UNEP's International Register on Biosafety.

Click here to link to biosafety web sites in the European Union.

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INDUSTRY

Decision-Making: Coordinating Bodies   

No information is available.

Decision Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

In order to engage the challenge of an environmentally-sound industrial system, Agenda 21 - Indonesia frames new program areas, policies and initiatives of 'economic approaches to natural and environmental resource management', 'preventive approaches to pollution' and the 'development of systems of economic, natural resource environmental accounting'.
The first program area will attempt to integrate economic institutions (including tax authorities) into the environmental and natural resource management and decision making process. This will require - initially - a feasibility study but will necessarily be followed by considerable institutional development, regulatory changes and commensurate expenses.

New initiatives for a preventive approach to pollution include policy changes (i.e. economic instruments) to promote material-use efficiency and substitution. The 'new methods of accounting' program area will be operationalized by the preparation of a National Economic, Resources and Environmental Balance Sheet that will assess social, economic and environmental progress in a much more thorough and comprehensive manner than coarse indicators such as GNP. In the longer term, strengthened international cooperation is proposed as a means to transfer new methodologies and expertise to Indonesia to facilitate the development of more comprehensive national accounting systems.

Decision-Making: Major Groups involvement

No information is available.

Programmes and Projects 

Some of the Indonesian field level programs are specifically tailored for industries to reduce pollution (air and water) and promoting environmental performance. For instance, the Business Evaluation Program, popularly known as Proper Prokasih has been conducted by Bapedal since 1994. The Proper Prokasih Program is aimed at promoting the compliance of businesses and/or industries to environmental regulations. This is done through classification of performance into five categories of compliance, i.e.: Black for participating industries that have not made any efforts at environmental management; Red for industries that have made efforts in environmental management but have not been able to meet wastewater quality standards; Blue for industries that have made efforts in environmental management and are considered to have met wastewater quality standards; Green for industries that have made efforts in environmental management as well as good housekeeping and indicate a well managed and well operated wastewater plant; and Gold for industries that have met all the requirements for the green category and indicate serious and significant efforts in air pollution control, zero discharge and cleaner production. By October 1996, 213 industries were involved in the Proper Prokasih Program of which 2.82 % are categorized as black, 37.56% as red, 56.80% as blue, 2.82 %as green and 0% as gold.

The Proper prokasih program is basically an extension of the on-going Clean River Program (PROKASIH) which began in 1988 and will be extended up to the year 2000. The Prokasih Program is basically aimed at reducing the pollution load entering the rivers and improving river quality. By 1995, 31 river basins in 13 provinces were involved in the program, together with 1395 factories participate.

Another important program is the cleaner production drive. In 1995, the government announced a National Commitment on the Implementation of Cleaner Production, although it was already introduced by Bapedal in 1993. This program consists of technical assistance, information systems development, training and awareness, and incentives development. At present 60 industries participate in the Cleaner Production Program. In terms of sustainable development, recent international moves towards the implementation of ISO 14000 put pressure on developing nations such as Indonesia for cleaner industrial production systems.

The Blue Sky Program is another important environmental compliance program which will be conducted along the lines of Prokasih and Proper Prokasih programs. This program is aimed at rehabilitating the quality of air in urban and industrial areas, maintaining the air quality in non-polluted areas and improving the institutional capacity as well as community participation in controlling air pollution. Fifty one industries in four provinces have affirmed their participation in the program which will be undertaken by Bapedal. Four factories have been selected as a demonstration project in Jakarta, Cilegon (West Java), Cilacap (Central Java) and Sidoardjo (East Java). As part of the Blue Sky program, Indonesia will phase out leaded gasoline by 1999 and issue regulations on the emission level of road vehicles. Meanwhile Indonesia now has 31 air quality monitoring stations in Jakarta, Bandung (West Java), Semarang (Central Java), Surabaya (East Java) and Denpasar (Bali) to help check increasing air pollution arising from motor vehicles in large cities.

Status   

No information is available.

Challenges  

No information is available.

Capacity-building, Education, Training and Awareness-raising   

No information is available.

Information   

No information is available.

Research and Technologies   

No information is available.

Financing   

No information is available.

Cooperation  

No information is available.

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This information was provided by the Government of Indonesia to the fifth session of the United Nations Commission on Sustainable Development. Last Update: April 1997.

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TRANSPORT

Decision-Making: Coordinating Bodies   

No information is available.

Decision Making: Legislation and Regulations 

No information is available.

Decision-Making: Strategies, Policies and Plans  

No information is available.

Decision-Making: Major Groups involvement

No information is available.

Programmes and Projects   

No information is available.

Status 

Atmospheric emissions have even slightly exceeded economic growth rates in Indonesia - as an aggregate, they have been increasing at approximately 9.5% annually for more than 20 years. The etiology of these pollutants is spread primarily between vehicle use and power production, although other industrial and household sources are significant contributors. A recent study of air pollution in Jakarta reported that vehicular pollution was responsible for almost 100% of airborne lead, 89% of hydrocarbons, 64% of nitrogen oxides and almost all carbon monoxide. Given vehicular use projections provided by the World Bank, pollution projections are dire - by 2020, urban air pollution in Indonesia is expected to grow 800% for particulate, 900% for lead and 1400% for nitrogen oxides. The health and social effects of these increased atmospheric loading will be significant, as will be longer term economic effects.

In the near term, emissions from internal combustion will be managed by, for example a reduction in the lead content of leaded gasoline by 66% and the provision of unleaded gasoline in all urban fuel outlets. In the long term, Agenda 21 - Indonesia recommends the complete elimination of lead from petrol. The costs of these quite specific recommendations themselves are substantial - the development of a new refinery and the technology to manufacture acceptable substitutes for lead will cost a projected US $2.1 billion.

Challenges  

See under Status.

Capacity-building, Education, Training and Awareness-raising   

No information is available.

Information   

No information is available.

Research and Technologies   

No information is available.

Financing   

No information is available.

Cooperation

No information is available.

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This information was provided by the Government of Indonesia to the fifth session of the United Nations Commission on Sustainable Development. Last Update: April 1997.

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SUSTAINABLE TOURISM

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