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National Implementation of Agenda 21

INDONESIA

COUNTRY PROFILE

IMPLEMENTATION OF AGENDA 21:
REVIEW OF PROGRESS MADE SINCE THE
UNITED NATIONS CONFERENCE ON
ENVIRONMENT AND DEVELOPMENT, 1992

Information Provided by the Government of INDONESIA to the
United Nations Commission on Sustainable Development
Fifth Session
7-25 April 1997
New York

United Nations Department for Policy Coordination and Sustainable Development
Division for Sustainable Development
The Information contained in this Country Profile is also available on the World Wide Web, as follows:
http://www.un.org/dpcsd/earthsummit

INDONESIA

This country profile has been provided by:

Name of Ministry/Office: The State Ministry of Environment in cooperation with KONPHALINDO - The National Consortium for Forest and Nature Conservation in Indonesia

Date:

Submitted by:

Mailing address:

Telephone:

Telefax:

E-mail:

Note from the Secretariat: An effort has been made to present all country profiles within a common format, with an equal number of pages. However, where Governments have not provided information for the tables appended to Chapters 4 and 17, those tables have been omitted entirely in order to reduce the overall length of the profile and save paper. Consequently, there may be some minor inconsistencies among the formats of the different country profiles.

All statistics are rendered as provided by the respective Governments.

TABLE OF CONTENTS (*)

ACRONYMS
OVERVIEW
FACT SHEET
CHAPTER 1 - Indonesia's commitment to the Earth Summit
CHAPTER 2 - Implementation of Agenda 21 in Indonesia
Introduction
Human Services (Chapters 3-8)
Waste Management (Chapter 21)
Land Resource Management (Chapter 10)
Natural Resource Management (Chapters 15, 17)
CHAPTER 3 - Implementation of the Convention on Biological Diversity (Chapter 15)
Background
Progress in Policy
Progress in Programmes
CHAPTER 4 - Implementation of the Climate Change Convention (Chapter 9)
Background
Progress in Policy
Progress in Programmes
CHAPTER 5 - Implementation of the Forest Principles (Chapter 11)
Background
Progress in Policy
Progress in Programmes
CHAPTER 6 - Stakeholder Participation (Chapter 23-32)
CHAPTER 7 - Vision for the Future (Chapter 8)
ATTACHMENT - Highlights of Agenda 21 - Indonesia
- Structure of the document
- Poverty Alleviation (Chapter 3)
- Changing Consumption Patterns (Chapter 4)
- Demography (Chapter5)
- Human Health an Environment (Chapter6)
- Promoting Settlements Development (Chapter 7)
- Global Trade System, Economic Instrument and Environment Audit (Chapter 2)
- Atmospheric Protection (Chapter 9)

- Chemical Waste Management (Chapter 19)
- Hazardous (B-3) Waste Management (Chapter 20)
- Radioative Waste Management (Chapter 22)
- Solid and Waste Water Management (Chapter 21)
- Land Resources Planning (Chapter 10)
- Forest Management (Chapter 11)
- Sustainable Agriculture and Rural Development (Chapter 14)
- Water Resource Management (Chapter 18)
- Conservation of Biological Diversity (Chapter 15)
- Promoting and Managing Biotechnology (Chapter 16)
- Integrated Management and Development of Coastal and Marine Areas (Chapter 17)

(*) This report is an electonic reproduction of the report provided by the Government of Indonesia to the fifth session of the CSD.

Since the Government has found it more useful to present its information in a format that varies from the standard format, an attempt has been made by the Secretariat to cross-reference this Table of Contents to that of Agenda 21, as appropriate. References are meant to be indicative, only.

ACRONYMS

APELL Awareness and Preparedness for Emergencies at Local Level
CFC chlorofluorocarbon
CGIAR Consultative Group on International Agriculture Research
CILSS Permanent Inter-State Committee on Drought Control in the Sahel
EEZ exclusive economic zone
ECA Economic Commission for Africa
ECE Economic Commission for Europe
ECLAC Economic Commission for Latin America and the Caribbean
ELCI Environmental Liaison Centre International
EMINWA environmentally sound management of inland water
ESCAP Economic and Social Commission for Asia and the Pacific
ESCWA Economic and Social Commission for Western Asia
FAO Food and Agriculture Organization of the United Nations
GATT General Agreement on Tariffs and Trade
GAW Global Atmosphere Watch (WMO)
GEF Global Environment Facility
GEMS Global Environmental Monitoring System (UNEP)
GEMS/WATER Global Water Quality Monitoring Programme
GESAMP Joint Group of Experts on the Scientific Aspects of Marine Pollution
GIPME Global Investigation of Pollution in Marine Environment (UNESCO)
GIS Geographical Information System
GLOBE Global Legislators Organisation for a Balanced Environment
GOS Global Observing System (WMO/WWW)
GRID Global Resource Information Database
GSP generalized system of preferences
HIV human immunodeficiency virus
IAEA International Atomic Energy Agency
IAP-WASAD International Action Programme on Water and Sustainable Agricultural Development
IARC International Agency for Research on Cancer
IBSRAM International Board of Soil Resources and Management
ICCA International Council of Chemical Associations
ICES International Council for the Exploration of the Sea
ICPIC International Cleaner Production Information Clearing House
ICSC International Civil Service Commission
ICSU International Council of Scientific Unions
IEEA Integrated environmental and economic accounting
IFAD International Fund for Agricultural Development
IGADD Intergovernmental Authority for Drought and Development
IGBP International Geosphere-Biosphere Programme (ICSU)
IGBP/START International Geosphere-Biosphere Programme/Global Change System for Analysis, Research and Training
ILO International Labour Organisation
IMF International Monetary Fund
IMO International Maritime Organization
INFOTERRA International Environment Information system (UNEP)
IOC Intergovernmental Oceanographic Commission
IPCC Intergovernmental Panel on Climate Change
IPCS International Programme on Chemical Safety
IPM integrated pest management
IRPTC International Register of Potentially Toxic Chemicals
ITC International Tin Council
ITTO International Tropical Timber Organization
IUCN International Union for Conservation of Nature and Natural Resources
MARPOL International Convention for the Prevention of Pollution from Ships
OECD Organisation for Economic Cooperation and Development
PGRFA plant genetic resources for agriculture
PIC prior informed consent procedure
SADCC South African Development Co-ordination Conference
SARD sustainable agriculture and rural development
UNCTAD United Nations Conference on Trade and Development
UNDP United Nations Development Programme
UNDRO Office of the United Nations Disaster Relief Coordinator
UNEP United Nations Environment Programme
UNESCO United Nations Educational, Scientific and Cultural Organization
UNFPA United Nations Population Fund
UNICEF United Nations Children's Fund
UNIDO United Nations Industrial Development Organization
UNU United Nations University
WCP World Climate Programme (WMO/UNEP/ICSU/UNESCO)
WFC World Food Council
WHO World Health Organization
WMO World Meteorological Organization
WWF World Wide Fund for Nature (also called World Wildlife Fund)
WWW World Weather Watch (WMO)

OVERVIEW

Like many other countries participating in the 1992 Earth Summit, Indonesia realizes the importance of sustainable development in the effort to alleviate poverty, enhance the quality of life, and ensure that the economic, environmental and social goals of the nation are integrally linked. Five years after the Earth Summit Indonesia continues to strive to implement the sustainable development principles that the Summit adopted.

This report, presented to the Fifth Session of the Commission on Sustainable Development (New York, 8-25 April 1997), is a reflection of Indonesia's commitments and participation in the implementation of Agenda 21 and related international agreements reached at the Earth Summit. It contains a description of the progress achieved in attaining the objectives of Agenda 21, including the completion of Agenda 21 Indonesia. It also describes the implementation of the Convention on Biological Diversity, Climate Change and Forest Principles. Stakeholder participation in the implementation of sustainable development is another important issue contained in this document. Finally, the document also describes our vision for the future, mainly how sustainable development principles can become the guidelines and foundation of our national development planning.

Again, like many other countries in the world, Indonesia faces constraints in its efforts to implement Agenda 21. Some of the important constraints are the lack of skilled human resources in the field of sustainable development, the inadequate access to environmentally sound technologies and limited financial resources. It is our hope that the Fifth Session of the CSD will make a substantial review of the various sectoral and cross-sectoral issues in Agenda 21 to make them more applicable without losing the spirit and principles of sustainable development. We also hope that the CSD emphasizes the need to operationalize Agenda 21 and support regional and national activities.

Indonesia realizes that sustainable development cannot be undertaken alone by individual countries. In order that the principle can work well, it has to be implemented by all nations in the world. It is in this context that international cooperation in various fields becomes very important. Through this report, Indonesia would like to call on all nations to work together in an effort to achieve sustainable development for the welfare of all people on Earth.

Jakarta, April 1997

Sarwono Kusumaatmaja

State Minister of Environment

Republic of Indonesia

FACT SHEET

NAME OF COUNTRY: INDONESIA

1. Name of Key National Sustainable Development Coordination Mechanism(s)/Council(s).

Ministry of Environment

Contact point (Name, Title, Office): H.E. Ir. Sarwono Kusumaatmadja, Office of the State Minister of Environment

Telephone:

Fax: (62) (21) 385-7075

e-mail:

Mailing address: Jl.Medan Merdeka Barat No. 15, Jakarta 10110, Indonesia

2. Membership/Composition/Chairperson: Chair: H.E. Ir Sarwono Kusumaatmadja, State Minister of Environment/

Mr Sudarsoso, Secretary to the State Ministry of Environment; Mr. D. A. Kartakusa, Head of the Bureau for International Cooperation

2a. List of ministries and agencies involved: 3 ministries and governmental agencies.

Three other governmental bodies play an important role in related environmental matters: Ministry of Forestry; The Directorate General for Forest Protection and Nature Conservation; Ministry of Agriculture.

2b. Names of para-statal bodies and institutions involved, as well as participating of academic and private sector bodies:

2c. Names of non-governmental organizations involved:

3. Mandate role of above mechanism/council:

The Office of the State Minister of Environment is a government agency dealing with environmental matters. Its areas of responsibility include, among others: formulating the Government of Indonesia's environmental policies; planning national implementation programmes; coordinating all environmental activities carried out by government institutions/ and enhancing people's participation in environmental programmes and activities.

4. If available, attach a diagram (organization chart) showing national coordination structure and linkages between ministries:

CHAPTER 1: INDONESIA'S COMMITMENT TO THE EARTH SUMMIT

Indonesia's commitments to environmentally sound development began fourteen years before the 1992 Earth Summit

with the formation of the State Ministry for Development Supervision and Environment in 1978, or six years after the Stockholm Conference on Environment. Since then, environmental management has become part of development programs in Indonesia. Today, the State Ministry for Environment (SME) is the coordinating body for environmental management and sustainable development of various sectors.

... ... the pursuit of sustainable development, the integration and reconciliation of environment and development requires a concentrated and unrelenting effort involving the highest decision-makers in the community of nations. The stakes are high and the include the future of this planet as a life-support system, the capacity of nations to share the one world in which we live, and the ability of all Mankind to practice their shared humanity.

Let us not squander the environment which has been placed in our trust, nor lose this,s opportunity to bring about harmony among all human beings and all peoples of the world as well as harmony between humanity and the planet that supports its teeming life. That harmony shall be our worthiest tribute to God 's Providence for all His Creation.

(excerpts from the speech of President Soeharto at UNCED, 1992)

Until recently, Indonesia's economic development has been virtually dependent upon natural resources such as oil, minerals, timber, and agricultural products. Thus sustainable management of natural resources become an important factor in the long-term economic development. This is the reason behind Indonesia's commitments to the Earth Summit. The country was an active participant during the preparation of the Earth Summit and endorsed fully the commitments of the Rio Conference in 1992. For instance, Indonesia put forward the basic concept of relationship between population, development and environment which was adopted at the Earth Summit. Indonesia was also one of the first countries to sign the UN Convention on Biological Diversity (CBD) and the Framework Convention on Climate Change (FCCC) during the Earth Summit.

At the policy level, the commitment to the results of the Earth Summit is reflected in the 1993 Broad State Guidelines (Garis Besar Haluan Negara or GBHN), which states:

"National development requires a harmony in the relationship between humans and God, among human beings, and between human beings and their natural environment".

"Utilization of natural resources must be conducted in a planned, rational, optimum and responsible manner, and in accordance with the carrying capacity, by emphasizing the utmost welfare of the people and giving attention to the preservation of the functions and balance of the environment for sustainable development".

The above guidelines were translated into the sixth Five Year Development Plan (REPELITA VI). Indeed, management of the environment was first included in the REPELITA II, during the period 1973-1978. Based on the 1993 GBHN and the Earth Summit commitments, environmental policies in REPELITA VI ( 1994-1999) include:

* Selection of development site,

* Waste reduction,

* Waste management,

* Determination of environmental standards,

* Nature conservation and rehabilitation of natural resources and the environment,

* Institutional, community participation, and human resources development.

In addition, environmentally sustainable development policies are also included in various sectors, such as regional development, land resources and spatial planning, urban and rural development, housing and settlement sectors.

As part of the commitments to the Earth Summit, Indonesia ratified the UN Convention on Biological Diversity through Act no. 2/1995, and the Climate Change Convention through Act No./1994.

At the institutional level progress has been made too, although much has still to be done. The Environmental Impact Management Agency (Badun Pengendulian Dampak Lingkungan-Bapedal) was established through Presidential Decree no. 23/1990. Its main task is to exercise functions and activities in environmental impact control. Its strategies include developing environmental compliance, strengthening of institutional capacity and strengthening relationships within the community. BAPEDAL was strengthened in 1994 through the establishment of regional offices in Ujung Pandang, Pekanbaru, and Denpasar.

Meanwhile, there is no institution yet to oversee and evaluate the implementation of sustainable development. The concept of establishing a National Council for Sustainable Development (NCSD) is still under discussion. Indonesia wants to ensure that the establishment of a new institution is really needed and that the new institution is strong enough to play a vital role in the planning, implementation, and evaluation of sustainable development.

At the program level, an outstanding achievement is the completion of the Agenda 21 Indonesia document at the end of 1996. This was done through the Post-UNCED capacity building project, undertaken by the Ministry of Environment, with support from UNDP. The project involved 22 national consultants who formed working groups comprising government officials, NGOs, academics, the private sector, and the general public. The document contains recommendations for sustainable development up to the year 2020 for each sector of development, including human services and community participation. The document is at present being disseminated and discussed at various levels of the government and the community at large. Plans are underway to integrate the Agenda 21 Indonesia into development planning for REPELITA VII (1999- 2004) and to develop local Agenda 21.

In addition, field level programs have been initiated. For instance, the Business Evaluation Program, popularly known as Proper Prokasih has been conducted by Bapedal since 1994. This 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. 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,

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.

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.

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.

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. 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.

This reports provides information on policies and programs undertaken by Indonesia in its drive to shift towards sustainable development. The information is largely taken from the Agenda 21 Indonesia supplemented by recent developments provided by the various development sectors. Although this report presents information on policies and programs, it does not mean that Indonesia's drive to shift to sustainable development is without constraints and problems. As in many developing countries, Indonesia thinks that sustainable development can only be achieved if the constraints and problems are solved through a spirit of cooperation between all nations in the world.

It is our hope that this report will be a useful contribution to the discussion on the review of Agenda 21 at the global level.

CHAPTER 2: IMPLEMENTATION OF AGENDA 21 IN INDONESIA

INTRODUCTION
Indonesian society, with its growing economic base, its transforming population and its regional differences is a crucible in which can be found almost every element of broader global social and environmental change can be found. The challenge of sustainability for Indonesia - in either economic, social or environmental terms - is daunting if for no other reasons than the multiple complex settings in which sustainability must be managed for, and the significant financial and human resource costs that are required to undertake this. This section seeks to summarize the major social, economic and environmental issues which Indonesia faces, the kinds of policy and program initiatives that have been applied to engage these problems to date, and the generally wider and deeper solutions proposed to manage the longer term shift to sustainability that are laid out in the Agenda 21 Indonesia report. Agenda 21 - Indonesia was compiled by several Indonesian experts through the Post - UNCED Capacity Building Project, implemented by the Ministry of Environment, and supported by UNDP. This section is, in essence, a summary report.

This section is structured around four 'issue area' sections (i.e. Human Services, Waste Management, Land Resource Management and Natural Resource Management) as follows. Each section is comprised of two parts. Sections commence with a background report which provides an analysis of the basic nature of 'issue area' problems in Indonesia and their projected growth or change in the next 25 years. Following these problems' analysis, the sections then elaborate a description of the most important activities undertaken to manage the 'issue areas' to date as well as the proposals from Agenda 21 Indonesia for the longer term shift to sustainability in the future. A series of broad conclusions will follow the 'issue area' sections: These will frame some of the major potential constraints to the longer term implementation of Agenda 21 - Indonesia recommendations as well as highlight and track some of the most important progress that has been made in the nearest term policy and program areas proposed.

2.1. HUMAN SERVICES

Human Services: Background

The human context of sustainable development in Indonesia is interwoven with every other theme and functional area examined in this report. This "Human Services" section will examine the dynamics of individuals, families, communities and regions, their relationship to economic and environmental trends and the governmental, NGO and private sector responses necessary to manage some of the most important and complex aspects of Indonesian society in the next century.

The human services examined here cannot be either examined or engaged separately. This section will examine the background of the issues of poverty (and poverty alleviation), shifting consumption patterns, the dynamics of Indonesia's growing population, health issues and challenges in Indonesia, human settlement issues and more transitional issues of global trade, globalization and the macro policy context of all the issues presented thus far.

The background of human service issues in Indonesia is both complex and sweeping. for example, Indonesia's population (1993) is estimated at 185 million and is projected to increase to 257 million by the end of the planning horizon of Agenda 21 - Indonesia (2000). Of the 185 million people, approximately 25.9 million are living in 'poverty' as defined by international absolute standards. The impact of the changing economy of these people, the demands that the people place on the development of public infrastructure and the impact that such changes will have o the environment at local and regional levels need to be both conceptualized and engaged in an integrated fashion.

The Indonesian Constitution (1945) framed development based on the democratization of the economy and on 'brotherhood principles' - hence, the major public initiatives for the alleviation of poverty. Poverty is defined in the REPELITA as "a situation of inability to meet basic needs due to limited access to capital, insufficient value for commodities produced, and restricted opportunity to participate in the development". The poor are typically also unable to access natural resources and/or social services such as health, education, transportation and sanitation.

Of those deemed 'poor', 8.7 million live in urban areas and 17.2 million live in rural areas. Generally, the poor are classified as either farmers, fishermen or 'urban poor'. Each category (the farmers group is numerically the most significant) has a distinct constellation of problems and issues to which development initiatives must respond.

Another major issue with impacts on the social, economic and natural environment is the change in the Indonesian population and in its consumption patterns. Issues here concern both the absolute numbers of the Indonesian population as well as its distribution, mobility and rates of consumption of natural resources.

Overall, the population growth rate has decreased from 2.3% per annum (1971-1980) to approximately 1.66% per annum during the 1990s. It is projected that the growth rate will decrease to 0.68% by the end of the planning horizon of this report. Both the raw numbers of this increase, as well as demographic changes will precipitate major changes in Indonesia. For example, increased urbanization and population growth are expected increase Indonesia's urban population to 132.5 million (i.e. 50% of the total population) by 2020.

Population growth, urbanization and development will also 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. Increases in air and water pollutants are expected to parallel increases in consumption: Projections are for urban air pollution (70% derived from transportation) to increase 6%-8% annually, to a potential tenfold increase between the years 1990 and 2020. Similarly, sulfur dioxide (SO2) from industry is expected increase from 200,000 tons to 1.5 million tons over the same time period.

Water resources will come under similar pressures. The increasing population and the use of irrigation on 70% of paddy fields of Java is expected to yield qualitative and quantitative water demand problems before 2020, as the water carrying capacity of the island is outstripped. Issues of population, consumption and poverty all have important relations to Indonesian health issues. Health is recognized as one of the prerequisites of sustainable development and a safe environment is recognized as one of the means to improve the health of communities. Many health issues have been improving in Indonesia. The infant mortality rate decreased from 145 per 1,000 live births in 1967 to 62 per 1,000 in 1990. The average life expectancy of men and women both increased significantly over the same period.

Human settlements (i.e. housing and communities) are the primary settings in which these complex human service dynamics interact. Settlement issues for much of Indonesia are confounded by poverty, resource scarcity and pollution and population density. There are qualitative and quantitative needs for more and better housing. Recent studies suggest that approximately 750,000 new housing units will be needed by 2020. This will reflect not only population growth but a demographic change in housing from extended families to nuclear families.

All human services relating to poverty, pollution, settlement, consumption etc. are nested within Indonesia's (and the region's) macroeconomics environment. This 'environment' provides the major context in which human service issues are monitored, planned and delivered. Recent years have seen significant national economic growth Indonesia is now considered a 'low middle' income country with a per capita income of approximately US $1,000 that is gradually catching up to.more wealthy industrialized nations.

Average economic growth during REPELITA VI 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.

Human Services: The Progress to Date and the Shift to Sustainability

The complex intersection of human service issues and problems requires significant and integrated policy and program responses. This section will outline the principal initiatives to engage human service issues to date as well as present the most important new initiatives proposed in Agenda 21-Indonesia for the longer terms shift to sustainability. These new initiatives reflect Indonesia's need to balance environmental and developmental priorities as well as the considerable diversity (urban/rural, modern/traditional, industrial/agricultural. center/periphery) that comprises Indonesian society today.

Policy and program action is necessarily inter-related. Much of it is concerned with the alleviation of many of both the causes and the effects of poverty. In REPELITA VI, development policy was explicitly framed around principles of equal distribution and of equal access to food, clothing, housing, education and health services, business and development activities. The main target of the REPELITA Vl poverty alleviation program is the improvement of the role of small businesses, particularly in the agricultural sector where the majority of the poor reside, through the development of cooperatives and businesses in the informal sector. This program is aimed specifically at the 6% of Indonesia's population living in conditions of 'absolute' Poverty.

Through this policy initiative, more than 39,000 cooperatives and 8,700 new village cooperatives (KUD) have been established. Other small business initiatives include the development of credit systems for small scale investment (KIK), small scale business (KUK), permanent working capital (KMPK) and rural loans (KUPEDES).

Agenda 21 - Indonesia extends much of this activity into the future. The proposed long term goal of policies and programs is to create a sustainable increase in income and quality of life is the eradication of poverty in Indonesia. Financing from 1998-2003 from the Indonesian national budget is expected to amount to approximately ten percent of the entire state expenditure.

Other major poverty alleviation human services program areas proposed in Agenda 21 - Indonesia are the development of health services, especially drinking water and environmental sanitation and the sustainable use of natural resources (particularly agricultural land).

Policy and program activities to manage consumption to sustainable levels are intimately connected with those to manage and alleviate poverty. There has been progress to date in the production of foodstuffs - programs to increase rice production have resulted in a production increase of 31.6% from 1980-1985 and a smaller increase of 14.6% from 1985-1990. Energy consumption has been managed somewhat less successfully to date. Indonesia does have significant coal, oil and gas reserves - coal reserves are projected to be adequate for hundreds of years.

However, given the inefficient use of energy in Indonesia and the increasing air pollution caused by energy use, new initiatives are proposed in Agenda 21 - Indonesia to improve awareness in all social sectors of the economical, efficient and environmentally sound use of energy. Additionally, research on new policy instruments to manage energy prices is proposed.

Contemporary problems of adequate, clean water supply will be discussed in greater detail in Land Resource' and 'Natural Resource sections. Issues of water supply and water quality require management on many fronts. Among the key proposals in Agenda 21 - Indonesia for upgraded water resource management are the encouragement of reduced use of water supplies the provision of safe potable water for all Indonesians, and the development of additional laws, regulations and control policies for water resource management.

While poverty and consumption have clear and tangible needs for management, the population dynamics of Indonesia have been less readily engaged to date. Population affects human services and broader social and environmental factors in a variety of complex and recursive manners. As indicated earlier, the rate of growth of the Indonesian population is decreasing and the mobility of the population is increasing.

Agenda 21 - Indonesia proposes to engage population issues in the near-term by commissioning research on the linkages between population, environment and sustainable development. The results of this research could be used for the formulation of integrated policies at national, regional and local levels to address demonstrated needs and gaps. Data needs to be gathered and integrated to link demographic and environmental variables. Following this, demographic analysis will be included in a more integrated manner in a variety of development planning tools, including Environmental Impact Analysis (AMDAL).

Human services relating to health have - to date - already led to dramatic improvements in aggregate Indonesian population indicators such as life expectancy and infant mortality. Regional variation in program implementation and effectiveness remains, however, quite significant.

Improvements in health services are framed in Agenda 21 as part of Indonesia's drive to sustainability. Proposed program areas include more widely available primary health care improved control of contagious diseases and improved urban public health While primary health care has improved with the growth of the Village Community Health Development Program which operates through the 'posyandu' network (this program more than doubled its organizational members to 200,000 between 1984 and 1989), the near-term objective is to implement primary health care for all people through the expansion of the community-based posyandu primary health care model. The financial requirement of this proposed program is estimated to be US $ 8,3 million per annum.

Major objectives have also been proposed in Agenda 21 - Indonesia for the control of contagious diseases, including programs to rid Indonesia of many parasitic diseases, to reduce diarrhea, tuberculosis and other respiratory infections. In the longer term, the Indonesian objective is to eliminate a variety of significant diseases (e.g. cholera, hepatitis B, rabies). Mass immunizations and institutional development programs will require an expenditure of approximately

US$ 52 million.

Promoting human settlement development is the final major functional division of the human service component of Indonesia's response to Agenda 21. Indonesia's goals to date are consonant with broad international goals of 'shelter for all' and have been represented by substantial progress thus far. Since 1974, the Kampune (hamlet) Improvement Program has attempted to address broader settlement issues than simply housing. More recently - since REPELITA IV (1984-1989) - policy has attempted to engage all aspects of housing and residential areas management in a single integrated process. Recent developments have followed Habitat's Shelter For All strategy and have stressed community empowerment and involvement in the community design process. Thus far, however, housing policy has not reflected the importance of environmentally sound and sustainable human settlements development as a primary conceptual and planning frame for housing development in Indonesia.

The attempt to integrate human settlements and sustainable development in Agenda 21 - Indonesia has led to two proposed planning and program initiatives to develop and manage housing and settlements. A great deal of new housing will be needed in Indonesia during the planning horizon of this study, and much of it will be required in densely populated urban centers.

Within the context of improving the housing development process and developing environmentally-sound development regulations, public sector resources will be targeted toward both development planning and the actual development of housing and institutions. lt is suggested that total investment in housing and settlement services will require between 7% and 18% of GDP. Publicly funded construction will be limited to the development of major infrastructure systems and the construction of housing to assist low income communities. At the macro level, the new objectives of settlements policy will be to improve infrastructure and social amenities while maintaining environmental carrying capacity. At the regional level, it is anticipated that indigenous sources of revenue for settlement development will complement state funds.

The major context of human service development has been shown to be Indonesia' s situation in terms of economic growth and economic transformation Economic managers in Indonesia have already achieved significant and steady medium term growth rates and having positioned Indonesia within two trading blocks that comprise many of the world's most rapidly growing and dynamic economics.

Given Indonesia's strong economic prospects, national priorities reflected in Agenda 21 - Indonesia include continued political and economic stability, increased deregulation and debureaucratization, continued development of social and physical infrastructure and the implementation of sustainable and environmentally sound development.

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.

In order to engage these challenges, and the broader 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 and 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.

2.2. WASTE MANAGEMENT

Waste Management: Background

The previous section summarized Indonesia's trends, issues and responses as the relate to a variety of human social, economic and demographic factors in Agenda 21 Indonesia. As complex as these are, however, they still do not directly consider the various factors of the social and economic 'through put' system other than the planned or intended ones.

Unplanned or unvalued products (i.e. outputs) of 'through put' systems are typically referred to as 'waste' products and have traditionally been managed as an afterthought of various important household and business transformation processes.

It is now recognized that 'wastes' must be managed in a more integrated, comprehensive, long term and strategic manner. This section will directly examine the plan in Agenda 21 - Indonesia for the environmentally-sensitive management of various waste streams and the contribution that waste management will make to broader initiatives relating to social, economic and environmental sustainability. The logic of this section will be based on kinds of waste produced (e.g. atmospheric, radioactive) and the distinct problems and management strategies associated with each. The important intersectoral variations in both the nature of waste production and the manner of waste management will be examined within each waste stream category.

Issues of waste production and management are likely to be challenging and potentially intractable for a nation such as Indonesia that is characterized by endemic poverty, rapid and consistent economic growth, increasing industrialization, increasing population density, and inadequate funds for the development of massive public social and technical infrastructures to manage these trends. These trends - described in the previous section - provide a setting in which increases in both the quantity and toxicity of waste are inevitable, and in which their impacts on human and wildlife populations are likely to become significant and growing. While the effects of inadequate waste management systems are typically framed in local terms, the conceptual frame for waste effects in Agenda 21 - Indonesia is also stretched to include regional effects (i.e. from solid and waste water dumping in the marine environment) and regional/global effects (i.e. from the production of greenhouse gases and ozone depleting substances).

The Indonesian waste stream with the most obvious potential for global effects is atmospheric pollution. However, atmospheric pollution will also be a serious local issue in Indonesian urban centers - for example, air pollution levels in Jakarta are expected to increase 600% between 1990 and 2018. The primary source of atmospheric pollutants (i.e. carbon monoxide, suspended particulate matter, volatile hydrocarbons, sulfur dioxide) is the combustion of fossil fuels, although in rural areas the combustion of crop ar.d timber residues as well as that of fuelwood are also significant contributors.

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.

Indonesia's contribution to macro level atmospheric problems is at present not very significant. Indonesian industry consumes less than 1% of the world's ozone depleting substances and produces between 1.6-1.8% of the world's greenhouse gas emissions. Interestingly, while most local atmospheric pollution threats originate from fossil fuel combustion, most greenhouse gas emissions come from rural land use changes, principally forest fires used to clear forested land for agriculture.

Liquid and solid waste issues take a variety of forms in Indonesia and have a corresponding range of present and future severity. These waste forms range from relatively innocuous domestic solid wastes which pose challenges because of volume increase projections to toxic and radioactive wastes which pose challenges more due to their quality and ecosystem persistence than to their absolute volumes.

Nontoxic residential and industrial wastes have a variety of effects in Indonesia, but their most significant one is the pollution of acquires and watercourses which are the source of drinking water and also economic livelihood for millions. Waste water has been collected and managed from many households, but has not kept up with population increases.

In 1993, only 52% of families had sanitation considered adequate, and even many of these had septic tanks and leach pits which can be significant sources of polluted groundwater and surface runoff. Only 40% of the urban population of Indonesia has its solid waste collected, and formal waste collection systems are almost unknown in rural areas. Uncollected solid wastes are typically either burned or disposed of in streams or in open land.

Given the demographic trends already discussed growth in the production of solid wastes is projected to increase dramatically. This will pose serious environmental and social challenges given the already low collection and management rate. Solid waste production is projected to increase 500% by 2020 for the domestic sector and 1000% for the manufacturing sector. The resulting pollution of watercourses and aquifers in centers of high population densities is projected to increase 800% during the same time period. The deterioration of water quality will increase health problems, particularly for the urban poor.

Even the solid waste that is collected poses significant environmental challenges. There are only six sanitary landfills sites in Indonesia at present, while there are more than 380 open dumps. Open dumps can themselves be significant sources of groundwater leachate, methane gas, smoke and vermin/pests.

Waste streams described variously as 'toxic', 'hazardous' and 'radioactive' originate primarily (90%) in the industrial/commercial/institutional (ICI) sector rather than the domestic/residential sector. These streams tend to constitute local rather than macro level environmental management challenges, and their environmental effects are in many cases, poorly documented or uncertain. However, given the rapid industrialization of the Indonesian economy, both the use, production and potential discharge of toxic, hazardous and radioactive materials is likely to grow into at least the medium term of the planning horizon considered in Agenda 21 - Indonesia.

Hazardous (B-3) waste production is projected to grow in tandem with.the rapid industrialization of Indonesia' s economy. Total waste volumes are projected to grow from 200,000 tons to 1,000,000 tons between 1990 and 2010. However, because of a commensurate increase in the toxicity of this materials such as bio-accumulative heavy metal pollutants, the absolute pollution burden is projected to increase 1000% by 2010.

The use, production and disposal of radioactive wastes in Indonesia is not yet a major issue. There are at the present time, no energy-producing nuclear reactors in Indonesia, although the growth in energy demand on Java and Bali is projected to produce a shortfall in non-nuclear energy production by approximately 7000 Mw by 2015. This is equivalent to the energy produced by 7-12 large commercial reactors. Approximately 90% of radioisotopes presently produced in Indonesia's three research reactors are used in nuclear medicine.

Waste Management: The Progress to Date and the Shift to Sustainability

Given that the comparatively few generic types of waste discussed in the previous section originate from multiple domestic, ICI and agricultural sources, policy and program initiatives to manage them can be expected to be similarly diverse. As such, they encompass activities ranging from traditional municipal infrastructure programs such as sanitary sewer development to much more technically and administratively complex challenges such as the monitoring, tracking and enforcement of regional trade in toxic chemical wastes.

This section will outline the most important policy and program elements of Indonesia's multifaceted response to waste management challenges to this point. These elements - which comprise Indonesia's waste management progress to date, will be compared to the reported scope of waste issues as well as future projections. This analysis will provide the context for new and upgraded initiatives as outlined in Agenda 21 Indonesia.

Given the global, regional and local scope of atmospheric pollution, Indonesia's response to date has combined macro policy developments with a variety of local regulations and programs. To date, there has been relatively little direct management of either total energy use or energy use efficiency in Indonesia. Progress to date has consisted more of the development of a clearer understanding of the social, economic and environmental impacts of energy use. In terms of stratospheric ozone depletion and greenhouse gases, Indonesia has taken a variety of steps. It ratified (1992) the Vienna Convention for Ozone Layer Protection and the Montreal Protocol and committed to a phase out of all ozone depleting substances in Indonesia by 1997. To address global climatic change and the management of greenhouse gas emissions, Indonesia has enacted numerous pieces of legislation as well as convened a National Committee on Climate and Environment. This committee reports directly to Minister of Environment.

Agenda 21 - Indonesia acknowledges that policy and program initiatives thus far will be inadequate to manage the potential explosion in atmospheric pollution emission that will follow the expected economic growth and industrialization of the next decade. Thus, many new activities are proposed. 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.

Energy efficiency in the industrial sector can reduce emission (by as much as 30%) in the industrial sector. To realize some of these efficiency gains, Agenda 21 - Indonesia recommends the establishment of more stringent emission standards and the application of selective emission reducing production process technologies. In the residential sector, proposed initiatives include a program to replace kerosene usage with gas and electricity in urban centers. Not only will these alternative technologies be more efficient; but usage will shift away from highly subsidized kerosene products.

In terms of stratospheric ozone and greenhouse gas emissions, Agenda 21 Indonesia proposes a complete phase out of all ozone depleting substances by 1997. The plan to reduce greenhouse gas emissions from deforestation is a much more complex issue. Proposals to minimize deforestation are discussed in greater detail in the following section.

Urban sources of greenhouse gas will be managed in the short term by improved efficiency standards and in the longer term, by imposition of carbon taxes.

Indonesia's success to date in the management of toxic chemicals has been mixed. On one hand, many categories of hazardous and toxic materials are at least partially managed by major public institutions and regulatory agencies with significant legislative backing. However, typically these agencies have paid inadequate attention to public health and environmental concerns - and there remain many toxic chemicals that have not yet been designated the responsibility of any particular institution.

Agenda 21 - Indonesia provides for the improved management of toxic chemicals through a variety of instruments. Key initiatives include a proposed 'community right to know' policy and program, human resources development for both administrative staff and field managers on the management of toxic chemicals, and improved liaison with international bodies such as the International Registry for Potentially Toxic Chemicals to facilitate rapid information uptake and dissemination in Indonesia.

Hazardous (B-3) wastes have been approached from an integrated 'cradle to grave' approach since a 1987 Indonesian Ministry of Environment report on the subject. Management regulations on B-3 wastes were enhanced, developed and separate from more generic toxic waste management in 1994. These regulations and the framework which surrounds them provide for the safe management of hazardous wastes at points of production, storage, transportation, treatment and final disposal. Similar robust regulations govern the import and export of hazardous and toxic materials. These policy activities are described in Agenda 21 - Indonesia as limited for a variety of reasons relating to inadequate institutional capability. These limitations are framed in human resource, technical, legal and financial resource terms, and are particularly troublesome given the manifold increase in hazardous waste volumes projected for the next two decades in Indonesia.

Improved hazardous waste management proposed in Agenda 21 - Indonesia centers on the application of the 'cradle to grave' management concept that has already been framed legally. To undertake this, additional B-3 waste treatment centers must be established, bioremediation of polluted sites will be required and the existing regulatory framework will require additional resources to implement. In the longer term, a national target for the reduction of hazardous waste by 50% by 2020 is proposed. To engage the international trade in toxic chemicals, Agenda 21 - Indonesia proposes a complete ban on the import of B-3 waste in 2003 and the development of the requisite regulatory and monitoring tools to enforce this ban.

The final category of toxic waste examined is radioactive waste. To date, only a minor legal and regulatory apparatus has been required to manage radioactive waste in Indonesia because of the minor role that such products have played in Indonesia's economy. However, given the expected growth in radioisotope production and application in Indonesia (particularly if nuclear energy is chosen as an energy production option), new management strategies will be required

The radioactive waste management strategy proposed in Agenda 21 -Indonesia is primarily at the level of macro frameworks. A major policy infrastructure is proposed, which would include regulatory, legal and institutional supports. One strongly proactive initiative is a recommendation for the acquisition of nuclear waste storage and disposal technology and expertise prior to the creation of large quantities of medium and long term radioactive wastes.

Progress to date on the management of the high and increasing volumes of solid and waste water has been significant but is still inadequate compared to the scope and growth of the problems. Action has been taken to reduce waste - pilot projects in a variety of Indonesian industries showed one to five year playback on capital investments in waste reducing process improvements. There is at present an 8.1% recycling and composting rate in Indonesia through scavengers, material producers and 'green waste' used in gardens and soils. In REPELITA VI, a commitment was made to extend solid waste service coverage to more than 60% of households in medium sized cities and small towns and to more than 80% of populations in large cities and metropolitan areas. Similar extension of waste water collection and treatment were proposed in the Human Waste and Domestic Wastewater Management Strategy in REPELITA VI. Industrial wastewater management was targeted for improvement in 1989 with the establishment of maximum pollution loads for 24 of the most polluted watercourses in Indonesia - this program has been deemed ineffective, largely due to inadequate monitoring and enforcement capabilities in the necessary public agencies.

Given the rapid growth in solid and waste water volumes projected across the planning horizon of this report, Agenda 21 - Indonesia proposes a variety of additional policy and program measures to manage waste streams more successfully in both environmental and social terms. First and foremost, it is proposed that waste prevention and minimization, rather than recycling or disposal, be chosen as the primary objective of national waste management programs. It is suggested that at least two percent of the national expenditure for solid and wastewater treatment and disposal be reallocated toward waste minimization. Related to this is a proposal to institute volume based pricing for residential solid waste disposal.

Agenda 21 -Indonesia also proposes an upgrade of recycling programs to triple the present waste diversion rate. It is in the area of waste water disposal, however, where the scale of sustainable waste management activity becomes apparent. At present there already exists a massive backlog in the provisions of sewerage in high density urban areas. It is estimated that 90 years of construction would be required to service the backlog alone. The expenditure proposed in Agenda 21 -Indonesia to deal with additional future demand growth is estimated to be in excess of Rp 3 trillion. Thus, the principal change in policy orientation recommended in Agenda 21 - Indonesia is the shift of the central government's role from a provider of wastewater services to an enable and a partner of other service-providing organizations. This shift, and a concurrent shift towards the institution of full cost user fees for residential and ICI users is hoped to enable the extension of solid waste and sewerage service to between 85%-100% of households by 2003.

2.3. LAND RESOURCE MANAGEMENT

Land Resource Management: Background

A country such as Indonesia, with a long agrarian tradition, an increasing population and a limited capacity to provide employment in the burgeoning urban centers is necessarily dependent on its land mass in a variety of ways. This dependence can impact broader development issues in a variety of ways. For example, poor rural land-use can be both the cause of urban migration and also its effect, since poor urban land-use can cause pollution problems in rural communities that are either downstream in riparian or groundwater terms.

Because of these linkages, and because of the extent of Indonesia's present economic and social dependence on agriculture and forestry, Agenda 21 -Indonesia realizes the importance that the land resource is to be managed sustainably. This section will provide an analysis of land conversion, forestry, water and agricultural issues in Indonesia and the impacts that Indonesia's demographic and economic transformation are projected to have on these elements of land resource management.

In urban areas, the dominant land resource management concern is the conversion of agricultural to non-agricultural land. During the period from 1980 to 1995, the urban area in Indonesia increased by an estimated 367,500 ha., an average of 25,100 ha. per year. Almost 60 percent of that development - just under 15,000 ha. per year - occurred in Java. The World Bank estimates that by 2010 roughly 13% of Java's 3.4 million ha. of rice fields may be converted into non-agricultural land. This trend is projected to threaten Indonesia's self-sufficiency in food production. Much of the converted land will be irrigated land, meaning the waste of the major capital investments that have been made in irrigation systems. Individual farmers can make larger profits by selling their land to investors than by using it to produce food.

In rural settings, forest areas at high altitudes and wetlands in the coastal areas are being converted to agricultural uses, with considerable disruption to ecosystem processes. Soil erosion due to these disturbances will cost the country an estimated $300-400 million US per year, 90% of it in the form of loss of land productivity and the remainder in the form of accumulation of sediments in irrigation systems, reservoirs and coastal areas.

In Indonesia, the total area of degraded, denuded and waste land is presently estimated at 30 million ha., two thirds of it in Java. Without serious efforts to address this problem, waste land areas can be expected to increase by 1-2% per year.

Issues of similar scale are affecting forested lands. Despite its relatively small land area, Indonesia has the third largest area of tropical forests in the world, with diverse forest ecosystems ranging from tropical lowland and highland to peat swamp and mangrove forests. Mixed hill forests, which account for about 65% of the country's natural forests, are the most important ecotype in terms of timber production.

Data on Indonesia's forests is incomplete - a significant complicating factor in sustainable forest management - but recent Ministry of Forestry estimates state that the nation's forests cover 140.4 million ha., of which 30.7 million ha. are protected forests, 18.8 million are nature reserves or national parks, 64.3 million ha. are production forests and 26.6 million ha. are "convertible forests," designated for non-forest uses such as agriculture, settlement and transmigration.

Forests in Indonesia play multiple, often conflicting economic, social and environmental roles. These roles have not been effectively balanced over the last 25 years. Resource extraction and development pressures have dominated, leading to a deforestation rate of approximately I million ha. per year. State sponsored programs in transmigration, estate crops and swamp development are responsible for 67% of this total.

Timber extraction has been an important source of foreign exchange. In 1993, forest products accounted for 26.9% of non-oil export earnings. Along with related downstream (secondary and tertiary sector) manufacturing, they contribute approximately US $9 billion per year to the economy, or 7% of Indonesia's GDP. The demand for forest products is expected to grow in coming years due to population increase, economic growth and international trade.

Given the importance of the industry, a shift towards sustainable forest management is accepted as a key national challenge that is essential to Indonesia's longer term economic development. Linked to this is a growing focus on the needs and views of local communities in forest planning and an increasing emphasis on the economic and other values of non-timber forest products such as rattan and medicinal plants.

Agriculture is still by far the largest 'natural resource' sector of the Indonesian economy and is also the way of life of a majority of its people. Villagers will continue to make up a majority of the country's population even at the end of the 25-year planning horizon of this report. Thus, in Indonesia, issues that relate to rural development and agriculture have special importance for broader attempts to implement sustainable development.

Local supply of rice is a national priority. Under the country's First Long-term Development Plan (PJP 1), Indonesia achieved the goal of self-sufficiency in the production of rice, through both major increases in productivity and expansion of the area under rice cultivation by more than a third. The challenge of self-sufficiency remains, however, due to rapid population growth and pressures on agricultural land. The national demand for rice is expected to converge with the supply at 32.3 million tons in 2003 and then surpass it - projections suggest increasing rice imports in the mid to long term.

The agricultural sector itself is presently transforming due to the increases in both technological intensity and international market pressures. It is expected to become both more efficient, specialized and diversified and concurrently to employ considerably fewer small farmers.

This change is one of the dynamics precipitating the urban migration discussed in the Human Services section.

The dependence of all of Indonesia's multiple development activities (both land resource and industrial) on the availability of adequate supplies of unpolluted water resources cannot be understated. This key resource is essential for everything from household consumption to industrial production processes, agriculture, transportation, power generation and waste disposal. Yet at present the inefficient use of water in Indonesia is degrading its supply in both qualitative and quantitative terms - a problem which has already reached a critical level in some densely populated areas. This problem threatens human services provision and economic development in the affected regions with failure or serious disruption.

The agricultural sector dominates fresh water consumption, using about 98% of Indonesia' s water resources. 1991 data show that national water requirements for irrigation and fish-farming ponds amounted co 74.9 billion cubic meters. This volume is projected to rise by an average of 10% per year to the year 2000 and 6.7% per year to the year 2015, for a total in that year of 116.96 billion cubic meters. It is uncertain whether this projected volume can be supplied through existing collection and storage systems.

Domestic water use, meanwhile, stood at 3.1 billion cubic meters in 1990. Projected increases are 10% per year to the year 2000 and 6.67% per year over the following 15 years. Domestic demand is greater:t on the islands of Java, Sumatra and Bali, which have the highest populations and are the most urbanized. Water scarcity has already begun to impact on large urban centers in Java, such as Jakarta, Bandung and Surabaya. Groundwater resources are in serious condition, with the level in key aquifers dropping by up to several meters per year.

Total industrial demand is projected to increase nine fold to 6.4 billion cubic meters by 1998, and will continue to grow very rapidly in the future. In terms of water quality, industrial waste discharges (c.f. Waste Management section) are damaging water in a number of regions of Indonesia, particularly in Java. An estimated 250,000 tons of industrial waste were released there in 1990; by the year 2010 this is projected to increase to 1,200 million tons per year, including I million tons of hazardous materials such as heavy metals, pesticides and highly toxic and persistent organic compounds. The supply of safe water for domestic use is also a critical issue. At present, a great majority of Indonesia's poor, particularly those in large cities, live without access to clean running water. As urban populations grow this will contribute to a significant decline in the quality of life, and the prevention of water-borne diseases by already overburdened public health programs will become even more challenging and pressing.

Land Resource Management: The Progress To Date And The Shift To Sustainability

The dependence on Indonesia society on the land resource suggests an ongoing tension between the provision of current needs and the maintenance of sustainable levels of resource quality and quantity for use in the medium and long terms. This tension is likely to be exacerbated by the prevalence of poverty in rural agricultural areas and by high population density and inadequate physical infrastructure in urban areas. However, given the vast importance of land resources to Indonesia, a broad array of land resource management initiatives have been implemented to date. Agenda 21 - Indonesia proposes other initiatives planned to shift the present management regime to one that is sustainable in the long term. This section will outline progress to date and Agenda 21 - Indonesia proposals in the areas of land resource planning, forest management, sustainable agriculture and water resource management.

To date, the growing need for capacity to manage and control land conversion has been met with limited success. There has been an attempt to managed conflicts over land use priorities through coordination of planning at the national and regional levels. BAPPENAS (the National Development Planning Board) is currently in the process of preparing the National Strategy for Spatial Planning Scheme Development, which is expected to become the guideline for the development of spatial plans in the Level I and Level 2 regions. The existing Spatial Planning Law of 1992 is intended to integrate conflicting uses, preserve intended spatial function and prevent long term negative environmental impacts. A major 25-year plan to register and issue land titles was also launched in 1992. Supported by the World Bank, the National Land Agency (BPN) is currently compiling a major integrated database of laws, regulations and court decisions regarding land with the intent of facilitating analysis and streamlining of the system.

Agenda 21 - Indonesia proposals on land-use planning are premised on the development of a more coherent land-use decision making framework. Once in place, it proposes to grant greater autonomy to Level II governments to facilitate decentralization of land resource decisions. Active public disclosure of plans and greater public participation in planning are also recommended. An overhaul of land taxes and permits is also urgently required to control destructive land speculation at the rural-urban interface. In terms of degraded land, Agenda 21 - Indonesia proposes an inventory of the location and condition of critical sites, and systematic action to restore land productivity. A proper national land information and data system will also be required to facilitate sound planning and resolve the current fragmentation, duplication and inefficiency of land data. New technologies of aerial photography, digital mapping, remote sensing and satellite imaging will play a critical role. A major human resource development effort is required to create the capacity to manage this system.

In forest management issues, Indonesia has already been active on a variety of fronts. Internationally, it is a member of the IUCN and the International Timber Trade Organization (ITTO), hosts the Center for International Forestry Research, and is a party to CITES and the UN Convention on Biological Diversity. Forest management reviews in cooperation with the FAO and the World Bank led to the finalization of the Indonesian Tropical Forest Action Plan in 1991. Various bilateral and multilateral sustainable forestry initiatives are currently underway.

As required by ITTO, the Government of Indonesia has declared its intention to ensure that its forest exports come from sustainable managed forests by the year 2000. One current effort in this direction is the development of criteria and indicators for sustainable forest management through the Indonesian Ecolabelling Foundation. Recent regulations have strengthened environmental policy and enforcement in forest extraction, particularly through new approaches to concession management and inspection.

However, there is still a tendency to manage the forest with a short-term horizon for immediate economic ends. Efforts at sustainable resource management have been hampered by inadequate and sometimes inconsistent laws, and by a lack of information and institutional capacity. There is much work required to stabilize the situation during the time-horizon of this report.

The broad objective of the Agenda 21 - Indonesia report for the forestry sector is to restore and maintain the range of economic, ecological and socio-cultural functions of the forest. Recommended and proposed activities include development and testing of environmentally and socially sensitive forest harvesting practices; a complete review of logging concession policy; dissemination, monitoring and enforcement of existing forest sustainability decrees; the development of strong sanctions for violations of sustainable forest management practices; and pursuit of the ecolabelling approach such that ecolabels apply to the marketing of all forest products by 2005.

Forest replanting and rehabilitation projects must be expanded and the management of protected areas must be improved to meet Agenda 21 - Indonesia goals. It is proposed that reforestation and replantation programs have a target of creating one million ha. of additional forest from 1998-2000, 2 million ha. per year from 2000-2003, three million ha. per year until 2010 and five million ha. per year after that date.

Underepresented habitat types, particularly lowland forests and wetlands, must be added to the inventory of protected areas. A major overhaul of forestry regulations is also proposed, as are strategies to achieve much more significant community participation in forest resource utilization. One promising area of proposed development is community based eco-tourism.

A variety of successful initiatives to date have helped to develop Indonesia's agricultural resources. Over the past 35 years, the Ministry of Agriculture has implemented a number of programs to rehabilitate and prevent the degradation of land.

Land reclamation has been a slow and expensive process, however, and results of these activities have been mixed. Other progress has been made in the use of integrated pest management as an alternative to otherwise significant applications of dangerous pesticides. In the late 1980s, following a serious problem with pesticide-resistant brown plant hoppers which attack rice plant, the Government of Indonesia introduced the Integrated Pest Control program. By 1995 this program had trained nearly 200,000 farmers. Despite these efforts, many pesticide products currently remain in common use in Indonesia that have been banned in the countries of origin due to their toxicity.

Agenda 21 - Indonesia proposes a variety of concrete activities to shift towards sustainable agricultural practices, a few of which are summarized here. Overall, it recommends the inclusion of both long-term planning and environmental concerns, including soil nutrition and water use, as criteria in all major policy and program activity. In more specific terms, it recommends that the Integrated Pest Control program be expanded immediately, with a goal to train 800,000 by 1998. A variety of other measures are proposed, including strict monitoring and control of pesticide use, legal restrictions on land conversion and agricultural extension programs focused on issues such as soil fertility and uses of crop wastes.

To date, water resource management policy and program activity has been more oriented toward baseline research than demand management or rehabilitation programs. Major activities thus far consist of the proclamation of the Clean River Program (Prokasih) in 1989, research programs to develop national surface water volume and subterranean water volume estimates by the Public Works and Mining and Energy Ministries respectively in 1994, and a detailed analysis of aggregate water use by the Public Works Ministry in 1995. These initiatives have not had a major impact on either the efficiency of water use (particularly in the agricultural sector) or on water quality, likely because of the early stage at which comprehensive water resource management planning has been in Indonesia until quite recently.

The Agenda 21 - Indonesia report proposes that water resources be managed in a much more coordinated manner, and be planned on a watershed basis. Additionally, Agenda 21 - Indonesia proposes a shift from a research orientation to one of more active management of the water resource. Agenda 21 - Indonesia proposes that policy changes commence with the agricultural sector due to its predominant role in overall water consumption. It recommends that the existing Prokasih program be continued, upgraded and receive additional resources. The report also provides a variety of recommendations to promote the development of better liquid and solid waste treatment facilities in major centers throughout the country. These recommendations require the commitment of significant capital resources to implement. From a public administration perspective, it is also recommended that development in highly populated areas be coordinated with accurate estimates surface and ground water resources carrying capacity. Agenda 21 Indonesia suggests that most of these water resource management measures be paid for by water users, based on the quality and quantity of water required. A pollution prevention approach is recommended for all users, and where water quality is damaged, a "polluter pays" principle would be applied.

2.4. NATURAL RESOURCE MANAGEMENT

Natural Resource Management: Background

The conservation and utilization of non-human life in Indonesia crosses all major economic, social and geographic barriers. The imperative of sustainable natural resource management is as relevant in traditional rural agricultural settings as it is in industrial R&D laboratories or in mechanized deep water fishing fleets. This section will identify the challenges of biodiversity conservation and utilization in both terrestrial and marine ecosystems discussed in Agenda 21 - Indonesia. This section will also examine the challenges posed and the opportunities afforded by the introduction and use of biotechnologically manipulated organisms into Indonesian agricultural, medical and industrial systems.

With a growing population, a modernizing economy and still marked regional disparities, biodiversity management issues are bound to be prominent in a biologically diverse region such as the Indonesian archipelago. The biodiversity in Indonesia is nearly unparalleled worldwide and yet the qualitative and quantitative demands placed on Indonesian terrestrial and marine ecosystems by the Indonesian population poses many threats at both the species and ecosystem level. This threat is significant for Indonesian society as well - the degree of Indonesian society's dependence on renewable biodiversity (i.e. natural resources) for economic and social needs is widely recognized.

In order to elaborate contemporary natural resource issues relating to biodiversity, the Indonesian baseline must first be established. Indonesian biodiversity is among the richest in the world - there are at least 42 distinct natural terrestrial ecosystems and five marine ecosystems. Ranging from high altitude ice fields coral reefs. These diverse ecosystems harbor diverse species. Indonesia occupies only 1.3% of the global land area, but is home to a full 17% of the world species total. Due primarily to globally significant coral reef ecosystems, aquatic biodiversity is particularly striking - Indonesia's fishes represent 37% of the world species total. Given the isolated and highly specialized nature of many Indonesian species, endemism is also high.

The importance of natural resources to Indonesian society is massive. Approximately 40 million people depend directly on forest, marine, coastal and agricultural ecosystems for their living. In their daily lives, more than 6000 species of plants and animals are used in Indonesian communities. Timber taken from naturally regenerated forests comprises more than 10% of Indonesia's non-oil export earnings annually.

Given the Indonesian dependence on their tremendous biodiversity and the growth dynamics of the Indonesian population, natural resource management issues and biodiversity conservation problems are significant. Ecosystem degradation and habitat destruction are serious at present. It is estimated that only 61% of original natural habitat remains in Indonesia, although this may be as low as 9% in Java and Bali. Between 900,000 and 1,300,000 ha of forests are cleared each year for forestry, agricultural and human settlement purposes. In marine ecosystems, 68% of coral reefs are in either very bad or degraded conditions and only 5% remains in 'natural' condition.

Habitat degradation and natural resource exploitation threaten individual species as well as ecosystems. Indonesia presently has a long list of endangered species, with 126 birds, 63 mammals and 21 reptiles included on it. Already a number of plant and animal species are thought to be extinct and others are threatened.

Much of Indonesia's biodiversity is contained within 'domesticated' organisms in managed agroecosystems and non-protected productions areas. Traditional practices of agriculture, forestry and fisheries management have developed and conserved genetic biodiversity. This biodiversity is conserved through the cultivation of multiple varieties of rice or mango, for example. One community in East Kalimantan is reported to grow at least 91 species of plants in gardens and 25 different varieties of rice in their paddy fields.

Traditional biodiversity conservation is threatened by changes inland use and by transformations in agricultural and forestry practices. Modern practices favor input intensive monocultures rather than diversity, despite the fact that genetic diversity has enabled the development of modern high yielding cultivars. The scope of the reduction in biodiversity is significant. In the past 15 years, it is estimated that more than 1,500 varieties of paddy rice have become extinct.

Indonesia' s marine ecosystems warrant special mention. As a world center of coral diversity (500 species), with 81,000 km of coastline and 5.8 million km2 of marine area, Indonesia's important marine resources represent a significant management challenge to achieve sustainable levels of development. Approximately 60% of Indonesia's population lives in coastal areas. Their impact on the marine ecosystem derives from both the removal of resources and the introduction of increasing quantities of sewage and industrial pollution.

Major Indonesian marine resource management issues include the growth in mining of coral reefs and the over exploitation of living coral sites; the increase in phosphate, nitrate and sediment loading of marine estuaries from upstream intensive paddy cultivation; the conversion of intertidal zones (i.e. salt marsh and mangrove) to rice paddy (sawah); and the incursion of mechanized and technologically sophisticated foreign fishing fleets. The exploitation of oil and gas deposits on the sea floor as well as the transportation of oil and gas produced also pose significant potential problems for marine resource conservation. Indonesian fisheries remain one resource that may be under exploited (in aggregate terms) to this point. Marine fisheries production in 1992 was 3.5 million tons - only 66% of a conservatively derived calculation of maximum sustained yield (MSY). This finding is, however, at variance with other estimates which show pelagic fish production at levels above those of the Total Allowable Catch (TAC).

Natural Resource Management: The Progress to Date and the Shift to Sustainability

Because of the sheer number and variety of settings in which natural resource depletion and degradation occur and in which management opportunities (including the application of biotechnology) are available, the policy and program implications of natural resource issues are necessarily complex, inter-related and multiple. Programs and policies are needed to not only reduce the impact of human activities on the environment but also to harness the considerable opportunities afforded by Indonesia's terrestrial and marine biodiversity for the longer term economic and social benefit.

Progress to date on biodiversity conservation in Indonesia has been multifaceted. In the National Biodiversity Action Plan (NBAP) in REPELITA VI, the government committed to set aside 10% of Indonesia's ecosystems by 1999. This policy document also committed to a variety of means of conserving biodiversity outside protected areas.

By 1995, there were 368 units of established protected areas in Indonesia, covering 49.1 million ha. The proposal in NBAP is for the protection of an additional 15.7 million ha. in 308 additional sites. These existing and proposed sites, however, do not assure biodiversity conservation. Most of them have inadequate human resources for management and regulation enforcement. Only 31 sites have complete management plans and most other sites have not even been accurately surveyed or mapped. Some sites also conflict with mining and oil exploration initiatives.

Agenda 21 - Indonesia attempts to address these important gaps. Proposed near term initiatives include not only expansion of the existing protected areas system, but also significant institutional development of the existing public agency (PHPA) charged with management responsibilities. In the longer term, innovative and sustainable financing solutions including ecotourism development are sought for protected areas to generate revenue to more adequately manage the natural resource areas in a sustainable manner.

Outside of protected areas, biodiversity conservation has taken Indonesia takes a variety of forms. The Ministry of Agriculture maintains a series of germplasm gardens and cold storage facilities for medium term germplasm conservation. Botanical gardens, arboreta and other ex situ facilities together comprise a decentralized system of genetic memory for species or cultivars that are threatened in the field.

In the short term horizon considered in Agenda 21 - Indonesia, it is proposed to extend efforts in ex situ conservation. In the longer term, efforts are proposed to return ex situ (i.e. 'captive bred') species to their original habitats where possible. These programs are estimated to cost approximately US $1 billion over ten years.

Prospects for the management and sustainable development of coastal and marine areas are an important subsection of overall natural resource management in Indonesia. To date, Indonesia has managed its coastal and marine resources in a variety of manners. In the multilateral context, Indonesia has been a member of regional marine research and management programs such as the East Asian Seas Management Plan (UNEP-COBSEA), the South China Sea Forum. Policy research, marine science research and education has been developed and funded for numerous projects by the national government, multilateral assistance organizations (e.g.. the World Bank, the Asian Development Bank), Indonesian universities and international and local NGOs such as the World Wildlife Fund.

Existing marine and coastal management initiatives have been subject to severe constraints on their effectiveness. Many policies have not been implemented due to lack of funds and organizational resources. Other policies have been unsuccessful due to a paucity of adequately trained technical and managerial personnel. One of the most significant and intractable constraints on sustainable marine and coastal management however, remains the poverty and lack of viable alternatives present in the people who live in coastal communities across Indonesia.

For the shift to sustainable marine and coastal resource management, Agenda 21 - Indonesia recommendations include more integrated planning and management of these environments, better monitoring and protection of these environments, more extensive research on marine resources and intensive community development initiatives to empower and improve coastal communities. The recommended means to engage these expansive recommendations are multiple and complex - they range from funding intensive training and organizational development to develop Indonesia's institutional capacity for sustainable marine management to the provision of credit-providing financial institutions to coastal communities to finance the development of higher value-added fish-processing businesses.

Related to natural resources management is the application of modern biotechnology, including genetic engineering. Biotechnology has potential s 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.

CHAPTER 3: IMPLEMENTATION OF THE CONVENTION ON BIOLOGICAL DIVERSITY

BACKGROUND

Biological diversity is the term used to explain the variety, variability and uniqueness of genes. species and ecosystems. The UN Convention on Biological Diversity (BCD) defines biological diversity (biodiversity) as 'the variability among living organisms from all sources, including terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part, this includes diversity within species, between species and between ecosystems'. Thus biodiversity means variety of the world's organisms at the ecosystem species and genetic levels.

Human beings rely on the earth's biological resources and their diversity for a range of essential goods and services. Despite its values to human beings, biodiversity has been depleted by human activities through:

habitat conversion leading to the diminishing quality and quantity of natural ecosystems,

over-exploitation leading to loss of populations and species, and

inappropriate use of monocultural food and other production systems leading to genetic erosion.

It is in this context that the biodiversity of Indonesia, which is among the least exploited and degraded in the world, becomes very important. Indeed, Indonesia is one of the centers of mega-biodiversity in the world, with 47 ecosystem types ranging from ice fields and alpine meadows in Irian Jaya, to a wide variety of humid lowland forests, from deep lakes to shallow swamps, and from spectacular coral reefs to sea-grass meadows and mangrove swamps. Approximately 17% of the total number of species in the world are found in Indonesia. The country harbors at least 11% of the world's known flowering plant species, 12% of the world's mammals 15% of all amphibians and reptiles, 17% of all birds and at least 37% of the world's fish.

The diversity of ecosystems and species naturally leads to genetic diversity. Indonesia is the center of genetic diversity for many important food and economic crops such as bamboo, orchids, rattan, nutmeg, cloves and tropical fruits. Genetic diversity is further developed through traditional agroforestry and cultivation systems. This is reflected in the numerous varieties of rice, taro, bananas and mangoes (not native to Indonesia) and other cultivated crops in Indonesia.

Indonesia also harbors great knowledge on the uses and development of biodiversity embedded in the cultural forms and knowledge systems of its many and varied traditional communities. Some 6,000 plants, 1,000 animals and 100 microbe species are used by Indonesian communities in their daily life. Knowledge on medicinal and food values of wild and cultivated species are interlinked with cultural systems that are fast disappearing in Indonesia. Thus, it is obvious that the erosion of Indonesia's biodiversity and traditional knowledge on biodiversity is not just a matter of national concern, but of international concern as well. Opportunities to develop new varieties of food crops, new medicines and new industrial raw materials will be lost with the erosion of Indonesia's biological and cultural diversity.

PROGRESS IN POLICY

Indonesia has enacted several pieces of legislation in support of its commitment to conservation of biodiversity. For instance, in 1990, Indonesia promulgated Act No.5 on the Conservation of Natural Resources and their Ecosystems. This Act encompasses policies on protection of biological diversity in accordance with the various treaties signed the Indonesia. For example Article 21 of the Act states that "any person found killing, injuring, transporting or trading in protected animals or destroying their eggs or nests is subjected to a maximum one year imprisonment and a fine of one hundred million rupiah".

Indonesia has also signed and ratified several international agreements such as CITES in 1978, the World Heritage Convention in 1989, and the Ramsar Convention in 1991 (through Presidential Decree No, 1991). As a follow-up to the ratification of Ramsar Convention, the government issued Government Regulation PP No.27 of 1991 on Wetlands. This regulation addresses the use of wetlands for development purposes, and includes a regulation on the protection of deep peat swamps as water resource areas.

Finally, Indonesia ratified the UN Convention on Biological Diversity through Act No., 1994. At the national level, the ratification of the Convention is important from at least three perspectives:

it provides a stronger legal basis for the protection and sustainable use of biodiversity in the country,

it also serves as a legal basis for the country to avoid becoming a testing ground for the release of genetically modified organisms and the unsafe transfer of biological technology which may harm biodiversity, and

it shows Indonesia's commitment to international cooperation on global conservation issues.

Indonesia is one of the few countries in the region to have a strategy, a country study and an action plan on biodiversity. In 1992, the Office of State Minister for Population and Environment compiled a country study prior to the Earth Summit. Then in 1993, the National Strategy on Management of Biological Diversity was also compiled by the State Ministry of Environment.

The strategy is based on three elements:

utilization of science and technology,

diversification of utilization and

integrated management of biological diversity.

There are also three approaches to the management of biodiversity, namely:

fulfilling basic needs,

providing income and

developing a healthy environment.

The strategy also proposes the formation of the National Commission on Biological Diversity to stimulate and create cooperation between various agencies and organizations in managing biodiversity. The Biodiversity Action Plan for Indonesia was compiled by the Ministry of National Development Planning and the National Development Planning Agency (Bappenas), also in 1993.

This document provides plans for the in-situ and ex-situ conservation of biodiversity. It also proposes three additional steps:

the expansion of data and information on Indonesia's biodiversity;

the dissemination of information to policy makers and the public, and

the promotion of sustainable uses of biological resources.

Plans are underway to review and revise the Biodiversity Action Plan to suit the present and future needs, in accordance with various developments at the national and international level.

PROGRESS IN PROGRAMS

Indonesia has also implemented various programs in the field of sustainable management and conservation of biodiversity In the wetlands sector, successful integrated planning have already been set at the local and provincial level, for instance, with the development of an Environmental Profile of the Coastal Wetland Areas of the Jambi province (which laid the basis for buffer zone development planning for the Berbak National Park, Indonesia's first Ramsar Site). This exercise involved all relevant government agencies at the provincial level, as well as intensive community consultation. Similar projects have been initiated by PHPA in consultation with the Asian Wetland Bureau (AWB) in South Kalimantan, South Sumatra, and South Sulawesi, and plans have been developed for similar projects in Riau and West, Central, and Hast Kalimantan. Indonesia has also declared Danau Sentarum Wildlife Reserve in West Kalimantan as the second Ramsar site.

The Directorate General of Forest Protection and Nature Conservation (PHPA) under the Ministry of Forestry is also planning to select appropriate areas outside of conservation areas and to propose them as Ramsar Sites. Priority areas are wetlands with high conservation value which are under development pressure through increasing population and the perceived need for further habitat modification . In I987, Indonesia became the first Asian country to publish a national wetland inventory, which covered 231 important wetland sites.

The existing data on wetlands is readily accessible at the offices of both PHPA and Wetlands International, in the form of a comprehensive wetland library. There is also a fully computerized Indonesian Wetland Database (WDB), developed by Wetlands International - Indonesia Program (WI/IP) and operated at its office in Bogor and Jakarta. Agencies, experts and students make use of these facilities, and there are plans to install more WDB stations at the National Institute of Sciences (LIPI), the Ministry of Public Works and the Ministry of State for the Environment. Under the ongoing UK-Indonesia Tropical Forestry Management Project, a Geographical Information System (GIS) facility is also being developed to facilitate mapping, monitoring and data analysis of Indonesia's wetlands and forestry areas. The development of a link between WDB and GIS is being researched. At the request of the Minister of Forestry, AWB recently made an inventory of existing protected areas and priorities for expanding the existing network of protected wetland areas; including 676,992 ha of mangroves, 295,166 ha of lakes, and almost 2 million ha of other wetlands, comprising primarily freshwater and peat swamp forests and marshes.

In addition, Ujung Kulon and Komodo National Parks have been certified by the IUCN as World Heritage Sites. During

1994 and 1995, Komodo National Park received funds from the World Heritage Fund to purchase equipment, to train personnel and to undertake rural appraisals of the socio-economic needs of people living in and around the Park. The Fund also provided assistance to Ujung Kulon National Park for improvements in the eastern part of the Park and for water development projects in the buffer zone. The Government has also sought the cooperation of UNESCO and IUCN to improve monitoring systems to further protect these World Heritage Sites.

Under the Man and the Biosphere Program of UNESCO Indonesia has established six International Biosphere Reserves, namely, Siberut, Gunung Leuser, Cibodas, Tanjung Puting, Lore Lindu and Komodo. MAB also provides for the conservation of important ecosystems and the genetic resources which they contain.

In line with the requirements of the UN Convention on Biological Diversity, Indonesia has so far established 34 national parks covering 10.1 million hectares. Of these five are marine national parks, covering an area of 2.2 million ha.

In addition, Indonesia has protected 538 wildlife species (including 15 marine species) by law, and has bred and cultivated 12 rare and threatened species in captive breeding programs.

To improve management of the national parks, planning for pilot projects on Integrated Conservation and Development Programs or Integrated Protected Area Systems in several national parks has also begun with support from the GEF and the Asian Development Bank (ADB). Among these. the Kerinci Seblat National Park is the most notable one.

THE PROTECTED AREA SYSTEM IN INDONESIA

A most common mechanism to conserve biodiversity is to protect terrestrial and marine ecosystems. In this regard, Indonesia already has a protected area system consisting of natural reserves and conservation areas, covering terrestrial, marine and wetlands ecosystem. In addition, protected forests have also been established. As per January 1995, there are 368 units of established protected areas and protected forests covering an area of 49.1 million ha. Protected areas consist of natural reserve, game reserve, national parks, recreational parks, grand forest parks and hunting parks. In addition, there is a proposal to establish another 308 units of protected area covering 15.7 million ha.

Conservation areas have been established or designated on major islands and island groups to cover all major habitats. The goal of REPELITA VI is to officially gazette 18.7 million ha of protected forest or 60% of the target of 30 million ha. Another goal is to effectively develop 354 units of conservation area covering 18.7 million ha which is 75% of the targeted conservation area and 31 units of national park covering 7.9 million ha. This includes marine zones, where 8 units of marine natural reserve have been established covering an area of 253, 780 ha. The government has established a target of expanding protected areas to cover 10% of Indonesia's land area by the end of REPELITA VI. By the year 2000 the goal is to establish 20 million ha of marine protected areas, 19 million ha of terrestrial protected areas and 30 million ha of protected forests (PHPA, 1995).

In planning conservation area system, it is assumed that protecting ecosystems will protect a large part of the local indigenous flora and fauna To a certain extent, this is true. However, in the long term the protected area network may not be sufficient to conserve the entire biological wealth of Indonesia because of various constraints. For instance, although gazetted protected areas in Indonesia cover major biogeographical regions, certain habitats such as lowland forests, mangroves and wetlands are not well represented.

In addition, protected areas face pressures such as low local community participation, inadequate management framework for identifying and controlling resource use, inadequate human power, excessive centralization in management and lack of funding. The total number of existing and proposed parks, reserves and protected areas, for example, is over 700, including marine areas. Of these, 79 are of priority in terms of biodiversity protection, but only 31 have clear management plans, and not all have been implemented (World Bank, 1994). A large part of the 368 established protected areas at present have not been surveyed, mapped or have clear boundaries (ADB, 1995).

Furthermore, there is a conflict of interest at the national, provincial and local levels. For example, although the Directorate General of Forest Protection and Nature Conservation (PHPA) of the Ministry of Forestry (MoF) is given the mandate to plan and manage conservation areas, there are many cases in which there is overlap between the authority of PHPA and the authority of provincial or local government agencies/officials. Sectoral conflicts are also a serious issue in which oil and mining exploration in conservation areas are often conducted without an environmental impact assessment. Another important issue is the capacity of PHPA in managing conservation areas.

PHPA is an agency with inadequate funding and expertise, particularly in terms of the plan to expand protected areas in the year 2000. At present when protected areas include marine and wetlands ecosystems, PHPA does not have sufficient experts since in the past protected areas covered mostly forests.

These drawbacks have been somewhat realized, which prompted Bappenas to compile the National Biodiversity Action Plan in which one of the main elements is in situ conservation in protected areas, covering terrestrial ecosystems, marine ecosystems and protected forests. However, this Plan has not been fully implemented, although effective management of protected areas is very important in the Suture, given the tremendous pressures on natural habitats outside protected areas. Indonesia hopes to overcome all these problems in the future through national programs and international cooperation under the CBD as well as Agenda 21.

Source: Agenda 21 Indonesia, Chapter 16.

In order to have a better knowledge about the richness of the nation's biodiversity, Indonesia conducted a project to establish Biological Diversity Inventory and develop a User Advisory Group Information System by 1999. The program was established under the Indonesian Sciences Institute (LIPI) with support from the Global Environment Fund (GEF) through the World Bank and has been in progress since October 1994.

Indonesia is also trying to improve its institutional capacity to enhance national capacity in the sustainable management of biodiversity. In 1994, with support from USAID, the Indonesian Biodiversity Foundation was established as a non-government body to provide funding and technical assistance to biodiversity conservation efforts and research by various institutions, particularly those in the non-government sector. In accordance with provisions of the CBD, Indonesia established the National Clearing House on Biodiversity at the Ministry of Environment. The clearing house has several working groups, such as biosafety, intellectual property rights, access to genetic resources and agricultural biodiversity. Discussions are underway to form the National Coordinating Body on Biodiversity to supervise and plan all activities related to the conservation and sustainable use of biodiversity. Indonesia has also been active in the international negotiations.on biodiversity under the CBD. For instance, Indonesia hosted the Second meeting of the Conference of Parties, in 1995 and the Marine Experts meeting in March 1997.

Table: Gazetted and Proposed Protected areas of Different Categories

Types
Gazetted Area (Ha)
proposed
number
Area (ha)
number
Nature Reserves

(terrestrial & marine)

6,365,935
185
5,908,238
150
Wildlife Sanctuaries

(terrestrial & marine)

3,670,658
49
7,795,396
96
National Parks

(terrestrial & marine)

7,936,255
31
1,219,100
7
Recreation Parks

(terrestrial & marine)

649,476
79
312,944
41
Grand Forest Parks
253,307
7
48,300
4
Hunting Parks
234,599
14
418,750
10
Forest Protection
30,000,000
all provinces
TOTAL
49,110,230
368
15,702,728
308

Source: PHPA, 1995

Note: Three new national parks have been gazetted in 1996, so there are now 34 parks covering 10.1 million ha.

CHAPTER 4: IMPLEMENTATION OF THE CLIMATE CHANGE CONVENTION

BACKGROUND
The degradation of the functional capacity of the atmosphere is surely a global issue of the utmost importance, since the atmosphere functions as a vital life support system for almost every creature on earth. While there is still a degree of uncertainty concerning the extent of the detrimental effects of changing atmospheric composition on the living environment, most UN member governments, including Indonesia, have adopted and ratified a set of international agreements, namely the 1985 Vienna Convention for the Protection of the Ozone Layer, the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer and the 1992 United Nations Framework Convention on Climate Change.

Increasing concentrations of carbon dioxide (CO2) and other gases such as methane (CH4) chlorofluorocarbon (CFC), and nitrous oxide (NO2) are perturbing the earth's radiative balance. According to projections from climate models, a global rise in temperature is a likely consequence. The potential impacts of climate change such as sea level rises and changes in local climatic conditions such as temperature and precipitation patterns, could have important negative impacts on socio-economic development in many countries.

Nations endorsing the UN Framework Convention on Climate Change (UNFCCC) in Rio de Janeiro in June 1992 recognized that climate change is a potentially major threat to the world's environment and economic development. As one of the 154 states to the Framework Convention on Climate Change Indonesia is well aware of the issue.

Indonesia is also acutely aware that global temperature change might result in sea level rise. Such a rise in sea level will have serious consequences for Indonesia as an archipelagic country with 17,500 islands and a coastline of more than 81,000 kilometers. The industries infrastructure, urban populations and most fertile agricultural lands are concentrated in low lying coastal areas. Of a total of about 180 million Indonesians, approximately 110 million live in coastal areas. Indonesia will therefore suffer significant physical and socio-economic impacts from even very small rises in sea level.

Given those risks and their socio-economic implications, Indonesia has very strong reason to anticipate, mitigate and prepare for future climate change, even though Indonesia only makes a small direct contribution to the greenhouse effect. Indonesia contributed only about 2.7 tons of CO2 per capita in 1991, if all emission are included, and 0.84 tons if only fossil fuels are considered. This compares to a world average of 4.2 tons per capita, a German average of 2.7 tons in 1991 and an average of 20.66 tons for the USA in 1990.

PROGRESS IN POLICY

Indonesia has recognized the importance of climate change as an international, regional and national issue. As a consequence, Indonesia has participated in the work of the Intergovernmental Panel on Climate Change (IPCC) and the Intergovernmental Negotiation Committee (INC) for the UN Framework Convention on Climatic Change since they were established. To build a strong basis for further responses on climate change, Indonesia has signed the United Nations Framework Convention on Climate Change along with 153 other countries. This Convention has been ratified through Act Number 6 (1994) of the Republic of Indonesia.

The ratification of the Convention will act as an instrument of change within Indonesia and abroad. Within the country, this convention will add legal instruments to help implement environmentally sustainable development in relation to climatic issues.

Abroad, it shows that Indonesia has taken an active role in global environmental issues, and it gives more and greater opportunities for Indonesia to work together and to communicate with other countries and organizations.

Policy in environmental protection, including the management of atmospheric protection, is coordinated by the Ministry of State for Environment and the National Development Planning Agency (Bappenas). The principles of equity and shared responsibility among government institutions, the private sector and the general public, are the basis on which to address issues of climate change.

To anticipate future climate change, Indonesia has established a working group of the National Committee on Climate and Environment under the coordination of the State Ministry for Environment (via Ministerial Decree Kep-35/MENKLH/8/1992). This national working group has three sectoral working groups, each having specific responsibilities and its own sub-committee.

The Indonesian National Committee has identified three principles as the foundation for the national response strategy to address climate change, namely:

The national response strategy cannot be separated from the long-term national development strategy, which must take into account important aspects of climate change in planning for environmentally sustainable development.

The principles of equity and justice must guide the process of anticipating and assessing impacts.

Concrete steps must be taken to reduce net emissions from all activities that contribute to green house gas (GHG) emissions.

PROGRESS IN PROGRAMS

In accordance with the above policy framework, Indonesia has developed activities which are scheduled to start during the Sixth Five Year Plan (REPELITA VI, 1995-1998). The activities of the lndonesian response to global climate change can be divided into five categories which are:

Research and Development, Monitoring and Analysis Related to the Greenhouse Effect and Climate Change

Efforts to Reduce the Effect of Greenhouse Gases

Adaptations to Climate Change

The Role of Public Participation and the Business Community in Anticipating Greenhouse Effects and Climate Change

Evaluation of the impacts of Climate Change on the Environment

Many of these activities are already underway. For example, a number of studies have been conducted to improve national data and information on climate change, its impacts and potential response strategies including: an analysis of sea level rise in Indonesia; a report on the management of tropical marine systems in relation to atmospheric changes; a study of strategic responses to global warming and climate change and their adverse effects, a report on ecostrategies for terrestrial CO2 fixation; and the Indonesian Country Study on Climate Change.

Efforts have a]so been taken at the implementation level. In accordance with the action plan on climate change, a Presidential Decree has been issued on the conservation of energy, which has resulted in increased energy efficiency in a number of sectors. For example, there have been notable improvements in energy production and transmission in the electricity sector and a reduction in distribution losses from about 21 % in 1983 to 12.38% in 1990 (11.81% in Java and 13.82% outside of Java). Measures have also been taken to reduce industrial emissions including the establishment of ambient air quality and emission standards for coal fire power plants, the use of low sulphur coals, the increased use of natural gas in combined cycle power plants, and the requirement for an environmental impact assessment for power projects.

ODS PHASE OUT IN INDONESIA

Indonesia does not produce or export any Ozone Depleting Substances (ODS). The local demand for these substances is completely met by imports from other countries. The country's calculated consumption of ODS in 1992 had an Ozone Depleting Potential (ODP) of 6,567.3 tons which amounted to a per capita consumption of around 0.03 kg, or less than 1% of total world consumption. However, it is estimated that cumulative consumption of ODS, based on unconstrained demand from 1992 to 2010, would have been almost 500,000 tons of ODP equivalent.

ODS consumption is mostly CFC-12 which accounted for 63.4 %. The remainder is halons (14.8%), and CFC- 11 (14.2%), with CFC-113, CFC-115, 1,1,1 trichloroethane (TCA), with carbon tetrachloride (CTC) making up the balance. In the industrial sector, the ODP usage distribution in 1992 showed that the refrigeration and air conditioning industry was the largest user accounting for 31.9% of the total. Other user were for aerosols (30.5%), foams (15.6%), halons 14.8%), and solvents (7.2%).

Indonesia is a party to the Vienna Convention for Ozone Layer Protection an the Montreal Protocol on Substances that Deplete the Ozone Layer. In May 1992, by Presidential Decree no. 23/1992, Indonesia ratified the Vienna Convention and the Montreal Protocol.

Before the ratification, in 1990, the Ministry of Health had issued Ministerial Decree No. 376/MenkeKs/PER/VIII/1990 concerning the groups of substances that can be used in producing cosmetics. The decree prohibits the use of CFCs in aerosols and the cosmetics industry. A year later, in 1991, the Pesticide Committee, a national body which regulates the production, importation and use of pesticides in Indonesia, banned the use of CFCs in pesticide products. Furthermore, in 1994, the Committee decided to ban the use of methyl bromide from 1997 onward.

Indonesia plans to phase-out of all ODS by the end of 1997, well ahead of the Montreal Protocol phase-out date of 2010 for Article 5 countries such as Indonesia, providing that adequate financial resources are available from the Multilateral Fund of the Montreal Protocol, and provided that appropriate substitute technologies are made available. A National Committee to phase-out of all Ozone Layer Protection and ODS Phase-out has been established under the coordination of the State Ministry for Environment to oversee the process of reducing, and eventually phasing out the use of ODS. One of its tasks has been to develop a Country Program for the phase-out of ODS in accordance with the protocol guidelines.

The Indonesian Country Program details the combined efforts of the Government, industry and non-government organizations. To formulate sector components of the action plan, and to oversee project formulation five technical sector working groups have been formed which report to the National Technical Committee.

The sector groups concentrate on foams, refrigeration and air conditioning, halons, aerosols and solvents respectively.

Many companies, such as those using ODS containing solvents, have already converted their production processes to non ODS technologies and are phasing out ODS without external assistance. Other firms have benefited from the assistance of the State Ministry for Environment, the World Bank and the UNDP and have been preparing projects for submission to the Multilateral Fund of the Montreal Protocol. These projects range from those which are near completion to those which are in the process of development. The Government has also been working with relevant sectors to develop trade regulations which will discourage the import of ODS. These regulations are planned to take effect in July 1997.

Over the course of the past few years, the government and the industrial sector have also been focusing on the phase out of ozone depleting substances, which can directly or indirectly impact on climate change. Furthermore, Indonesia's reforestation program, forest conservation program and land and forest fire prevention program are concrete steps to improve the sequestration capacity of forests and to reduce net emissions.

CHAPTER 5: IMPLEMENTATION OF THE FOREST PRINCIPLES

BACKGROUND
Forests have multiple roles in maintaining the sustainability of the earth's natural processes and supporting life on earth. In addition to being the source of valuable timber, tropical forests in particular, are a source of biological resources that provide food, medicine, fibers, dyes, fuels and industrial materials. Forest species provide the basic genetic diversity needed to improve crops and livestock and to stimulate industrial research and modern drug development.

Forests also have cultural and ecological functions. Many civilizations and knowledge systems, as well as many art forms, have been based, on the natural wealth of the world's forests, particularly those of tropical areas. Forests also protect watersheds, control erosion and flooding, regulate local and regional climate and serve as limited carbon sinks. The value of the ecological functions of the forests is only now being quantified. For instance, in the 1980s, the conversion of tropical forest to other forms of land use contributed an additional 1.6 gigatonnes of carbon per year to the atmosphere (UNEP, 1995).

The multiple functions of forests make Indonesia's forests very important in terms of national and global environmental preservation. This is because Indonesia harbors the third largest area of tropical forest in the world, containing one of the most biologically diverse ecosystems. At the national level, forest resources constitute one of the most important non-oil export earnings. At the community level, forests provide both livelihood and cultural identity for millions.

Even left intact, Indonesia's forests have direct monetary value to the national and global economic systems. The present net cost of deforestation to Indonesia has been reckoned at over US $ 3 billion a year; with watershed protection alone worth US $ 30 per hectare in some parts of Java. In addition, the carbon sequestration value of Indonesia's terrestrial conservation areas and protection forests is US $ 0.4/0.9 billion per year. The value of Indonesia's forest biodiversity in providing genetic resources for crops and new drugs has yet to be calculated.

As one of the most valuable resources ;n the world, tropical forests are being depleted at an alarming rate leading not only to erosion and flooding, but also to loss of species and genetic resources as well as loss of traditional knowledge by communities which once practiced sustainable forest management. It is in this context that Indonesia's tropical forest become very important, being one of the few remaining large areas of tropical forest in relatively pristine condition. The challenge is therefore to find strategies which enable Indonesia to manage its forests sustainability for its own development, while at the same time meeting its global responsibilities and serving the broader interests of the global community.

The forest principle adopted at the UNCED Earth Summit in Rio Janeiro in 1992 sent just such a message to the global community, and if Indonesia is to fulfil its commitments to implement sustainable development in the forestry sector, cooperative efforts with the international community will need to continue and expand.

PROGRESS IN POLICY

Indonesia has made substantial progress in policy to ensure the sustainable management of its forests. In accordance with the Tropical Forestry Action Plan (TFAP), Indonesia developed the Indonesian Forestry Action Plan (IFAP) in 1992, and established a Consultative Group on Indonesians Forests to co-ordinate bilateral and multilateral projects.

To ensure minimum damage to forests due to development, all forestry planning and operations which are likely to cause significant biophysical, socio-economic, cultural or environmental impact, must be preceded by an environmental impact assessment (AMDAL), where by environmental management and monitoring must be incorporated into the planning and management of operations. Operations subject to this regulation include sting operations and timber estate development.

The Ministry of Forestry has developed laws and regulations on, sustainable for management. For instance in, April 1993, the Minister of Forestry issued a decree (No. 252/Kpts-II/1993) on the Criteria and Indicators for the Sustainable Management of Natural Production Forests for application at the national level. This was followed by the decree (No. 208/Kpts/IV-Set/1993) of Director General for Forest Utilization concerning Technical Guidance on Criteria and Indicators for management at the unit (concession) level. To conform with ITTO's mandate whereby all timber in the year 2000 must come from sustainable sources, Indonesia is developing ecolabelling for forest products beginning with from natural forests. The Indonesian Ecolabel Institute was formed in 1994 for this purpose.

The Ministry of Forestry is also reviewing several policies with a view to make them more compatible with the principles of sustainable forestry management. Notable among those being reviewed are the Act on Basic Provisions for Forestry and the concept of people participation in forest management.

At the international level, Indonesia is an active member of the Inter-governmental Panel on Forests (IPF) established under the UN Commission on Sustainable Development to negotiate the Forest Principles adopted at the Earth Summit. Responsibility for Indonesian input and action on IPF recommendations lie with the Ministry of Forestry.

In 1993, Indonesia was also appointed as host of the Centre for International Forestry Research (CIFOR). Since then, Indonesia, in cooperation CIFOR, has conducted various forestry seminars and meetings, among others, the CIFOR dialogue on Science and Forests which was held in Bali in late 1994.

PROGRESS IN PROGRAMS

Several measures have been taken to ensure that sustainable forest management is being carried out in the country. For one, the Government is tightening control over timber harvesting operations through a range of policy and enforcement measures. For instance, with a World Bank loan, a study is being conducted to improve concession management and inspection services. The inspection system developed is being tried out in three provinces: Riau, East Kalimantan, and Maluku.

On active logging concessions, the Indonesian Selective Cutting System is slowly being replaced with the Production Forest Management Unit (KPHP) concept. Studies conducted with the support of the UK Overseas Development Agency (ODA), conclude that the KPHP is a promising system for better management of natural production forests in Indonesia. The KPHP system is being tried out in two provinces, Central Kalimantan and Jambi, where the area of production forest management units range from 40,000 to 120,000 hectares. At the field level, the Ministry of Forestry has revoked the licenses of several logging companies for failure to comply with existing regulatory measures, particularly regarding environmental protection. In many cases, the Ministry has taken over the management of these concessions through state forestry enterprises.

It is observed that the issuance of the "criteria and indicator" has improved the concession performance. In the early 1990's concessionaires were classified performance category with 4 % classed as "good" and 40 % "fair". The 1996 assessment showed the numbers in these categories had increased to 11 % "good" and 73 % "fair". Recent assessment showed that there were 25 % classed as "good" and 43 % "fair".

With the Centre for International Forestry Research (CIFOR), Indonesia conducted various forestry scientific meetings. In May 1996, Minister of Forestry and the Chairman of the Consultative Group of the Centres for Agriculture Research (CGIAR) inaugurated the CIFOR Headquarters built within the 10 hectares research forest site located adjacent to the campus of Bogor Agricultural University (IPB) at Darmaga, Bogor. Indonesia has provided over 300,000 hectares forest land in Kayan Mentarang area, East Kalimantan, for the CIFOR's forest research station In October 1996 Ministry of Forestry signed the Intellectual Property Right Agreement with CIFOR.

Indonesia has been intensifying the maintenance of its allocated 49.5 million hectares (about 25 of its land mass) "totally protected areas" (TPA) in order to conserve its wildlife and ecosystem richness. The TPA consists of protection forests (30.7 million hectares) and conservation areas (18.8 million hectares) to include national parks, nature reserves, game reserves, hunting parks, recreation parks, and grand forest parks.

Serious efforts to implement the "integrated conservation and development program" approach in the management of national parks in line with the spirit contained within the UNCED 1992 outcomes has been maintained. Indonesia has established 3 new national parks in the last one year. Currently, there are 34 national parks covering 10. 154 million hectares land and sea/water areas. Ujung Kulon and Komodo National Parks which have been certified by the IUCN as The World Heritage Sites were given priority in its management. Gunung Gede, Tanjung Puting, Lore Lindu, Leuser National Parks which have been designated by the UNESCO as Biosphere Reserves are maintained to the maximum possible. Berbak National Park and Danau Sentarum Wildlife Reserve which have been designated as Ramsar cites are given special attention. Three conservation areas, Wasur National Park, in Irian Jaya Province, among them, are being proposed to be the Ramsar sites too.

Some foundations, which were founded to strengthen financing of various conservation measures, such as Wallacea Foundation to support the management of Bogani Nani Warta Bone National Park in Sulawesi Island, Leuser International Foundation to support Gunung Leuser National Park in Sumatera, are actively contributing to the conservation efforts in the country.

The Indonesian Ecolabelling Institute (LEI) which was established in 1994, as a third independent body, is actively preparing the concept and implementation of criteria on indicators of sustainable forest management on the forest management unit level. This effort would lead to the certification of the forest management units in the short run. In line with this, the government is also establishing a forestry accreditation committee so called Technical Accreditation Committee (KAIT) composed of members from relevant forestry institutions under coordination of the Ministry of Forestry.

The Government of Indonesia maintains a National Team for Forest Fire Control to anticipate the occurrence of forest fire during the dry season. The government also launched a "Forest Fire Awareness Campaign" led by several cabinet ministers related to forestry. In addition, the government conducted "National Regreening and Conservation Movement Campaign" as well as "Million Tree Planting Movement Campaign" annually.

At the regional level, the Government of Indonesia in cooperation with the Government of Malaysia, launched a joint conservation Transboundary Reserve BentuangKarimun and Lanjak Entimau, located in northern Kalimantan. Launched in October 1994, this project was supported by the ITTO. This transboundary biodiversity conservation area covers over one million hectares with natural tropical forests which is the habitat of some important endangered species such as orangutan and proboscis monkey.

In addition to the above programs several other programs have been undertaken, through international cooperation. They are, among others:

Development of Low Impact Logging with CIRAD of France through the Silvicultural Techniques for Regeneration of Logged Rain Forest in East Kalimantan (STREK) project,

Development of vegetative propagation methods for Dipterocarp species, in cooperation with TROPENBOS,

Development of a model for the participation of local people in the management and utilization of public production and protection forests In West Kalimantan, in cooperation with GTZ of Germany,

Documentation of the traditional use of forests plants in Irian Jaya, In cooperation with the International Conservation Program, the State Minister of Environment and the Indonesian Science Institute (LIPI),

Development of a forest data base through the National Forest Inventory Project funded by the World Bank,

Development of a Mangrove Strategic Plan in co-operation with the Indonesian Mangrove Foundation which was funded by the Asian Development Bank (ADB), and the development of Sustainable Mangrove Management, in cooperation with JICA.

THE INDONESIAN ECOLABELLING INSTITUTE

The concern over forest management practices results in the pressure for change in its implementation. Various schemes have been proposed to encourage improvement of forestry to more sustainable ones such as boycott and ban of trade in timber products. Timber certification of ecolabelling is now becoming more popular as a trade investment to promote sustainable management of forests.

The Indonesian Ecolabelling Working Group was initiated at the end of 1993 with three objectives: a) to set up a set of criteria set of criteria and indicators for sustainable forest, b) to design a decision making method in timber certification process, and c) to design institutional arrangements for the formal establishment of the Indonesian Ecolabelling Institute. Chaired by Dr. Emil Salim, former Minister of environment, the working group includes representatives from the academia and non-governmental organizations.

The development of criteria and indicators is carried out through discussions with various parties: the government, experts and academics, forest concession holders, forestry consultants and non-governmental organizations. During the first phase of developing criteria, the stakeholders are divided into three groups: forest management group, environmental management group, and socio-cultural group.

In June 1994, the criteria and indicators for Sustainable Forest Management set out by the three working groups were tested in three concession areas in Riau, East Kalimantan and Central Calimantan. The results of the test were discussed in the International Conference on Forest Product Certification System, September 1994 at the Pacet, West Java. In 1996, the working group developed the decision making procedure for certification. The second version to the criteria and indicators as well as the decision making procedure were then tested again in 11 logging concessions in Aceh, North and West Sumatera, Riau, East and West Kalimantan. Full System testing out was assisted by experts from various backgrounds, grouped into expert panel, evaluation team, and task force. The field assessment was assisted by forestry consultants who acted as assessors.

A refined certification system for sustainable natural forest management at the field management unit level has now been established. The system consists of:

procedure for certification of natural production forest management;

logical framework for evaluation of production forest management;

decision making procedure with Analytic Hierarchy Process;

criteria and indicators of sustainable forest management;

chain of custody for certified timber.

The system is now proposed to become the national standard for certification of forest management to the relevant agencies.

CHAPTER 6: STAKEHOLDER PARTICIPATION

Sustainable development requires full and genuine participation of all groups in society. ln Agenda 21, a full section, i.e. The Role of Major Groups is devoted to participation of these groups in sustainable development. This is perhaps one of the weakest aspect in Indonesia, although some progress has been made.

At the government level, the concept of Agenda 21 and the results of Earth Summit are not commonly known yet, let alone integrated into sectoral policies. The Ministry of Forestry for instance, has policies in line with the Forest Principles and CBD in terms of sustainable resource management, but has weak policies and programs on people's participation. The Ministry is currently reviewing the Basic Forestry Law of 1967, including the concept of people's participation and how to genuinely implement it. However, this is done mainly in consultation with academics rather than grass root based groups. In the same manner, Agenda 21 is not much known at the local government level. There has been little effort to disseminate the results of Earth Summit to various level of the society, thus the participation level is low.

At the policy level, many regulations contain provisions on people participation in various ministries such as agriculture, forestry, environment and population. The latest attempt at formulating policy for people's participation is Government Regulation No.69/1996 on Implementation of Rights and Obligations, Form and System of Community Participation in Spatial Planning. This is derived from Act No.24/1992 on Spatial Planning. The regulations contains provisions on the right of the community to participate in the process of spatial planning, to know spatial plans in detail, benefit from spatial use and acquire compensation for conditions created as a result of development activities. However, the regulation is yet to be disseminated and understood by the general public. Also it does not contain provisions on sanctions if any rights were violated, thus the enforceability may be weak.

At the non-governmental level, the level of knowledge about Agenda 21 is also low. There have been activities, however, that are in line with the results of the Earth Summit. For instance, the Indonesian Business Council for Sustainable Development (MUIPB) was formed a year after the Earth Summit. It began its activities with seminars and discussions on the benefits of environmental management to the business society and how the industry can comply with environmental laws. But lately MUIPB has not been particularly active.

Environmental non-governmental organization (NGOs) have more or less been active in providing input to the government on sustainable development issues particularly in sustainable resource management and community participation. They have been particularly active in the planning and implementation of activities related to CBD such as sustainable management of national parks, formulation of regulations on biosafety and marine resources conservation. In anticipating the fifth anniversary of the Earth Summit, NGOs have provided an outlook of conditions for Indonesia's sustainable development and country assessment on the implementation of the Earth Summit commitments.

At the grassroots level, the idea of community participation actually is not new at all to Indonesia since different types of traditional community participation existed in almost all Indonesia islands a long time ago. In some regions, there are various clubs or mutual help groups for building houses, cultivating lands, and harvesting of paddy fields. Another form of community participation in natural resource management is a functional group such as the water users' association or Subak in Bali and Mitra Cai in West Java. Mutual help and community participation therefore is part of the Indonesian way of life, especially in rural areas.

COMMUNITY PARTICIPATION: SOME INDONESIAN CASES

Kampang Improvement Program (KIP) or hamlet improvement project is aimed at improving human settlements for low-income urban residents in cities and towns through provision of an integrated package of basic services. The basic services include water supply, sanitation, drainage, road and footpaths, schools and clinics. While KIP has been very effective in providing basic infrastructure, and is popular among recipients, its top-down approach has revealed significant weaknesses. Failure to involve the residents in location planning and the absence of training programs for facility maintenance, together with a lack of financial or in kind contributions by residents, has frequently resulted in poor operation and maintenance, and thus limited use of public sanitation facilities.

In response, central and municipal agencies have attempted to design a more flexible program based on increased community participation in defining local needs and in project design and implementation. This new approach allows the possibility for NGOs to work with kampung committees to identify problems and needs, to agree on project components, locations, costs, repayment responsibilities, to organize and train water and sanitation users, and to evaluate project implementation. Experience to date has highlighted the importance of participation in the initial stages of project design to ensure responsiveness to perceived needs within the community.

Integrated Pest Management (IPM) is being introduced on a relatively large scale in Indonesia, posing new challenges and directions for extension based-training. To apply it successfully, farmers must understand the principles of IPM and acquire the knowledge and confidence necessary to make autonomous decisions in response to rapidly changing local conditions. Experience in many developing countries suggests that it also requires a fundamental change in the role of extensions agents in relation to their clients. In contrast to their usual role in the top-down delivery of standard instructions, extension workers must become "consultants, facilitators and collaborators, " encouraging farmers to analyze their own situation, to experiment and to make constructive choices.

Rural Water Supply and Sanitation projects sponsored by the government in the past focused primarily on the hardware aspect of village water supply and sanitation by constructing community wells and providing handpumps and latrines. Projects were often selected and funded without significant input from the local communities. When they were consulted, their active role was typically limited to the selection of design options, with no involvement in implementation and no contribution required for future operation and maintenance. As a result, many projects failed after a relatively short time. More recent approaches involve a high degree of participation in project design and implementation. ln the pilot stage, one NGO is asked to help in establishing women's user groups and to provide training. These groups then participated in decisions on the location of the wells. They were also trained in how to maintain the pumps. Subsequently they were responsible for collecting the relatively modest fees needed to sustain the project. The results to date are positive, with a high degree of local ownership and strong commitment to maintaining the projects.

Citra Niaga Urban Area Development project is an integrated, mixed-use commercial, residential, recreational redevelopment project in the centre of Samarinda, the capital city of East Kalimantan. This project, a recipient of the Aga Khan Award, demonstrates the principles of a successful participatory development scheme, involving local government, local community, bank, developer, NGO and co-operatives as key stakeholders. With each stakeholder controlling some resources, this collaborative or interactive process evolved as common objectives were negotiated. The success of this project is partially due to the high degree of commitment to undertake a different kind of development. This is a community-centered development, using community-based resource management to tap local resources for the benefit of the community. In this participatory, bottom-up model, improvement of the environment is promoted as an economically affordable and desirable collective undertaking by the community.

Traditional community participation in environmental management can be seen in the form of traditional rules such as Sasi in the Maluku islands, and Awig-awig in Bali and Lombok. Sasi and Awig-awig, which can be regarded as a local community-based resource management systems, have proved effective in maintaining the sustainable use of natural resources.

This type of community participation originates solely from the internal motivation of people at the grassroots level. However, the extent of this type of participation is now limited. It is for this reason that the Ministry of Environment introduced the Kalpataru annual award.

The Kalpataru Award introduced in 1981 is a recognition to any Indonesian individual or community who has shown a significant contribution in sustaining the environment. So far, at least 21 have communities selected as the recipients for Kalpataru Award. Awarding the Kalpataru honours and positions these communities within a spectrum of others cited for national excellence. Moreover, this award also acts as an indirect incentive to promote further community participation in the society to wisely manage the environment for sustainable development.

Another type of participation emerges from the willingness of the people to participate, which is derived mainly from external inducement or forced by the authorities. However, there is a growing body of evidence that this top-down approach failed to receive full support and therefore active participation from the communities The achievement of environmental management objectives often will depend increasingly on development activities tailored to local conditions and directly involving the participation of local communities, individuals and households, private enterprises and NGOs in their design, implementation and evaluation. Indonesia has examples of both significant successes and failures in encouraging local community participation.

Indonesia's experiments with community participation provides several lessons to be learnt for future programs. The first and perhaps the most important lesson learned is that the formal procedures adopted in Indonesia to involve communities is not enough. Community participation is a long-term process. More time and effort are required to carry it out than the technical process of developing an environmental management plan. The following alternative of procedure may be an option to make community-based environmental management successful:

Identify and evaluate environmental problems and formulate intervention options to mitigate their effects;

Consensus must be built within communities, so that programs broadly reflect local as well individual needs. Once a consensus has been reached, beneficiaries can be expected to actively participate in planning, implementing and evaluating the program;

Government agencies must recognize this consensus and incorporate it in the sectoral program planning. With this approach public agencies can provide support and encourage efforts of the communities themselves to resolve environmental problems locally.

However, reorienting the prevailing process to incorporate meaningful community participation is not an easy task. The new approach requires substantial structural and attitudinal changes within the government agencies themselves. In planning environmental management, it should be recognized that government efforts alone are insufficient and that people should also contribute their part. Therefore, political support for community-based environmental management approach should be developed among government officials so that they view such community-based environmental management as complementary rather than competitive. In other words, government agencies should realize that the government's role in site specific environmental management has to change from that of a provider to that of enabler or facilitator. This will create a conducive atmosphere to enable community organizations to participate actively in environmental management. Experiences show that people will participate and contribute their share when there are realized needs, when they themselves become aware and feel the need for environmental improvements.

The challenge for the government now is how to induce and motivate the communities so that they will be more responsive to collaboration with the government in managing the environment. This can be done through a set of programs comprising activities to increase community awareness, at all levels, about the importance of environmental management for sustainable development, and human resources development. For the latter, the government must plan a systematic program of training and communication to provide community members, business communities, local NGOs and local government officials with the information, skills, method and practices needed in participatory program planning and implementation. This can be acquired throughout training existing extension workers drawn from agriculture, public health and other sectors in participatory techniques and in different aspects of environmental management planning and techniques. It can be supplemented by training non-governmental organizations (NGOs) that have grassroots experience in technical and professional skills. Indonesia has literally thousands of NGOs with experience in community participation. They are potentially very helpful in developing community-based environmental management projects, but most of them do not have the technical skills needed.

Financial resources are a critical factor that determine the nature and extent of community participation. In spite of the attempt to establish a decentralized budgeting system, only a few of the total annual budgetary resources are allocated to decentralized administrative units. At the micro level, financial constraints impose limits on the activities of every voluntary community organization or locally-induced environmental management effort. Clearly the first step is to gain political support from government so that there will be a willingness to address these issues.

CHAPTER 7: VISIONS FOR THE FUTURE

The adoption of sustainable development as a major policy requires that environment become the mainstream economic issue, central to development planning and decision making process. Agenda 21-Indonesia is a comprehensive program of action from now into the 21st Century to be adopted by government agency, private sector, NGO, and CBO. This document provides a blueprint for action in all areas relating to sustainable development. It can be used as a basis for sustainable development and to facilitate integration of environmental issues into almost every sector of economic life.

This means that the successful implementation of Agenda 21-Indonesia requires all key sectors of the society and government to use this blue print in preparing or evaluating long (2020) and medium term planning (2003). It also requires a new partnership among all key sectors to cooperate fully in protecting the environment while meeting the needs and aspirations to enhance the quality of life of the people.

In order to carry out the full integration of the basic principles and concerns of the Agenda 21- Indonesia into development plans, two major phased activities will be conducted.

7.1. COMMUNICATION AND CONSULTATION OF AGENDA 21 - INDONESIA

To facilitate the implementation of Agenda 21- Indonesia, it is necessary to inform all key sectors of the society and government about the vision and content of Agenda 21 - Indonesia. The next step is to evaluate all medium and long term development plans for every development sector, particularly the evaluation of:

term and definition,

objective and target

policy formulation to achieve the objective,

institutional capacity and mechanisms,

essential means of implementation.

Agenda 21 - Indonesia provides the following information needed to evaluate those development plans:

strategic priority program,

rational of each program,

objective of each program,

programs and activities for medium-term plan (1998-2003) and long-term plan (2002-2020),

means of implementation including the availability of financial resources and mechanisms, human resources, institutional capacity and arrangements, science for sustainable development and environmentally sound technology,

role of major groups,

strategy for human resources development.

For this purpose, a seminar on Agenda 21-Indonesia will be held in April 1997. A number of documents including a brochure, a complete report and executive summary on Agenda 21-Indonesia will be disseminated. A report on the Indonesian Response to Global Environmental Issues (IGER) will also be published. This report incorporates an overview of current and future global environmental issues, an analysis of the relative importance of these issues to Indonesia, a strategy for addressing these issues, a prioritized action plan for implementing such strategy, and a financing plan for investment and technical assistance activities.

7.2 INTEGRATION OF AGENDA 21 - INDONESIA

To incorporate the spirit of Agenda 21- Indonesia into sectoral and regional planning, and to enhance community participation in sustainable development, a number of activities have already been initiated:

Development of Sectoral Action Plans that incorporate sound environmental planning into their development strategies and action plan, and to avoid unnecessary adverse environmental impact and conflicts with other sectors. In this regard, Sectoral Agenda 21 for 5 Departments are being developed: Forestry, Transmigration, Tourism, Housing and Settlement, and Mining and Energy,

Development of Local Agenda-21 with specific objective to prepare practical operational plans for implementing sustainable development at regional provincial level,

Establishment of National Committee on Sustainable Development, which will have representatives from government agencies, as well as the private sector, the NGO and the academic community. This Committee will be responsible for monitoring and evaluating the implementation of sustainable development in Indonesia. Committee should also recommend the direction and strategies to be taken by the various key sectors in the society and government to implement sustainable development initiatives.

ATTACHMENT

HIGHLIGHTS OF AGENDA 21 INDONESIA

I. Structure of the document

Indonesia's Agenda 21 consists of four sections: Human Services, Waste Management, Land Resource Management and Natural Resource Management. Within each of these sections there is a number of individual chapters on issues drawn from the global Agenda 21 document and judged to be most significant by a national survey of activities and administrators representing government agencies, business organizations, academic and NGOs.

The Human Services section comprises the following chapters:

Poverty Alleviation
Changing Consumption Patterns
Demography
Human Health and Environment
Human Settlement Development
Economic Instruments and Environmental Accounting

The Section on Waste Management contains chapters on:

Atmospheric Protection
Hazardous Chemical Management
Toxic Waste Management
Liquid and Solid Waste Management
Radioactive Waste Management

The Section on Land Resource Management contains chapters on:

Land Resource Planning
Agricultural and Rural Development
Forest Management
Water Resources and Water Quality

The Section on Natural Resource Management contains chapters on:


Biodiversity
Biotechnology Development
Marine and Coastal Zone Management

Each chapter of the Indonesian Agenda 21 contains an introduction to the topic and a number of specific program areas which have been appraised to be of priority importance to the implementation of sustainable development in Indonesia. The program areas, in turn, contain summary information on the issue at hand, and development objectives and proposed policy and programming recommendations for the period 1998-2003 (Repelita VII or Seventh Development Plan) and 2003-2020. Development objectives for the next Repelita (Repelita VII) are quite specific, whilst development objectives for the period beyond 2003 are more general and it is expected they will be amended in accordance with the development objectives of each subsequent Repelita.

As stated above, the core of each program area is a list of suggested programs and activities to be implemented in each of the time frames (1998-2003 and 2003-2020) in pursuit of national sustainable development objectives. It should be noted, however, that many program areas and activities in later Repelitas may depend on the success of activities slated for implementation during Repelita VII. Such activities have therefore been listed for implementation during the second period (2003-2020) and in many cases these may be quite specific in their intent and substance. Other activities in the period 2003-2020 however, will be dependent on the availability of funds and the development of an adequate level of skills and may not be implemented until after the recommended training and development programs of Repelita VII. Thus, whether activities listed in the second time frame are specific or general, they are still essential to the issue of sustainable development and the transition from the "business as usual" approach to a new development paradigm for the 21st century.

Each list of activities is accompanied by a list of recommended means of implementation for each of the time periods. In some chapters, not all categories have been addressed for each time period because they do not fit the specific needs of each program area. These means of implementation are often divided into:

financial
scientific and technological
human resource development
legal and institutional
data and information requirements

Each chapter also includes a final summary section on the role of major groups in the implementation of the listed program areas, and a final summary of a more general human resource development strategy to be pursued in furtherance of the sustainable development objectives of each chapter.

II. Highlights of chapters in Agenda 21

CHAPTER 1 - POVERTY ALLEVIATION

Poverty is thought to be one of the reasons for the decline in environmental quality. Conversely, the decline in environmental carrying capacity may create an increase in poverty. Various development programs are attempted to help alleviate poverty. Poverty alleviation and environmental management are therefore important co-dependent targets for Indonesia in relation to sustainable development.

Trends indicate that, in the future, poverty will be encountered more in urban areas due to increasing urbanization. Nevertheless, rural poverty, particularly in relation to farmers and fishermen should also be alleviated.

It is predicted that job opportunities in urban areas will grow both in speed and diversity, and that the poor who live in urban areas will have greater job opportunities. However, the poor in urban communities are faced with a number of constraints, including inadequate education and severe competition. Thus, it is necessary to improve human resources, both vertically and in terms of future job opportunities. Such a policy requires partnership between government, business and social sectors, and provision of adequate social services particularly health care and clean water supply.

In overcoming rural poverty, especially among farmers and fishermen, it is necessary to preserve the functions of natural resources which are the sources of people's livelihood, such as forests, the sea and mining areas. The preservation of these resources should be accompanied by an atmosphere which is conducive whereby poor communities are given just and equal access, and facilities to take advantage of these resources.

The above-mentioned objectives can be achieved through the following Program Areas:

Sustainable Increase in Income and Quality of Life;

Development of Health Services: Drinking Water and Basic Environmental Sanitation (especially for the urban poor);

Sustainable Use of Natural Resources and the Alleviation of Poverty (especially for the rural poor).

CHAPTER 2 - CHANGING CONSUMPTION PATTERNS

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.

Energy consumption has been increasing by 8% annually. The largest consumer is the industrial sector at 49%, with transportation requiring 32%, and the remainder being used for domestic needs. The shift in economic structure from an agricultural to an industrial economy throughout Indonesia has resulted in increased energy consumption and a corresponding increase in emissions. To prevent and overcome this impact, the production and use of energy resources should be managed carefully.

The increasingly limited water resources in various areas throughout Indonesia has resulted in more careful water management and water consumption. Agriculture will continue to be the greatest water consumer; however, in different areas, particularly in Java, severe competition for water resources will take place with in the agricultural, industrial and domestic spheres.

Given this situation, it is necessary to develop a national policy and implement a strategy in order to change production and consumption patterns, through the following Program Areas:

Food Production and Consumption, Patterns, and Nutrition Adequacy;

Energy, Production and Consumption Patterns;

Water, Production and Consumption Patterns.

CHAPTER 3 - DEMOGRAPHY

Indonesia has succeeded in lowering its annual population growth rate from 2.34%, during the 1970-1980 period, to 1.98% during the period 1980-1990. This was done through the ongoing national family planning program. However, even population distribution has yet to be achieved so that in certain areas the carrying capacity of the environment has been surpassed, particularly in relation to agricultural productivity. To date population distribution has been dealt with separately from environmental management. Therefore, it is necessary to develop institutions and implementation procedures to manage the interaction between development, population and environment. These institutions should focus on the development and management of information, as well as policy formulation, and implementation.

Analysis pertaining to the issues of population dynamics and sustainable development are elaborated in the following three Program Areas:

Analysis of the Linkages between Population, Environment and Sustainable Development;

Formulation of Integrated Policy on Population, Environment and Sustainable Development at the National, Regional and Local Levels;

Implementation of an Integrated Program on Population, Environment and sustainable development.

CHAPTER 4 - HUMAN HEALTH AND ENVIRONMENT

Health services, which has been an intensive and long-term program in Indonesia, has succeeded in decreasing infant mortality rates and increasing life expectancy. However, services tend to be uniformly distributed. Whereas human resources in the health sector differs from place to place. It is recommended that, in the future, health services be based on spatial approach and improvement in self-sufficiency. Due to increased urban and industrial activities, more attention should be paid to water and air pollution control, clean water supply, and other environmental measures. In particular, health services should be improved for populations most vulnerable to infectious diseases such as tuberculosis, cholera and malaria. These diseases must be eradicated, and urban community health services must be developed in line with urban community growth.

To this end the following Program Areas are proposed:

Primary Health Care Programs, especially for Indonesia's Vulnerable Communities;

Control of Contagious Diseases;

Urban Pollution Control and Urban Public Health.

CHAPTER 5 - PROMOTING SETTLEMENT DEVELOPMENT

In the development of settlement areas, an important measure, aside from provision of houses for dwellings, is the creation of a healthy living atmosphere in terms of environment, economy, and sociocultural and political conditions. These conditions should guarantee an improvement in quality of life, whereby each person can enjoy a better life, respect one another, have access to infrastructure facilities and good housing services, and be able to enhance the quality of their environment. This means that the integration of social and environmental conditions, will serve as the basis for action. Based on this, all persons are treated, and expected to treat themselves, as equal to each other, and everyone has a role in the decision-making process.

In achieving this objective, it is necessary: (l) to change the concept of 'housing development' into 'settlement development', which places emphasis on social, functional and ecological integration; and (2) to create an atmosphere conducive for settlers to maintain their own settlements with a view to improving their welfare.

The above objectives are described and analyzed in the following Program Areas:

Development of Housing and Settlement;
Management of Housing and Settlement.

CHAPTER 6 - GLOBAL TRADE SYSTEM, ECONOMIC INSTRUMENT AND ENVIRONMENTAL AUDIT

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 value-added acquisition process, which is based on available resources, and makes use of comparative and competitive advantages must be supported by highly-qualified, environmentally-conscious human resources. The industry, trade, public and related sectors, must be based upon an improved intellectual capacity which is able to incorporate human, organizational, technological and information components, available both internally and externally. Economic resilience must be able to maintain sound and dynamic economic stability through economic instruments which take into account environmental audit based on prevailing laws and regulations as well as early development and application of legal norms.

The above may be carried out within the following Program Areas:

Economic Approaches to Natural and Environmental Resource Management;

Development of a Pro-active Approach to Pollution (Minimization of Waste);

Development of Economic, Natural Resources and Environmental Accounting System.

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

CHAPTER 7 - ATMOSPHERIC PROTECTION

The atmosphere serves three major functions: 1) It provides raw materials for various human activities; 2) It absorbs and recycles the residue (waste) of human activities; and 3) It supports human life. Therefore, the atmosphere constitutes an asset that needs to be protected and preserved.

The atmosphere's ability to function may be disrupted by the introduction of pollutants into the air as a result of human activities. To prevent and control air pollution, a change of view is urgently required among the government, private sector and community at large, on the following issues:

The limited capacity of the atmosphere to receive and recycle waste.

The negative impact of air pollution health, reduction in economic efficiency, a slowdown economic and social development.

Impaired air quality will be extremely costly, with the costs increasing immensely in proportion with worsening air quality.

The atmospheric protection issue is not only a local and national issue, but a regional and global issue as well. As a result, activities associated with atmosphere and air quality can affect international relations, both political and commercial.

The above-mentioned issues are elaborated in the following four Program Areas:

Integrating and Enhancing Environmental Considerations and Efficiency Measures in Energy Development;

Improving Capacity and Measures in Managing Ozone Depletion;

Improving Capacity and Measures to anticipate Climate Change;

Managing Potential Long Range Air-Borne Pollutants

CHAPTER 8 - CHEMICAL WASTE MANAGEMENT

The widespread and ever increasing use of chemicals in all fields has been followed by the accumulation of its negative effects, including the contamination of land, water and air. Better management of these chemicals globally is essential. In the Indonesian context, there are a number of activities which can be undertaken such as: the uniform classification of toxic substances; the development of a labeling system for products, which is based on the internationally-approved system; the use of international data and the dissemination of information through the Prior Informed Consent (PIC) procedures; the application of a life cycle analysis to production processes related to chemical management; and increased national ability to detect and reduce the import of toxic products.

To achieve the goals, four Program Areas have been recommended:

Development of National Capability and Capacity for Management of Toxic Chemicals;

Harmonization of Classification and Labeling of Chemicals;

Information Dissemination on Toxic Chemicals and Chemical Risks;

Risk Reduction Programs and Prevention of Domestic and International Illegal Traffic in Toxic and Hazardous Chemicals.

This chapter will focus on the management of Toxic Chemicals, whereas Chapter 9 will focus on the management of Hazardous (B-3) Waste.

CHAPTER 9 - HAZARDOUS (B-3) WASTE MANAGEMENT

In order to minimize the volume of hazardous and toxic, production systems should be reoriented, from end-of-the-pipe approaches to cleaner production and cradle to grave. This is especially important for hazardous waste which is a growing problem in Indonesia.

The successful control and environmentally-sound management of B-3 waste will depend on interaction between legal and social infra-structure, institutional capacity, human resources quality, technological capacity and NGO advocacy.

The following Program Areas are addressed in this chapter:

Development and Improvement of Environmentally-Sound B-3 Waste Management, with emphasis on Waste Minimization;

International Cooperation and Prevention of Illegal Traffic in B-3 Waste;

Improvement and Strengthening of Institutional Capacity in Managing B-3 Waste.

CHAPTER 10 - RADIOACTIVE WASTE MANAGEMENT

Radioactive waste management is particularly earmarked for maximum protection of living creatures, the environment and its ecosystems.

In order to guarantee maximum safety and protection, all parties involved in the acquisition of radioactive materials should abide by the ALARA (As Low As Reasonably Achievable) principle. In order to achieve radioactive waste management that complies with the principle of sustainable development, technological applications should be technically and economically viable for maximum protection of the environment and safety from any potential nuclear hazards, now and in future. The application must also be accepted by the community.

To maximize safety considerations associated with radioactive waste, the following Program Area is proposed: Environmentally-Sound Management of Radioactive Waste.

In order to maximize safety considerations associated with radioactive waste, the following Program Area is proposed: Environmentally-Sound Management of Radioactive Waste.

CHAPTER 11 - SOLID AND WASTE WATER MANAGEMENT

The principles of solid and waste water management, within the context of sustainable development, are that waste may not accumulate so as to disturb material and nutrient cycles; that waste disposal should be limited to a level not exceeding the environmental carrying capacity to absorb pollution; and that closed systems of material utilization, such as recycling and composting, should be maximized. Based on these principles, the following four Program Areas have been identified:

Waste Minimization;

Maximizing Environmentally Sound Waste Reuse, Recycling and Composting;

Extending Waste Service Coverage;

Promoting Environmentally Sound Waste Disposal and Treatment.

In order to obtain effective results, these four Program Areas should be planned and implemented in an integrated manner and by applying economic instruments.

CHAPTER 12 - LAND RESOURCES PLANNING

Mounting demand for development sites has increased pressure on land resources in Indonesia. The problems associated are exacerbated by lack of agreement between various interest groups and economic sectors. In addition the regulatory system, is extremely complex and largely irrelevant to community is socio-economic conditions. What often results is inconsistent and inefficient land resource management.

To deal with these problems, a strategy for efficient, fair and sustainable land resource management must be developed. The strategy is comprised of the following four Program Areas:

Land Administration and Spatial Planning;
Establishing an Effective Land Administration System;
Improving Institutions for Land Management;
Information and Data System.

CHAPTER 13 - FOREST MANAGEMENT

From economic, socio-cultural and ecological perspectives, forests play an important role in Indonesia. Yet, in line with population and national economic growth, pressure on forest resources is constantly increasing. This is evident from the high deforestation levels.

To deal with the issue, a forest management strategy should be prepared, not only in terms of forest utilization, but also in terms of price determination in accordance with the potential of forest resources; institutional strengthening; laws and regulations which benefit all parties; and tax regulations which support sustainable forest management. It is hoped that implementation of such measures would improve sustainable forest management and increase awareness among concerned parties which, in turn, would maintain long-term forest productivity, thus supporting the development of the Indonesian economy. Within a sustainable management system, forests must be seen from a new perspective, not only as an economic resource, but as serving multiple purposes. As such, the practice of forest management must change from "tree management" to "ecosystems management," where forest dwelling communities also play an important role in forest management. Efforts to achieve these objectives are outlined in the following five Program Areas:

Developing and Sustaining Integrated Sustainable Forest Production;

Enhancing the Regeneration, Rehabilitation and Protection of Forests;

Strengthening Regulations and Law Enforcement for Sustainable Forest Management;

Maintaining and Improving the Participation and Welfare of Forest-Dwelling CommunitieS,

Establishing and Strengthening Research and Capacity in Sustainable Forest Management.

CHAPTER 14 - SUSTAINABLE AGRICULTURE AND RURAL DEVELOPMENT

In addition to contributing to the national economy, the agricultural sector also supports the livelihood of a majority of Indonesians who reside in rural areas. However, the current agriculture development strategy focuses on the achievement of short-term production targets to the neglect of ecological considerations.

In order to face future challenges, agriculture and rural development strategy should be changed whereby environmental considerations are integrated into agricultural practices, with the final objective being the sustainable provision of food which is safe for public health The agriculture and rural development strategy should include policies for agriculture, food and farm operations diversification, the use of High yielding seeds, the correct use of artificial fertilizers, sustainable land planning and management, the efficient use of water resources, the development of supporting infrastructure and improvement of farmers' skills, and institutional capacity building. These matters are detailed in the following six Program Areas:

The Development of Agricultural Policy, Planning and Integrated Programs to Promote Food Security and Sustainable Development;

Improvement in Agricultural Products and Farming Systems through Diversification of Farming and Development of Supporting Infrastructure,

Enhancing Community Participation and the Quality of Human Resources;

Conservation and Rehabilitation of Agricultural Land;

Integrated Pest Control;

Nutrients for Increasing Food Production.

CHAPTER 15 - WATER RESOURCE MANAGEMENT

Once believed to be an unlimited resource, the supply and quality of water in Indonesia's major cities is now questionable. Growing levels of consumption, environmental damage, and pollution have made it necessary to begin sustainable management efforts so that water will not become a scarce resource in the years to come.

A water management strategy must be developed which will protect and preserve water resources while educating the public on the value of water and their responsibility for sustaining it. In managing water resources, measures should be taken to ensure efficiency in the distribution of water according to needs. Strategies in water management should guarantee the availability of water for all levels of society. In preparing a sustainable water strategy, the government should pay attention not only to physical and technical matters, but also to the improvement of regulations, laws and administration of water resources management. These efforts are elaborated upon in the following four Program Areas:

Availability of and Requirement for Water Resources;
Water Resources Quality;
Water Resources Distribution;
Integrated Water Resources Management.

CHAPTER 16 - CONSERVATION OF BIOLOGICAL DIVERSITY

Biodiversity conservation focuses on the sustainable management of Indonesia's wealth of biological diversity, comprising land and marine ecosystems, agroecosystems and production areas, and ex situ conservation. These conservation efforts must safeguard traditional knowledge systems, and develop biodiversity utilization systems based on equitable sharing of benefits.

Efforts to achieve these objectives are described and analyzed in the following five program areas:

Managing the Protected Areas System More Effectively;

Conserving Biodiversity in Agroecosystems and Non-Protected Production Areas;

Ex Situ Conservation of Biological Diversity;

Protecting Traditional Community Knowledge and Improving Knowledge on Conservation of Biodiversity;

Developing and Maintaining a Sustainable Biological Diversity Utilization System, Including Equitable Sharing of Benefits.

CHAPTER 17 - PROMOTING AND MANAGING BIOTECHNOLOGY

Biotechnology development must be focused 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.

The achievement of these objectives is described and analyzed in the following five Program Areas:

Agricultural Biotechnology to Increase Food Production, Feed and Other Renewable Materials;

Medical Biotechnology to Improve Human Health and Quality of Life;

Environmental Biotechnology;

The Development of Infrastructure for Biotechnology;

Biosafety Regulations.

CHAPTER 18 - INTEGRATED MANAGEMENT AND DEVELOPMENT OF COASTAL AND MARINE AREAS

In Indonesia's fifth Five-Year Development Plan, many of the development activities take place in coastal areas. Population growth, export demand, and per capita consumption increased the utilization of coastal and marine resources. In 1992, fish production was 3.5 million tons, or equaling 53% of the maximum sustainable yield (MSY) of 6.6 million tons. It is predicted that, by 2000, this will increase to 4.25 million tons, and by 2020, to 6.04 million tons. On the other hand, this will also cause an increase in pollution. Waters off the Surabaya coast show the existence of large volumes of domestic and industrial waste, and the water quality is reported to be the second most polluted in Indonesia after Jakarta Bay.

However, the coastal communities have not yet gained any significant benefit from development in these areas. Therefore, the development of coastal villages should pay more attention to the regional social, economic, cultural and environmental conditions.

In Indonesia, there are 116 small islands and groups of small islands which are ecologically susceptible, particularly to global warming and natural disasters. The potential result is a decrease in the quality and quantity of biodiversity. Small islands typically have large numbers of endemic species, and high levels of biodiversity consisting of valuable and protected species.

Indonesian waters are frequently navigated by both foreign container ships and fishing boats. Law enforcers face problems in preventing ship traffic, which is protected by agreements. Relatively weak control in eastern Indonesia creates other problems in dealing with the frequent violations, such as disposal of toxic and hazardous waste and trespassing in the catchment zone.

This situation requires better management of coastal and marine areas, especially institutional integration and competence, so that resources in these areas can become prime products in the development of Indonesia in the future.

The following Program Areas are discussed to deal with these issues:

Integrated Planning and Resource Development in Coastal Zones;
Monitoring and Protecting Coastal and Marine Environments;
Sustainable Utilization of Marine Resources;
Strengthening and Empowering Coastal Communities;
Sustainable Development of Small Islands;
Maintaining Security of the Exclusive Economic Zone (EEZ);
Managing the impacts of Climate Change and Tidal Waves.

REFERENCES

Ministry of Forestry (1996), Country Paper; Indonesia Progress Towards Sustainable Management of Tropical Forest (Objective Year 2000), Jakarta

State Ministry for the Environment (1996), Agenda 21 Indonesia; National Strategy for Sustainable Development,

Jakarta

The State Ministry for Environment (1994), Indonesia Country Programme for The Phaseout of Ozone Depleting Substances Under The Montreal Protocol, The Government of Indonesia, Jakarta

The State Ministry for Environment (1995), Indonesian Policy and Strategy on Climate Change, The Government of Indonesia, Jakarta

The State Ministry for Environment (1996), Inventory of Greenhouse Gases Emissions and Sinks in Indonesia, Republic of Indonesia, Jakarta

The State Ministry for Environment (1992), Indonesia Country Report on United Nations Conference on Environment and Development, Rio de Janeiro, Republic of Indonesia

The State Ministry for Environment in cooperation with The National Consortium for Forest and Nature Conservation in Indonesia (1995), Indonesia Country Report on Implementation of Agenda 21, Republic of Indonesia

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Last updated 1 November 1997