A roadmap for green growth: Indonesia’s draft strategy points the way for national sustainable development
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December 2014

The Government of Indonesia last week reaffirmed its ambitious commitment to slashing the country’s greenhouse gas emissions, launching its pioneering draft Planning and Budgeting Strategy at the UN Climate Change Conference in Lima.

The strategy, presented by Ministry of Finance officials, will act as roadmap for reducing emissions up to 41% compared to business-as-usual levels, by 2020. One of the first of its kind, the strategy recognises the need for a new approach to development planning that fully accounts for the value of natural resources, the environment and human capital.

This mainstreaming of environmental and social risks into policy and planning marks an important departure from traditional approaches and is especially important in a country such as Indonesia where over 70% of emissions come from forestry and land-based sectors which are themselves increasingly vulnerable to the impacts of a changing climate.

Dr. Syurkani Ishak Kasim, the Director of the Ministry of Finance’s Centre for Climate Change Financing and Multilateral Policy, said:

“This Strategy is designed to achieve the objectives of mainstreaming policy and adjusting government priorities to pursue the longer-term benefits of green and more sustainable development”.

OPM supported the development of the strategy which identifies six key policy areas for green growth - ranging from forestry, agriculture and irrigation to education and health – and outlines approaches to encourage more productive public financing and private investment. The OPM team has been working the Government of Indonesia over the last two years under the Low Carbon Support (LCS) programme, providing technical assistance to help develop fiscal policies, financing and policy development that support low carbon development.

The strategy – which covers the period 2015-2020 – will be incorporated into national and sectoral development plans including the country’s Medium Term National Development Plan, helping mainstream green growth into all areas of national policy.

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A roadmap for green growth: Indonesia’s draft strategy points the way for national sustainable development

December 2014

The Government of Indonesia last week reaffirmed its ambitious commitment to slashing the country’s greenhouse gas emissions, launching its pioneering draft Planning and Budgeting Strategy at the UN Climate Change Conference in Lima.

The strategy, presented by Ministry of Finance officials, will act as roadmap for reducing emissions up to 41% compared to business-as-usual levels, by 2020. One of the first of its kind, the strategy recognises the need for a new approach to development planning that fully accounts for the value of natural resources, the environment and human capital.

This mainstreaming of environmental and social risks into policy and planning marks an important departure from traditional approaches and is especially important in a country such as Indonesia where over 70% of emissions come from forestry and land-based sectors which are themselves increasingly vulnerable to the impacts of a changing climate.

Dr. Syurkani Ishak Kasim, the Director of the Ministry of Finance’s Centre for Climate Change Financing and Multilateral Policy, said:

“This Strategy is designed to achieve the objectives of mainstreaming policy and adjusting government priorities to pursue the longer-term benefits of green and more sustainable development”.

OPM supported the development of the strategy which identifies six key policy areas for green growth - ranging from forestry, agriculture and irrigation to education and health – and outlines approaches to encourage more productive public financing and private investment. The OPM team has been working the Government of Indonesia over the last two years under the Low Carbon Support (LCS) programme, providing technical assistance to help develop fiscal policies, financing and policy development that support low carbon development.

The strategy – which covers the period 2015-2020 – will be incorporated into national and sectoral development plans including the country’s Medium Term National Development Plan, helping mainstream green growth into all areas of national policy.