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7/27/2019 04.4 Indonesia's Position and Policy
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UMM TEAM MALANG
JUNE - 2008
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4 Indonesia Position & Role
1. Country Description2. Impact of Climate Change in Indonesia3. Source of Green House Gasses
4. Working Group on Climate Change5. Legal & Regulatory Framework6. National Development Planning7. Program for Mitigation
8. Technology Requirement9. Financing the Climate Change Strategy10. Energy status & Alternative Energy
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4 Indonesia Position & Role
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4 Indonesia Position & Role
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4 Indonesia Position & Role
Indonesia is located in the tropical belt, is thelargest and widest archipelago country in theworld, consist of 17,508 big and small islands,there are 5 big islands : Sumatera, Java, Borneo,Celebes and West Irian
There are two season in Indonesia , May to
October is dry season and October to April israiny season
Second worlds longest coast line (81.000 km)
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4 Indonesia Position & Role
Based on demography survey in 2000, the totalpopulation was 206 million, representing thefourth largest country in the world
With the population growth rate was 1,49percent.
Estimate population in 2006 was 220 million.
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4 Indonesia Position & Role
Climate Change Effects Impacts on Indonesia
Sea Level Rise
Ocean Warming
IncreasedTemperature
Increased Rainfall
IncreasedEvaporation
Increased TropicalStorms
Disappearing Small Islands
Salt Water Intrusion
Decline in Fisheries Harvest
Loss of Biodiversity
Increased Fire Risk
Increased Disease Risk, Range
Floods and Land Slides
Changes in Planting SeasonDrought, Food Security
Transport Vulnerability
Food and Water Scarcity
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Deforestation rate (2000 2005) -> 2,8 MillionHa/year & Forest fire (West Borneo in 2006) -> lossof 91 Million USD (source: www.beritabumi.or.id)
Flood (February 2007) result in 8 Billion USD loss(source: www.detikfinance.com)
Landslide -> 80 Million USD/year Human health : Dengue, Malaria, Diarrhea
Rise of Sea Level Drought (Cirebon District in 2006) result in loss of
8.6Million USD (source:http://greenpena.blogspot.com)
http://www.beritabumi.or.id/http://www.detikfinance.com/http://greenpena.blogspot.com/http://greenpena.blogspot.com/http://www.detikfinance.com/http://www.beritabumi.or.id/7/27/2019 04.4 Indonesia's Position and Policy
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4 Indonesia Position & Role
The disappearing of small Island -> within 2005 2007, 24 small islands disappear, the location:
3 island in Nanggroe Aceh Darussalam (NAD)
3 island in Papua
5 island in Riau
2 island in west sumatera
7 island in the coastal area of Jakarta
(source: Ministry of Oceanary & Fishery)
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The availability of water is very dependent on the climate, due to the
limited supply of water (only covers about 37% of urban population
and 8% of rural population) causing people and industries use deep
groundwater resources land subsidence that creates areas
vulnerable to flood and salt water intrusion
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4 Indonesia Position & Role
JakartaCoastalRegionin 2050
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4 Indonesia Position & Role
During El Nino years (1994, 1997,2002,
2003, 2004 and 2006) shown that 8
reservoirs in Java have produced electricity
below normal capacities
During El Nino 1997 has caused serious
problems to coral reef ecosystems where
90-95% of coral reefs at the depth of 25mhave experienced coral bleaching
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4 Indonesia Position & Role
Poorest nations and poor groups are likely to be hardest hit bythe effects of climate change as they:
rely heavily on climate change-sensitive sectors (agricultureand fisheries)
Are less able to respond (lack of human, institution andfinancial capacity)
Achievement of the National Development goals and
Millennium Development Goals (MDG) see table
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Changes in mean climate,
variability, extreme events
and sea level rise
Impact on poverty and
national development
planning targetsImpact on the eight MDG
Increased temperatureand changes in
precipitation reduce
agricultural and natural
resources
Change in precipitation,
run-off and variability
leads to greater waterstress
Increased incidence or
intensity of climate related
disasters lead to damage
to assets and
infrafstructure
Temperature, water and
vegetation changes
contribute to increase
prevalence of disease
Lowered industrialoutput and labour
productivity, high
inequality, impacts on
trade, and fiscal and
macro-economic
growth, and poverty-
reducing effects
Reduced productivity
and security of poor
peoples livelihood
assets, and reduced
access for the poor to
their livelihood assets
Less effective coping
strategies among the
poor, and increased
vulnerability of poor
people
1. Eradicate extreme poverty and hunger
Food security jeopardized, more intense disasters threaten livelihood
2. Achieve universal primary education
More vulnerable livelihoods means more children engaged in
employment; infrastructure damage from disasters
3. Promote gender equality and empower women
Women make up two-thirds of worlds poor and are more adversely
impacted by disasters.
4. Reduce child mortality
Children more vulnerable to malaria and other diseases, which are
spread more widely by climate change
5. Improve maternal health
Pregnant woman particularly susceptible to malaria
6. Combat HIV/ AIDS, malaria and other diseases
Increase prevalence of mosquito-bone diseases
7. Ensure environmental sustainabilityClimate change indication of unsustainable practices. Move toward
more energy-efficient model of consumption
8. Promote global Partnerships
Wider forums must acknowledge the role of climate change in
impacting MDGs
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4 Indonesia Position & Role
Based on Workshop on Climate Change and Health in South East Asian Countries :Kuala Lumpur, Malaysia
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4 Indonesia Position & Role
Transportation Industry Forestry Agriculture
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Mitigation Post Kyoto ForestryAdaption EnergyFinancial Mech.Transfer of Technology
WasteOceanForestryAgricultureTransportationIndustryEnergy:
Working Group on Climate Change Activities: to undertake qualitativepolicies and measures that lead to the our response to Climate change,
i.e. to stabilize concentration of GHGs at the safe level.
Working Group of Transfer of Technology Activities: to further derivationand enrichment the previous project and to prioritize technology needs,and capacity building to assess technology needs, modalities to acquireand absorb them.
EXISTING INDONESIAN WORKING GROUP ONCLIMATE CHANGE
d i i i l
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Ministry of Environments Ministry of Research and Technology Agency for the Assessment and Application of
Technology (BPPT) Governments Departments: Energy & MineralResources, Forestry, Agriculture, etc. Meteorology and Geophysical Agency Indonesia State Electricity Company Private Sectors Universities NGOs
d i i i l
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4 Indonesia Position & Role
I d i P i i & R l
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4 Indonesia Position & Role
I d i P iti & R l
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4 Indonesia Position & Role
Presidential Rule No.5, 2006 regarding NationalEnergy Policy, asp. on energy mix by the year2025
Presidential Decree No.10, 2005 on energyefficiency
Presidential Decree no. 1, 2006 regarding
Biofuel Utilization Program Act No. 6/1994 which stipulate the ratification of
UNFCCC
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4 Indonesia Position & Role
Act No. 23/1997 regarding EnvironmentalManagement
Ministrial Decree of Forestry No. 14/04regarding Afforestation/Refforestation Project
Ministrial Decree of Environment no. 53/03regarding Ministry of Environment as National
Committe of Climate Change
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4 Indonesia Position & Role
Ministrial Decree of Environment no. 206/05regarding Ministry of Environment as theIndonesia DNA
Government Regulation no. 4/2001 concerningControlling Environmental Damages and orPollution Associated with Forest and Land Fire
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4 Indonesia Position & RoleLEGAL & REGULATORY FRAMEWORK FOR INDONESIA POWER SECTOR, INFRASTRUCTURE DEVELOPMENT & IMPLEMENTATION
DESCRIPTION PT. PLN (PERSERO)INFRASTRUCTURE
DEVELOPMENT LEGAL ®ULATORY FRAMEWORK
INDONESIA POWER SECTOR LEGAL & REGULATORY FRAMEWORK
POLICY,
STRATEGY,
NATIONAL
TARGET, AND
NATIONAL PLAN
IMPLEMENTING
RULES,
PROCEDURES
AND PLAN
IMPLEMEN-
TATION
COOPERATION
BETWEENGOVERNMENT ANDENTERPRISES FORDEVELOPMENT OFINFRASTRUCTURE
(PRESIDENTIALREGULATION NO67/
2005)
RISKMANAGEMENT
GUIDELINES FORINFRASTRUCTURE
DEVELOPMENT(MINISTRY OF
FINANCE
REGULATIONNO.38/PMK.01/2006)
ELECTRICITY LAW(GOVERNMENT OF INDONESIA LAW NO. 15 / 1985)
MODIFICATION OFGOVERNMENT REGULATION
NO 10/1989 SUBJECT,SUPPLY AND UTILIZATION OF
ELECTRICITY(GOVERNMENT REGULATION
NO.3/2005)
LEGALIZATION OFMODIFIED PLN ELECTRICITY
SUPPLY GENERAL PLAN/RUPTL 2006-2015
(MEMR DECREE NO. 2923K/30/MEM/2006)
NATIONAL ENERGY POLICY(PRESIDENTIAL REGULATION NO.5/2006)
COAL FIRED
POWER PLANTCRASH
PROGRAM
RENEWABLE ENERGYMEDIUM SCALE
CRITICAL AREAPOWER PURCHASE AND TRANSMISSION RENTAL
SUPPLY AND UTILIZATION OF BIOFUEL ASALTERNATIVE FUEL
(PRESIDENTIAL INSTRUCTION NO.1/2006)
LIQUEFIED COALS SUPPLY AND ITS
UTILIZATION(PRESIDENTIAL INSTRUCTION NO.2/2006)
ASSIGNMENT TO PLN FOR ACCELERATION OFCOAL FIRED POWER PLANTS DEVELOPMENT
(PRESIDENTIAL REGULATION NO. 71/2006)
ESTABLISHMENT OF COORDINATION TEAMFOR POWER PLANTS DEVELOPMENT.
(PRESIDENTIAL REGULATION NO,72/2006)
MEDIUM SCALE OFRENEWABLE ENERGY
POWER PLANT(MEMR REGULATION
NO. 002/2006)
PROCEDURE OF POWER
PURCHASE AND/ORTRANSMISSION RENTALELECTRICITY SUPPLY
FOR PUBLIC
(MEMR REGULATIONNO.001/2006)
GUIDELINES OF THEISSUANCE OF
ELECTRICITY BUSINESSLICENSE FOR
TRANSMISSIONTRANSPROVINCE OR
CONNECTED TO NATIONALGRID
(MEMR REGULATION NO.010/2005)
LIST OF POWER
SYSTEMS (AREAS)IN CRITICALCONDITION
(EMERGENCYCONDITION)
(MEMR REGULATIONNO. 206-12/40/600.2/
2006)
LIST OF POWERSYSTEMS (AREAS)
IN CRITICALCONDITION
(EMERGENCYCONDITION)
(MEMR
REGULATION NO.482-12/40/600.2/
2006)
NATIONALELECTRICITY
GENERAL PLAN 2006-2026
( MEMR DECREE NO.2270K/31/MEM/2006)
RENEWABLEENERGY
SUPPLY AND DEMANDBALANCE
INVESTMENTREQUIRMENT
PROJECT LIST
INFLUENCED BY
ARTICLE 5POINT 1
ARTICLE 2POINT 2
DERIVATION
ARTICLE 5POINT 1&2
POJECT DEVELOPMENTAND IMPLEMENTATION
TO OBTAIN GOVERNMENTSUPPORT/ GUARANTEE
CONSIDERING
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Bahan Bakar Nabati(Biofuel) 5%
Panas Bumi 5%
Biomasa, Nuklir, Air,
Surya, Angin 5%
Batubara yang
Dicairkan (Coal
Liquefaction) 2%
Batubara 33%
Minyak Bumi 20%
Others
17%
Gas Bumi30%
PRIMARY ENERGY MIX 2005
National Energy Mix Target 2025(PERPRES NO. 5/2006)
Enhancing energy security & mitigating CO2emissions: to secure strategic reserve, to improveefficiency in energy production & use, to increasereliance on non fossil fuels and to sustain thedomestic supply of oil/gas (slower growth in fossilfuel-demand in oil/gas imports and in emissions).
Proposed energy technology use, diffusion anddeployment, increasing clean energy technologies.
Energy infrastructures and its time frame. Etc.
THE NATIONAL ENERGY ISSUESWhat is the SustainableRoad Map?
NATIONAL ENERGY TRAJECTORY
Minyak
Bumi
51.66%
Batubara
15.34%
Gas Bumi
28.57%
Tenaga Air
3.11%Panas Bumi
1.32%
t2?
t1?
t3?
t25EBT +
Presidential RuleNo. 5/2006
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4 Indonesia Position & Role
2010-2014National Mid-TermDevelopment Plan
(NMDPT)
Strategic Nat. Res & Env.Assessment (SNREA)for 2010-2014 NMTDP
INPUT DOCSBRIDGING DOCS
Integrating Climate Change to National
Development Planning Process
National
Communication,
National Sector
Strategy, etc.
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Climate
ChangeProgram
MID TERM
DEVELOPMENT
PLAN
2004-2009
GOV WORKPLAN
2008
FUNDING
GOV
FUNDING
MID TERM
DEVELOPMENT PLAN
2010-2014
GOV WORKPLAN
2014
GOV WORKPLAN
2013
GOV WORKPLAN
2012
GOV WORKPLAN
2011
GOV WORKPLAN
2010
GOV WORKPLAN
2009
LOAN GRANT
COMM/
PRIVATE/
NGO/CSR
CDMDEBT
SWAP
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NATIONAL DEVELOPMENT PLANNING AGENCY
BAPPENAS
NATIONAL DEVELOPMENT PLANNING RESPONSE TO
CLIMATE CHANGE
INTERNATIONAL
WORLD
IMPLEMENTATION
1. Agriculture2. Coastal and Small Island
3. Health
4. Transportation
5. Public Works
6. Human Settlements
7. Energy and Mining
8. Forestry
9. Environmental
10. Technology
11. Rehabilitation & Revilitation Peat
Land
12. Mainstreaming Decentralized
Disaster Risk Reduction
INDONESIA
CLIMATE CHANGE NATIONAL
ACTION PLANLIVING DOCUMENT
NATIONAL ACTION PLAN
IN FACING CLIMATE
CHANGE
MINISTRY OF ENVIROMENT
The Strategy of CarbonAbsorption Potential
Improvement and Strategy
of Carbon Emission
Reduction
MINISTRY OF SOCIAL
WELFARE
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What is national development plan? Process to make development plans consist of long-term
development plan, medium-term development plan and annualdevelopment plan which will be implemented by state
institutions, private sector and community in all level of regions
Current regulations applied for development planning: Law No. 25/2004 about Development Planning Presidential Regulation No. 7/2005 about Medium-term National
Development Planning 2004-2009
Other national development plan policy relates to Climate Change: Millennium Development Goals (do not have legal status)
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Environmental Policies are aimed to:
1. To mainstreaming sustainable development principles intoalldevelopment aspects;
2. Improve coordination among environmental institutions in nantionaland local level;
3. Increase the law enforcement effort to the poluters;
4. Increase the capacity of environmental institutions in national and
local level;5. Improve the awareness of community on environmental issues and
support community active participation to monitor environmentalquality;
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Among 15 environmental policy objectives, 3 objectives
(No.5-7) are related to climate change issues:1. Improve urban air quality especially in Jakarta,
Surabaya,Bandung, and Medan, supported byimprovement of environmentally sound oftransportation system and management;
2.Reduction of ODS (Ozone Depleting Substances)gradually until 2010;
3. Improve national capacity in adapting climatechange issues into development aspects;
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Target 9 : Integrate the principles of sustainabledevelopment into country policies andprogrammes and reverse the loss of
environmental resources
Target 10 : Halve, by 2015, the proportion ofpeople without sustainable access to safe
dringking water and basic sanitation
Target 11 : By 2020, to have achieved a significantimprovement in the lives of slum dwellers
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To integrate the agenda of climate change adaptation to the National DevelopmentStrategy such as: Mid-Term & Long-Term Development Plan;
To re-observe and re-adjust initiative or program to be resilience to the climate
change;
To Institutionalize the climate information usage to enable climate risk mitigation
and management; To encourage local government to integrate the climate risk consideration into their
local development planning;
To strengthen information and knowledge to reduce climate risk in recent and in the
future;
To ascertained of the availability of internal resources and funding for adaptation
program and maximalize the utilization of available international funding; To choose for no-regret option, which is taking the adaptation act regardless for
example the non-occurence of climate change;
To encourage the establishment of national dialog to accelerate the implementation
process of climate change adaptation agenda in Indonesia.
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MITIGATION ADAPTATION
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4 Indonesia Position & RoleMITIGATION ADAPTATION
1. Toward Green Indonesia (MIH) &Aforestation (National forest and landrehabilitation)
2. Water Conservation (WatershedManagement, Well Absorption, Reservoir)
3. Forest Fire Master Plan Poverty DerivationEducation for Farmer (for not doing landclearing by land burning such as:government will supply fertilizer and
contribute good quality seed)4. Flood Management5. Reconstruction/redesign of irrigation
Agriculture6. Encouraging CDM Project increase by
sectoral approach
7. Mixed Energy Policies8. Free tax for clean technology equipments9. Energy Efficiency in the government
buildings10. Air Pollution Control for Transportation11. Self Sufficient Energy Village Program
1. Encourage MGA (Meteorologicaland Geophysical Agency) to havestation monitoring for weatherforecast More Accurate and RealisticNumber
2. Identify the vulnerable sectorsaffected by climate change.
3. Public Participation.4. Mainstreaming Adaptation Issue into
related policies sector; for reviewingthe 5--years Strategy Programme.5. Draft National Strategy on
Adaptation to Climate Change
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4 do es a os t o & o e
The immediate objective: to enable Indonesia to identify national technology needs, capacity building to asses international technology availability, and modalities to acquire and absorb the appropriate technology.
Sectors in Existing Indonesian TNA Energy Sector Energy Industry Industry Sector Household and Commercial Sector
Transportation sector Non-Energy Sector Agriculture and Livestock Forestry
(Existing Indonesian TNA submited to UNFCCC on 2001)
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MODALITIES OF TECHNOLOGY TRANSFER Institutional Establishment Regulation Development
Procedure of Transferring Technology The Role of Decentralization
System & Procedure Establishment Financial Arrangement Foreign Direct Investment Official Development Assistance The Global Environmental Facility Clean Development Mechanism Multilateral & Bilateral Agencies Regional Development Banks Etc.
(Existing Indonesian TNA submited to UNFCCC on 2001)
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Criteria for prioritizing technology needs Utilization of local resources
Rational utilization of resources
Socio-economic important
GHG reduction potential
Investment cost
Social acceptance
Minimum impact on environment
Methods for prioritization of technology needs Costbenefit and riskbenefit analyses
(Existing Indonesian TNA submited to UNFCCC on 2001)
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Indonesia listed barriers and measures sector-wise.Types of barriers totechnology transfer identified are: Economic / market Information/awareness Policy
Regulatory Institutional Human Technical Infrastructure
Indonesia expressed concern about the high investment costs of selected
mitigation options, which could translate into higher product prices andloss of competitiveness in the case of the energy sector. However, itidentified barriers only in the transport, forestry and agriculture sectors.
(Existing Indonesian TNA submited to UNFCCC on 2001)
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High Efficiency Power Generation: Clean Coal Technology, CHP Technology,etc.
Energy Efficiency in Industrial sector (cement, iron & steel, pulp & paper,fertilizer, textile, mining, lime calcination, chemical, etc.)
Energy Efficiency in Industrial Equipments (Industrial process, electricalmotor, boiler, compressor, furnace, Refrigeration, heater, room conditioning,
cooling tower, electrical system, combustion, pump, lighting, steamdistribution, waste heat recovery, etc. Energy consumption efficiency in transportation including using gas for
vehicles including improvement of public transportation Carbon Capture Sequestration (CCS) Cleaner Production Technology for Industry Renewable Energy: Biomass, Wind, Solar, Ocean, Geothermal, Hydro
electric, etc. Climate modification technology Climate monitoring & reporting system
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Avoiding forest burning, avoiding deforestation, forest conservation andreforestation, etc.
Composting of agricultural waste, manure management, etc. Landfill management to avoid methane release Ocean Sequestration Technology for water resources management Industrial waste water treatment Industrial solid waste treatment (recovery, composting of palm free fruit
bunch.
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Indonesia is already responding to this challenge in anticipation ofthe future consequences.
In 2007 and 2008, central government spending on environmentalprograms over 2006 levels to 6 trilion rupiah was doubled.
At the regional level, we have also nearly doubled spending to 6trillion Rupiah on reforestration and special funds for environmentand conservation.
Together, these funds amount to USD 1.4 billion spent onenvironment management, conservation and forest restoration.
In 2005, Indonesia also instituted a large increase in fuel prices byreducing subsidies that will encourage energy efficiency , whileprotecting the poor.
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Indonesia(RPJP, RPJM,
RKP)
Donor
(Country Strategy/Program)
ClimateChange
JointPrograms
The support of developed countries on Climate Change Programall over the world should be in addition to their commitment tosupport MDGs achievement through ODA(0.7 % GNP)
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Bilateral
JBIC
DFID
AusAID
DANIDA
Netherlands
EC
GTZNorway
CIDA
Sweden
MultilateralWolrd Bank
ADB
UNDP
O t h e r sIntl trust funds: GEF,Adaptation funds, CIF
Private Sectors
F i n a n c i n g
Bilateral
Multilateral
CDM
M e c h a n i s m s
Loan
Grant
G-to-G
Trust tee
Management
GoI host
TA & financial &managementsupport
CC Trust Fund
Mitigation & Adaptation
Public-private partnership
Policy Re-orientation
Climate-Proof Economy
Awareness raising
Community-Based Programs
Capacity Building
Training/Workshops
Piloting
Small-scale Investment
Policy Implementation
Execution of Policy/Strategy
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UNFCCC Convention Article 11: grant and/or concession
Prefer to have ODA+
Paris Declaration ownership, donor harmonisation, governance,
In line with national interest and financing regulation: Long-term and Mid-term National Development Goals
State Law No. 17/2003 about State Finance and Foreign Loan and GrantRegulation (Government Regulation No.2/2007)
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Non-UNFCCC mechanism: Grant from Bilateral Countries or Multilateral Institutions (ODA and
ODA+) Foreign Loan (ODA and ODA+):
Program Loan: only for budget/fiscal deficit
Sectoral Loan: emphasizing co-benefit approach betweendevelopment and climate change Trust Fund (both International and national)
UNFCCC mechanism: Global Environmental Facility (GEF)
Special Climate Change Fund (SCCF) Adaptation Fund (AF) Up-coming Reduction Emission from Deforestation and
Degradation (REDD) mechanism
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CDM investment through Bilateral, Multilateral andUnilateral sources
PRIVATE SECTOR:
We should also look to encourage greater levels of privatesector involvement in mitigating and adapting strategies.Government can use fiscal instrument to encourage privatesector to invest in environmental friendly technology
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Grant Debt swap
Trust Fund Soft Loan - concession
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Steering Committee/Ministers
Program SteeringCommittee
Chair: GoICo-chair: Representative of Donor
Ministries/Agencies/Local Governments/
SOEs
SubGroup/Issue
SubGroup/Issue
SubGroup/Issue:
ClimateChange
Multi DonorTrust Fund
(MOU GOI-Donors)
Bilateral/Multilateral
Donors
ProgramDialogue
Policy Report Funding
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Indonesia Energy Projection
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Gas
Coal
WindWind
Thermal
Other
Oil
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Gas
CoalOil
Wind
Wind
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Presidential Decreed No. 1 / 2006
RegardingSupply & Usage of Bio Fuel as Alternative Energy
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