Green Economy and Sustainable Development
in Indonesia
Prof. Dr. Armida S. Alisjahbana
Fakultas Ekonomi dan Bisnis
–
Universitas Padjadjaran
Outline*
1. From MDGs to Sustainable Development Goals
2. Sustainable Development in Indonesia: An Unfinished Agenda
3. Framework for Priority Policies and Strategies
4. Green Economy and Sustainable Development
5. Implementation and Priority Issues
SDGs in the Post 2015 Development Agenda
•
Sustainable Development Goals Agenda:
•
Renewing and strengthening commitment to MDGs
(MDGs+)
•
Based on Agenda 21
•
Focus on 3 dimensions of Sustainable Development
(Pillars: Economic, Socio and Environment)
•
A coherent and integral part of Post-2015 Development
Main Components:
•
Human resources development and welfare improvement
•
Inequality and poverty alleviation
•
Access to basic infrastructure and public services
•
Inclusive and sustainable economic development
•
Environment, natural resources, ecosystem, bio-resources
management and development
•
Promote peaceful and inclusive societies
•
Targets (some) and Means of Implementation (including finance,
No.
Proposed Goals
Targets
MoI
1
End poverty in all its forms everywhere
2
End hunger, achieve food security and improved nutrition,
and promote sustainable agriculture
3
Ensure healthy lives and promote well-being for all at all ages
4
Ensure inclusive and equitable quality education and
promote life-long learning opportunities for all
5
Achieve gender equality and empower all women and girls
6
Ensure availability and sustainable management of water and
sanitation for all
7
Ensure access to affordable, reliable, sustainable, and
modern energy for all
No.
Proposed Goals
Targets
MoI
8
Promote sustained, inclusive and sustainable economic growth,
full and productive employment and decent work for all
9
Build resilient infrastructure, promote inclusive and sustainable
industrialization and foster innovation
10
Reduce inequality within and among countries
11
Make cities and human settlements inclusive, safe, resilient and
sustainable
12
Ensure sustainable consumption and production patterns
13
Take urgent action to combat climate change and its impacts*
14
Conserve and sustainably use the oceans, seas and marine
No.
Proposed Goals
Targets
MoI
15
Protect, restore and promote sustainable use of terrestrial ecosystems,
sustainably manage forests, combat desertification, and halt and
reverse land degradation and halt biodiversity loss
16
Promote peaceful and inclusive societies for sustainable development,
provide access to justice for all and build effective, accountable and
inclusive institutions at all levels
17
Strengthen the means of implementation and revitalize the global
partnership for sustainable development (Finance, Technology,
capacity building, Trade, Policy and institutional coherence,
Multi-stakeholder partnerships, Data, monitoring and accountability)
Highlights of Selected Goals
Goals
Selected Targets
Goals 1. End Poverty in all its forms everywhere
Eradicate extreme poverty for all people everywhere by 2030
Reduce at least by half the proportion of all ages living in poverty by 2030
Implement nationally appropriate social protection systems by 2030
Goal 2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
End hunger and ensure access by all people, in particular the poor and people in vulnerable situations by 2030
End all forms of malnutrition by 2030
Goals
Selected Targets
Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
Ensure that all girls and boys complete free, equitable and quality primary and secondary education by 2030
Ensure that all girls and boys have access to quality early childhood development by 2030
Ensure equal access for all to affordable and quality technical, vocational and tertiary education, including university by 2030 Substantially increase the number of youth and adults who
have relevant skills by 2030 Goal 6. Ensure availability and sustainable
management of water and sanitation for all
Achieve universal and equitable access to safe and affordable drinking water for all by 2030
Goals
Selected Targets
Goal 7. Ensure access to affordable,
reliable, sustainable and modern energy for all
Ensure universal access to affordable, reliable and modern energy services by 2030
Increase substantially the share of renewable energy in the global energy mix by 2030
Double the global rate of improvement in energy efficiency by 2030
Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Achieve higher levels of economic productivity
Improve global resource efficiency in consumption and
production and endeavour to decouple economic growth from environmental degradation
Goals
Selected Targets
Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
Develop quality, reliable, sustainable and resilient
infrastructure, to support economic development and human well-being
Promote inclusive and sustainable industrialization Increase the access of small-scale industrial and other
enterprises, to financial services, and their integration into value chains and markets
Goal 10. Reduce inequality within and among countries
Progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average
Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality
Improve the regulation and monitoring of global financial
Goals
Selected Targets
Goal 12. Ensure sustainable consumption and production patterns
Rationalize inefficient fossil-fuel subsidies
Goal 14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
Sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts
Effectively regulate harvesting and end overfishing, illegal, unreported and unregulated fishing and destructive fishing practices
Conserve at least 10 per cent of coastal and marine areas, consistent with national and international law
2. Sustainable and Inclusive Development in Indonesia:
An Unfinished Agenda
•
Economic growth in Indonesia for the past decade has transformed
the economy, increase welfare
•
Total number and percentage of extreme poverty has rapidly
declined (people lived under USD1.25 a day)
•
Depth of poverty has declined
•
Decreased job growth, increased economic insecurity
and vulnerabilities
–
High incidence of informal sector jobs
•
Youth unemployment
–
Youth unemployment is forecast to edge upwards in 2015
•
Social security system in transition
Indonesia’s
Gini Coefficient, 1996
–
2014
Increasing Income Inequality
Income inequality (Gini ratio) in Indonesia increased from 0.36 in 1996 to
0.41 in the latest available year.
0.36
0.41 0.41 0.41 0.41
0.20
Unfinished Development Agenda: Selected Indicators
Maternal death per 100,000
live birth
346 (SP 2010)
Infant mortality rate per 1,000
live birth 32 (2012/2013)
Prevalence of malnutrition (underweight) for
children age less than 5 years
(percent) 19,6 (2013)
Prevalence of
stunting (height short and very short) for children
(age less than 2 years) (percent)
32,9 (2013)
Access to clean water 70% (2014)
Access to sanitation 60.9%
Unsustainable Use of Resources
• Asia-Pacific economy, including Indonesia is requiring more resources to produce one dollar of GDP as the economy grows
• Future growth of resource use in several countries, including Indonesia holds
significant implications for overall resource demand
• Vulnerability to natural disasters (Indonesia prone to natural disasters):
– 42% of the global economic losses due to natural disasters
– Disaster losses since 1980 have
increased by 16 times in Asia while GDP
CO2 emissions from fuel combustion (IEA) [Metric tons of CO2 equivalent per capita]
1992-2002 1992-2012 1993-2003 2002-2012 China
East Asia and Pacific
3. Framework for Priority Policies and Strategies
On the onset of Global Economic Situation*:
• Subdued euro zone economy, decelerating China growth and Policy uncertainty in US
Impact on Asia-Pacific (including Indonesia)
• Decreased economic activity through the trade and finance channel
• Estimated regional GDP loss of 3% since the onset of the global crisis five years ago -$870 billion
• Loose monetary policies, quantitative easing (QE), of the developed world including in US and the end of QE starting in 2014
Impact on Asia-Pacific (including Indonesia)
• Short-term capital flows volatility
• Rapid short-term currency appreciation turned into depreciation
• Food and fuel price volatility (increase during the commodity boom period of 2000s until 2011 and now food and fuel price decrease, currency appreciation/depreciation and volatility and end of oil subsidy for certain countries)
Impact on Asia-Pacific (including Indonesia)
Inclusive and Sustainable Development
Resource mobilization
Higher Productivity and Sustained Growth
Public debt and inflation
Healthier and more educated labor force, Better environment, Resilient
people, Inclusive society
Strengthening social and environmental pillars by providing universal access to basic public services through well designed national public
investment policies, that focus on:
Education Required public
investment
ECONOMIC SOCIAL ENVIRONMENTAL
4. Green Economy and Sustainable Development
(Source: Murniningtyas, 2015)
•
Green Economy and Sustainable Development Concept
•
Principles of Green Economy
•
Economic Restructuring; Sustainable Consumption and Production
•
Internalizing Environmental Aspect into Economic
Social Aspect
Economic Aspect 1. Economic
structure 2. Consumption
and
3. Coastal and sea 4. Clean water 5. Biodiversity
Governance Aspect 1. Institutional
framework
(institution, inter-relationship and rules)
2. Capacity:
institution and human resources
Human Development/MDG
Governance Green Economy Environment and Biodiversity
SUSTAINABLE DEVELOPMENT
Disadvantage 1:
environmental aspect is not as developed as economic and
Disadvantage 2:
GREEN ECONOMY
1. Resource efficiency 2. Minimum/clean waste 3. Renewable resources
DEFINITION AN ECONOMY WHICH:
1. Utilization of resources is efficient (in particularnon renewable resources): a. Resour es a e utilized lo ger
b. Efficient – o aste
Key: continuous increase in productivity –technology is key 2. Utilization of resources along its value chain such that:
a. Zero waste
b. Minimal waste –can be absorbed by the ecosystem
Key: Technology for development ofby-product; and Clean Technology for separation and recycling of waste, safe for the ecosystem
3. The use of renewable resources:
a. No non-biodegradable waste
Sustainable use of resources and management of the environment
Where to start?
1. Economic restructuring (at macro level):
a. Value added creation
–
value added chain in economic activity
–
industry/manufacturing (technology is key)
b. Services
–
sector which relies on human resources, skills.
2. Sustainable consumption and production:
a. Efficient consumption and zero waste (versus affluent
consumption with high waste)
SUSTAINABLE DEVELOPMENT IMPLEMENTATION
Greenhouse Gas Emission Reduction (Low Carbon
Development)
SCP Green Economy ... Sustainable Development
Reducing water and land
pollution
• Resource efficient
• Sustainable production
• Sustainable consumption
