Indonesia

1
Indonesias Policy on CDM Implementation
Prasetyadi Utomo Ministry of Environment of
Indonesia CD4CDM Workshop Pathumthani,
Thailand 19 21 October, 2005
2
National Policy on Climate Change

• Accelerate the development of industry and
  transportation with low emission level through
  the utilization of clean and efficient technology
  as well as renewable energy
• Improve the potential of land and forestry to
  absorb greenhouse gases
• Indonesia adopts international law as a national
  law to be detailed in the framework of regulation
  and institutions.

3
CDM Implementation in Indonesia

• Legal background
• Act No. 23/1997 concerning Environmental
  Management
• Act No.6/94, Ratification to the UNFCCC
• Act No.17/04 Ratification to the Kyoto Protocol
• Min of Forestry Decree No.14/04 on A/R project.
• Institutional strengthening
• Establishment of National Commission on Climate
  Change (Ministerial decree No.53/03
• Establishment of the DNA Ministerial decree
  No.206/05)
• Active involvement of various stakeholders

4
National Committee on CDM

• Indonesian National CDM Authority (DNA) Komisi
  Nasional Mekanisme
• Pembangunan Bersih (KN-MPB)
• Established through Minister of Environment
  decree No.206 Year 2005

5
Organisation structure and supporting Elements of
Indonesias DNA on CDM (KNMPB)
6
Permanent Members

• Min of Environment
• Min of Energy Mineral Resources
• Min of Forestry
• Min of Foreign Affairs
• Min of Industry
• Min of Transportation
• Min of Agriculture
• Min of Home Affairs
• National Development Planning Board

7
KNMPB the Functions

• Mandatory function
• Approving proposed CDM projects based on the
  national sustainable development criteria
• Tracking the progress of PDD on CDM Exec Board
• Non-mandatory promotional function
• Facilitating communication among investors and
  the proponent and other related parties
• Facilitating capacity building in proposing and
  implementing CDM projects
• Providing information to support CERs marketing
  and/or CERs potential

8
SD Criteria and Indicator for CDM

• Environmental Sustainability
• Environmental sustainability through conservation
  or diversification of natural resources
• Local community health and safety
• Economic sustainability
• Income generate
• Local community welfare
• Investment flow
• Social sustainability
• Local community participation
• No negative impact on communitys social
  integrity
• Improve social facility
• Technical sustainability
• Transfer of technology
• Improving indigenous/existing technology
• Transfer of knowledge
• Not used on experimental technology

9
National Strategy on CDM Implementation in
Indonesia

• Institutional and legal strengthening
• Establish bilateral agreements with Annex 1
  countries
• Improve coordination among central and local
  governments
• Develop networking among stakeholders (govnt,
  NGO, univ, business, etc.)
• Improve public awareness, education, training
• Provide access to information on climate change
  issue

10
Strategy on CDM Implementation

• No specific area for project type of CDM
• Highly support of using Renewable energy,
  alternative energy and clean technology
• Simplified approval procedure on CDM proposed
• Incentive scheme for CDM Project developer
• Promote CDM project potential through
  international event such as Carbon expo

11
Energy Policy(Action Plan for Sustainable
Development in Indonesia)

• Phase out energy market distortion gradually
• Promotion of the renewable energy use and
  development
• Encourage society applying energy efficiency
• Support on consumption of clean and efficient
  technology for industry and trade sector
• Restructure prices of various energy type.

12
Policy in Non Energy Sector

• Sustainable forest management
• Improvement on agricultural system
• Application of biotechnology engineering to
  increase agricultural products
• Management of agricultural practices in less
  fertile land with dry land variety

13
Perspective on Future development of CDM

• Indonesia has a number of promising potential
  CDM projects
• Indonesia has attracted Annex 1 countries to
  become the Host Country for CDM
• Increasing enthusiasms from local business player
  as well as other stakeholders in CDM
• Strengthened by the establishment of KNMPB
  (Indonesian DNA)

14
Further Information
Deputy Assistant for Climate Change Impact Control
Tel. [phone] Fax. [phone] E-mail
climate_at_menlh.go.id Indonesia DNA
dna-cdm.menlh.go.id
Thank You