Low Carbon Development: A Paradigm Shift Towards A Green Economy In Indonesia

In October 2017, the Government of Indonesia declared its goal of integrating climate action into the country’s development agenda. The Low Carbon Development Initiative (LCDI) was launched at Indonesia’s Ministry of National Development Planning (BAPPENAS). It aims to explicitly incorporate greenhouse gas (GHG) emissions reduction targets into the policy planning exercise, along with other interventions for preserving and restoring natural resources. The LCDI is a process for identifying development policies that maintain economic growth, alleviate poverty, and help meet sector-level development targets, while simultaneously helping Indonesia achieve its climate objectives, and preserve and improve the country’s natural resources. It is coordinated by BAPPENAS and brings together several institutions from the Government of Indonesia, the international donor community, local and international partners, distinguished experts, and civil society. Low carbon development policies are expected to be internalized into the upcoming National Medium-term Development Plan (RPJMN1) 2020–2024. The medium-term development Plan is part of the implementation of the National Long-term Development Plan (RPJPN2) 2005–2025, which seeks to establish a country that is developed and self-reliant, just and democratic, and peaceful and united. LCDI policies will be implemented to achieve the Indonesia Vision 2045.

LCDI preparation has also received direction and support from prominent public figures and Commissioners of the LCDI: Prof. H. Boediono, Former Vice President of Indonesia; Prof. Dr. Mari Elka Pangestu, Former Minister of Trade and of Tourism and Creative Economy in Indonesia; and Lord Nicholas Stern, co-chair of the Global Commission on Economy and Climate and IG Patel Professor of Economics and Government at the London School of Economics (LSE). Low Carbon Development: 8 A Paradigm Shift Towards a Green Economy in Indonesia  This report is based on the results of the analysis produced under the technocratic process coordinated by BAPPENAS to support the development of the RPJMN 2020–2024. This report includes contributions from partners, including WRI Indonesia, Global Green Growth Institute Indonesia, KnowlEdge Srl, New Climate Economy and partners, with all the above being referred to as the NCE-LCDI Partnership. Other institutions contributing to LCDI and the RPJMN process include International Institute for Applied System Analysis (IIASA), World Agroforestry (ICRAF), System Dynamics Bandung Bootcamp, Sarana Primadata Group (SPD), United Nations Development Program (UNDP).  This work has been made possible with support from UK Department for International Development (DFID) through the UK Climate Change Unit in Indonesia (UKCCU), the Government of Norway, the Government of Denmark and the Government of Germany