The growing pressure of population demands together with inadequate environmental management is a challenge for Indonesia that hurts the poor and the economy. For example, total economic losses attributable to limited access to safe water and sanitation are conservatively estimated at 2 percent of GDP annually while the annual costs of air pollution to the Indonesia economy have been calculated at around $400 million per year. These costs are typically disproportionately borne by the poor because they are more likely to be exposed to pollution and less likely to be able to afford mitigation measures.
Natural resource challenges have persisted and become more complicated after decentralization. For example, the forest sector has long played a pivotal role in supporting economic development, the livelihoods of rural people and in providing environmental services. However, these resources have not been managed in a sustainable or equitable manner. Turning this situation around will require a new vision, led by the Government, of what a viable and environmentally sound forestry sector might look like.
The country’s administrative and regulatory framework cannot yet meet the demands of sustainable development in spite of a long history of support for policy and capacity development both from within the government and with international donor support. Indonesia’s ministries concerned with environment and natural resources management have benefited from good national level leadership, and also from an active network of civil society organizations throughout the country that are focused on environmental issues, with significant advocacy experience. Yet, improving Indonesia’s approach to environment and natural resources management is difficult.
Two reasons account for much of the poor performance: First, despite the substantial investment in environment and natural resources policy and staff development, actual implementation of rules and procedures has been poor and slow due to weak commitment by sector agencies, low awareness in local departments and capacity challenges at all levels. Also, awareness about the expected negative environmental impacts of sustained economic growth and the mechanisms for stakeholders to hold government agencies accountable for their performance are weak. Second, there is little integration of environmental considerations at the planning and programmatic levels, especially in the public investment planning process and in regional plans for land and resource use.
UNDP is supporting Indonesia in maintaining and managing the country’s rich environment, including Indonesia’s vast marine and terrestrial biodiversity and energy resources. UNDP is working for a sustainable environment and development policy, which integrates climate change concerns and at the same time provides poverty reduction and human development.
Climate change is a reality and urgent actions on climate change adaptation and mitigation are required. With an over 80,000 km long cost line and 17,000 islands, many people in Indonesia are depending on climate sensitive sectors such as agriculture, forestry and coastal community economies. Consequently, Indonesia is especially vulnerable to climate change, with the severe impacts of a changing climate already being felt in various parts of the country. Unreasonably, it is the poor and vulnerable communities that are being hardest hit by the changing climate. As a result, climate change is directly threatening Indonesia’s recent achievements on poverty reduction and other Millennium Development Goals (MDGs).
In addition to being strongly affected by climate change, Indonesia is also one of the world’s largest emitters of Green House Gasses (GHGs), thus contributing significantly to climate change. Indonesia’s largest emissions originate from deforestation and land degradation and conversion. In addition to causing climate change, these practices threaten livelihoods, biodiversity, peace and stability.
Given the implications of climate change for Indonesia and vice versa, the Indonesia UNDP Country Office considers climate change a top priority issue. Concrete climate change action is required if the Government is going to reach Indonesia’s ambitious emission reduction targets. UNDP is therefore engaging closely with the Government to pursue climate change adaptation and mitigation in the context of an environmentally sound and sustainable development framework.