Opening the Seminar on Green Economy: Strategic Direction in time of Climate Change (14 April 2010) in Jakarta, Ismid Hadad (Chair of the Executive Board of Yayasan Pembangunan Berkelanjutan/LEAD Indonesia) said that Indonesia needs a good leader who has a good vision and knowledge to making sure that the sustainability of the earth can be enjoyed by our future generation. Sustainable development requires economic progress, sustainability of environment functions, and sustainability of the social order. It is a multi-stakeholders endeavor (government, private sector, mass media, and civil society) and everyone should play an active role so that we can develop a holistic approach.
Sudariyono (Deputi VII Bidang Pembinaan Sarana Teknis dan Peningkatan Kapasitas Kementerian Lingkungan Hidup Republik Indonesia) as a keynote speaker said there are two types of environmental problems - brown issues (cases of contamination) and green issues (destruction). And conflict of interest between environment and economy (economic growth and exploitative practices) had driven to the environmental degradation. Though in Indonesia the government has implemented Environmental Law no. 32/ 2009, it is expected that through green economy we can balance the principles of pro growth, pro job and pro poor.
Prof. Emil Salim (Member of Dewan Pertimbangan President and Founder & Chair of the Governing Board YPB/LEAD Indonesia) explained that the conventional economic development had ruined the web of life (for social and ecosystem) and to bring it back into the order we should tie the broken link. How to repair the web of life are through promoting diversity and interdependency; correcting the market failure (through transparency, inclusiveness, balancing economic – environment and social interest); promoting strategic development (through change of behavior with correct incentives); getting the incentive structure right – and not just price; conducting inter-regional payment if necessary; and start changing the mind set to fulfill MDG’s target.
The first panel session was filled with discussion on concept of green economy and its application in banking industry. Dr. Arianto Patunru (Director of LPEM FEUI) mentioned that there are two strategies that can be done in order to implement green economy scheme in Indonesia. At the macro level are through sustainable development as umbrella of action and through major intervention on implementing green GDP and green budgeting system. Those are very difficult strategy and lots of political and economic interest will determine – including from business sector. At the micro level there should be policy adjustment on electricity tariff; public transportation; implementation of tradable emission permit and implementation of PES (payment for environmental services).
From business perspective, Anggoro Eko Cahyo (General Manager Consumer Funding & Services Division Bank Negara Indonesia - BNI) mentioned that opportunities are laid down for private sector to be involved in the green economy scheme through development of Biotechnology, Energy efficient products, renewable energy etc. For BNI, sustainability is not explicit, but part of profitability so it is the bank’s commitment to put it as our business strategy. Right now BNI had developed Road map to sustainability which includes BNI’s milestones from awareness building to product development. The bank had even restated its mission to include environment and community, and establish corporate sustainability team to making sure that the roadmap achieved. These efforts are considered as a breakthrough in Indonesia’s banking community.
The second session of the seminar was discussing about climate change issues and political negotiation of climate change. Amanda Katili Niode (National Council for Climate Change/ The Climate Project Indonesia) emphasis on the climagration issues as the rate of GHG emission increases (3 ppm/year) which then would affect sectors of agriculture, water, coastal settlement, fish production etc. Though technology is available but still sharing the cost is a big issue that each country should negotiate.
Fabby Tumiwa (Executive Director of Institute for Essential Services Reform, LEAD Fellow Cohort 12) who speaks after Amanda explain right now challenges to move forward after COP 15 in Copenhagen are how to merge green economy scheme into mitigation strategy through for example decarbonizing energy sector and shifting to low carbon growth path by adopting non-fossil fuel-based technology. Also the government need to enable policy to move toward low carbon technology adoption with incentive structure and further more to promote business alliance for best management practice adoption.
Buyung Erlangga MSc. (Tim Bidang Neraca Nasional - Badan Pusat Statistik) mentioned that currently the debate on green GDP calculation is already taken a place. BPS as center for statistical data, had already implemented a system called SNA93/SEEA = Satellite System for Integrated Environmental and Economic Accounting which is calculating GDP by estimating the resources exploitation and environmental damage costs.
Participating in this year’s LEAD Associate Training are Ari Sutanti (British Council Indonesia), Charles Oskar Makikama (PT Bank Negara Indonesia), Gita Meidita (Yayasan Pembangunan Berkelanjutan), Harnaka Harto (PT Pundi Artha Setia), Irma Winda Lubis (Independent), Ismarini Ismail (PT Bank Negara Indonesia), Leonard Tiopan Panjaitan (PT Bank Negara Indonesia), Miranti Triana Zulkifli (National Development Planning Agency – BAPPENAS), Mita Julinartati Sirait (Yayasan Tirta Lestari (Watsan Action)), Nana Fitriana Firman (Citizens Coalition for Jakarta 2030), Paramita Mentari Kesuma (WWF Indonesia), Rahimah (British Embassy), Ranidia Leeman (PT Holcim Indonesia Tbk), Rika Lestari (PT Pembangunan Jaya Ancol), Sakariza Qori Hemawan (PT. Bank Negara Indonesia), Shintia Dian Arwida (Aliansi Organis Indonesia/ VECO Indonesia), Susy Rizki Sadikin (Ministry of Environment), Sinta Kaniawati (Unilever Peduli Foundation Indonesia).
Overall session of National Seminar LEAD Associate Training Cohort 15 was facilitated by Tony B. Trihartanto (Stekpi) and Mubariq Ahmad (World Bank). The core teams of Cohort 15 are Ario Tranggono (LEAD Fellow Cohort 14) and Chandra Wirman (LEAD Fellow Cohort 9).
