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Indonesia

SCP Context

Indonesia National Context for SCP and Connection to the Global Agenda

Indonesia has consistently demonstrated a commitment to global actions such as the United Nations Framework Convention on Climate Change (UNFCCC) and the Sustainable Development Goals (SDGs). It previously delivered a Voluntary National Review (VNR) on the SDGs at the High-level Political Forum (HLPF) in 2017 and will deliver its second report in 2019. Sustainable consumption and production continued to be an important theme for Indonesia. Many key policies directly related to and facilitate integration of sustainable consumption and production principles, namely: the Long-term development vision 2005-2025; the 10-Years Frame Work of Sustainable Consumption and Production (2013); and the Indonesian Roundtable on Greening the National Development Plan (2013). There are numerous instruments in place, including economic instruments such as taxes that promote sustainable consumption and production. SWITCH-Asia has also been a part of Indonesia’s shift to sustainable consumption and production, with the previous National Policy Support Component that ran until 2015 as well as eight completed projects through the Grants Programme and three currently being implemented, which cover support of SMEs focused on sustainable fisheries (MATA KAIL), promoting a consumer shift to sustainable food (Local Harvest) and improving access to cleantech among MSMEs (ACMFN).

Challenges

  • With SMEs making up a large percentage of businesses in Indonesia, inadequate technical capacity as well as a lack of access to finance to adopt clean technologies continues to be an issue.
  • The financial sector has not yet been aligned with the goals of a low-carbon economy while the country continues to deal with growing natural resource demands.
  • The overall investments required to place Indonesia’s economy on a green and sustainable development pathway fall short.
  • Eco-labelling efforts have either not yet fully implemented or have a very limited outreach and/or low number of certified products.

Priorities

In addition to responding to the challenges, there are key sectors and activities that will promote overall effectiveness SCP efforts and the long-term success of the SDG implementation including:

  • In order to move away from carbon intensive growth, green banking and financing is important to scale up and provide more opportunities, especially for SMEs.
  • National development priorities of pro-poor, pro-growth, pro-environment and pro-jobs intersect through sustainable tourism, making it a priority as well.
  • With rapid urban population growth and already high urban population rates, resource efficiency in cities is a strategic area that affects majority of the country’s population.
  • The textile industry in Indonesia contributes a large percentage to the country’s GDP while the batik industry in particular occupies a position in its national heritage, making its long-term sustainability a priority.
  • Other key sectors include: sustainable food production and consumption including food waste, waste management handling and disposal; reducing plastic waste and marine litter; Green Public Procurement and eco-labelling; and energy efficiency.

Opportunities

  • SWITCH-Asia could facilitate policy dialogues within and between the Indonesia SCP-related bodies such as the Ministry of Environment and Forestry, Ministry of National Development Planning (BAPPENAS) among other stakeholders. 
  • Scale-up technical and financial assistance to induce and enable eco-innovation among SMEs towards resource efficiency. 
  • Move forward with the Indonesian SCP National Blueprint 2030 through the lenses of the SDGs in general and SDG12 in particular.
  • Explore the potential of the concept of Voluntary Agreements in Indonesia, where command and control approaches have only been developed to a limited extent.
  • Build awareness through education, including by introduction of SCP-related issues into curricula, programmes to train teachers, teaching materials and guidelines as well as through linking SCP to school management and using schools as hubs for informal education.

SWITCH-Asia Activities

2018

SCP Facility 

  • Preliminary assessment of SCP related policies, activities, needs/gaps, and opportunities.

Regional Policy Advocacy Component (RPAC)

Facilitated the participation of Indonesian key-stakeholders in the following regional/ sub-regional activities:

2019

SCP Facility

  • A bilateral meeting took place on 4-5 August 2019 with the NFP, the EU Delegation to Indonesia and the GIZ’s Advance SCP project focusing on the supporting the country in this same sector;
  • A specific request for support was addressed by the national government on 4 October 2019 on the implementation of SCP policies and in particular of Green Public Procurement;
  • A concept note with specific actions and timeline was developed by the SCP Facility in consultation with the GIZ project 'Advance-SCP' (focus on Sustainable Public Procurement and eco-labelling).

Regional Policy Advocacy Component (RPAC)

Facilitated the participation of Indonesian key-stakeholders in the following regional/ sub-regional activities:

2020-2021

SCP Facility

Implementation of the following joint activities with the Ministry of Environment and Forestry Indonesia, the SCP Facility, and the GIZ Advance SCP, in partnership with the government partners working on Green/Sustainable Public Procurement (G/SPP), with guidance from EU Delegation: 

  • Led by the SCP Facility, development of a market readiness analysis report on the wooden furniture and paper industries;
  • Led by the GIZ Advance SCP, development of technical regulations for paper and furniture sectors, based on the market readiness analysis report, and initiation of the process for the Long-Term Action Plan for G/SPP in the paper and wood furniture sectors and other priority sectors in Indonesia. 

2020

Regional Policy Advocacy Component (RPAC)

Facilitated the participation of Indonesian key-stakeholders in the following regional/sub-regional activities:

2021

Facilitated the participation of Indonesian key-stakeholders in the following regional/sub-regional activities:

Grants Projects


Low Carbon Rice
Reducing Climate Impact of Rice Production in Indonesia
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Timber Indonesia
Promoting the Implementation of Timber Legality Assurance (FLEGT License) as a Key Step to Sustainab...
2,432 Views
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Soybean Processing (SCoPE)
Promoting eco-friendly production in Indonesian tofu and tempeh industry
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PROSPECT INDONESIA
Promoting eco-friendly Indonesia rattan products
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Lead Paint Elimination
Market leaders eliminate lead paint in seven Asian countries
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Handwoven Eco-Textiles
Promoting sustainable handwoven eco-textiles in Indonesia and the Philippines
2,790 Views
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Clean Batik Initiative
Integrating the behaviour of consumers, batik producers and local governments for a less polluting, ...
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ASEAN SHINE
Promotion and Deployment of Energy Efficient Air Conditioners in ASEAN
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AEMAS
Establishment of the ASEAN Energy Management Scheme
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MATA KAIL
Promoting sustainable consumption and production patterns in the fish processing sector
2,513 Views
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Local Harvest
Promoting sustainable and equitable consumption and local food systems
4,939 Views
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Asian Cleantech MSME Financing Network (ACMFN)
Promoting Sustainable Cleaner Development
2,749 Views
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