1. “Formulating Green Economy Recovery Framework Program: Green Growth Diagnostics, Regulation/Incentive Mapping and Regional Pilot Project”
Direktorat Perencanaan Makro dan Analisis Statistik
Jakarta, 03 November 2021

2. GREEN ECONOMY: CONCEPT AND PILLARS
Green economy revolves around the concept of low-carbon development, resource efficiency, and social inclusivity. The green economy approach extends the circular economy focus to how water, energy, land and biodiversity should be managed to secure ecosystem resilience and human well-being.
GREEN ECONOMY
Low-Carbon
Resource Efficient
Socially Inclusive
“development-first” approach
lower emission trajectories in achieving development objectives
technical efficiency (material output per unit of energy)
resource productivity (value added per unit of resource input)
economic growth and development
equality and poverty reduction
expanding access and opportunities
Source: UNEP, Bappenas
TRANSITION TO GREEN ECONOMY
Strategi yang harus dilakukan dalam green transition
Sector/product prioritization
identify sectors that satisfy all three criteria of a green economy framework
have high multiplier effect on the economy, have a relatively low CO2 emissions and better income distribution
Trade-off
build economic growth but also address a range of various social needs including education, health, social protection, and job creation, while at the same time tackling environmental pollution and climate change
GREEN ECONOMY: A NESTED SET OF OBJECTIVES
Source: European Environment Agency
Financing
increase level of financial flows (from banking, micro-credit, insurance and investment) from the public, private and not-for-profit sectors to sustainable development priorities
Fiscal reform
aligning government expenditures with environmental goals
creating fiscal space for green investment and broader fiscal reform
Statictics
measure the impact of the green economy

3. GREEN RECOVERY: GERMAN EXPERTISE
Statement of Problems
For the past 25 years, Indonesia‘s growth rates have been among the highest in the world. Yet, this economic success has had economic and social repercussions.
Many of Indonesia natural resources have been lost. Communities are negatively affected by water and air pollution.
Opportunities for economic and social progress are unequally distributed. Going forward, the productivity is also declining.
Pillar 1
Strengthening green concepts
Pillar 2
Macroeconomic framework
Pillar 3
Financing green economy
Pillar 4
Fiscal reform
Encouraging energy efficiency
Developing clean energy sectors
Promoting better waste management models
Improving forest and land management
Blue Economy
Towards food security
Green Growth Diagnostics
Measuring the impact and projection of green economy
Enhancing jobs creation through green economy approach
Boosting inclusive and sustainable economic growth
Promoting economic circular
Supporting new industries in green economy sectors
Investing R & D for developing clean technology and waste management.
Public investment in activities peatland rehabilitation
Encouraging private sectors to invest in green projects.
Collaborating with all stakeholders to provide creative and green financing
Implementing and strengthening carbon policy tax to reduce greenhouse gases (GRK)
Promoting fiscal incentives for industries committing to lower greenhouse gases (GRK) effect
Stop fossil fuel subsidies and introduce carbon price
High economic growth | Sustainable and inclusive | Net zero emission and greenhouse gases (GRK) | Jobs creation |
Activities: Technical Inputs, TA, Analysis, Case Studies, Workshop/FGD, Surveys, Capacity Building, Field Visit, Pilot Project, Policy Note, Seminar
PIC Pillar 1
Dit. LH, Pangan pertanian, KTI, Kelautan dan Perikanan, Perumahan dan permukiman
PIC Pillar 2
Dit. PMAS, Ketenagakerjaan, IPEK
PIC Pillar 3
Dit. JKBUMN, PPP, PMAS, Dit. Kehutanan (Sekre SDGs)
PIC Pillar 4
Dit. KNAM, PMAS, LH

4. CONCEP NOTE : BACKGROUND, OBJECTIVE, AND SCOPE
Background and Sector Conditions
Objective
Indonesia has a vision to escape MIT and become a developed economy by 2045
Indonesia’s progress towards its 2045 vision is hampered by low productivity (TFP) and impacts of Covid-19 pandemic.
In the midst of recovering from the economic impacts of Covid-19, the issue of climate change should not be left behind. Although the pandemic did reduce mobility and emission at one point, the decline was not significant enough to stop climate change, and emission is expected to pick up again following economic recovery
Many countries in the world have recognized the importance of tackling climate change
Indonesia also recognizes the need to transform its economy not only to recover from the pandemic, but to reach an overall higher growth trajectory.
Indonesia is committed to reduce its greenhouse gas emissions by 29 – 41 percent by 2030.
In transitioning the economy to achieve green growth, a green growth diagnostic framework is needed. The growth diagnostic framework utilizes the “decision tree” to map out which development factors which are currently hampering the nation’s growth (binding constraints) either by generating too low of a return or possessing a high cost of finance.
Bappenas holds a crucial role as Indonesia’s national development planning agency. Knowledge sharing through international collaboration is of importance in formulating appropriate policies/strategies for sustainable economic recovery and transformation.
Strengthen evidenced based policy and regulatory framework
Strengthen Bappenas Capacity as Indonesia’s national development planning agency to formulate appropriate policies/strategies for sustainable economic recovery and transformation
Enhanced economic impact through implementation green economy strategy
Inputs for Indonesia economic transformation Presidential Regulation on green recovery and National Long-term Development Plan (RPJPN)
Project Scope Of Works
Phase 1
Study on Indonesia’s green economic growth diagnostics in National and Regional Level
Policy regulation mapping to support green economic transition in national and regional level
Case study and field visit of Germany’s experience in developing green economy project
Phase 2
Study on Indonesia’s green economic growth diagnostics in Regional Case
Policy regulation mapping to support green economic transition policy measures in regional level
Phase 3
Pilot project of selected intervention in the green economy area based on the findings in green growth diagnostic

5. CONCEP NOTE : INPUT, OUTPUT, DURATION, BENEFICIARIES AND BUDGET
Inputs from German Side
Inputs from Indonesia Side
International expert on green economy, macroeconomic, and modelling
Resource to conduct field visit
Resources to conduct pilot project at sub- national level (provinces)
Local expert on green economy and public policy
Organizing group discussions and workshops
Project Duration
5 Years
Beneficiaries
The Government
Of Indonesia
Output
Report of the study:
Indonesia’s green economic growth diagnostics
Case study and field visit of Germany’s experience in developing green economy
Policy and Green recovery and transition framework for national and local governments (provinces)
Enhanced and established evidence-based policy and regulatory framework
Budget estimate
EUR 4 million

6. CONCEP NOTE : IMPACT AND STAKEHOLDER
Stakeholders
Indonesia will be able to implement comprehensive policies on green economic recovery and transformation to achieve its Vision and become a developed country through equitable, inclusive and sustainable growth:
Up to 43% reduction of GHG emissions
Up to 45% reduction of emission intensity
Achieving 30% share of renewable energy
Achieving 30% share of biofuel for transportation sector
IPPU policy that will reduce emission factor by 50%
An integrated green economy policy framework that is responsive to climate change issues
Contributing to a harmonized green policy enactment at national and sub-national levels
Contributing to creation of an effective enabling environment for private sector to invest in green economy sectors
Germany: Federal Ministry for Economic Cooperation and Development (BMZ)
Indonesia: Ministry for National Development Planning (Kementerian PPN) / Bappenas
Line Ministries:
Ministry of Environment and Forestry
Ministry of Agriculture
Ministry of Marine Affairs and Fisheries
Ministry of Industry
Ministry of Manpower
Ministry of Transportation
Ministry of Trade
Ministry of Public Works and Housing
Ministry of Home Affairs
Local Governments:
Regional Development Planning Agencies (Bappeda)
Local Department of Environment and Forestry
Local Department of Agriculture
Local Department of Marine Affairs and Fisheries
Local Department of Industry
Local Department of Manpower
Local Department of Transportation
Local Department of Trade
Local Department of Public Works and Housing
Academia
Civil Society Organization
Private Sectors (including businesses, entrepreneurs, firms, and associations)

7. Gedung Wisma Bakrie 2, Lantai 5
TERIMA KASIH
Direktorat Perencanaan Makro dan Analisis Statistik, Kementerian PPN/Bappenas
Gedung Wisma Bakrie 2, Lantai 5

8. LAMPIRAN

9. COMPARISON OF SCOPE WITH OTHER PROPOSALS
UKE
Project Title
Scope
Direktorat Ketenagakerjaan
Green Jobs for Social Inclusion and Sustainable Development
Enhanced governance and policy framework to promote green employment
Creation of green jobs in the private Sector
Equip the workforce with green skills
match TVET graduates and (semi-)skilled labour with green job opportunities
Direktorat Kerja Sama Pendanaan Multilateral
G20 Senior Advisor for Green Recovery and Low Carbon Development
Advising the Indonesian Ministry of National Development Planning on green economic recovery and development issues in the work of the G20 Development Working Group under the Indonesian G20 presidency
Analytical support to G20 Development Working Group and other relevant G20 working group members through identification and dissemination of best available evidence
Lesson learning on green economic recovery for the Indonesian G20 Presidency.
Green economic recovery initiatives and outcomes.
Improving coordination and cooperation between Indonesia and Germany to ensure effective links between the two Presidencies, particularly in respect of sustainable development issues.
Conduct of negotiations and participation in relevant G20 meetings, particularly in relation to sustainable and development issues.
Direktorat Kependudukan dan Jaminan Sosial
Social Health Protection (Post Covid19, social insurance coverage following the emergency protocol of the Covid19)
Harmonization of laws and regulations related to social health protection
Long-term Social Health Protection reform strategy
Direktorat Lingkungan Hidup
Enhancement of the Sustainability Product Procurement Policy to Support the Implementation of Green Building Principles
Gap analysis of the current SPP policy
Identification of the recommendations for finalization and contextualization of the SPP roadmap and the impact of implementing SPP policies in supporting the creation of green economy
Mapping on social and economic criteria to develop sustainable product assessment criteria
Analysis for recommendations for sctting standards for environmentally friendly construction materials
Identification and the development of an analysis of recommendations for priority goods/services that will be gradually intervened through the SPP
Expand the implementation of pilot projects related to the utilization of environmentally friendly goods, both existing and new trials. This could be done by conducting a pilot project either in national or subnational level.

10. COMPARISON OF SCOPE WITH OTHER PROPOSALS
UKE
Project Title
Scope
Direktorat Lingkungan Hidup
Improving Economic and Social Resilience through Urban Climate Resilience Development
Analyze future conditions of climate hazards and their associations with vulnerability in super priority cities; including an analysis of the economic risks and losses of climate change impacts in super priority cities;
Develop institutional studies, regulations and key stakeholders mapping in the city;
Develop an action plan for urban climate resilience to reduce economic losses due to the impact of climate change in line with strengthening the economy, increasing welfare and reducing poverty levels;
Set targets for action each year, as well as their impact on economic and social resilience.
Develop effective schemes for mainstreaming urban Climate Resilience Development into urban planning documents.
Direktorat Perencanaan Makro dan Analisis Statistik
Formulating Green Economy Recovery Framework Program
Phase 1
Study on Indonesia’s green economic growth diagnostics in National and Regional Level
Policy regulation mapping to support green economic transition in national and regional level
Case study and field visit of Germany’s experience in developing green economy project
Phase 2
Study on Indonesia’s green economic growth diagnostics in Regional Case
Policy regulation mapping to support green economic transition policy measures in regional level
Phase 3
Pilot project of selected intervention in the green economy area based on the findings in green growth diagnostic
Direktorat Sumber Daya Energi, Mineral dan Pertambangan
Innovation Regions for a Just Energy Transition (IKI JET)
Institutionalization of social dialogue and stakeholder engagement, led by ILO
Stakkehoider Involvement and empowerment (outside Tdpartlte), led by CAN
Involvement and empowerment of workers, led by ITUC.
Public Awareness, led by CAN.
Co-creation Of knowledge, led by WI
Input to planning and poliey maNng process for a Just Energy Transition, led by ILO.
Just energy transition plan and policy development, led by GIZ
New, green economic activities - piloting transformational measures, led by GIZ
Skill development measures, led by GIZ

11. COMPARISON OF SCOPE WITH OTHER PROPOSALS
UKE
Project Title
Scope
Direktorat Lingkungan Hidup
Strengthening Environmental Quality Early Warning System (EEWS) Policy
Study on the effectiveness of water quality online monitoring system (ONLIMO) and air quality monitoring system (AQMS)
Capacity building for relevant stakeholders in developing Environmental Quality Early Warning System (EEWS) policy and technical assistance
Enhancement of water and air quality laboratories as a centre of excellence to evaluate and strengthen the local laboratories’ performance
Enhancement of integrated water and air online monitoring system across line ministries, local governments, and private sectors
Policy recommendation analysis as input for national mid-term development plan and national long-term development plan and other related policies which include institutional and financing mechanism
Integrated Urban Climate Action for Low-Carbon & Resilient Cities (Urban-Act)
Urban-Act will ensure opportunities for active engagement of Indonesian stakeholders in regional capacity development measures, facilitate transfer of knowledge and sharing of developed tools and methodologies.
Complementing this support, Urban-Act will provide targeted support as follows:
At the local level, one pilot city will be supported to integrate climate change aspects into the city’s urban spatial plan, urban investment or municipal budget plan, identify viable urban climate actions and facilitate access to further project preparation support. This is complemented by city-level support for project preparation within the Indonesia- Malaysia-Thailand Growth Triangle as a pilot measure with transboundary relevance.
At the national level, the policy frameworks will be further developed with a focus on technical guidance for policy operationalisation, cross-sectoral and multi-level coordination, and financial incentives for climate-sensitive urban development.
At the level of the Asia-Pacific region, cooperation between the Urban-Act partner countries (China, India; Indonesia, Philippines, and Thailand) and with regional initiatives and networks ensures regional agenda setting, knowledge sharing and scaling up of good practices.