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Environment


  • 20-June-2023

    English

    Water Financing and Disaster Risk Reduction in Indonesia - Highlights of a National Dialogue on Water

    This report presents the policy recommendations resulting from the National Dialogue on Water in Indonesia, which took place between June 2022 and March 2023. Getting water resources management right, underpinned with appropriate financing mechanisms, is a prerequisite for realising Indonesia’s ambitious national economic growth agenda to become one of the top five global economies by 2045. The Dialogue, therefore, centred around two priority areas: 1) financing water infrastructure and 2) non-structural measures for flood disaster risk reduction. The report explores several instruments to enhance the financing of water services in Indonesia, such as the advantages and disadvantages of uniform water tariffs, independent economic regulation, pollution charges and demand management instruments. The report recommends the utilisation of land value capture as an additional source of financing. It also explores how water information systems for disaster response, flood forecasting and early warning can reduce flood disaster risk. The National Dialogue on Water in Indonesia is part of a regional initiative with the Ministry of Environment of the Republic of Korea, the Asia Water Council and the OECD.
  • 28-June-2021

    English

    Clean Energy Finance and Investment Policy Review of Indonesia

    Thanks to tremendous renewable energy and energy efficiency potential and a stable, dynamic economy, Indonesia has become a coveted destination for investors in the clean energy sector. Clean energy investment, however, remains far below the level needed to realise Indonesia’s ambitious clean energy and sustainable finance goals. Instead, investment in fossil fuels continues to dominate. This first Clean Energy Finance and Investment Policy Review of Indonesia supports efforts to reverse these trends and achieve a clean energy transition. The report provides a comprehensive overview of the current policy framework, highlighting progress and identifying untapped opportunities for strengthening policy interventions that can help scale up clean energy finance and investment. It also provides a number of tailored recommendations for the Government of Indonesia and development partners. The Review was undertaken within the OECD Clean Energy Finance and Investment Mobilisation (CEFIM) Programme, which supports governments in emerging economies to unlock finance and investment in clean energy.
  • 25-March-2021

    English

    Assessing the impact of energy prices on plant-level environmental and economic performance - Evidence from Indonesian manufacturers

    This paper provides an empirical analysis of the impact of energy price increases – induced notably by the removal of fossil fuel subsidies – on the joint environmental and economic performance of Indonesian plants in the manufacturing industry for the period 1980-2015. The paper shows that a 10% increase in energy prices causes a a reduction in energy use by 5.2% and a reduction in CO2 emissions by 5.8% on average, with more energy-intensive sectors responding more to the shocks. At the same time, energy price increases increase the probability of plant exit and reduce employment of large and energy intensive plants, but the estimated effect is very small (-0.2% for a 10% increase in energy prices). Morevoer, energy price changes have no significant influence on net job creation at the industry-wide level, suggesting that jobs are not lost but reallocated from energy-intensive to energy-efficient firms. Overall, the empirical evidence demonstrates that environmental fiscal reforms in emerging economies like Indonesia can bring about large environmental benefits with little to no effect on employment.
  • 6-September-2019

    English

    The Illegal Wildlife Trade in Southeast Asia - Institutional Capacities in Indonesia, Singapore, Thailand and Viet Nam

    Wildlife crime poses a serious and irrefutable risk to global biodiversity and is a driver of the current global extinction crisis. Southeast Asia accounts for up to a quarter of global demand for illegal wildlife products, and is also both a source and transit region for this transnational trade. This report examines the governance frameworks for countering illegal wildlife trade in Indonesia, Singapore, Thailand and Viet Nam. After assessing the effectiveness of several responses to wildlife crime in these countries, the report provides recommendations for strengthening the capacities of the institutions involved and improving strategies to counter illegal wildlife trade.
  • 10-July-2019

    English

    OECD Green Growth Policy Review of Indonesia 2019

    Indonesia is the world’s fourth most populated country, and the largest archipelagic one. Vibrant economic growth has lifted millions of people out of poverty. Economic success, however, has come at a high environmental cost. Rapid land-use change and reliance on fossil energy make Indonesia one of the world’s largest greenhouse gas emitters. Deforestation and pollution are putting pressure on its megadiverse ecosystems. Environmental services such as water supply, sanitation and waste management need to be further expanded and improved. Advancing to a greener economy will require continued efforts to develop policies, strengthen institutions and secure sufficient resources. This is the first Green Growth Policy Review of Indonesia. It examines progress towards sustainable development and green growth, with a special emphasis on the nexus of land use, ecosystems and climate change.
  • 10-December-2018

    English

    Building Resilient Cities - An Assessment of Disaster Risk Management Policies in Southeast Asia

    Asian cities are particularly vulnerable to risks associated with natural disasters. While they are exposed to various types of natural hazards, flooding and other water-related disasters pose particularly significant risks and undermine long-term economic growth, especially in coastal cities. Managing such natural disaster risks is an essential component of urban policies in fast-growing Southeast Asian cities, especially as the impacts of climate change worsen. In addition to providing a framework for assessing disaster risk management policies in cities, this report also presents the results of assessment and locally tailored policy recommendations in five cities of different institutional, geographic, socio-economic and environmental contexts in Southeast Asia. They include Bandung (Indonesia), Bangkok (Thailand), Cebu (Philippines), Hai Phong (Viet Nam) and Iskandar (Malaysia). The study highlights that Southeast Asian cities are largely underprepared for natural disaster risks. Through an assessment of disaster risk management (DRM) policies at national and subnational levels, the study aims to enhance urban resilience by: i) identifying policy challenges related to DRM ; ii) assessing the impacts of current DRM policy practices; and iii) proposing more efficient and effective policy options to enhance urban resilience.
  • 31-October-2016

    English, PDF, 344kb

    Indonesia Policy Brief: Promoting Green Growth for Sustainable Resource Use

    Indonesia is a resource-rich and biodiverse country. Economic prospects are favourable, but realising them will require placing Indonesia’s development trajectory on a more environmentally sustainable path.

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  • 26-September-2016

    English, PDF, 512kb

    Environmental taxes: Key findings for Indonesia

    This country note provides an environmental tax and carbon pricing profile for Indonesia. It shows environmentally related tax revenues, taxes on energy use and effective carbon rates.

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  • 5-May-2015

    English

    Issues in Agricultural Trade Policy - Proceedings of the 2014 OECD Global Forum on Agriculture

    This book brings together a collection of papers prepared for the Global Forum on Agriculture that took place at the OECD in December 2014. It reviews current knowledge about agricultural policy and agricultural trade policy settings, and questions its pertinence in light of the profound market and structural changes that have been taking place in the global agro-food sector in recent decades. It aims to inform and assist policy-makers and negotiators as they seek to overcome the problems that have made the agricultural pillar of the Doha Agenda trade negotiations particularly difficult. The data and analysis presented cover OECD countries and major G20 and emerging economies that account for the great bulk of global food production, consumption and trade.
  • 28-April-2015

    English

    Time is of the essence: can Indonesia phase out energy subsidies without hurting the poor? - Insights Blog

    A new OECD publication highlights notable economic and environmental benefits of phasing out fossil-fuel subsidies in Indonesia. Interestingly, the study is based on the context that pertained until mid-2014, when international oil prices where high and before the recent phase-out of subsidies by the government.

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