More than 27 percent of Indonesia’s GDP comes from its abundant natural resources, such as forests, rubber, oil and natural gas, minerals, palm products, and a rich biodiversity that attracts nature-based tourism. The Government of Indonesia's National Medium-Term Development Plan (RPJMN, 2015-2019) makes a strong commitment to sustainable development. The Government has also pledged to achieve the Sustainable Development Goals (SDGs), deliver on the country's Nationally Determined Contribution (NDC), and green Indonesia's growth trajectory. Crucial to reaching these targets is a credible and reliable natural capital accounting (NCA) system for assessing the sustainability and resilience of the country's economic growth. NCA implementation is led by the Indonesia Statistical Agency (BPS), which publishes an annual report on the System for Integrated Environmental and Economic Accounting (SISNERLING).
WAVES in Indonesia
Indonesia joined WAVES in 2013 and formalized the partnership in 2015 with the expectation that a more systematic approach to NCA can inform its national medium-term development plan (RPJMN). The program currently focuses on four areas:
- By improving SISNERLING coverage and data quality, WAVES supports better monitoring of how Indonesia’s natural assets are used at an aggregate level. Central to this effort is the design and implementation of monitoring measures such as comprehensive wealth accounts and Adjusted Net Savings (ANS).
- Through the establishment of SEEA-based national accounts for land cover, land use and ecosystems, the WAVES program will contribute by developing approaches for: (i) managing the conversion of forested lands to agriculture and infrastructure, in light of growing population and economic development needs; (ii) valuing non-urban lands, as a basis for determining financial compensation for lands uses for public interest purposes; and (iii) providing data and analytics for managing specific ecosystems, especially peatlands.
- By developing SEEA-based water accounts for the Citarum River Basin, WAVES will strengthen knowledge of the factors affecting the quantity and quality of the water, and put in a place a replicable approach for producing water accounts for priority watersheds and sub-national (provincial) entities.
- By integrating data into natural capital accounts, WAVES will help inform different development processes, particularly the next RPJMN, NDC strategic planning, and the country's long-term development vision.
The Story So Far
Since 2013, Indonesia WAVES has conducted a series of feasibility and scoping studies, initiating partnerships and organizing opportunities to build stakeholder capacity. BPS has gradually improved its SEEA-based SISNERLING to the SEEA 2012 Central Framework, thanks to support from WAVES, the United Nations Statistics Divisions (UNSD), the Food and Agricultural Organization of the United Nations (FAO), the UN Economic and Social Commission for Asia and the Pacific (UN-ESCAP), Statistics Netherlands, and the Australian Bureau of Statistics (ABS).
WAVES has supported BPS in producing several types of accounts. Pilot land accounts are currently available for the islands of Sumatra, Kalimantan, Java, Bali, Nusa Tenggara and Maluku (The results are published in the SISNERLING). These accounts will help with land use planning and governance systems, linking to a large number of socioeconomic issues, including forest resource management, food production and security, and environmental degradation. In addition, WAVES is assisting with the development of water accounts for the Citarum River Basin, ecosystem extent accounts, and peat accounts.
Finally, the program provides assistance with communications, knowledge-sharing between ministries, and capacity building.
WAVES lead government agency
The success of WAVES is highly dependant on the active involvement of key partners, including: the Ministry of National Development Planning (Bappenas), which leads the initiative and identifies relevant policy priorities related to RPJMN 2020-2024; BPS; the Ministry of Environment and Forestry (KLHK); the Peat Restoration Agency (BRG); the Geospatial Information Agency (BIG); the Land Agency (BPN); and civil society organizations, academic institutions and the media.
Country steering committee
A coordination team of nine agencies has been established, pursuant to the Decree by the Deputy of Maritime and Natural Resource of Bappenas (Decree Number KEP/53/DEP.3/10/2017). The steering committee consists of three deputy ministers from Bappenas, the Ministry of Finance, and BPS. Under a new organizational structure designed to ensure greater focus, participation and collaboration between ministries, the team works on analyzing streamlined environmental-economic accounting, and developing accounts based on the SEEA standard.