More than 27 percent of Indonesia’s GDP comes from its abundant natural resources: forestry products, rubber, oil and natural gas, minerals such as coal, bauxite, tin, gold, silver and nickel ore, palm products and fish. The economy also benefits from tourism with the country’s rich diversity of plants and wildlife such as orangutans in Sumatra and Borneo, and the giant Komodo dragon and the Java rhinoceros, which are indigenous to Indonesia.
WAVES in Indonesia
An effort has been made to get better information on the state of Indonesia’s natural resources. Since 1997, statistics were generated on the environment to be included in the national account by the Indonesia Statistical Agency (BPS). Through the annual publication of the System for Integrated Environmental and Economic Accounting (SISNERLING), BPS produced the initial natural capital accounts that were based on the 1993 SEEA.
The Government of Indonesia is committed to implementing a green economy approach and is interested in answering the following policy questions on sustainable development: Are there metrics for measuring Indonesia’s sustainable development? Is the growth resilient? Are the energy and mineral sectors sustainable drivers of growth? What are sensible sectoral greening strategies?
Indonesia joined WAVES in 2013 with the expectation that a more systematic approach towards NCA can inform its medium-term development plan (RPJM).
The Story So Far
As a first step, a series of consultations and feasibility assessments of the WAVES plan has been completed. National and international trainings on the SEEA, and land and water accounts have also been undertaken. In April 2016, a work plan was approved by the Steering Committee. The existing accounts will be updated per the 2012 SEEA. Work is likely to begin on SISNERLING and land accounts. In parallel, key policy questions for water accounts will be determed.
A stronger SEEA data system is a priority, as the data will support the implementation of the national green development plan by monitoring its progress using wealth indicators like Adjusted Net Savings and changes in wealth as key macroeconomic sustainability indicators.
Land accounts will help with land use planning and governance systems, linking to a large number of socioeconomic issues, including forestry resource management, food production/food security, and environment degradation.
WAVES lead government agency
Ministry of National Development Planning (Bappenas)
Country steering committee
A Coordination Team for Indonesia’s System for Integrated Environmental and Economic Accounting (SISNERLING) has been formed based on a formal decision of the Deputy of Maritime and Natural Resource of Bappenas (Decision Number KEP/41/DEP.V/03/2016). There are at least 16 ministries and agencies involved in the body.
The Steering Committee for WAVES in Indonesia includes members from Bappenas (Echelon 1), BPS, Ministry of Finance, Ministry of Environment and Forestry, Ministry of Public Works, Ministry of Agrarian and Spatial Affairs and the World Bank.
Diji Chandrasekharan Behr