Press Release  
                             
        DNPI Reports Set Course for Indonesia’s Green Growth 
                             
       Jakarta (September 6, 2010) – Today the Indonesian National Climate Change Council 
       (DNPI) released several studies which show how Indonesia can continue to grow the 
       economy and achieve its greenhouse gas (GHG) reductions targets. The Government 
       of Indonesia has committed to cutting GHG emissions by 26% from business-as-
       usual-levels by 2020.  
        
       “We needed a comprehensive assessment of Indonesia’s GHG emissions. The Government 
       of Indonesia has set clear targets for both sustainable economic development and reduction 
       of GHG emissions last year, and we now have a big-picture view of how to integrate strong 
       economic growth with reducing emissions,” said Rachmat Witoelar, Executive Chair of the 
       DNPI.  
        
       The DNPI study has been developed over the last 18 months and involved more than 150 
       government, private-sector and NGO participants in sectoral workshops and meetings. It 
       shows the range of emission reduction actions that are possible for Indonesia with 
       technologies that either are available today or are highly likely to be available in the future. 
       The study, which has analyzed current GHG emissions and reduction potential in eight 
       sectors, estimates Indonesia’s annual GHG emissions in 2005 at 2.1 Giga tons (Gt). As 
       Indonesia continues its economic development, total GHG emissions are projected to rise to 
       3.2 Gt by 2030 without changes in the way emissions from the eight sectors are managed. 
       The eight sectors covered by the study are peat, forestry, agriculture, power, transportation, 
       petroleum and gas, cement and buildings.  
        
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       Peatland and forestry are by far the largest contributors to Indonesia’s GHG emissions. 
       Emissions from carbon-rich peatlands amount to 41% of Indonesia’s total emissions (in 
       2005) while forestry accounts for 37% of total emissions. The main initiatives for reducing 
       emissions in these sectors are through slowing deforestation and decomposition of peatland, 
       improved forest management, reducing land-clearing through burning and using already 
       degraded land for agriculture.  
        
        “We now know where we can make the biggest greenhouse emissions cuts and what the 
       costs are, so we are no longer talking in abstracts. One of the most important achievements 
       of this study is to clarify and quantify the importance of land-use, and land-use change in 
       Indonesia’s current emission picture. This is an area we didn’t have a clear overview of 
       before,” said Agus Purnomo, Head of the Secretariat of DNPI. 
        
       Indonesia currently account for approximately 5.0% of global GHG emissions. The DNPI 
       study shows that Indonesia has the potential to reduce its GHG emissions by 2.3 Gt by 
       2030, representing a reduction of 46% from 2005 levels. Such a reduction would equal 7% 
       of the total global reduction needed to prevent global warming of more than two degrees 
       centigrade, according to the United Nation’s Intergovernmental Panel on Climate Change 
       (IPCC). There are many opportunities to cut emissions further, but such deep cuts will 
       require significant investments and therefore require international support according to the 
       principles of equity and common but differentiated responsibility. While a few countries have 
       made substantial commitments, the international community is still divided in its support for 
       these principles.  
        
       Green Growth Strategies 
       In parallel with the development of the GHG mitigation study, the DNPI is also collaborating 
       with selected Indonesian provincial and district governments to develop green growth 
       strategies. Three provinces, Jambi, Central Kalimantan and East Kalimantan, were keen to 
       work with the DNPI to identify green growth opportunities to boost their economic 
       development while cutting carbon emissions.  
        
       “In a developing economy like Indonesia the people will not choose to reduce GHG 
       emissions if to do so mean slowing economic growth. Our strategy does not require that 
       choice. We have found that economic development and GHG mitigation can be mutually 
       reinforcing. A more sustainable economic path requires a paradigm shift, but in the long-term 
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       it will increase Indonesia’s economic growth,” said Rachmat Witoelar, Executive Chair of the 
       DNPI. 
        
       Indonesia’s GHG emission profile is unique because it is heavily dominated by emissions 
       from forest and peatland where more efficient use of the land both increases economic value 
       and reduces GHG emissions. Stopping the use of fire as a tool for land clearing, improving 
       logging practices so less timber is left to rot and goes to waste, reforestation of areas 
       degraded by unsustainable logging practices, rehabilitation of previously opened peatlands 
       are some examples of high-impact GHG mitigation initiatives in the green growth strategies. 
       They share the principle that their long-term economic value greatly outweighs the benefits 
       from continuing current unsustainable and high GHG emitting activities. For example, East 
       Kalimantan can increase its GDP growth from a business-as-usual rate of 3% per annum to 
       5% per annum without increasing emissions by moving to higher value-added activities and 
       promoting less carbon-intensive sectors.  
        
       “At the 1.4 million hectares Ex-mega Rice Area we are already making significant headway 
       in reducing emissions by raising the water table and preventing fires. These initiatives will 
       reduce our greenhouse gas emissions significantly over the next few years,” said Central 
       Kalimantan Governor, Teras Narang. 
        
       Indonesia is the only large developing country that has committed itself to making large 
       absolute cuts in its GHG emissions. Realizing the vital role Indonesia can play in combating 
       global climate change, the international community has offered its support. An important first 
       step was taken in May 2010 with the establishment of a REDD+ Partnership between 
       Indonesia and Norway, in which Norway pledged US$1 billion towards REDD+ readiness 
       programs in Indonesia in return for verified emissions reductions. The Partnership will 
       provide additional capital for a range of investments, which could include microfinance 
       programs for local community sustainable development projects, low-cost loans to help 
       plantation crop smallholders increase their yields, and incentives for palm oil growers to use 
       degraded lands for new plantations. 
        
       “Reducing GHG emissions is a complex undertaking and financing needs to flow where it 
       can yield the greatest benefits. The green growth strategies are based on this principle and 
       recommends viable initiatives that are ready for implementation. It represents a new 
       development pathway that reconciles economic growth with significant reductions of 
       greenhouse gas emissions,” said Agus Purnomo, Head of the Secretariat of DNPI. 
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       These steps position Indonesia well to benefit from the US$30 billion of fast-start funds 
       committed at United Nations Framework Climate Change Convention Conference of Parties 
       (COP-15) in Copenhagen in December 2009 and accelerate Indonesia’s growing 
       investments in green development. 
        
       About DNPI 
       In July 2008, the President of the Republic of Indonesia, Susilo Bambang Yudhoyono issued 
       Decree #46/2008, establishing the Dewan Nasional Perubahan Iklim (DNPI) or National 
       Council on Climate Change (NCCC). For further information please contact: Agus Purnomo 
       at  agus.purnomo@dnpi.go.id / 0811999462 or Amanda Katili at amanda.katili@dnpi.go.id / 
       0811972143. 
        
        
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