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Indonesia's Decarbonization Plans Diagnostic: A Policy Paper

Author

Listed:
  • Alin Halimatussadiah
  • Muhammad Adriansyah
  • Fachry Abdul Razak Afifi
  • Muhammad Yudha Pratama
  • Teuku Riefky
  • Jiehong Lou

    (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))

Abstract

One of the central commitments Indonesia is pursuing is integrating a green economy into its economic development framework. This aligns seamlessly with the nation's dedication to fostering sustainable and environmentally friendly development practices. This commitment is underscored by the significant reduction in greenhouse gas emission intensity, targeted to reach 93.5% below 2010 levels by 2045. This goal establishes a clear pathway toward achieving net-zero emissions by 2060. This policy paper provides an in-depth analysis of the strategies and policies outlined by comprehensively maps both current and prospective strategies, policies, and programs aimed at achieving Indonesia's development target that aligned with a green economic approach. They are NDC, LTS-LCCR 2050, LCDI, Roadmap NZE Energy. While all three planning documents elaborate long-term plans for Indonesia's journey toward reducing its carbon footprint, they encompass divergent approaches, targets, and commitment periods, leading to varied strategies and programs. The differences among these documents could potentially send mixed signals, affecting planning and budgeting, especially crucial up to the end of the Paris Agreement period in 2030, after which the discrepancies can be re-evaluated. To ensure cohesive and effective climate action, it is imperative for the Indonesian government to unify its approach by creating a dynamic, iterative planning document. This document should be continuously updated to ensure the convergence of all planning efforts, thereby enhancing the effectiveness of Indonesia's climate actions.

Suggested Citation

  • Alin Halimatussadiah & Muhammad Adriansyah & Fachry Abdul Razak Afifi & Muhammad Yudha Pratama & Teuku Riefky & Jiehong Lou, 2024. "Indonesia's Decarbonization Plans Diagnostic: A Policy Paper," LPEM FEBUI Working Papers 202480, LPEM, Faculty of Economics and Business, University of Indonesia, revised 2024.
    • Handle: RePEc:lpe:wpaper:202480
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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