The OECD Green Growth Policy Review (GGPR) was initiated in 2015 by Siti Nurbaya Bakar, Minister of Environment and Forestry of Indonesia, and Simon Upton, then the OECD Environment Director. The GGPR is one of the main activities in the OECD-Indonesia Work Programme 2017-18, launched in 2016 by Minister of Finance Sri Mulyani and OECD Secretary-General Angel Gurría. As the first of its kind, the report aims to review Indonesia’s policy framework for green growth and provide recommendations to help the country move towards a green and sustainable economy.

The GGPR was developed within the same peer review framework applied to the OECD Environmental Performance Reviews. The principle aim of this programme is to support member and selected partner countries in improving their individual and collective performance in environmental management by:

  • helping individual governments evaluate progress in achieving their environmental goals

  • promoting continuous policy dialogue and peer learning

  • stimulating greater accountability from governments towards each other and the public.

This report examines the state of Indonesia’s environment and reviews the country’s green growth performance since 2005. Progress in meeting domestic objectives and international commitments provides the basis for assessing the country’s environmental and green growth performance. Such objectives and commitments may be broad aims, qualitative goals or quantitative targets. A distinction is made between intentions, actions and results. To the extent possible, assessment of environmental and green growth performance is based on the OECD Environment Statistics and OECD Green Growth Indicators. The assessment is also placed within the context of Indonesia’s geography, endowment in natural resources, socio-economic conditions and demographic trends.

The OECD is indebted to the government of Indonesia for its co-operation in providing information; for the organisation of the review mission to Jakarta and Samarinda (2-10 May 2018), workshops held in Jakarta in November 2017 and May 2018 and the policy missions to Jakarta in November 2018; and for facilitating contacts both inside and outside government institutions. Particular thanks is due to the Ministry of Environment and Forestry, which co-ordinated the review from the Indonesian side under the leadership of Laksmi Dhewanthi, special advisor to the minister. We are also grateful to officials and experts from the other ministries of the GGPR core co-ordination group: the Ministry of National Development Planning, Ministry of Finance and Coordinating Ministry for Economic Affairs.

The report was managed by Nathalie Girouard, Head of the Environmental Performance and Information Division of the OECD Environment Directorate. Britta Labuhn co-ordinated the analytical content and Eija Kiiskinen the process. Chapters 1 and 2 were written by Britta Labuhn, with contributions from Jeremy Faroi on Chapter 1. Chapter 3 was written by Michael Mullan, with contributions from Jeremy Faroi and Will Symes. Eugene Mazur and Eija Kiiskinen provided valuable contributions. Carla Bertuzzi provided statistical support, Annette Hardcastle and Marielle Guillaud provided administrative support, Rebecca Brite copy-edited the report and Natasha Cline-Thomas supported communications and dissemination activities. OECD Environment Director Rodolfo Lacy led the policy mission to Jakarta in November 2018.

The preparation of the GGPR benefitted from a broad consultation process. Special thanks are due to the representatives of two examining countries, Elisabet Kock (Sweden) and Gabriel Henrique Lui (Brazil). We are also grateful to contributions from international partner organisations, including the Asian Development Bank, Climate Policy Initiative, Global Green Growth Institute, World Bank, World Resources Institute, the New Climate Economy project and Center for International Forestry Research, along with the Natural Capital Working Group of the Green Growth Knowledge Platform. The review team also consulted with experts in OECD member country embassies based in Indonesia. Several colleagues in the OECD Secretariat provided comments and feedback, including Gérard Bonnis, Peter Borkey, Nils Axel Braathen, Rafal Brykowski, Ivana Capozza, Nathalie Cliquot, Luisa Dressler, Jane Ellis, Andrés Fuentes Hutfilter, Katia Karousakis, Nicolina Lamhauge, Bérénice Lasfargues, Xavier Leflaive, Eeva Leinala, Christine Lewis, Patrice Ollivaud, Özlem Taskin and Kurt van Dender. The contributions of Aad van Bohemen and Kieran Clarke of the International Energy Agency, John Maughan and his colleagues of the Green Growth Knowledge Platform, Ann Jeanette Glauber and her colleagues of the World Bank Jakarta Office and Philip Gass of the International Institute for Sustainable Development are also gratefully acknowledged. Last but not least, we are thankful to Massimo Geloso Grosso and Yulianti Susilo of the OECD Jakarta Office, who provided invaluable support by facilitating collaboration between the review team and Indonesian partners throughout the process.

This report was made possible through voluntary contributions from Germany, Japan, Korea, the Netherlands, New Zealand, Norway, Sweden and Switzerland, as well as the MAVA Foundation through the Green Growth Knowledge Platform of the UN Environment Programme.

The OECD Working Party on Environmental Performance discussed the draft Green Growth Policy Review of Indonesia at its meeting on 12 February 2019 in Paris, and approved its Assessment and Recommendations. The review was also discussed by the OECD Environmental Policy Committee at its meeting on 13 February 2019.

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