The Partnership for Action on Green Economy (PAGE) is a prominent alliance of five UN Agencies, funding partners, and 22 partner countries that work together to transform economies into drivers of sustainability by supporting nations and regions in reframing economic policies and practices around sustainability.
In 2017, the Government of Indonesia launched the Low Carbon Development Initiative (LCDI) to achieve low-carbon development, sustainable resource management, and poverty alleviation while maintaining economic growth. Aligned with the LCDI as national development priority and backbone for its green economy transition, Indonesia joined PAGE in 2018 as a partner country.
PAGE is assisting the Government of Indonesia to reinforce and integrate inclusive green economy goals into its national development planning. PAGE is supporting the implementation of the green, low carbon and circular economy policy in priority sectors through an evidence-based approach with a focus on the sustainable/renewable energy, waste management, circular economy, agriculture and sustainable food system and supply chain, and green industry development.
Indonesia is endowed with abundant natural resources due to its tropical climate and archipelagic geography. Over the past decade, Indonesia has experienced stable economic growth transforming the country into one of the largest economies in Asia. However, one of the biggest challenges for Indonesia is to preserve its natural resources, while at the same time addressing poverty, inequality, and unemployment. Realizing the importance of these linkages, the Government of Indonesia (GoI) is working to incorporate environmentally friendly policies and emission reduction activities into its national plans and targets.
Given the assessment of the current condition of economic and social development, in 2027, the GoI under the leadership of the Ministry of National Development Planning/BAPPENAS has decided to take an important step by embracing a new paradigm and planning system by formalizing the Low Carbon Development Initiative (LCDI) into national development planning. LCDI offers a non-siloed approach to achieve low carbon development, sustainable natural resources management and poverty alleviation, while maintaining economic growth. It aims to explicitly incorporate the environmental considerations (greenhouse gas (GHG) emissions reduction targets and carrying capacity) into the development planning framework and policy exercise which will shape the economic and social trajectories of Indonesia. In alignment with the LCDI, Indonesia became a PAGE partner country in 2018 to transform its economy into a catalyst for sustainability and social inclusion, and to tackle development and environmental challenges at the national and sub-national level through collaborative effort and multi-stakeholder action. PAGE was officially launched in October 2018 to support further planning and implementation of LCDI with a focus on the energy, waste management, circular economy, and green industry sectors, which align with the national priority programme specified in the national mid-term planning document (Rencana Pembangunan Jangka Menengah Nasional/RPJMN) for the period 2020-2024.
Various policy scenarios assessed through the LCDI were integrated in the most recent RPJMN 2020-2024 launched as the first ‘green’ RRPJMN in the beginning of 2020. The RPJMN includes specific targets, locations, and priority sectors. The Medium-term Development Plan serves a reference for line ministries, government entities, and other stakeholders in formulating policies and planning programmes planning over the next five years and contributes to the implementation of the national long term development plan (RPJPN) 2005-2025.
With the green economy gaining its momentum in Indonesia, the government has prioritized low carbon development, circular economy, blue economy, and energy transition as key programmes to transform Indonesia into a greener economy. In addition to assisting the implementation of LCDI at both national and sub-national levels, PAGE offers support to the Indonesian government in further incorporating an inclusive green economy into the upcoming RPJMN 2025-2029 and the national long-term development plan (RPJPN) 2025-2045. This integration aims to achieve Indonesia’s Vision 2045 and reach net-zero emissions by 2060 (or sooner).
The main development challenges for the green economy transition in Indonesia have been the limited capacity, coordination, and stakeholder engagement required for the shift towards a green and low-carbon economy. These challenges arise from various root causes, including political commitment and leadership, the cross-sectoral nature of the green economy that still faces a siloed approach, inadequate institutional and technical capacity at the national and sub-national levels, the lack of baseline data and systematic planning tools, the unavailability of required enabling infrastructure such as database system, limited alternative financing mechanisms due to constrained fiscal space for initial investment and a climate financing gap, a lack of scalable low carbon technology and infrastructure, and critically, limited understanding and relatively low awareness among key stakeholders regarding the importance and guidelines of the green, low-carbon, and circular economy.
PAGE Indonesia is committed to support the GoI’s effort in its shift towards a greener, more circular, resilient, inclusive, and jobs rich economy by:
- Supporting integration of green economy into policy planning and actions (Outcome 1)
- Supporting implementation of sectoral and thematic IGE policies (Outcome 2)
- Building institutional and individual capacity (Outcome 3)
- Improving access and application of knowledge for advancing IGE (Outcome 4)
PAGE Indonesia has been delivered through programmatic activities stretching from 2019 until 2023. The implementation of activities are supported by the five UN Agencies: UNEP, UNDP, ILO, UNIDO, and UNITAR, where UNDP Indonesia serves as the coordinating entity for the PAGE Indonesia. PAGE is supported by generous contributions of its funding partners (European Union, Finland, Germany, Norway, Republic of Korea, Sweden, Switzerland, and United Arab Emirates).
For the initiative, the Ministry of National Development Planning/BAPPENAS is the main government counterpart, while for the implementation of the programme, selected provinces have been appointed as the targeted piloting areas, namely West Java, Central Java, and Bali.