Study Outlines Potential Benefit of Green Economy for Indonesia

Fidelis E. Satriastanti, Jakarta Globe 27 Jun 09;

Even though environmental protection is still a marginalized issue, the State Ministry for the Environment continued to advocate green economic development by releasing a study into the concept in Jakarta on Friday.

Based on the study’s best-case scenario for a green economy, carbon emissions could be reduced by up to 179 million tons and Gross Domestic Product would increase by 2.8 percent, equivalent to about Rp 140 trillion ($13.7 billion). It would also create job opportunities for three million people and bring as many as 4.3 million people out of poverty.

Masnellyarti Hilman, the ministry’s deputy for environmental damage control, said the study was aimed at forest degradation and renewable energy in particular.

“We are very aware that we are still very dependent on our nonrenewable resources, such as oil and gas,” she said. “If we are trying to prevent that by turning to renewable resources, we would be able to cover the gap [if we ever run out of oil and gas].”

She said the study also found new schemes, such as Reducing Emissions from Deforestation and Forest Degradation (REDD), and ecotourism were good alternative ways to generate income from forests, rather than cutting them down for timber.

The joint study was undertaken by the ministry, consultancy group Strategic Asia and economic researchers from Padjajaran University in Bandung.

Meanwhile, State Minister for the Environment Rachmat Witoelar, said the idea to pursue a green economy was not something new and was already being implemented around the world.

“Basically, we are talking about efficiency and the three R’s, which are reduce, reuse and recycle,” he said. “Even though the cost is quite high, within five years developed countries will be providing assistance in this matter, whether through the Kyoto Protocol, voluntary market or bilateral relationships.”

Rachmat said that Indonesia could take advantage of developments in geothermal energy here to push developed countries for funding.

“It has been discussed in the negotiations and I think it is very important to understand that within five years, geothermal energy could bring more benefits to us in reducing emissions,” he said. “It is going to be a great loss for us if we don’t make use of it, even starting from today.”