Indonesia

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Indonesias SD Criteria Indicators and DNA for
CDM Projects

• Hendry Baiquni
• Head of CC Division,
• Ministry of Environment
• Indonesia

Skillshare Workshop Regional Institutional
Capacity Building in the Implementation of CDM
in ASEAN Member Countries Asean Secretariat,
18-19 March 2004
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Indonesia Follows the Path of KP
450 ppm
350 ppm
KP enters into force?
1st commitment period
00
90
97
95
99
08 - 12
94
02
04
(COP-3) KP
(COP-5)
(COP-1)
IPCCs Report on GHGs
CDM Projects may start
CDM Implementation
UNFCCC entered into force
5.2 below 1990s level as global target
Country Study
National Committee on CC
First National Communication
National Committee on Climate Env.
Signed the KP
Ratified the UNFCCC through Act 6/1994
ALGAS (1996-1998)
Ratification, DNA, Modalities, Procedures, etc.
AIJ Projects (1996-2000)
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Indonesia Progress Report Capacity Building for
KP/CDM
Status
Activity

• Ratification
• National Committee Technical Team on Climate
  Change
• DNA and SD Criteria Indicators for CDM Projects
  
• Materials needed for ratification process
• Draft
• Translation
• Academic Paper
• Awareness Raising/ Consultation

• Initiative Permit from the President (July
  2003) Inter-Ministerial Committee had beeb
  established
• Minister of Environment Decision No. 53/2003
  (April 2003)
• In final draft (GTZ-support)
• Available
• Had and being carried out

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KP Ratification Process
8. Issuing the Act
7. Ratification Process within the Parliament
6. Drafting the Presidential Statement/Request to
Parliament to Ratify (by the State Secretary) 5.
Proposing the final draft of the Act to the
President through MoFA and State Secretary 4.
Proposing the draft of the Act to MoFA, Ministry
of JHR and others for opinion 3. Drafting the Act
2. Establishing the Inter-Ministerial
Committee 1. Getting Presidents Permit for MoE
to Initiate the Ratification Process (through
MoFA)
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Criteria and Indicators for Sustainable
Development for CDM Projects in Indonesia

• A. Environmental Sustainability
• B. Economic Sustainability
• C. Social Sustainability
• D. Technology Sustainability

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A. Environmental Sustainability

• A.I. Environmental sustainability by practicing
  natural resource conservation and diversification
  
• A.I.1. Maintain sustainability of local
  ecological functions
• A.I.2. Not exceeding the threshold of existing
  national, as well as local, environmental
  standards (not causing air, water and/or soil
  pollution)

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A. Environmental Sustainability

• A.I.3. Maintaining genetic, species, and
  ecosystem biodiversity and not permitting any
  genetic pollution
• A.I.4. Complying with existing land use planning
• A.II. Local community health and safety
• A.II.1. Not imposing any health risk
• A.II.2. Complying with occupational health and
  safety regulation
• A.II.3. There is a documented procedure of
  adequate actions to be taken in order to prevent
  and manage possible accidents

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B. Economic Sustainability

• B.I. Local community welfare
• B.I.1. Not lowering local communitys income
• B.I.2. There are adequate measures to overcome
  the possible impact of lowered income of
  community members
• B.I.3. Not lowering local public services
• B.I.4. An agreement among conflicting parties is
  reached, conforming to existing regulation,
  dealing with any lay-off problems

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C. Social Sustainability

• C.I. Local community participation in the project
  
• C.I.1. Local community has been consulted
• C.I.2. Comments and complaints from local
  communities are taken into consideration and
  responded to
• C 2.. Local community social integrity
• C.2.1. Not triggering any conflicts among local
  community

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D. Technology Sustainability

• D.I. Technology transfer
• D.I.1. Not causing dependencies on foreign
  parties in knowledge and appliance operation
  (transfer of know-how)
• D.I.2. Not using experimental or obsolete
  technologies
• D.I.3. Enhancing the capacity and utilisation of
  local technology

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Basic functions of DNA

• Stating that the countrys participation in a CDM
  project activity is voluntary
• Stating that the project activity assists the
  country in achieving sustainable development
• Stating that the project have fulfilling related
  national environmental regulation such as
  environmental impact assessment
• Stating that stakeholders comment have been
  taken into account

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Indonesias DNA
National Committee on Climate Change
DNA-CDM
National Commission on CDM
Experts
Secretariat
Stakeholders Forum
Technical Committee
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Function of Indonesias DNA

• Regulatory (mandatory)
• Granting recommendation to CDM project proposals
  that pass Indonesias sustainable development
  criteria
• Tracking and annual reporting to the UNFCCC
  Secretariat
• Promotional (optional)
• Facilitating communication between investors and
  project proponents as well as other stakeholders
• Facilitating capacity building for Indonesian
  institutions to be able to propose and implement
  CDM projects
• Providing information on available CERs and/or
  CER potential to prospective buyers

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DNA The Board

• A. Tasks
• Grant (or refuse) recommendation for Project
  Proposals submitted by the Project Proponents
• Recommendation based on the evaluation by the
  Technical Committee.
• When necessary, the recommendation also
  accommodates advice from the Expert Group as well
  as input from a Stakeholder Forum
• Approve and deliver the results of document
  tracking, project monitoring and evaluation, as
  well as the annual report to the UNFCCC
  Secretariat
• Develop policies and guidelines for the DNA to
  carry out its promotional functions (i.e.
  communication, capacity building and marketing
  information)
• Organise Internal Coordination Meeting and
  Decision-making Meeting
• Organise Stakeholder Forum meeting
• Accept input and recommendations from the head of
  relevant institutions on the appointment and
  replacement of Technical Committees members as
  well as suggest the replacement of a Technical
  Committees member to the relevant head of
  institution
• Make personnel decisions for the Secretariat

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DNA The Board (2)

• B. Membership
• Consist of one chairman and seven members
  (echelon I) of government representatives from
  Ministry of Environment, Ministry of Energy and
  Mineral Resources, Ministry of Forestry, Ministry
  of Foreign Affairs, Ministry of Trade and
  Industry, Ministry of Home Affairs and National
  Development Planning Board.
• Chairman of the Board is Minister of Enviroment
  and thus, the member from the Ministry of
  Environment does not have the right to vote.
• Members of the Board is appointed based on
  suggestion from institutions represented in the
  Board, and initially will be legalized by
  Minister of Environments Decree. Henceforth, it
  is suggested the Board will be legalized by
  Presidential Decree.
• The first service period of the Board lasts for a
  year. Henceforth, the service period will be
  decided by Presidential Decree.
• Member of the Board will be replaced if he/she
• is suggested to be replaced by the institution
  he/she represented
• resigns
• deceased or disabled thus unable to perform
  her/his duties

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DNA The Technical Committee

• A. Tasks
• Evaluates project proposals based on sustainable
  development criteria and indicators. May ask for
  inputs from the Expert Group and other
  Stakeholders.
• Presents its evaluation report (recommendation)
  to the Board through the Secretariat.
• Provides input to the Board relating to the
  implementation of the DNAs promotional functions.

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DNA The Technical Committee (2)

• B. Membership
• Chairman of Technical Committee is held
  alternately by one of the representatives of
  technical ministries according to project
  proposal under evaluation
• Technical Committee members are proposed by
  institutions relevant to CDM implementation by
  considering their expertise.
• Ministry of Environment
• Ministry of Energy and Mineral Resources
• Ministry of Forestry
• Ministry of Transportation
• Ministry of Agriculture
• Ministry of Trade and Industry
• Energy NGO representative
• Forestry NGO representative
• APKASI (Association of Regency Governments of
  Indonesia) representative
• APEKSI (Association of Indonesian Municipalities)
  representative
• Members of Technical Committee work with the
  invitation from the Board according to the
  characteristics of project proposal under
  evaluation
• Technical Committee membership ends when
• Not attending two meetings consecutively
• Replaced by the institution he/she represented
• Resign
• Violate DNA Code of Conduct

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DNA The Experts Group

• A. Functions
• Assists Technical Committee if requested by
  Technical Committee through the Secretariat
• Provides additional evaluation on the project
  proposal if requested by the Board through the
  Secretariat
• Provides a second opinion on the Technical
  Committees evaluation if requested by the Board
  through the Secretariat

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DNA The Stakeholders Forum

• A. Functions
• Stakeholder Forum is an informative consultation
  forum to convey information on the proposed CDM
  project and accommodate comments as well as
  complaints on the project
• Stakeholder Forum provides input on project
  proposals if requested by the Board
• Stakeholder Forum may assist project proponent in
  gaining support among stakeholders for the
  proposed project
• Stakeholder Forum is rather a participative and
  open multiparty discusion than technical experts
  discussion on the proposed project
• Stakeholder Forum is held at local level and its
  notes of meeting have to be included in PDD as
  attachment

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DNA The Secretariat

• A. Tasks
• Facilitates the evaluation process of the
  submitted project proposals
• Assist the Board in facilitating Technical
  Committee evaluate project proposals,
  particularly in the implementation of sustainable
  development criteria and indicators, compliance
  to environmental regulations and taking
  stakeholders comment into account.
• Assists the Board in organising Stakeholder Forum
  Special Meeting for proposed projects that have
  not held public consultation or need additional
  consultation with their Stakeholders.
• Assists the Board if there were appeals
• Manages office administration of DNA
• Stores any documentation on project activities
• Prepares tracking document and annual report
• Organise Board meetings
• Conducts other administrative functions
• Executes the promotional functions determined by
  the Board
• Develops capacity building programs for CDM
  stakeholders
• Conducts promotional and marketing activities or
  CERs produced project owner in Indonesia by
• Facilitates communication and colaboration
  between foreign CDM investors and project
  proponents as well as other stakeholders
• Makes a list of Experts (roster) complete with
  their expertise and will update the list with the
  newest information on the availability of experts

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Flowchart of Approval Process by DNA