FRAMEWORK FOR CLIMATE CHANGE ADAPTATION FOR INCORPORATION IN PUBLIC ASSET MANAGEMENT: AN INDONESIAN CONTEXT
Jose Arif Lukito Master of Science in Finance (University of Illinois at Urbana-Champaign)
Submitted in fulfilment of the requirements for the degree of Doctor of Philosophy
School of Civil Engineering and Built Environment Science and Engineering Faculty Queensland University of Technology 2018
Keywords
Asset management, Australia, building, climate change, climate change adaptation, framework, government, Indonesia, public asset, public asset management, risk management, Semarang.
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Abstract
Lack of urgency regarding climate change adaptation has caused limited actions to be applied in public asset management in Indonesia. In addition, the costs associated with adaptation of assets can be high in some cases. However, these costs will likely be even higher in the long-term, if responses are delayed. Furthermore, studies suggest adaptation to climate change will enable public assets to adjust to future changes, minimise negative impacts, take advantage of new opportunities and maintain sustainable services. Research in response to climate change, in assets or infrastructure in general, and public assets in particular, has been conducted in several developed countries, such as Australia and the United Kingdom. However, climate change adaptation (CCA) research related to public asset management (PAM) is considered lacking in Indonesia. This research aims to develop a framework for CCA for incorporation in PAM and apply the developed framework to Indonesia. The first phase of this research was the development of a generic framework, by identifying elements that need to be considered. These elements included the findings resulting from the analysis of semi-structured interviews with participants in Australia, with reference to, and reflection of, the available literature. The factors supporting and hindering implementation of CCA for incorporation in PAM were also identified. In Phase I, ten elements were identified for developing the generic framework, and factors supporting and hindering implementation of CCA were examined. Participants from the three levels of Governments of Australia were involved in the semi-structured interviews for this research. A risk-based approach has been considered for the framework development. Therefore, the plan and implementation of CCA can be considered as an extension of existing risk management. In addition, factors supporting implementation of CCA in PAM have also been identified from this research. In the second phase, the developed framework from the first phase was verified by Indonesian participants to ensure its usability and appropriateness for the Indonesian context, resulting in modification of the framework. Phase II consisted of two stages, beginning with introducing the Generic Framework to Indonesian interviewees for verification to ensure its usability and appropriateness in the Indonesian context, leading to further modification of the framework (Modified Framework). The participants from three levels of Indonesian Government, scientists, an advisor to an NGO, and the private sector, were involved in modifying the Generic Framework. The requirement identified in the first stage of Phase II were consisting of ten elements. There are also three other components which were found to contribute to the effectiveness of the framework in the Indonesian context: ICT and computerised asset database, settlement of existing legal issues, and asset administration and protection.
ii Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context
The second stage within Phase II was practical application of the Modified Framework to existing public assets (buildings) located in Semarang (Indonesia), through case study and observations. This ensured the applicability of the framework to Indonesia. The practical application was able to demonstrate the implementation of the framework, through which the participating asset managers/users in Indonesia gained their first experience in undertaking climate risk management of public assets and incorporating CCA into PAM during their involvement in this research study. The ‘entry point’ for integration between climate change adaptation and public asset management in the Generic and Modified Framework was after the Adaptation Implementation step, where it was linked to the Organisational Strategic Plan (specifically under the Asset Management Strategy and Planning stage) of PAM. Integration of the CCA plan into overall organisational strategic planning would ensure implementation of the selected adaptation plan for public assets. The framework has been validated for its usability for the Indonesian context and is expected to be adopted and applied to other regions and cities in Indonesia. In a broader context, the Generic Framework or Modified Framework could also be adopted and applied in other countries, providing preliminary careful examination of the conditions and environments of each country. The framework’s suitability to the local context should be deliberated with, and agreed upon by, a wide range of stakeholders to assess the viability of the options.
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Table of Contents
Keywords ...... i Abstract ...... ii Table of Contents ...... iv List of Tables ...... viii List of Figures ...... x List of Abbreviations ...... xi List of Publications ...... xiii Statement of Original Authorship ...... xiv Acknowledgements ...... xv Chapter 1 : Introduction ...... 1 1.1 BACKGROUND ...... 1 1.2 RESEARCH GAPS ...... 4 1.3 RESEARCH AIM AND OBJECTIVES ...... 5 1.4 RESEARCH QUESTIONS ...... 6 1.5 RESEARCH SIGNIFICANCE ...... 7 1.6 THESIS OUTLINE ...... 7 Chapter 2 : Public Asset Management...... 9 2.1 INTRODUCTION ...... 9 2.2 ASSET MANAGEMENT ...... 9 2.3 ASSET MANAGEMENT IN THE PUBLIC SECTOR ...... 10 2.4 ASSET MANAGEMENT IN SELECTED COUNTRIES ...... 13 2.4.1 Asset management guides from four different states in Australia ... 13 2.4.2 Asset Management in the United Kingdom ...... 17 2.4.3 Asset Management in New Zealand ...... 17 2.4.4 Public asset management in Indonesia ...... 18 2.5 CONCLUSIONS ...... 23 Chapter 3 : Climate Change and Public Asset Management ...... 24 3.1 INTRODUCTION ...... 24 3.2 CLIMATE CHANGE POLICY IN SEVERAL COUNTRIES ...... 26 3.2.1 Overview of climate change policy development in Australia ...... 26
iv Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context
3.2.2 Overview of climate change policy development in the United Kingdom ...... 36 3.2.3 Overview of climate change policy development in Indonesia ...... 38 3.3 IMPACTS OF CLIMATE CHANGE ON PUBLIC ASSETS ...... 41 3.3.1 Climate Risks for Public Assets ...... 43 3.3.2 Climate change adaptation framework for public asset ...... 44 3.4 ADAPTATION RESPONSE AND CRITERIA TO ASSESS ...... 49 3.5 RISK TREATMENT (ADAPTATION OPTIONS) FOR PUBLIC ASSETS51 3.6 APPROACH CONSIDERED FOR DESIGNING A CLIMATE CHANGE ADAPTATION PLAN IN THIS RESEARCH STUDY ...... 54 3.7 CONCLUSIONS ...... 54 Chapter 4 : Research Design and Methodology ...... 56 4.1 INTRODUCTION ...... 56 4.2 METHODOLOGICAL APPROACH ...... 56 4.3 RESEARCH DIAGRAM ...... 57 4.3.1 Phase I: Development of Generic Framework ...... 59 4.3.2 Phase II: Modification and practical application of the Generic Framework for the Indonesian context ...... 60 4.4 THE CONCEPTUAL FRAMEWORK ...... 66 4.5 ETHICS ...... 68 4.6 DATA COLLECTION METHODS ...... 68 4.6.1 Semi-structured interview in Phase I ...... 69 4.6.2 Semi-structured interview in Phase II ...... 74 4.6.3 On-site observations ...... 78 4.6.4 Document Reviews ...... 79 4.7 ANALYTIC METHODS ...... 80 4.7.1 Documents analysis ...... 80 4.7.2 Analysis of semi-structured interview in Phase I and Phase II ...... 80 4.7.3 Practical application (trial) of the Modified Framework ...... 81 4.7.4 Validity of the framework ...... 84 4.8 THE USERS OF THE FRAMEWORKS ...... 87 4.9 CONCLUSION ...... 88 Chapter 5 : Research Analysis and Findings in Phase I: Generic Framework ... 89 5.1 INTRODUCTION ...... 89
Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context v
5.2 PROFILE OF INTERVIEW PARTICIPANTS ...... 89 5.3 ANALYSIS OF SEMI-STRUCTURED INTERVIEWS ...... 90 5.3.1 Elements to be considered in developing a framework for CCA for incorporation in PAM ...... 92 5.3.2 Factors supporting and hindering implementation of CCA into PAM122 5.3.3 Summary of elements to be considered in developing the generic framework ...... 129 5.4 DEVELOPMENT OF GENERIC FRAMEWORK ...... 132 5.4.1 The conceptual framework ...... 133 5.4.2 Approach for designing of the Generic Framework based on AGO (2006) and Australian standards (ISO31000:2009 and AS5334) .. 134 5.4.3 Process for developing the Generic Framework ...... 136 5.5 PROPOSED GENERIC FRAMEWORK ...... 151 5.6 CONCLUSIONS ...... 153 Chapter 6 : Research Analysis and Findings in Phase II: Modification of Generic Framework for the Indonesian Context ...... 156 6.1 INTRODUCTION ...... 156 6.2 PROFILE OF INTERVIEW PARTICIPANTS ...... 156 6.3 ANALYSIS OF SEMI-STRUCTURED INTERVIEWS ...... 159 6.3.1 Feedback on elements in the Generic Framework ...... 161 6.3.2 Enabling environment in PAM influencing the framework ...... 184 6.4 COMPARISON BETWEEN GENERIC FRAMEWORK AND REVISED FRAMEWORK ...... 189 6.4.1 Summary of element in the Modified Framework ...... 189 6.4.2 Risk-based approach to climate change adaptation in Indonesia ... 192 6.4.3 Modifying the Generic Framework ...... 193 6.5 PROPOSED MODIFIED FRAMEWORK ...... 196 6.6 CONCLUSIONS ...... 199 Chapter 7 : Practical Application of Modified Framework on Public Assets in Semarang, Indonesia ...... 201 7.1 INTRODUCTION ...... 201 7.2 PROFILE OF PARTICIPANTS FOR IMPLEMENTATION OF THE MODIFIED FRAMEWORK IN SEMARANG ...... 201 7.3 OVERVIEW OF THE MODIFIED FRAMEWORK OF PHASE II ...... 204 7.4 APPLICATION OF THE MODIFIED FRAMEWORK ...... 204 vi Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context
STEP A. Acknowledgement of trigger for developing adaptation plan for public assets in Semarang ...... 204 STEP B. Risk assessment and adaptation plan ...... 205 B.1. Establishing Climate Change Context for Central Government assets in Semarang ...... 205 B.2. Risk assessment ...... 222 B.3. Adaptation plan ...... 242 STEP C. IMPLEMENTATION OF ADAPTATION PLANS ...... 248 7.5 CONCLUSION ...... 253 Chapter 8 : Conclusions ...... 257 8.1 RESPONSE TO RESEARCH QUESTIONS ...... 257 8.1.1 Can a framework for climate change adaptation for incorporation in public asset management be developed? ...... 258 8.1.2 Can the developed framework for climate change adaptation for incorporation in public asset management be implemented in Indonesia? ...... 262 8.2 ORIGINAL CONTRIBUTIONS OF THE RESEARCH ...... 267 8.3 RESEARCH LIMITATIONS ...... 271 8.4 RECOMMENDATION FOR FUTURE RESEARCH ...... 272 Bibliography ...... 273 Appendices ...... 286
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List of Tables Table 2.1 Policy Development in Public Asset Management in Indonesia ...... 19 Table 2.2 Summary of comparisons of asset management policy ...... 22 Table 3.1 Mitigation and adaptation characteristics ...... 25 Table 3.2 Australian Government and climate change adaptation ...... 27 Table 3.3 The key climate change policies and plans from national level ...... 29 Table 3.4 The key climate change policies and plans at the national level ...... 32 Table 3.5 The key climate change policies and plans at the State level (e.g. Queensland Government) ...... 33 Table 3.6 Major climate change impacts and their relationship to local government responsibilities ...... 34 Table 3.7 Type of adaptation response ...... 51 Table 3.8 Criteria to assess adaptation option ...... 51 Table 3.9 Climate change impacts on buildings and potential treatment/adaptation options 52 Table 4.1 The Most Vulnerable Regions in Indonesia including Public Assets within the Area ...... 62 Table 4.2 Flooding events affecting public assets in Semarang ...... 64 Table 4.3 List of organisations of interview participants from Australia in Phase I ...... 70 Table 4.4 List of types of question and purpose of investigating in semi-structured interview with interviewees from Australia ...... 73 Table 4.5 List of organisations from PAM area according to tasks and respected levels of government in Phase II ...... 75 Table 4.6 List of organisations from CCA area according to their tasks in Phase II ...... 76 Table 4.7 List of types of question and purpose of investigating in semi-structured interview with interviewees from Indonesia ...... 77 Table 4.8 List of participants in practical application of the framework ...... 79 Table 4.9 List of observed public assets affected by flood events in the last ten years ...... 79 Table 4.10 Analytical Framework for Use with Various Data Sources ...... 86 Table 5.1 List of Interviewees from Australia in Phase I ...... 90 Table 5.2 Themes and emerging categories from semi-structured interviews in Phase I ...... 92 Table 5.3 Results from semi-structured interviews: factors supporting implementation of CCA into PAM ...... 122 Table 5.4 Results from semi-structured interviews: Factors hindering implementation of CCA into PAM ...... 126 Table 5.5 Summary of elements to be considered in developing the generic framework ... 129 Table 5.6 Major steps and associated key issues in developing the framework ...... 134 Table 5.7 Qualitative level of consequences ...... 141 Table 5.8 Qualitative level of consequences ...... 142 Table 5.9 Matrix of risk rating ...... 142 Table 5.10 Climate change impacts on buildings and potential treatment/adaptation options ...... 145 Table 5.11 Analysis of how the conceptual framework is adopted in developing the Generic Framework ...... 149 Table 6.1 List of organisations from PAM area according to tasks and respected levels of government ...... 157 Table 6.2 List of Interviewees from Indonesia with public asset management background 158 viii Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context
Table 6.3 List of organisations from CCA area according to their tasks ...... 159 Table 6.4 List of Interviewees from Indonesia with climate change background ...... 159 Table 6.5 Elements in Generic Framework ...... 160 Table 6.6 Feedback for each element in the Generic Framework leading to modification of Generic Framework ...... 161 Table 6.7 Summary of elements to be considered in Modified Framework for the context of Indonesia ...... 190 Table 6.8 Analysis of how the Generic Framework, findings from analysis results of semi- structured interviews, P.33/2016 and KRAPI (2012) are adopted in framework modification (Modified Framework) ...... 194 Table 7.1 List of participants in practical application of the Modified Framework ...... 203 Table 7.2 Profiles of age of Central Government Buildings in Semarang ...... 207 Table 7.3 The Distribution of Assets Based on the Level of Risks (Risk Rating) in Each Scenario ...... 208 Table 7.4 Risk Matrix of Central Government Buildings Affected by Floods in Semarang ...... 209 Table 7.5 Positions of Ministry of Finance Buildings and Housings for staff in Semarang under SRESA2 2025, SRESA2 2050, SRESB1 2025, and SRESB1 2050 ...... 213 Table 7.6 Differences between Scenario SRESA2 and SREAB1 ...... 214 Table 7.7 Temperature Scenario in Semarang (degree Celsius) ...... 215 Table 7.8 Sea-level rise scenario in Semarang (cm) ...... 216 Table 7.9 Qualitative level of consequences ...... 220 Table 7.10 Qualitative measures of Likelihood ...... 221 Table 7.11 Matrix of Climate Risk of public assets in Semarang ...... 222 Table 7.12 Level of likelihood for Ministry of Finance Building I under CCHI scenario SRESA2 and SRESB1 ...... 225 Table 7.13 List of tenants in Ministry of Finance Building I ...... 225 Table 7.14 Qualitative level of consequences of The Ministry of Finance Building I ...... 230 Table 7.15 Matrix of risk rating for The Ministry of Finance Building I under Scenario of under SRESA2 2025, SRESA2 2050, SRESB1 2025, and SRESB1 2050 ...... 231 Table 7.16 Level of likelihood for Housing for Staff under CCHI scenario SRESA2 and SRESB1 ...... 232 Table 7.17 Qualitative level of consequences of housing for staff of Ministry of Finance . 234 Table 7.18 Matrix of risk rating for housing for staff of Ministry of Finance under Scenario of SRESA2 2025, SRESA2 2050, SRESB1 2025, and SRESB1 2050 ...... 235 Table 7.19 Risk matrix: evaluating the likelihood and consequences of climate change impacts on Public Asset Management of Ministry of Finance Building I ...... 237 Table 7.20 Risk matrix: evaluating the likelihood and consequences of climate change impacts on Public Asset Management of Ministry of Finance Building II (housing) ...... 241 Table 7.21 Selection of adaptation option for Ministry of Finance Building I ...... 246 Table 7.22 Selection of adaptation option for Ministry of Finance Building II ...... 247 Table 7.23 Criteria to assess adaptation option ...... 248 Table 7.24 Climate Change Adaptation Plan for Ministry of Finance Building I in Semarang ...... 250 Table 7.25 Climate Change Adaptation Plan for Ministry of Finance Building II in Semarang ...... 251
Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context ix
List of Figures
Figure 2.1 The asset life cycle ...... 10 Figure 2.2 Integrated Asset Management Framework ...... 12 Figure 2.3 Indonesian Government Asset Management Process ...... 20 Figure 2.4 Value of GOI’s assets in term of percentage of the total asset ...... 21 Figure 3.1 Mainstreaming climate change into the national development agenda ...... 40 Figure 3.2 Risk Management Process ...... 46 Figure 3.3 Approach to developing a CCA plan ...... 47 Figure 4.1 Research Design ...... 58 Figure 4.2 Climate Zone Map: Australia Wide Figure ...... 60 Figure 5.1 Proposed Generic Framework for Climate Change Adaptation for incorporation in Public Asset Management ...... 152 Figure 6.1 Office building of Sub District (Kelurahan) of Terboyo Wetan, District Genuk, City of Semarang experiences frequent tidal flooding. (A) Front view of the building; (B) Floor elevation to adapt with frequent tidal flooding in the area; (C) The level of flooding; (D) Tidal flooding in front of the building...... 166 Figure 6.2 Different Asset Condition: (a) The Central Government Asset in Jakarta; (b) The Central Government Asset in Semarang; and (c) Local Government Asset of DKI Jakarta; (d) Local Government Asset of Semarang; ...... 171 Figure 6.3 A web-based tool known as SIDIK (Information System of Vulnerability Index Data) developed by the Ministry of Environment and Forestry ...... 174 Figure 6.4 Provincial Government of DKI Jakarta Asset Management System in development: (a) e-Aset; and (b) Jakarta Smart City Asset Mapping...... 185 Figure 6.5 Central Government Asset Management System: (a) SIMAK-BMN; and (b) SIMAN ...... 186 Figure 6.6 The Modified Framework for the context of Indonesia ...... 198 Figure 7.1 SIMAN-generated data of Central Government buildings in Semarang ...... 206 Figure 7.2 Profiles of age of Central Government buildings in Semarang City ...... 207 Figure 7.3 Ministry of Finance Building I in Semarang City ...... 211 Figure 7.4 The Ministry of Finance Building II in Semarang ...... 212 Figure 7.5 Frequent water ingress has already lead to significant loss because the first floor of this building of Central Government of Indonesia at Central Semarang District has become uninhabitable since 2000...... 227 Figure 7.6 The units prior and after renovations (left to right) ...... 232 Figure 7.7 Elevation of the units to prevent water ingress during flooding events. The house next to the units has the same level with the front street (left). Another house in front of the units has already been inundated and is uninhabitable (right)...... 233 Figure 7.8 Asset Planning in Budgeting Cycle of Government of Indonesia ...... 249 Figure 7.9 Implementation of climate change adaptation option for the Ministry of Finance Building in PAM of Central Government of Indonesia ...... 252
x Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context
List of Abbreviations
AAMCOG Australian Asset Management Collaborative Group ABCB Australian Building Codes Board ACCESS Australian Community Climate and Earth System Simulator ACCCA Australian Centre for Climate Change Adaptation ACCCRN Asian Cities Climate Change Resilience Network ACT Australian Capital Territory AGIC The Australian Green Infrastructure Council AGO Australian Greenhouse Office ANAO Australian National Audit Office APBN Anggaran Pendapatan dan Belanja Nasional (National Budget) APBD Anggaran Pendapatan dan Belanja Daerah (Regional Budget) AS 5334-2013 Australian Standard 5334: Climate change adaptation for settlements and infrastructure - A risk based approach AS/NZS Australian Standard/New Zealand Standard the International Standards ISO31000:2009 Organisation 31000:2009: Risk Management - Principles and guidelines ASBEC Australian Sustainable Built Environment Council BAPPENAS Badan Perencana Pembangunan Nasional (National Development Planning Agency) BNPB Badan Nasional Penanggulangan Bencana (National Board for Disaster Management) BPBD Badan Penanggulangan Bencana Daerah (Regional Board for Disaster Management) BAPPEDA Badan Perencana Pembangunan Daerah (Local Government Development Planning Agency) BCA Building Code of Australia BMKG Badan Metereologi, Klimatologi, dan Geofisika (Agency of Meteorology, Climatology and Geophysics) BOM Australian Bureau of Meteorology BPK Badan Pemeriksa Keuangan (Supreme Audit Board) BSI PAS British Standards Institution Publicly Available Specification BPS Badan Pusat Statistik (Central Statistics Agency) CAM Capital Asset Management CBA Cost-benefit analysis CCHI Composite Climate Hazard Index CCIS Climate Change Impact Statement CCROM-SEAP IPB Centre for Climate Risk and Opportunity Management in Southeast Asia Pacific, Institut Pertanian Bogor CHAS Coastal Hazard Adaptation Strategy COP Conference of the Parties COAG Council of Australian Governments CSIRO Commonwealth Scientific and Industrial Research Organisation (Australia) DCCEE Department of Climate Change and Energy Efficiency DCLG Department of Communities and Local Government DEHP Department of Environment and Heritage Protection DELWP Department of Environment, Land, Water and Planning DGSAM Directorate General of State Asset Management (Direktorat Jenderal Kekayaan Negara/DJKN) DHPW Department of Housing and Public Work DILGP Department of Infrastructure, Local Government and Planning DKI Jakarta Daerah Khusus Ibukota Jakarta (Special Capital Region of Jakarta) EIA Environmental Impact Assessment GAAP Government Adaptation Action Plan GHG Greenhouse Gas GOI The Government of Indonesia IAM Institute of Asset Management ICCSR Indonesia Climate Change Sectoral Roadmap ICSA Infrastructure Sustainability Council of Australia
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ICT Information and communication technology ICLEI International Council for Local Environmental Initiatives IIMM International Infrastructure Management Manual IPCC Intergovernmental Panel on Climate Change ISAM Integrated Strategic Asset Management Framework ISET Institute for Social and Environmental Transition-International ISO International Standardisation Organisation KPI Key Performance Indicator KRAPI Kajian Resiko Adaptasi Perubahan Iklim (CCRAA/climate change risk and adaptation assessment LAPP Local Adaptation Pathways Program LKPP Laporan Keuangan Pemerintah Pusat (annual financial report of Central Government) LKPD Laporan Keuangan Pemerintah Daerah (annual financial report of Local Government) M&E Monitoring and Evaluation MOEF Ministry of Environment and Forestry MOF Ministry of Finance MPWH Ministry of Public Work and Housing NAMS National Asset Management Strategy Organisation NARCliM NSW and ACT Regional Climate Modelling NCCAF National Climate Change Adaptation Framework NCCARF National Climate Change Adaptation Research Facility NEPC National Environment Protection Council NGO Non-governmental organisation NSW New South Wales OECD Organisation for Economic Cooperation and Development PAM Public Asset Management PC Productivity Commission RANPI Rencana Aksi Nasional Perubahan Iklim (National Action Plan on Climate Change) RAN-API Rencana Aksi Nasional Adaptasi Perubahan Iklim (National Action Plan on Climate Change Adaptation) RICS Royal Institute of Chartered Surveyors RPJMN Rencana Pembangunan Jangka Menengah Nasional (National Medium-Term Development Plan) RPJMD Rencana Pembangunan Jangka Menengah Daerah (Regional Medium-Term Development Planning) RPJP Rencana Pembangunan Jangka Panjang (Long-Term Development Plan) SAMF Strategic Asset Management Framework SIDIK Sistem Inventori dan Data Indeks Kerentanan (Information System of Vulnerability Index Data SIMAK-BMN Sistem Informasi Manajemen dan Akuntansi Barang Milik Negara (Accountancy and Management Information System of Central Government Asset) SIMAN Sistem Informasi Manajemen Aset Negara (Government Asset Management Information System) SLR Sea level rise SRES Special Report on Emissions Scenarios TAM Total Asset Management TAMP Total Asset Management Plan UKCIP United Kingdom Climate Impacts Programme UNEP United Nations Environment Programme UNFCCC UN Framework Convention on Climate Change URDI Urban and Regional Development Institute USAID U.S. Agency for International Development VCCCAR Victorian Centre for Climate Change Adaptation Research
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List of Publications
Lukito, J., Susilawati, C., Goonetilleke, A. (2018, submitted), Climate Change Adaptation in Management of Public Building: an Indonesian Context, International Journal of Building Pathology and Adaptation, Special issue paper on Building Resilience in Urban Settlement.
Lukito, J., Susilawati, C., Goonetilleke, A. (2018), Climate change risk management for public assets in Semarang, Indonesia, Knowledge-Based & Intelligent Engineering Systems (KES) - International Conference on Sustainability in Energy and Buildings SEB-18, Gold Coast, Australia, 24-26 June 2018.
Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context xiii
Statement of Original Authorship
The work contained in this thesis has not been previously submitted to meet the requirements for an award at this or any other higher education institution. To the best of my knowledge and belief, the thesis contains no material previously published or written by another person except where due reference is made.
Signature: QUT Verified Signature
Date: June 2018
xiv Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context
Acknowledgements
All praise belongs to Allah. I thank Almighty God, the creator of all mankind and the universe for His mercy and blessings to me and my family and for having given me, among others, the health, ability and wisdom to complete this work. Alhamdulillah, He has given me an opportunity to complete my PhD journey. Undertaking this PhD has been a truly life-changing experience for me and it would not have been possible without the support and guidance that I received from many people. There are many individuals who deserve thanks for helping me in different ways at different points of time in Australia and my home country. Many individuals were empathetic throughout the course of my dissertation fieldwork. I express my sincere gratitude to my principal supervisor, Dr Connie Susilawati, and my associate supervisor, Professor Ashantha Goonetilleke. This PhD journey would not have been possible without their wisdom, continuous support, encouragement, advice and guidance. I am very fortunate to be one of their PhD students. Their invaluable guidance and encouragement helped me to the finish of this journey. Special thanks to Dr Connie, who has given huge support to me not only in academic matters, but also in non-academic ones, even before I started my PhD journey in Australia. Again, I’m very fortunate to be one of her PhD students. I would like also to thank the final seminar panel members, Dr Prasanna Egodawatta and Dr Timothy Rose, for their insightful comments and feedback. I am greatly indebted to my parents and parents-in-law, as well as my brothers and sisters, who have continuously supported me and my family. I owe my mother, Hj Endang Sutikno, and my late father, alm Ibnu Sutikno, who had the deepest influence on me, encouraging me to always have a great admiration for knowledge from a young age. I remember the small town where we lived had no bookstore, however my parents regularly travelled by motorcycle to another town, about 30 kilometres away from our residence, to buy books for us. I am indebted to my mother, parents in law (Hj Hasanah and H. Erik Singgih), and also to wife, for their sincere prayers and encouragement for my success. I often feel guilty about not being able to take care of my mother and parents-in-law in their old age, due to my overseas study. I’m grateful to have my brother (Heru) and sister-in-law (Riana), taking care of my mother during her visit to Sorong, Papua. I am also thankful to have brothers and sisters-in-law (‘Bude’ Tanti, ‘Pakde’ Yani, ‘Bude’ Nonik, ‘Pakde’ Hendri, ‘Bude’ Tina, “Pakde” Yudi) who have always supported me, as well as my family, during this journey. I am very grateful to God for providing a wonderful family. They are the source of my strength. I am thankful to my wife, my sons (Hanif and Ilham) and my little daughter (Zahra) for their endless love, enormous support and patience during my study, which provided continuous encouragement to my journey. Last, but certainly not least, I would like to acknowledge the sacrifice and support of my wife, Fitriyani. I am grateful to be on this journey with her. Hanif and Ilham curiously asked several questions about why we should move to Australia. Ilham thought I was Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context xv
assigned to a new overseas branch office of the Indonesian Ministry of Finance in Brisbane. I remember that Hanif and Ilham asked me questions about what I was doing and they wondered why I should work on a ‘project’, taking years to finish. I am thankful to a number of people whose continuous encouragement and support made my journey enjoyable. First I would also like to thank Pak Wangsit and Mas Rustanto for being always ready to extend a helping hand. I’d like to thank brother Humaid, Mas Rustanto, and Kang Krisna who supported me with transportation prior and after my two surgeries in Brisbane. I am also thankful for the invaluable friendships made with friends of Indonesian Islamic Society of Brisbane (IISB), Indonesian Muslim Centre of Queensland (IMCQ) and Indonesian Students Association of QUT (ISAQ), for sharing laughter and stories of life, which have made this journey more special. Special thanks to all of the QUT research support staff at QUT Science and Engineering Faculty for making this journey easier, to all staff of International Student Services (ISS QUT), Graeme, Zia Song, Bu Relexya, Youngnam, Maria for your support, and to my friends, the members of the Higher Degree Research GP-S 825 room, for their mostly non-academic discussions during lunch hours. I gratefully acknowledge the Government of Australia for sponsoring me towards my PhD study as an awardee of Australia Award Scholarship, the Directorate General of State Asset Management, Ministry of Finance, and the Government of Indonesia, for approvals to allow me to temporarily leave my job in the Government for PhD study as well as their support, all of which has enabled me to complete this work and meet the challenges that arose. My appreciation goes to my late guru (alm Drs. Iwan Hindawan Dadi,MBP), Dr Hadiyanto,SH,LLM, Mr Sonny Loho, Ak., MPM, Mr Ir. Isa Rachmatarwata, M.Math, Mrs Insiwijati, SE,MM, A/Prof Emeritus Roger Cannaday, Mrs Chalimah Pujihastuti, SE,Ak,MAFIS, Dr Indra Surya, SH,LLM, Mr Tavianto Nugroho, SH,MH, Mr Encep Sudarwan, MA, Mr Agus Rijanto Sejati, SSos,MM., Mr Dody Iskandar, MA, Mr Meirijal Nur, SE,MBA, Mr. Dedi S. Usman,MA., Mr. Arik Hariyono M.Ec.Dev., Dr. Purnama Sianturi, and Mr Sudarsono,LLM. My appreciation also goes to Pak Sigit, Pak Wildan, Pak Andy, Pak Iwan, Pak Yanis, Pak Sugiwanto, Pak Hamim, Pak Acep, Pak Jati, Pak Sugeng, Pak Luki, Mas Dwi, Mas Sunu, Pak Suradi, Mas Darmawan (Wawan), Mas Wahyu, mBak Ani, Mas Itok, mBak Iling, Mas Hasbi, Mas Joko, mBak Indah, Mas Endra, Bu Inayah, Pak Ukat, Pak Akbar, mBak Triana, Mas Triarto, Pak Harmaji, Mas Bimo, Ust Dr Irfan S Beik, Ust Cecep H. Solehuddin, rekan-rekan “Angkatan 64 plus”, DKM MAF, the staff of DGSAM, Provincial Government of Jakarta, City Government of Semarang and the Indonesian Ministry of Finance, for providing me with data and documentation to support my analysis. To everyone who has directly or indirectly been involved in completing this thesis, I cannot thank you enough. Finally, my thanks go to professional thesis editor, Diane Kolomeitz, who has provided editing service for my PhD thesis, in accordance with the guidelines of the Institute of Professional Editors (IPEd).
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Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context xvii
Chapter 1 : Introduction
This chapter presents an introduction to the current research, which is divided into six sections. The first section outlines the background and identification of the need for research into climate change adaptation in public asset management. The second section addresses the existing research gap. The third section presents research aim and objectives, with research questions and significance presented in the following sections. The last section includes an outline of the remaining chapters of the thesis.
1.1 BACKGROUND Climate change refers to a change in the state of the climate that can be identified by changes in the statistical mean and/or the variability of its properties, and that continues for comparable time periods (Australia Academy of Science, 2010; IPCC, 2014b). The climate change review undertaken by Garnaut (2011) stated that beyond reasonable doubt, new data and analysis confirm the inevitability of climate change. According to the Intergovernmental Panel on Climate Change (IPCC), responses to climate change impacts fall broadly into two pillars; mitigation and adaptation (2007). Based on definitions provided by the IPCC (2007), mitigation refers to minimising the human effects on the climate system by strategies to reduce greenhouse gas (GHG) sources and emissions and to enhance GHG sinks, whilst adaptation aims to adjust in response to actual or anticipated climate change or their effects, to moderate harm or to exploit beneficial opportunities. Climate change adaptation is an emerging issue, since mitigation initiatives are proving to be inadequate to reduce the accumulation of GHG in the atmosphere. The Fifth Assessment Report of the IPCC indicates that some signs of climate change are detectable and adaptation has become a necessity to reduce risk (IPCC, 2014a). The decisions of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC) have raised the profile of adaptation and drawn attention to the need to incorporate adaptation into economic development and policy decisions in all countries (UNFCCC, 1992). Asset management, in particular public asset management that involves the asset life cycle (planning, procuring, utilising, and disposal) is facing questions of how public asset management and decision-making processes by policy makers will be affected by climate change. Public assets are currently exposed to climate
Chapter 1: Introduction 1
variability over their lifetime, and changing climate, which is different from the past climatic conditions at the time of asset development/construction. However, given that climatic changes are expected over the next century, these conditions are no longer accurate indicators for several stages in public asset management. The nature of climate change impacts poses challenges for decision-making about the design, construction and management of infrastructure, including buildings, coastal developments, water pipelines, transmission lines and transport networks (Holper, Lucy, Nolan, Senese, & Hennessy, 2007). In public asset management, the government’s role is vital, because government is the public asset owner, manager and also the regulator that develops related policy to build more resilient assets/buildings to overcome climate change impacts. These assets, associated with long lifespan and significant acquisition and maintenance costs, are essential for every country’s development. Issues on ageing assets, increasing public expectations, limited budgets and changing climate conditions have been several factors among others that mean the management of the assets has become more complex (Nateque Mahmood, Prasad Dhakal, Brown, Keast, & Wiewiora, 2014; Woodhouse, 2010). Governments are primarily responsible for managing risks to public goods and assets as well as government service delivery. Accordingly, the government has to develop, prioritise, implement, and evaluate actions to moderate climate risks and protect critical assets using the best available knowledge (CSIRO, 2007; Government of South Australia, 2012; NSW Government, 2010; Queensland Government, 2011). In other words, it is important for public assets to be designed, built, operated and maintained in a way that enables them to withstand current and future impacts of climate change. Existing public assets and those built in the future need to adapt and be more resilient to the current and future climate, as the recognition of likely climate change impacts and appropriate adaptation measures should occur now (Camilleri, Jaques, & Isaacs, 2001; de Wilde & Coley, 2012; Lisa Guan, 2007, 2009; Hasegawa, 2004; K. Jones & Desai, 2006) Research in assets or infrastructure and specifically public assets, in response to climate change, has been conducted by several international organisations and countries. According to a report of the Partnership for European Environmental Research (PEER), the United Kingdom is described as a frontrunner country in many respects in response to climate change in terms of a comprehensive approach, strong
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scientific and technical support, attention to the legal framework, and implementation and review (Swart et al., 2009). Another example is Australia, whereby in 2006 the Council of Australian Governments established a National Climate Change Adaptation Framework (NCCAF) setting priorities for action, evidence base creation of national climate change science and adaptation research capacity and institutions, as well as a wide range of initiatives on resilience-building. The NCCAF looks to anchor and guide resilience action by Australian governments (Commonwealth of Australia, 2015). Moreover, according to the Fifth Assessment Report of IPCC (2014b), the capacity of Australia to cope with climate change risks to built-assets and human activities is generally high, although still considered costly, while natural systems have limited capacity to adapt to the rate of climate change. A systematic approach to planning the adaptation of infrastructure and settlements based on a risk management process has also been developed in Australia as the first Australian standard (Standards Australia, 2013). Although uncertainty associated with climate change exists, even in the absence of complete scientific certainty, a wait-and-see-attitude or an excuse to postpone actions is not appropriate when there is the potential for serious or irreversible damage resulting from climate change impacts (J. B. Smith, 1997; UNFCCC, 1992). Organisations—public and private—that adapt better to climate change, are more likely to maintain sustainable services. Although the costs associated with the adaptation of assets can be high in some cases, these costs are expected to be even higher in the long term, if responses are delayed (Environmental Resources Management, 2000; Firth & Colley, 2006; The Climate Institute, 2012; Wilson, 2006). In other words, reactive adaptation is undesirable because the costs of impact damages will also likely be much higher than the costs of proactive adaptation and residual damages (Frankhauser, Smith, & Tol, 1999; Stern, 2008) Governments and national/international organisations should provide a framework and an institutional, legal and socio-economic environment for adaptation that enables public and private organisations, including community or citizens, to adapt to the specific conditions at regional, local and sectoral level (Agrawala & Remy, 2009; Amundsen, Berglund, & Westskog, 2010; Frankhauser et al., 1999). Climate change adaptation is now receiving growing attention because it is considered as a way to develop effective measures to improve the sustainability of buildings (Adger, Huq, Brown, Conway, & Hulme, 2003; Camilleri et al., 2001; Lisa
Chapter 1: Introduction 3
Guan, 2007; Hertin, Berkhout, Gann, & Barlow, 2003; Liso, 2001; Lowe, 2003; Steemers, 2003). Development of a framework for climate change adaptation, specifically for incorporation in public asset management through research, is needed to identify important features in shaping the framework (such as the elements to be considered and their interactions), to integrate climate change adaptation and public asset management as well as to facilitate research for the formulation of policies. The developed framework could be adopted, modified and applied in other countries provided prior careful examination is undertaken according to the conditions and environments of each country. Its suitability to the local context should be deliberated with and agreed upon by the wide range of stakeholders, whereby further assessment of the viability of the options is required. In this research, the developed framework was tested for its applicability through a case study in a selected country, which is Indonesia. Even though a framework for risk assessment for climate change adaptation (Kajian Resiko Adaptasi Perubahan Iklim/KRAPI) has recently been developed and introduced by the Government of Indonesia, the sectoral or specific framework for climate change adaptation for public asset management is still considered absent. Accordingly, a study is required that not only could contribute to discussions on public asset management theory, expanding on understanding how climate change affects public assets and climate change adaptation strategies for public asset management, but also to provide practitioners with a framework consisting of elements, uptake and application by policy and decision makers.
1.2 RESEARCH GAPS The development and implementation of climate change adaptation policies are still in their very early stages compared to the relatively long period of study and experimentation for various mitigation policies and instruments (Prutsch, McCallum, Grothmann, Schauser, & Swart, 2014c). In other words, climate change mitigation has usually received considerably more attention than climate change adaptation, both scientifically and from a policy perspective (ASBEC, 2012; Cane, Cacho, Dircks, & Steele, 2013; Füssel, 2007). The focus on mitigation is due to its ability to reduce impacts on all climate-sensitive systems, whilst the potential for adaptation is limited for many systems (Füssel, 2007; Hedger, Connell, & Bramwell,
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2006). Likewise, the extent to which the technical and policy-making community has engaged with climate change has put more emphasis on GHG reduction (climate change mitigation), but less attention to the challenge of adapting to climate change (Hasegawa, 2004; Liso, 2001; Lowe, 2003). Climate change adaptation is now receiving growing attention; for example, it is considered as a way to develop effective measures to improve the sustainability of buildings (Adger et al., 2003; Camilleri et al., 2001; Lisa Guan, 2007; Hertin et al., 2003; Liso, 2001; Lowe, 2003; Steemers, 2003). Research on climate change adaptation has focused mainly on potential climate change impacts and vulnerabilities as well as barriers to solutions, however, research on adaptation solutions, such as how to plan, implement and evaluate adaptation measures, is still relatively rare (Prutsch, 2014; Prutsch, Grothmann, McCallum, Schauser, & Swart, 2014). It has also been confirmed by surveys of the Australian Sustainable Built Environment Council/ASBEC’s membership about the gaps in policy and the specific needs of the built environment; as a result, there is seen to be a need to capture significant potential benefits in early action on climate change adaptation (ASBEC, 2012). There is also a lack of decision-making methodology to address climate risk in a systematic way, and information needed to help decision making for implementation of CCA (CSIRO, 2008; ECA, 2009). This thesis contributes to filling the research gaps by producing both, theoretical and practical contributions to knowledge on climate change adaptation and public asset management. It also bridges the gap between academic researchers and practitioners, as few studies have considered climate change adaptation and its practical application, specifically in asset management in the Government sector (public asset management).
1.3 RESEARCH AIM AND OBJECTIVES The aim of this research is to develop a framework for climate change adaptation for incorporation in public asset management and to apply the developed framework in Indonesia. The objectives of this research are as follows: 1. To identify elements that need to be considered in developing a framework for climate change adaptation for incorporation in public asset management.
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2. To examine factors supporting and hindering implementation of climate change adaptation for incorporation in public asset management. 3. To develop a framework for climate change adaptation for incorporation in public asset management. 4. To apply the developed framework for climate change adaptation for incorporation in public asset management in Indonesia.
1.4 RESEARCH QUESTIONS The primary research questions in this research are as follows: 1. Can a framework for climate change adaptation for incorporation in public asset management be developed? The underlying hypothesis of this question is that the research on adaptation solutions (i.e. how to plan, implement and evaluate adaptation measures) is still relatively rare; there is a need to fill the gaps in policy and the specific needs of the built environment; and there is lack of decision-making methodology to address climate risk in a systematic way and information needed to help decision making for implementation of CCA. This question is also based on the hypothesis that a framework has to be developed to suggest elements to be considered in developing a framework for CCA for incorporation in PAM and enable public asset managers and public assets: - to adapt to the specific conditions at regional, local and sectoral level; and - to facilitates to moderate climate risks, build more resilient assets/buildings to overcome climate change impacts and withstand current and future impacts of climate change, protect critical assets using the best available knowledge to maintain sustainable services. In addition, this question is also based on the hypothesis that there are a number of factors supporting and hindering implementation of CCA for incorporation in PAM 2. Can the developed framework for climate change adaptation for incorporation in public asset management be implemented in Indonesia? The underlying hypothesis of this question is even though a framework for risk assessment of for climate change adaptation (Kajian Resiko Adaptasi Perubahan Iklim/KRAPI) has recently been developed and introduced by the Government
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of Indonesia, the sectoral or specific framework for climate change adaptation for public asset management is still considered absent.
1.5 RESEARCH SIGNIFICANCE This research addresses the above-mentioned research gaps in the public asset management area. The benefits that can be obtained from findings in this research are as follows: 1. It contributes to discussions on public asset management theory and expands on understanding of climate change affecting public assets and climate change adaptation in public asset management. 2. It contributes to an understanding of the elements to be considered in the framework for climate change adaptation for incorporation in public asset management, including factors supporting and hindering the incorporation of CCA in PAM, as well as the ‘entry point’ of integration between CCA and PAM. 3. It provides governments with a framework for climate change adaptation for incorporation in public asset management that can be used at policy, program and strategic level. The framework can be used by policy makers within all levels of Government that own public assets. In program and strategic level, the players and implementers are those in all levels of government using public assets for their own use or investments. 4. It provides practitioners with a framework that will help public asset managers in their decision-making process and improvement of existing policy and/or development of new policies towards climate change adaptation of public assets. The implementation of climate change adaptation becomes a critical point for public asset managers, by including a climate change adaptation plan into the organisation’s strategic plan.
1.6 THESIS OUTLINE The thesis is organised into eight chapters, as outlined below: Chapter 1 provides the research background, research gaps, research aim and objectives, and research questions, followed by research significance and thesis outline. Chapter 2 reviews and synthesises literature on asset management, and introduces the concept of public asset management. It also describes asset
Chapter 1: Introduction 7
management in selected countries, such as Australia, the United Kingdom, New Zealand and Indonesia. Chapter 3 reviews and synthesises literature on climate change policy development in several countries, including a discussion of specific literature focussing on impacts of climate change on public assets, for example, infrastructure and building. Existing climate change adaptation frameworks for public assets, including adaptation responses and criteria to assess, are also described. Risk treatment (adaptation options) in public assets and the approach considered to design a climate change adaptation plan are presented in the last section of this chapter. Chapter 4 presents the research design and introduces methodology used in the current research covering two phases, namely, Phase I: Development of Generic Framework and Phase II: Modification of the Generic Framework and application of the modified framework for the context of Indonesia. This chapter outlines a case study approach, then describes and discusses methods for data collection and analysis. Chapter 5 presents research analysis and findings from the current research, investigating elements to be considered in developing a framework for climate change adaptation for incorporation in public asset management and factors supporting and hindering climate change adaptation for incorporation in public asset management. Finally, this chapter presents a proposed framework defined as the Generic Framework, thereby addressing the first research question. Chapter 6 is the first of two chapters presenting verification of the Generic Framework in the Indonesian context, resulting in revisions of several elements of the Generic Framework leading to modification of the framework (Modified Framework). Chapter 7 describes practical application of the Modified Framework for selected public assets in Semarang, Indonesia. Chapter 8 concludes the thesis, revisiting the research questions and aims, while summarising major findings. Finally, the chapter highlights originality and the significance of the research, considers research limitations and proposes recommendations for future research.
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Chapter 2 : Public Asset Management
2.1 INTRODUCTION This chapter is aimed at examining the present development in public asset management. The researcher firstly explored literature on asset management and asset management in the public sector, followed by an exploration of several countries considered as having advanced experiences in asset management, which are able to provide lessons contributing to practical perspectives in current research. This chapter is divided into four sections. The key concepts of asset management and public asset management are explained in Section 2.2 and Section 2.3, respectively. Section 2.4 discusses existing approaches in public asset management in several selected countries, followed by the conclusions of the chapter presented in Section 2.5.
2.2 ASSET MANAGEMENT Asset management has evolved over several decades and has learned from and incorporated other disciplines and techniques (Pilling, 2010). It is variously described in many documents and recognised as an important tool in defining and establishing more efficient and effective private and government organisations (Conway, Kaganova, & McKellar, 2006). The Asset Management Council of Australia and The European Federation for National Maintenance Societies (2010) define asset management as ‘the life cycle management of physical assets aimed at targeted outputs that should be achieved by an organisation’. The definition given by ISO 55000 (2014) is that asset management is ‘coordinated activity of an organization to realize value from assets’. Asset management is also defined in the British Standards Institute as: ‘systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan’ (BSI PAS, 2008). An asset management system is the ‘organisation’s asset management policy, asset management strategy, asset management objectives, asset management plan(s) and the activities, processes and organisational structures necessary for their development, implementation and continual improvement’ (BSI PAS, 2008). Asset management generally involves at least four stages of an asset life cycle, including
Chapter 2: Public Asset Management 9
planning, procuring, utilising, and disposal (Abdullah et al., 2012; DHPW of Queensland, 2012).
Figure 2.1 The asset life cycle (Source: Abdullah et al. (2012)) Assets are generally held for the use of organisations or as investment. Asset management in the private sector has increasingly played an important role to achieve the private entities’ goals in business. The best practices in private sector asset management have been a source of ideas in the development of techniques for public sector asset management since the 1980s (Kaganova & Nayyar-Stone, 2000). Brown et al. (2014) point out that managing assets has become more complex and challenging than ever before, resulting from increasing resource scarcity, degrading environment, climate change, and reliance on multi-agencies. Asset management practices, both in the private and public sectors, have become more complex, interrelated and enriched. Australia, New Zealand, and the United Kingdom are considered to be countries that had reformed and applied public asset management systems (Bowyer, Gillies, Walton, & Warren, 2008; Conway et al., 2006; K. Jones & White, 2008; Warren, 2002; Woodhouse, 2001). Several sets of policies and guidelines for public asset management developed from these countries will be explained below, as follows.
2.3 ASSET MANAGEMENT IN THE PUBLIC SECTOR The definition of asset management, when it refers to the government sector, varies substantially in the literature based on the country and institutional and
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professional viewpoint of the author (Kaganova & McKellar, 2006; Kaganova & Nayyar-Stone, 2000). Accordingly, asset management in the government sector is also known as public real property, public asset management, property asset management and state asset management. The researcher uses the terminology of public asset management throughout this thesis to specify the assets managed by governments. Asset management in the government sector, or public asset management, has the same stages as in the private sector and its goals are categorised as traditional and non-traditional (Kaganova & Nayyar-Stone, 2000; Wheeler, 1993). Wheeler (1993) explained that the traditional goal is to supply the right amount of property for public goods and services at the least cost compared to all alternative arrangement available. On the other hand, Kaganova and Nayyar-Stone (2000) have mentioned the non-traditional goal, which refers to the role of government assets in supporting local economic development and generating revenues for a government from alternative sources. The strategic asset management as a subset of strategic resource management has been introduced by Male (2007). It is concluded that the successful implementation of public asset management requires a rigorous and coordinated effort across any government organisation (Lloyd, 2010; Male, 2007). Brown et al. (2014) suggest the degree of functionality of any asset is dependent on how well it is planned, designed, operated, maintained, and disposed in the context of management, engineering and information. Brown et al. (2014) developed a framework (Integrated Strategic Asset Management Framework/ISAM) that involves several elements and reflects the growing amount of complex and interconnected processes that a government and its agencies need to consider when delivering services, as illustrated in Figure 2.2
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Figure 2.2 Integrated Asset Management Framework (Adopted from Australian Asset Management Collaborative Group/AAMCoG (2011) and Brown et al. (2014)) The ISAM developed by Brown et al. (2014) and Australian Asset Management Collaborative Group/AAMCoG (2011) focuses on the public sector, but its application is possible to any organisation or sector. It involves the following elements (AAMCoG, 2011): − Environmental: the need to consider the natural environment in built assets. − Sustainability: the need to address the social, economic and environmental needs of a community and keep it healthy for future generations. − Resilience: put more emphasis on the asset, environment and the community to respond to and recover from external impacts. − Whole of life asset management: consideration of decisions and actions in the entire asset life cycle from design to disposal.
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− Increased community demands: information and communication technology (ICT) developments make a community’s expectations higher for immediate and localised services. − Information management: Information needs and capabilities are more demanding and complex. − Expanded governance arrangements: Assets are now owned, governed and operated by an expanded set of decision-makers; consequently, more innovative and variable governance approaches are required to manage risks and opportunities associated with them. The development of ISAM is based on the literature review including journals, conference papers and reports from different government and private organisations, and also from opinions or feedback from experts in the field of asset management. ISAM is a form of extended asset management in the public sector, equally applicable to other organisations.
2.4 ASSET MANAGEMENT IN SELECTED COUNTRIES 2.4.1 Asset management guides from four different states in Australia The Australian federal government and its states have developed many policies and guidelines for a better asset management in public organisations. Introduction of regulatory requirements and accounting standards have driven the Australian approach in asset management (K. Jones & White, 2008). The asset management policies and practices from four states in Australia – Queensland, Victoria, New South Wales and South Australia – are explained further. In Queensland, the local government has guidelines on asset management known as the Strategic Asset Management Framework, developed by Queensland Department of Housing and Public Works (2011) and including other complementary frameworks, such as the Building Asset Performance Framework, the Capital Works Management Framework and the Maintenance Management Framework. The terms ‘asset’, ‘building asset’ and ‘building’ have the same meaning and are used interchangeably in the guidelines. These guidelines help government agencies develop asset management strategies to achieve the optimal use of assets towards an agreed-upon level of public services, which is in line with strategic and operational plans as well as service delivery strategies. The Queensland Government has acknowledged the challenge for government to balance community
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expectations with the best use of limited resources and is required to maintain a high level of public services while at the same time being responsive to the changing social, political and economic environment (DHPW of Queensland, 2012). In addition, The Total Asset Management Plan (TAMP) framework is the whole of government policy for managing Queensland Government assets because delivery of new assets can be expensive and takes a long time from planning through to operation. The TAMP not only will ensure asset planning is transparent and consistent across the state government, and that current and future assets support service delivery objectives in the most effective and financially responsible way, but also facilitate a coordinated approach to asset management (DILGP, 2016). The TAMP information will play a vital role in developing the State Budget and the state infrastructure plan. The Government of Victoria has published a number of policies and guidelines on asset management. It is committed to optimising its assets and recognises that a government’s assets have an important role in public service provision that fulfils the social, economic and environmental needs of people in the State (Victoria Dept. of Treasury and Finance, 1995, 2000). The policies and guidelines involve detailed guidance material to assist with practical application through the Asset Management Series, build on existing asset management practice and specifically focusing on four main features, such as (Victoria Dept. of Treasury and Finance, 2000): (1) service delivery needs, regarded as the basis of all asset management decisions; (2) life cycle approach to asset management intended to evaluate operating and maintenance requirements and the implications of eventual replacement or retirement of assets, during acquisition decision making; (3) integrated approach to asset management and service delivery, across all assets and all governmental departments and agencies; (4) increased emphasis on accountability for asset investment that requires greater transparency and quality in reporting arrangements. The Government of New South Wales (NSW) publishes guidelines known as Total Asset Management (TAM) policy, which reflect the Government’s objective of a strategic and systematic approach to physical asset and infrastructure planning and management consistent across the whole of government. The policy strives for assurance that the Government’s physical assets best support its service delivery responsibilities within the limits of available resources (NSW Government Treasury,
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2013). Moreover, the TAM information plays an important role in developing the State Budget and the Government’s infrastructure strategies. It is also used for several purposes, such as (NSW Government Treasury, 2013): (1) to assess the alignment of a specific agency’s capital program with broader government priorities, service needs to plan and land use strategies; (2) to assess planned capital expenditure including budget proposals, planned asset disposals and revenues intended in the budget year and forward estimates; (3) to update and identify risks in infrastructure strategies consistent with the fiscal strategy; (4) to provide advice to government and feedback to agencies on their capital strategy, asset management planning and related financial risks; and (5) to encourage better planning and management of capital review processes. The Government of South Australia has developed guidelines in asset management known as the Strategic Asset Management Framework, which assists government agencies to achieve effective and efficient assets management that supports public service provision. The Framework aims to ensure informed decision making by managers who invest in and manage those assets that help achieve an agency's service delivery objectives. Asset management decisions need to be based on a proper evaluation of options and include an explicit analysis and determination of an acceptable level of risk (Government of South Australia, 1999; Local Government Association, 2012). The Framework is important to the Government due to its role to (Government of South Australia, 1999): (1) provide a structure for strategic planning for the management of the state’s infrastructure; (2) ensure minimisation of costs over the life of the asset; (3) ensure that investment in assets is at an appropriate level; (4) ensure that capital works programs, priorities and asset risk management practices are consistent with government policies; and (5) set the basis and standards which can assist people in the public sector best apply sound business principles and analytical, rational and effective decision making to their asset management practices. Asset information and performance concepts are addressed by all states. Queensland is the only state not specifically addressing the issue on asset planning in the guideline. No states, apart from NSW, have provided the model of whole-of-life- cycle management of assets in their guidelines. Only NSW and Victoria mention explicitly the concept of community in state asset management. With the exception
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of South Australia, all states address the risk concept in their asset management guidelines.
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2.4.2 Asset Management in the United Kingdom The New Public Management (NPM) has mainly driven reforms in asset management in the United Kingdom public sector (Kaganova & McKellar, 2006; Ngwira & Manase, 2015). It has influenced the local authorities in the UK to realise the importance of their public assets in contributing to addressing the limited budget in local authorities. In other words, apart from the service delivery function of public assets, there is potential financial payoff to better asset management that should be recognised as a source of raising revenue from public assets. An element of NPM contributing to asset management reforms in the UK is the accounting reform practice, accrual accounting. Kaganova and Nayyar-Stone (2000) point out that the need for compliance with the newly adopted accounting standards has changed the way public assets are managed and accounted for. Accounting reform has brought more clarity to how expenses from assets and the value of assets are recognised and valued over time, leading to better information about the management of public spending (Grubišić, Nušinović, & Roje, 2009; Kaganova & Nayyar-Stone, 2000). Harris (2010) argues that the period during the 1980s was considered as a milestone, whereby the UK local authorities began recognising the importance of better asset management. Reports by Ceri Davies on the NHS estate and Lord Gowrie on central government office accommodation, pointed out the ineffectiveness in asset management of the public sector. These two reports had drawn attention from the Audit Commission and the National Audit Office, as they followed up by undertaking studies on the subject, leading to the production of reports on asset management in local authorities, such as reports on the Civil Estate, the Crown Estate, district councils, local authorities, the Metropolitan Police, and the National Health Service (Harris, 2010). 2.4.3 Asset Management in New Zealand New Zealand has developed a public asset management framework consisting of industry best practice guidelines and training, legislation, audit and review processes and industry qualifications (Dever-Tod, 2011). The Office of the Auditor General (OAG) has reported that the framework has led to better long-term management of public assets over time, although the level performance amongst different public sector organisations and within organisations in terms of different assets types has varied considerably (Audit New Zealand, 2010; Dever-Tod, 2011).
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The National Asset Management Steering (NAMS) Group was established in 1995, with representation from the Association of Local Government Engineers New Zealand, Society of Local Government Managers, Local Government New Zealand, Office of the Auditor General, New Zealand Water and Wastes Association and New Zealand Recreation Association. The NAMS Group has played an important role in developing and promoting infrastructure asset management practices, policies and systems. A series of publications produed by the NAMS Group’s, including the International Infrastructure Management Manual (IIMM), is recognised internationally as an authoritative text on asset management principles (Dever-Tod, 2011). New Zealand has also developed The Capital Asset Management (CAM) framework based on IIMM and the RICS Public Sector Asset Management Guidelines (Dever-Tod, 2011). The framework sets fundamental, moderate and advanced asset management standards. In 2002, the New Zealand Government established a new Local Government Act that requires all Local Authorities to have their community engaged in a consultative process to ensure that the outcomes match community needs. With the activities of the NAMS Group, CAM framework and the Local Government Act 2002, New Zealand has ensured the availability of an abundance of best practice guidance and training that is considered as a comprehensive framework to support asset management practice (Dever-Tod, 2011; Polen, 2006). 2.4.4 Public asset management in Indonesia Indonesia consists of three levels of government: the central government, 34 provincial governments and 508 local (98 cities/410 regencies) governments. Organisational and legal arrangements of Indonesian public asset management separates the roles and asset ownership of Central, Provincial and Local Governments. The Government of Indonesia (GOI) established different and separated technical guidelines for PAM for Central Government and Provincial/City Governments. It is the Ministry of Finance and the Ministry of Home Affairs that have authority in policy making for the management of Central Government Assets and Local Government Assets, respectively. The Minister of Finance and Governors, as well as Regents/Mayors, establish regulations and make decisions on PAM in accordance with their authority, as given by law. The line ministries at Central
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Government and the government agencies at Local Government level that utilise public assets have limited authority in implementation and decision making in PAM. The GOI at Central, Provincial and City levels have numerous public assets in the form of land, equipment and machinery, buildings, roads, irrigation systems and transmission networks and other fixed assets and construction works in progress. The GOI established Law No.1/2004 for State Treasury in 2004 as a milestone for the new era of public asset management. Accordingly, a new technical guidance in asset management was created as stipulated by Government Regulation No.6/2004, and newly replaced by No.27/2014 to ensure public asset management reform is able to address the number of challenges long faced by GOI. This reform has become part of GOI’s bureaucratic reform. The Indonesian public asset management development and process are illustrated in Table 2.1 and Figure 2.3 respectively. Table 2.1 Policy Development in Public Asset Management in Indonesia Year Policy Development 2004 Law No.1/2004 on State Treasury as a milestone for the new era of PAM 2006 • Government Regulation No.6/2006 and several guidelines on state asset management • Establishment of the Directorate General of State Asset Management (DGSAM) 2007 • Strengthening institutional capacity • Inventory of all state assets and buildings database 2008-2013 • Strengthening collaboration within government agencies 2014 • New Government Regulation No.27/2014 on state asset management • Several guidelines to improve state asset management 2015 • Implementation of asset planning and budgeting • Setting up a special unit for the implementation of asset management (player) • Strengthening government role as regulator (policy maker) Source: DJKN (DGSAM) (2014)
Based on Government Regulation No.27/2014, public asset management entails four stages in the public asset life cycle, as presented in Figure 2.3. This includes (1) Planning/budgeting, as an important activity that should be interrelated with financial, human resources, and information and communication technology planning. Decisions should be based on an evaluation of alternatives that consider the life cycle cost, benefits and risks of ownership; (2) Procurement/acquisition
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based on asset identification and planning; (3) Operational use that includes government own use, non-government use (i.e. commercial use, public private partnerships, Built Operate Transfer, etc.), maintenance and security; and (4) Disposal, that is based on analysis of the options that achieve the best possible net return. The regulation includes other activities in the asset management process, such as valuation performed prior to commercial use or asset disposal through public sale, administration/inventorying for government accounting purposes, and monitoring and controlling the process in each stage of the asset life cycle.
Figure 2.3 Indonesian Government Asset Management Process (Source: Government Regulation 6/2004 and No.27/2014)
Government of Indonesia (GOI) has a very significant value of assets, approximately Rp.1,731 trillion (AU$165 billion) in the form of land (49.66%), equipment and machinery (13.5%), buildings (9.12%), roads, irrigation systems and transmission networks (20.19%) and other fixed assets (1.84%) and construction works in progress (5.7%) (BPK, 2014; DJKN (DGSAM), 2013).
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Figure 2.4 Value of GOI’s assets in term of percentage of the total asset (Source: BPK (2014))
In addition to current development of Indonesian public asset management, GOI recently launched a blueprint for future government asset management, targeting the strengthening of policy formulation, developing ICT-based asset management, optimal use of public assets, maximising asset utilisation and increased return on assets, as well as performing annual government asset portfolio analysis (DJKN (DGSAM), 2014). According to current developments, Indonesian public asset management is facing challenges and complexities (BPK, 2012, 2013, 2014; Hadiyanto, 2009; Hanis, Trigunarsyah, & Susilawati, 2010; Mardiasmo, Barnes, & Sampford, 2012). GOI currently encounters two major challenges in its public asset management. Firstly, the current auditor’s opinion in GOI’s annual financial report (LKPP) has received only qualified acceptance since 2009. The State Audit Agency (BPK) has not provided unqualified acceptance (the best auditor opinion) up to 2015 due to several of GOI’s weaknesses in managing its assets (BPK, 2012, 2013, 2014). Secondly, Indonesia is vulnerable to climate change, particularly impacts of climate change to public assets. However, research on climate impacts on GOI’s assets is almost absent ,although numerous studies on climate change impacts on Indonesia have been undertaken at a national scale (BAPPENAS, 2014; World Bank, 2011). The summary of comparisons of asset management policy in aforementioned countries is presented in Table 2.2
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Table 2.2 Summary of comparisons of asset management policy Australia New Zealand UK Indonesia Regulatory Regulation/accounting – Centralised control to legislation The Local Government and – Law No.1/2004 on State Treasury framework requirements (e.g. IAM 2002): – Accounting reform and asset Housing Act 1989 – Government Regulation No.27/2014 ∗ AAS27 (local government) management reform on state asset management ∗ AAS29 (government – The degree of separation of ownership departments) from management and info systems ∗ AA31 (government) ∗ State-Owned Enterprises Act 1986 ∗ State Sector Act 1988 ∗ Public Finance Act 1989 ∗ Fiscal Responsibility Act 1994 Governance – Australian National Audit Different organisations: Different organisations: Different organisations: Office (federal government) ∗ Land Information NZ ∗ Central Civil Government Estate ∗ Supreme Audit Board (BPK) – Public Works Committee in ∗ The Treasury (CCGE) ∗ Ministry of Finance (central respect of major works ∗ NZ Accounting Standards Review Board ∗ Local Authorities government assets) ∗ NZ Property Institute ∗ Arms-Length-Bodies (ALBs) ∗ Ministry of Domestic Affairs and ∗ NZ Institute of Accountants respective local governments (local ∗ Institute of Professional Engineers government assets) ∗ Building Industry Authority ∗ Territorial Local Authorities Extent of State level government The above organisations set the regulations Chartered Institute of Public Regulations and standards are set by: devolution responsibility and regulation and standards, whilst many departments, Finance and Accountancy (CIPFA) ∗ Ministry of Finance (central Crown Entities and Crown-owned and The Royal Institution of government assets) Enterprises, State-owned Enterprises Chartered Surveyors (RICS) ∗ Ministry of Domestic Affairs and contract out the property management worked together to draw up respective local governments (local functions guidelines for authorities government assets) Publications Asset Management Handbook No central government guidance, although ∗ BSI (British Standard ∗ Ministry of Finance Decrees on some research being undertaken by the International): PAS55 (Publically technical guidelines for central Treasury. The National Asset Management Available Specification 55) government assets. (NAMs) group publish manuals and ∗ RICS Public Sector Asset ∗ Ministry of Domestic Affairs Decree guidelines for best practice Management Guidelines and respective local governments ∗ Local Authority Asset Decree on technical guidelines for Management Guidelines local government assets. Source: K. Jones and White (2008); Yusof (2013); this thesis Author
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2.5 CONCLUSIONS Lessons learned from Australia, the United Kingdom and New Zealand are that asset management reforms triggered by the recognition of the strategic role of public assets, lead to the need for better asset management. This recognition has been into the reforms in state-wide policies and guidelines formulated and implemeeted that acknowledge the important role of the state’s assets. The guidelines also have at least three similar main objectives, such as optimal use of assets, better public service provision and more effective decision making. In addition to asset management guidelines from four states, the guidelines from New Zealand and Indonesia also acknowledge the important role of state assets to achieve better service to the public and optimal utilisation of assets within the limit of available resources. New Zealand has all the concepts that have been addressed by four state governments of Australia in asset management policies and guidelines. Nevertheless, many concepts are not available in Indonesian state asset management, such as, for example, the concept of performance, community and risk.
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Chapter 3 : Climate Change and Public Asset Management
3.1 INTRODUCTION The United Nations Framework Convention on Climate Change (UNFCCC) defines climate change as ‘a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods’ (UNFCCC, 1992). Rahmstorf (2008) points out important core findings of climate research that have been well confirmed in recent decades and generally accepted as fact by climate researchers, such as the increasing concentration of carbon dioxide (CO2) in the atmosphere due to human activities, primarily from the burning of fossil fuels and changing of the earth’s radiation leading to the rising temperature of the earth’s surface. The effect of greenhouse gas (GHG) consisting of CO2, water vapour, methane, nitrous oxide, ozone and some artificial chemicals such as chlorofluorocarbons (CFCs) is a natural process that warms the earth’s surface because the sun’s energy reaches the earth’s atmosphere; some of it is reflected back to space and the rest is absorbed and re-radiated by GHG (Department of the Environment and Energy, 2017). Nevertheless, the problem occurs due to increasing concentrations of GHG, which trap extra heat to the earth causing the earth’s temperature to rise (global warming). The UNFCCC differentiates between climate change as a result of human activities that alter the atmospheric composition and climate variability attributable to natural causes. In addition, climate change may be caused by natural forces such as modulations of the solar cycles, volcanic eruptions, and persistent anthropogenic changes in the composition of the atmosphere or in land use (IPCC, 2014b). As a result, land and ocean temperatures are expected to increase. Consequently, there will be changes in the frequency of extreme weather events such as cyclones, storms, droughts and floods and rising global sea levels (Hamin & Gurran, 2009; Jenkins et al., 2009). IPCC (2014b) states that coastal systems and low-lying areas will increasingly experience adverse impacts such as submergence, coastal flooding and coastal erosion, due to sea level rise projected throughout the 21st century and
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beyond. Moreover, the population and assets projected to be exposed to coastal risks, as well as human pressures on coastal ecosystems, will increase significantly in the coming decades due to population growth, economic development, and urbanisation (IPCC, 2014b). The two terms, mitigation and adaptation, have been introduced by UNFCCC (IPCC, 2007). Mitigation and adaptation are two strategies necessary to reduce the risks associated with climate change. As noted by Kropp and Scholze (2009), mitigation is aimed at reducing emissions to minimise global warming or ‘avoiding the unmanageable’ and adaptation is ‘managing the unavoidable’. Distinctions between mitigation and adaptation to climate change have been presented in detail by Füssel and Klein (2006) as follows: a. Mitigation has certain benefits and is able to reduce the root cause of the climate- change problem as well as impacts on all climate-sensitive systems. However, adaptation is beneficial only for specific systems and subject to substantial uncertainty, dependent on the accuracy of climate projections. b. Adaptation can be implemented on a local or regional scale and is less dependent on the actions of others. c. The effect of emissions reduction takes more time to become fully apparent whereas most adaptation measures have a shorter lead time. d. Mitigation generally applies the principle of polluter-pays, i.e. industrialised countries, whose historical contribution to climate change has been substantial; conversely, the developing countries will mostly need adaptation measures due to their contribution to climate change being small. e. Mitigation as action to reduce GHG is relatively straightforward and easy to monitor quantitatively, whilst measuring the effectiveness of adaptation, in terms of future impacts avoided, is more difficult. Table 3.1 summarises the major differences between mitigation and adaptation characteristics as follows: Table 3.1 Mitigation and adaptation characteristics Mitigation of climate Adaptation to climate change change Benefited systems All systems Selected systems Scale of effect Global Local to regional Life time Centuries Years to centuries Lead time Decades Immediate to decades Effectiveness Certain Generally less certain Ancillary benefits Sometimes Mostly
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Polluter pays Typically yes Not necessarily Payer benefits Only little Almost fully Monitoring Relatively easy More difficult Source: Adapted adapted from Füssel and Klein (2006)) Additionally, Lowe (2003) divides the different characteristics between climate change mitigation and adaptation that require different strategies from stakeholders. The implementation of climate change mitigation involves certain systems and regulations imposed by government or international institutions expected to transform long-term, global, external benefits into privately achievable benefits; the benefits of climate change adaptation accumulate from national to private level, making it principally easier to gain support for adaptation strategies than for effective mitigation strategies (Lowe, 2003). This chapter firstly introduces climate change followed by overview of climate change policy in several countries in Section 3.2. Section 3.3 discusses the impacts of climate change on public assets and continues to explain adaptation response and criteria to assess in Section 3.4. The risk treatment (adaptation options) in public assets is described in Section 3.5. The following section highlights the approach considered to design a climate change adaptation plan in this thesis. The last section, Section 3.7, is the chapter conclusion.
3.2 CLIMATE CHANGE POLICY IN SEVERAL COUNTRIES Impacts of climate change are responded to , by developing a set of policies and guidelines by countries such as Australia, the United Kingdom and Indonesia. The policies and guidelines are periodically evaluated according to results from monitoring and reviews leading to continual improvement for better formulation of adaptation strategies. Australia and the UK have developed and undertaken various measures on climate change mitigation and adaptation, as indicated by numerous research studies, including policies and guidelines being in place. An overview of responses from Australia and the UK on the climate change is explained in the next sections, followed by an overview of climate change responses in Indonesia. 3.2.1 Overview of climate change policy development in Australia Australia has made significant investments in adaptation science through the National Climate Change Adaptation Research Facility (NCCARF) and the Commonwealth Scientific and Industrial Research Organisation (CSIRO). The Australian Government has developed its vision for adapting to climate change and
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providing a framework, by working together with The Council of Australian Governments (COAG) to define the roles and responsibilities. All levels of Australian governments should acknowledge their roles in strengthening public asset management, which incorporates climate change adaptation such as managing commonwealth assets, direct adaptation action due to the role in service delivery and asset management, as well as establishment of regulations that have impacts on the ability to adapt, as summarised in Table 3.2 (COAG, 2007; DCCEE, 2010a). Table 3.2 Australian Government and climate change adaptation Level of Australian Roles and responsibilities Government National Government − Maintaining a strong, flexible economy and social safety net. − Leading national adaptation reform. − Managing commonwealth assets (e.g. defence facilities, national parks and reserves) and programs. − National science and information. State and Territory − Direct adaptation action due to role in service delivery and asset management. − Appropriate policy and regulation that impact on ability to adapt, e.g. building codes and land use planning. − Accurate and regionally appropriate science and information. Local Government − Direct adaptation action due to role in service delivery and asset management. Source: Adapted from COAG (2012); DCCEE (2007)
The Council of Australian Governments (COAG) demanded the development of a National Adaptation Framework in February 2006 as part of its collaborative action plan on climate change. Accordingly, the National Climate Change Adaptation Framework (NCCAF) was developed to set priorities for action and a significant evidence base, national climate change science and adaptation research capacity and institutions, and a wide range of resilience-building initiatives. The Framework is designed to facilitate collaboration between National, State, and Territory governments in order to develop adaptive capacity and reduce vulnerability to climate change in key sectors and regions (COAG, 2007; T. F. Smith, Thomsen, & Keys, 2011). It is also a mechanism to manage risks, adjust economic activity to reduce vulnerability and to improve business certainty. NCCAF has two priority areas for potential action: (1) building understanding and adaptive capacity, comprising new actions to identify and fill knowledge gaps to enable effective adaptation action at the national and regional
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levels; and (2) reducing vulnerability in priority sectors and regions. The framework (DCCEE, 2007) provides guidance for Australian state governments to: a) support decision-makers with practical guides and tools; b) establish a new centre for climate change adaptation to provide decision-makers with robust and relevant information on climate change impacts, vulnerability and adaptation options; c) provide climate change projections and regional scenarios at scales relevant to decision-makers; d) generate the knowledge to understand and manage climate change risks to several priority sectors; e) work with stakeholders in key sectors to commence developing practical strategies to manage the risks of climate change impacts; and f) assess the implications of climate change and possible adaptations for certain regions. Australia has set initial national priorities for adaptation action, such as coastal management, water, infrastructure, natural systems of national significance, prevention, preparedness, response and recovery with regard to natural disasters, and agriculture (DCCEE, 2010b). Infrastructure, including buildings, is of national priority for climate change adaptation in Australia. It needs to resist climatic pressures and extremes in fifty to one hundred years from now by taking account of future climate risks, including floods, fires and coastal inundation (DCCEE, 2010b). In 2006, the Government of Australia also published a document titled, ‘Climate Change Impacts and Risk Management: A Guide for Business and Government’. The document is a framework provided by the Australian Government to inform businesses and government agencies about a systematic approach to assess risks posed by climate change The framework is also designed to help with the development of an adaptation plan to address risks posed by the changing climate (AGO, 2006). In 2008, Australia initiated a Local Adaptation Pathways program, entrusted with grants to local governments to assist with climate risk assessment and adaptation planning (Benjamin L. Preston, Westaway, & Yuen, 2011; Trueck et al., 2013). The LAPP was launched by the Australian Government to help Local Governments undertake local climate change risk assessments and develop
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adaptation plans (T. F. Smith et al., 2011). The LAPP’s approach is important for thinking about climate risk to public assets and infrastructure. A document of the National Climate Resilience and Adaptation Strategy 2015 was released as a growing commitment to how Australia is managing the risks of a variable and changing climate. The strategy confirms a set of principles to guide effective adaptation and resilience building, looks at leading practice nationally, and considers areas for future review, consultation and action. Climate change adaptation works to manage the risks caused by climate change already locked in, and from the potential for more severe changes in the future (Commonwealth of Australia, 2015). The Australian Government plays a major part in providing climate science and information because this is one of the most important roles of government, in making sure that society can make informed decisions based on authoritative institutions and then adjust society’s perceptions and subsequent behaviour in response to climate risks (COAG, 2012; Commonwealth of Australia, 2015). Several key climate change policies and plans from a national level are presented in Table 3.3. Table 3.3 The key climate change policies and plans from national level No Policy and plan 2007 National Climate Change Adaptation Framework. Council of Australian Governments. 2010 Adapting to Climate Change in Australia: An Australian Government Position Paper. Department of Climate Change. 2009 National Climate Change Adaptation Research Plan: Settlements and Infrastructure. National Climate Change Adaptation Research Facility. 2015 National Climate Resilience and Adaptation Strategy 2015. Commonwealth of Australia. Source: Adapted from Howes and Dedekorkut-Howes (2013))
The state and territory governments also have a leading role in climate change adaptation actions, mainly through their planning laws and investments in public infrastructure (Commonwealth of Australia, 2015). State and territory governments focus on safeguarding appropriate regulatory and market frameworks that are in place, providing accurate and regionally appropriate information, and delivering an adaptation response in those areas of policy and regulation within their jurisdiction, including key areas of service delivery and infrastructure (Commonwealth of Australia, 2015). An example is given by the Queensland Government releasing a document, ‘Directions Statement: The Queensland Climate Adaptation Strategy’. This
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document is the most recent response to climate change adaptation strategy and it is stated as the next stage in developing a strategy for Queensland to adapt to the climate change that is already underway and cannot be prevented (DEHP, 2016). As part of the Queensland Climate Adaptation Strategy, the Queensland Government has formed a partnership with the Local Government Association of Queensland (LGAQ) and the Queensland Climate Resilient Councils (Q-CRC), to develop and deliver a program providing training and tools to local governments to progress climate adaptation planning within their communities. Effective responses to climate change are context-specific, and often addressed best at the local and regional levels. The Q-CRC program will assist councils to better assess their current level of preparedness, to incorporate climate risks into their normal business decisions and to play a lead role in facilitating regional scale adaptation planning (DEHP, 2016).
Another program conducted by the Queensland Government is QCoast2100 (Queensland Local Government Coastal Hazard Adaptation Program) that provides the funding, tools and technical support to enable all Queensland coastal local governments to progress the preparation of plans and strategies to address climate change-related coastal hazard risks over the long-term. It is intended that QCoast2100 will facilitate the development of high quality information enabling defensible, timely and effective local adaptation decision-making across key areas of planning and operations, such as land use planning and development assessment; infrastructure planning and management; asset management and planning including recreation, cultural heritage values and other public amenities; community planning; and emergency management (LGAQ & Department of Environment and Heritage Protection, 2016). Queensland Government has also introduced its current strategy, namely ‘Pathway to a Climate Resilient Queensland: Queensland Climate Adaptation Strategy 2017-2030’. The strategy includes the Government Adaptation Action Plan (GAAP), which will provide a coordinated whole-of-government response to climate risks and opportunities (DEHP, 2016). In the action plan, each Queensland Government agency will undertake a detailed climate risk assessment, and either develop a specific adaptation action plan to address priority climate risks, or incorporate climate adaptation actions into existing plans and risk frameworks. These plans will reduce the potential for maladaptation and describe how agencies will consider climate risks and adaptation planning when assessing proposals for
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new infrastructure and assets. The GAAP will be completed in 2017–18 and will be formally reviewed every three years.
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Table 3.4 The key climate change policies and plans at the national level No Action 1 Develop a Government Adaptation Action Plan - Define agency roles and responsibilities in climate adaptation. - Provide a consistent approach to climate adaptation in policies and processes. - Incorporate climate risk into existing risk management processes. 2 Manage risks to property, assets, infrastructure and services - Apply a robust risk management framework to protect critical assets and services owned or managed by the State Government. - Ensure climate change is considered in state and regional planning instruments. 3 Advocate for strong and consistent national climate policies - Maintain important cross-jurisdictional partnerships (e.g. Adaptation Working Group, Climate Action Roundtable). - Advocate for a nationally coherent adaptation response to climate change, including coordinated standards and approaches. 4 Incorporate sustainability objectives into infrastructure projects - The Queensland Government has invested in version 2 of the Infrastructure Sustainability Council of Australia (ISCA) sustainability rating tool that includes specific climate change credit ratings. - Work with ISCA to mainstream sustainability principles into government policies and processes. 5 Monitor, evaluate and review - Establish a monitoring, evaluation and review framework for climate adaptation based on world’s best practice. - Review the effectiveness of the Strategy every 3–5 years and implement recommended changes. Source: Adapted from DEHP (2016))
Several key climate change policies and plans from a state level, e.g. Queensland, are presented in Table 3.5.
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Table 3.5 The key climate change policies and plans at the State level (e.g. Queensland Government) Year Policy and plan 2007 ClimateSmart2050 (including ClimateSmart Adaptation 2007-12). Environment Protection Agency (now Department of Environment and Heritage Protection) 2007 ClimateSmart2050 (including ClimateSmart Adaptation 2007-12). Environment Protection Agency (now Department of Environment and Heritage Protection) 2008 Toward Q2: Tomorrow’s Queensland. Department of the Premier and Cabinet 2009 ClimateQ: Toward a Greener Queensland. Department of Environment and Resource Management (now Department of Environment and Heritage Protection) 2012 Queensland Coastal Plan. Department of Environment and Resource Management (now Department of Environment and Heritage Protection) 2014 Q-CAS Partners Group (which includes representatives from industry, community and research sectors, who were also instrumental in the development of the strategy and will continue to provide a leading role in its implementation. Department of Environment and Heritage Protection 2015 Queensland Local Government Coastal Hazard Adaptation Program (QCoast2100). LGAQ & Department of Environment and Heritage Protection 2017 Queensland Climate Resilient Councils (Q-CRC). LGAQ & Department of Environment and Heritage Protection 2017 Pathway to a climate resilient Queensland: Queensland Climate Adaptation Strategy 2017-2030. Department of Environment and Heritage Protection Source: Adapted from Howes and Dedekorkut-Howes (2013)
As for the local governments of Australia, they are on the frontline in dealing with the impacts of climate change. The local governments have an essential role to play in ensuring that local circumstances are adequately considered in the overall adaptation response and in involving the local community directly in efforts to facilitate effective change. They are well positioned to inform state and federal governments about the fundamental needs of local and regional communities and to communicate directly with those communities and to respond to local changes (Commonwealth of Australia, 2015). The DCCEE (2010b) has identified the widespread social, environmental and economic risks due to climate change impacts on coastal populations. Local governments are responsible for local land use planning, provision of local community services and the majority of physical and social infrastructure. As a consequence, the climate change impacts will affect service delivery by local government, as presented in Table 3.6.
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Table 3.6 Major climate change impacts and their relationship to local government responsibilities Climate change impact Area of local government responsibility - Sea level rise - Land use planning and urban development - Coastal erosion - Management of certain public roads - Environmental conservation and support - Support for tourism, industry and commerce Community information - Frequent storm events - Management of certain public roads - Increased intense rainfall - Public health supervisory functions events/cyclones - Water sewerage, drainage services Energy supply and - Increased/decreased rainfall infrastructure - Support for tourism, industry and commerce - Land use planning and urban development - Management of certain public roads - Community information - Community recreation facilities - Increased temperatures - Public health supervisory functions Fire prevention activities - Environmental conservation and support Pest and weed eradication - Land use planning and urban development Community information - Community recreation facilities Energy supply and infrastructure Source: Adapted from Gurran, Norman, Gilbert, and Hamin (2011); Patt and Schröter (2008); Thomas (2010))
The Local Governments of Australia, in responding to the impacts of climate change, generally use a risk-based approach as recommended by the Federal Government (AGO, 2006; Aldum, Duggie, & Robson, 2014; Fisk & Kay, 2010; Kennedy, Stocker, & Burke, 2010; LGAQ, 2007; Nursey-Bray, 2010). Climate- related risks are not new to Local Governments planners, resource managers, and hazard and emergency managers in Australia. In other words, as climate and weather-related risks are an ongoing challenge, governments have a long experience in managing these specific risks. The existing roles and responsibilities of Local Governments are influenced by climate and weather events, which have been addressed by the range of existing planning and management systems employed by a number of Councils (LGAQ, 2007). The effects of floods, droughts, storms and other extreme weather events are already addressed by Local Governments when planning and providing services. Management of climate change risks is often an extension of existing risk management and should build on existing effective climate risk arrangement or
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existing management and decision-making processes, although in a future context where adverse events may occur with greater severity and frequency, and adverse events may occur in different places due to climate change (LGAQ, 2007; Standards Australia, 2013). Australia has also developed a standard, namely Australian Standard (AS 5334) for ‘Climate change adaptation for settlements and infrastructure’. The Standards, or AS 5334, comprises voluntary consensus documents that are developed by agreement; their application is by choice, unless their use is mandated by government or called up in a contract. Australian Standards are not legal documents, but many, because of their rigour, are called up into legislation by government and become mandatory, this being a decision made by elected governments, not Standards Australia. Standards are also often incorporated into legal contracts. The Australian Standard AS/NZS 4360 Risk Management Standard of 1995 and its subsequent revisions in 1999 and 2004 (currently AS/NZS ISO 31000:2009) is seen to provide a sound basis for risk management practices used in AS5334 (Cooper, 2014; Standards Australia, 2013). As noted by Cooper (2014), the validity of this approach is supported by the continued centrality of risk to contemporary depictions of development/climate interaction. In 2013, strategies were developed by several local governments in Queensland, namely, the Coastal Hazard Adaptation Strategy (CHAS). It is used to systematically analyse coastal risks and propose adaptation measures to mitigate the impacts, a process consistent with principles of good planning and risk management. (Department of Environment and Heritage Protection QLD, 2013). Currently, the
CHAS is being undertaken under QCoast2100 Program. The existing risk assessment frameworks in Local Governments in Australia can be adapted for the climate change context. The benefits of using existing frameworks are that climate change risks are assessed consistently with other risks, and treated in balance with other priorities faced by Local Governments (COAG, 2012). The climate change considered in risk assessments forms an important stage in the Government decision-making framework. Therefore, existing risk management could be modified to deal with climate change. Kennedy et al. (2010) point out the benefit of risk assessment for local government because it provides a consistent and familiar framework. Risk assessment is a process widely adopted and applied across a range of governments.
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Another benefit is that risk assessment provides a tangible means of incorporating risk into decision-making as well as dealing explicitly with uncertainty in decision- making, rather than giving an over-confident view of what is known (Willows, Reynard, Meadowcroft, & Connell, 2003). As with current risk management in Australia, local initiatives will be at the forefront of climate change adaptation, with the most significant benefits flowing directly to those who plan well to adapt to anticipated changes (COAG, 2012). 3.2.2 Overview of climate change policy development in the United Kingdom The United Kingdom (UK) set up climate change adaptation measures, as mentioned in the Climate Change Programmes of 2000 and 2006, the Adaptation Policy Framework and the Adapting to Climate Change Programme 2008. Further initiatives on adaptation include the Nottingham Declaration, signed by UK local authorities to address adaptation in partnership with local communities and business, the London Climate Change Partnership, the Building Knowledge for a Changing Climate (BKCC), and Adaptation and Resilience in the Context of Change (ARCC) research projects for addressing climate impacts and adaptation for the built environment (Ashley et al., 2008; Desai & Jones, 2010; UKCIP, 2011). The UK, through the Department for Environment, Transport and the Regions (now the Department for Environment, Food and Rural Affairs, DEFRA) set up the UK Climate Impacts Programme (UKCIP) in 1997 to facilitate and oversee research undertaken by others within an integrating framework that provides assessment of how climate change will affect the UK, and assistance to organisations in developing adaptation strategies. Hulme and Turnpenny (2004) point out UKCIP has been very influential in the UK in promoting climate change awareness in sections and sectors of society that would not normally be reached by conventional scientific research programs. The UKCIP provides both, framework and guidance aimed at supporting decision makers and their advisors in identifying important risk factors. It also aims to help them judge the significance of the climate change risk compared to other risks they face, so they can find the most appropriate adaptation measures. There are eight stages in the framework as a circular process, in which feedback and iteration are encouraged and emphasised as follows (UKCIP, 2011; Willows et al., 2003): (1) identify problem and objectives, (2) establish decision-making criteria, (3) assess
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risk, (4) identify options, (5) appraise options, (6) make decisions, (7) implement decisions, and (8) monitor, evaluate, and review. UKCIP has put emphasis on two main issues with regard to existing climate impacts research: (1) government-led research on climate change is not reaching potential users or informing action and decision-making on climate change (Gawith, Street, Westaway, & Steynor, 2009; Lorenzoni, Jones, & Turnpenny, 2007). Accordingly, it is considered that UKCIP should be stakeholder-led research, which has the ability to provide information that decision-makers need to plan how to adapt to climate change; (2) Each individual study typically uses different data, scenarios, assumptions, and spatial and temporal scales that makes it difficult to be assimilated in order to find integrating results of all individual studies used to determine the vulnerability of the UK as a whole to climate change. UKCIP functions in a capacity now widely recognised as being one of a boundary organisation able to bridge the gap between researchers and decision-makers in government organisations and businesses (Lorenzoni et al., 2007). The framework provided by UKCIP was a foundation for developing two other sets of the UK’s climate change scenarios; UKCIP98 was later replaced by UKCIP02 in 2002. The main objective for the first phase of UKCIP98 was to establish an integrated process that would assist decision-makers from regions and sectors; it was also intended to produce an integrated national assessment. The second phase of UKCIP02 included a specific objective for studies to assess adaptation options. In April 2005, the third phase of UKCIP was developed, aiming at improving understanding of climate change impacts and how best to adapt, to translate this into relevant advice for stakeholders, and to provide tools, guidance and training at a regional and national level (Hedger et al., 2006). The fourth phase of UKCIP was launched in November 2008, aiming to improve the previous frameworks (UKCIP98 and UKCIP02) and provide a description of information, such as probabilistic climate projections, marine projections and historical climate information. Significant to the conceptualisation and development of the UKCIP08 was the involvement of representatives of a broad spectrum of the user community (communicators, decision and policy makers, researchers and practitioners) and the climate science community (Street, Steynor, & Bowyer, 2009). Built environment and infrastructure have been a focus for the work of both UKCIP and Department for Environment, Food & Rural Affairs or the Defra (The
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Royal Academy of Engineering, 2011). The Defra has established a built environment program in collaboration with the Department of Communities and Local Government (DCLG) as well as a publication on infrastructure. In addition, the priorities for planning and implementing climate change adaptation suggested by The Adaptation Sub-Committee (ASC) are assets or institutions that are sensitive to current climate risks; decisions that have long-lasting consequences; and decisions that may have systemic and far-reaching effects (HMSO, 2011). This criterion has led the ASC to identify in the UK, five priority areas for immediate action in preparing for climate change (HMSO, 2011): (1) taking a strategic approach to land- use planning; (2) providing national infrastructure; (3) designing and renovating buildings; (4) managing natural resources sustainably; and (5) effective emergency planning. 3.2.3 Overview of climate change policy development in Indonesia Climate change is a growing challenge to Indonesia as the country is the world’s third largest emitter of greenhouse gases (GHG), mostly through the result of deforestation, forest fires and changing land use (BAPPENAS, 2014; Case, Ardiansyah, & Spector, 2007; Measey, 2010; World Bank, 2011). The Indonesian Ministry of Environment (2013) summarises the analysis of climate change in Indonesia based on observation data, such as (1) trend in surface temperature changes; (2) rainfall changes; (3) sea level rise and (4) extreme weather and climate events. Indonesia plays an active role in various international negotiations on climate change, and being the host of the 13th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in Bali, which generated the Bali Action Plan. In 2009, the President of the Republic of Indonesia
stated the country’s commitment to reduce CO2 gas emissions by 26% by 2020, or 41% with support from other parties. The reduction is high compared to other developing countries. GOI has shown its commitment to adaptation and mitigation needs in response to climate change with the establishment of the National Council on Climate Change (DNPI), National Action Plan on Climate Change (RANPI), National Action Plan on Climate Change Adaptation (RAN-API) as well as a document on National Development Planning and Response to Climate Change (known as the ‘Yellow Book’) (BAPPENAS, 2014; Indonesian Ministry of Environment, 2013).
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RANPI contains the initial guidance and multi-sectoral coordination effort to address mitigation and adaptation to climate change. The Yellow Book is intended to strengthen the Long-Term Development Plan (RPJP) 2005-2025 and reinforce the National Medium-Term Development Plan (RPJMN) 2004-2009 and RPJMN 2010- 2014, as well as to include inputs for the preparation of RPJMN 2015-2019 in the context of integrating climate change in national development plan. The RAN-API contains the action plan for adaptation of priority sectors and cross-sectors in the short-term, mainstreaming of the adaptation action plan into the National Medium-Term Development Plan (RPJMN) of 2015-2019 that will be formulated, and the long-term adaptation policy direction (Indonesian Ministry of Environment, 2013). It is a national action plan document on climate change adaptation involving integrated coordination among all the stakeholders, from the government, civil society organisations and international cooperation agencies to other stakeholders. The RAN-API is an integrated document for synchronisation and implementation of various existing climate change policy documents from various sectors (BAPPENAS, 2014). Nevertheless, it is a non-statutory document, therefore, to fully implement it, the provisions of RAN-API need to be incorporated in Indonesia’s national development planning framework. It is also a reference for local governments in developing an action plan for CCA at local/regional level. The adaptation strategy and the action plan in RAN-API are grouped into five sectors: economic resilience sector, living resilience sector, ecosystem resilience sector, specific region resilience sector, and sector support systems. The living resilience sector consists of an action plan for the health sub-sector, housing sub- sector and infrastructure subsector. The infrastructure subsector has seven main programs (clusters) as follows (BAPPENAS, 2014): 1. Research and development on infrastructure resilience concept. 2. Development of infrastructure adaptive to climate change. 3. Reducing risk of disruption of transport accessibility function. 4. Improvement, provision and adjustment of infrastructure with direct impact on public health. 5. Integration to sustainable development. 6. Enhancement of climate change adaptation infrastructure support system. 7. Design, provision and management of energy infrastructure.
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The infrastructure subsector has four targets, as follows: 1. Development of the concept of adaptive infrastructure resilient to climate change. 2. Development of adaptive infrastructure to climate change. 3. Provision and infrastructure adjustments that have direct impact on public health and are resilient to climate change. 4. Lay out management of infrastructure, integrated with spatial planning in sustainable development. The RAN-API strengthens endeavours on mitigation that have been formulated in the National Action Plan for Green House Gas Emission Reduction (RAN-GRK). The Yellow Book, RANPI and RAN-API are living documents that serve as fundamental policy, but are subject to improvement and adjustment from time to time. Figure 3.1 shows the interconnection between policies, guidelines and the roadmap.
GOI’s own budget 13th COP Mitigation UNFCCC in Bali Mainstreaming into R PJ M RANPI (RAN- B ilat eral/mult ilat eral ICCSR cooperation GRK and RAN- President’s API) Statement G2O - 2009 A daptation ICCTF
National Bridging National Action Plan on Climate Change Development ICCTF – International financing mechanism into 5 y r mid ter m Planning channeling investment development plan (RPJM) Response to funds into national c limate 2010-2014 & inputs till Climate Change change initiatives 2030 ”Yellow Book”
- COP = Conference of Parties - UNFCCC = UN Framework Convention on Climate Change - IC C SR = Th e In d o n esia C limat e C h an ge Sect o r al R o ad map - R ANP I = Nat io n al Act io n P lan o n C limat e C han ge - RPJM = Medium term development plan - ICCTF = Indonesia Climate Change Trust Fund
Figure 3.1 Mainstreaming climate change into the national development agenda (Source: BAPPENAS (2013b)) Java, Bali and Sumatra islands are mentioned in The Indonesia Climate Change Sectoral Roadmap (ICCSR) and National Action Plan on Climate Change
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Adaptation (RAN-API) as the three most vulnerable areas compared to other regions because of their population size, location of residential areas, and infrastructure (BAPPENAS, 2014; Indonesian Ministry of Environment, 2013). Numerous studies on climate change impacts on Indonesia have been undertaken at a national scale (BAPPENAS, 2014; Case et al., 2007; Indonesian Ministry of Environment, 2010, 2013; Sari, Maulidya, Butarbutar, Sari, & Rusmantoro, 2007; Setiawan, 2010; Suroso et al., 2010; World Bank, 2011). However, research on climate change impacts on public asset management in Indonesia, particularly public asset management that incorporates climate change adaptation strategies, is almost absent.
3.3 IMPACTS OF CLIMATE CHANGE ON PUBLIC ASSETS The impact of climate change is predicted to result in the increase in temperature, rising global sea levels, as well as more frequent extreme weather events such as cyclones, storms, droughts and floods. These phenomena are expected to have a severe impact on public buildings that provide vital services to the community (Queensland Government, 2011). Existing and new buildings have long lifespans, which are in the future need to adapt and be more resilient to the current and future climate (Camilleri et al., 2001; CSIRO, 2007; de Wilde & Coley, 2012; Lisa Guan, 2007, 2009; Hasegawa, 2004; K. Jones & Desai, 2006; Susilawati & Goonetilleke, 2013). Public and private organisations need to adapt to climate change in order to maintain the sustainability of their services. Although the costs associated with the adaptation of assets can be high in some cases, these costs will likely be even higher in the long term if responses are delayed (Environmental Resources Management, 2000; The Climate Institute, 2012; Wilson, 2006). Results from research by several researchers, such as du Plessis, Irurah, and Scholes (2003); Lowe (2003); Milne (2004); Sanders and Phillipson (2003); Shimoda (2003); Steemers (2003), regarding the preparations for adaptation to climate change have provided more understanding about the impacts of climate change. Climate change has been acknowledged to be still in the early stages of onset, which means more research, data and development are needed. Salagnac (2004) identifies a common feature used by the previous researchers, in that they use a tentative approach indicated by frequent use of modal verbs (may, might, could) and of probability-related terms, adverbs or expressions (uncertainty, likely,
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expected to, etc.). Furthermore, the authors share common agreement on three points, as pointed out by the work of IPCC (Salagnac, 2004): (1) GHG has been increasing for some decades; (2) global temperature increases as a consequence; and (3) built environment will experience climate change impacts as a result of GHG and global temperature rise. Salagnac (2004); Shimoda (2003); Steemers (2003) highlighted the term of systemic approach to addressing climate change impacts. In other words, they pointed out that mitigation or adaptation solutions require not only technological considerations, but also a full comprehension of interaction between involved mechanisms as well as of the behaviour of stakeholders. For example, the government plays a role in establishing relevant regulation (mechanism) whilst the scientific community has a role in carrying out research that supports sound decisions based on confirmed evidence and hypotheses (Salagnac, 2004). In the public asset management domain, especially for buildings, the government’s role is vital because government is the public building owner, manager and also the regulator that develops planning legislation, codes, standard and guidelines to build more resilient buildings to overcome climate change impacts (Lisa Guan, 2007; Susilawati & Goonetilleke, 2013; Warren, 2010). Consequently, the government has to develop, prioritise, implement, and evaluate actions to moderate climate risks and protect critical assets using the best available knowledge (CSIRO, 2007; Government of South Australia, 2012; NSW Government, 2010; Queensland Government, 2011). In other words, public asset managers should incorporate consideration of climate adaptation into their assets’ life cycle. Through climate change adaptation undertaken, public assets (public buildings) can adjust to future changes, reduce negative effects and capitalise on the opportunities associated with global climate change. Risks to individual public assets, such as infrastructure assets (i.e. buildings) from climate change, should not be considered in isolation because these assets are part of a whole system and are interdependent and reliant on each other to operate. Failure in one sector, will impact the whole system, resulting in a cascade of failures (Graves & Phillipson, 2000; Queensland Government, 2011). Snow and Prasad (2011) point out adjustment (adaptation) to unavoidable climate change is needed to minimise assets maintenance costs and maintain healthy ecosystems and liveable urban areas. Nevertheless, Hasegawa (2004) has noted that
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less attention is being given to the development of adaptation strategies. Accordingly, there is a need for further research into this area. In addition, Salagnac (2004) stated that more work is needed to comprehend the implications of climate change and to provide sufficient evidence for policy-makers to make sound decisions. Research studies show that no single adaptation policy recommendation can be universally appropriate (Smit & Pilifosova, 2003). Aldum, Duggie, and Robson (2013) have identified 65 climate change adaptation support tools (CCAST), in which identification and management of climate risks are the dominant adaptation actions currently taking place in Australia particularly at a local and regional level, predominantly using the guideline titled ‘Climate change impacts and risk management: a guide for business and government’ developed by the Australia Greenhouse Office (hereafter the ‘AGO Guide’). Moreover, over half of the CCASTs identified in Australia were found to be associated with the infrastructure and planning and local government sectors. In addition, the prevalent adaptation activity and CCAST type presently taking place is the identification and assessment of climate change risk (Aldum et al., 2014). The risk-based approach is implemented for local government in Australia because it provides a consistent and familiar framework and widely adopted process, applied across a range of governments (Fisk & Kay, 2010; Kennedy et al., 2010). In addition, Aldum et al. (2014) explain that the widespread uptake and influence of the AGO Guide are due to incentive provided by the Commonwealth Government for Local Governments to conduct climate change risk assessments and Commonwealth Government endorsement of the approach. The widespread use of the Australian Standard across public and private sectors has also increased stakeholder ‘buy-in’ (DCCEE, 2011b). 3.3.1 Climate Risks for Public Assets One of the key impacts of climate change will be a higher level of risk to the built environment including public assets, resulting in reducing the integrity and reliability of assets as follows (ASBEC, 2012): - building materials could degrade or fail much faster in the event of higher temperatures and more frequent extreme weather events; - foundations could be compromised by changes to soil composition through significant variations in rainfall, which could lead to collapse;
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- buildings may be contaminated and deemed uninhabitable with increases in flood and inundation events; - properties could be damaged or lost due to storm surges, increased coastal erosion, and higher sea levels, the impacts of which are being seen already in many Australian coastal settlements; and - structural and other building components could fail sooner than anticipated as a result of increased atmospheric pressure loadings caused by more frequent and intense tropical storms and cyclones and damage from increased solar radiation. 3.3.2 Climate change adaptation framework for public asset Studies suggest that an effective framework would start by identifying where an organisation’s current interests and concerns are vulnerable to climate change (Anisuzzaman, 2014; West & Gawith, 2005). Bassioni, Hassan, and Price (2008) also suggest the selection of the frameworks could be based on their reputation and establishment in practice and research, in order to enhance the initial validity of the formulated frameworks. A risk-based approach is generally used by the Local Governments in Australia in responding to the impacts of climate change (AGO, 2006; Fisk & Kay, 2010; Kennedy et al., 2010; LGAQ, 2007; Nursey-Bray, 2010). Climate-related risks are not new to Local Government planners, resource managers, and hazard and emergency managers in Australia. In other words, climate and weather-related risks have always been present, so governments have long experience in managing these specific risks. The existing roles and responsibilities of Local Governments are influenced by climate and weather events, which have been addressed by the range of existing planning and management systems employed by a number of Councils (LGAQ, 2007). The effects of floods, droughts, storms and other extreme weather events are already addressed by Local Government when planning and providing services. Management of climate change risks is often considered as an extension of existing risk management and should build on existing effective climate risk management or existing management and decision-making processes, although in a future context where adverse events may occur with greater severity and frequency, and adverse events may occur in different places due to climate change (LGAQ, 2007; Standards Australia, 2013). That said, climate change is not expected to create new risks, but it may change the frequency and intensity of existing risks and hazards, although in some cases climate change may see the emergence of new risks.
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The existing risk assessment frameworks can be adapted for the climate change context. The benefits of using existing frameworks are that climate change risks are assessed consistently with other risks and treated in balance with other priorities faced by Local Governments (COAG, 2012). The climate change considered in risk assessments forms an important stage in the Government decision- making framework. Therefore, the existing risk-based approach could be modified to deal with climate change. The risk-based approach is not only a widely adopted process that is applied across a range of industries and businesses, but also governments. Local governments benefit from risk management because it provides a consistent and familiar framework (Fisk & Kay, 2010; Kennedy et al., 2010). As with current risk management in Australia, local initiative will be at the forefront of climate change adaptation, whereby local governments that plan well could benefit most from adaptation to anticipated changes (COAG, 2012). The available information already obtained can be used as a starting point for a revision of existing risk management by considering the climate change risk in existing planning and operational processes within the decision making framework (COAG, 2007; LGAQ, 2007; Standards Australia, 2009, 2013).
3.3.2.1 Standard Australia AS5334 CCA for settlements and infrastructure The AS5334 consists of a risk-based approach framework of CCA for settlements and infrastructure (Standards Australia, 2013). The AS5334 is a risk management framework derived from another Australian Standard, namely ISO31000 (as presented in Figure 3.4), but tailored for climate change risk. The AS 5334 applies to infrastructure sectors including buildings, energy, water, green infrastructure, transport, communication, information communication technology and resource development (Standards Australia, 2013).
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© Standards Australia Limited. Copied by Jose Lukito with the permission of Standards Australia under Licence.
Figure 3.2 Risk Management Process (adopted from Australian Standard AS5334-2013) Another existing guideline is a document titled, ‘Climate change impacts and risk management: a guide for business and government’ published by Australia Greenhouse Office of Department of the Environment and Heritage, currently the Department of the Environment and Energy (AGO, 2006). This document is a guide to integrating climate change impacts into risk management and other strategic planning activities in Australian public and private sector organisations. The AS5334 has suggested an approach to developing a CCA plan as described in Figure 3.3.
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© Standards Australia Limited. Copied by Jose Lukito with the permission of Standards Australia under Licence.
Figure 3.3 Approach to developing a CCA plan (adopted from Australian Standard AS5334-2013) As suggested in the AS5334, three major steps are included in the process of developing a CCA plan, as described below. Firstly, the acknowledgement of the need for response to the impacts of the climate change is recognised as a ‘trigger’. The trigger for developing CCA can be identified from at least three key issues, namely investment, perceived risk, and approval requirement. An organisation having an existing risk management framework in place, such as ISO31000, could integrate AS 5334 into their overall risk management processes. Accordingly, the climate change risks are considered within the context of other risks that form a multiple risk, then resulting in a more severe risk, which affects the organisation within a similar timeframe. Secondly, this major step consists of two consecutive stages, risk assessment and adaptation plan. Risk assessment is a process beginning with risk identification and followed by risk analysis and the evaluation of the risk. After completion of risk evaluation, a decision could be made to select risks that need treatment and priority for implementation. An adaptation plan as the next consecutive stage after risk
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assessment is also recognised as the risk treatment. The AS5334 provides several key issues to consider in undertaking the risk assessment and adaptation plan, as follows: (1) Governance Policies, Strategies, and Regulations. (2) Hazard management (3) Data, Climate, Assets, and Benchmarks (4) Sector handbooks and guidelines (5) Case studies (6) Climate effects (7) Resources – capability and capacity (8) Community (9) Other standards (10) Geographical areas and infrastructure affected. Thirdly, action should be implemented whether at organisational, sectoral or integrated system response. Also required is consideration for ensuring the implementation of CCA by taking into account endorsement, clear accountability, performance targets, and establishing collaboration. The above-explained three major steps are the process of developing a CCA plan, including its associated key issues as suggested by AS5334. Several major steps have also been included in the development process of a CCA plan by adopting the steps provided in ISO31000 and a guideline published by the Australian Greenhouse Office (currently Department of the Environment and Energy) as follows (AGO, 2006; Standards Australia, 2009, 2013): A. Trigger for developing adaptation plan for public assets B. Elements of the climate risk management process, such as establishing climate change context, risk assessment, and adaptation plan C. Implementation of adaptation plans by integrating into a public asset management plan D. Monitoring and review E. Continual improvement 3.3.2.2 Climate Change Vulnerability Assessment Framework for Infrastructure, ACT The potential impact of climate change on the physical and natural infrastructure in the Australian Capital Territory (ACT) is the focus of this
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framework. It is intended to provide ACT Government with a diagnostic tool that can assist in considering climate change and its impacts during the planning, development, renewal, maintenance and management of public infrastructure. Its core focus is on the risks associated with managing infrastructure across all phases of the infrastructure life-cycle and within the context of a policy implementation cycle (ACT Government, 2012). By focusing on the infrastructure risks associated with climate change, the framework: - Promotes good practice risk-based approaches to infrastructure planning, development, renewal, maintenance and management. Such good practices are anticipated to help agencies achieve enhanced value-for-money from infrastructure investment decisions. - Promotes sustainable and longer term infrastructure outcomes through a deeper understanding of climate change vulnerability and possible adaptation options. - Enhances the alignment between whole-of-government planning and decision making about public infrastructure through a common understanding of climate change. It also enhances the connections between infrastructure planning, strategic planning and resource allocation across Government.
3.3.2.3 Climate Change Impacts on Infrastructure Adaptation Framework, Victoria The climate change adaptation framework for Victorian infrastructure would need to be inclusive of the key stakeholders in infrastructure policy, planning, investment, insurance, design, construction, management, operation and maintenance. Its primary goal is to reduce the significant risks that climate change poses to the cost, service and life of significant assets in Victoria. The framework highlights the channels of communication between government, infrastructure sectors and other key stakeholders (DELWP, 2016).
3.4 ADAPTATION RESPONSE AND CRITERIA TO ASSESS Adaptation options are generally distinguished into: (1) options building adaptive capacity resulting in sufficient response by actors in the future when climate change impacts occur; and (2) options delivering adaptation actions to respond specific climate change impacts (UKCIP, 2005). The adaptation options have also been divided into several classes as follows: i) bear the loss, (ii) share the loss, (iii)
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modify the threat, (iv) prevent effects, (v) change use, (vi) research and (vii) educate, inform and encourage behavioural change (Burton, Smith, & Lenhart, 1998). M. Gibbs (2017) describes that climate adaptation plans for infrastructure and assets are generally categorised into five types of adaptation approaches, as follows: 1) Full adaptation. This approach could ensure infrastructure or assets to be more resilient to the impact of climate change. However, large capital costs are required to develop the infrastructure or assets. Early climate change adaptation studies generally recommend this approach. Nevertheless, this approach was not able to be justified within asset development organisations, resulting in less uptake of many climate adaption studies (Ford, Berrang-Ford, & Paterson, 2011; Benjamin L. Preston et al., 2011). 2) Do nothing. The do-nothing approach is in contrast with the full adaptation option. Therefore, this approach requires no additional capital expenditure. However, the costs will likely be even higher in the long-term if an extreme weather event is greater than previously anticipated. 3) Plan and forget The plan-and-forget approach occurs when climate adaptation studies are undertaken, however, no implementation on recommendations or adaptation measures are exercised. Accordingly, without implementing the climate adaptation plan, the costs will also be even higher in the long-term if extreme events become more frequent or intense than what has been previously anticipated. 4) Hedging This approach recognises climate change risks on assets, leading to implementation of risk treatment (climate change adaptation option) on set criteria or thresholds. The funding for this approach can be allocated across the longer term. However, there are disadvantages in this approach, as funding is not committed in the immediate term or organisations may shift priorities and not exercise the climate adaptation option. 5) Service orientated Assets or infrastructure is developed mainly to deliver a service to public or asset owner. Therefore, it is the service delivery that should be managed rather than simply the asset in isolation. Climate adaptation of assets should focus on the continuing delivery of the service during disruptions. In the service-orientated
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adaption approach, assets may not be universally hardened, but rather may be designed so that the main function of assets in service delivery can be restored rapidly following disruption. These five approaches previously described, including their respective capital costs, risks to level of service during disruptions, likelihood of uptake as well as flexibility, are summarised in Table 3.7. Table 3.7 Type of adaptation response Risk to level of Capital Likelihood of Adaptation approach service during Flexibility cost uptake disruption Full adaptation High Low Low Low Do nothing Low High Medium Medium Plan and forget Low High Medium Medium Hedging Medium Low High High Service orientated Medium Low High Medium Source: Adapted from M. Gibbs (2017)
actions need to be selected based on criteria. Therefore, the CCA plans integrated with PAM need to be consulted with appropriate stakeholders to define a timeline for implementation of the selected options, given the criteria listed in Table 3.8 below. Table 3.8 Criteria to assess adaptation option Criteria Description No regrets The option is beneficial in the absence of climate change Non-statutory The option can take place without any policy or legislative changes Community The option likely to be perceived to be amendable to community members Environmental The option is not likely to have any adverse environmental impacts Financial The option can be implemented within current budgets. No external funding will be sought Cost benefit The long-term benefits of adaptation clearly exceed its upfront costs (strategic estimate only) Organisational capacity The option can be implemented based on current staff capacity and resourcing Source: Adapted from AGO (2006)
3.5 RISK TREATMENT (ADAPTATION OPTIONS) FOR PUBLIC ASSETS Lists of adaptation options have been created based on literature reviews to support decision-makers in PAM. These lists are partly described with reference to implemented examples and actual experiences to provide decision-makers an idea of the kind of adaptation measures that are generally available. However, adaptation is still in its infancy. Therefore, good-practice examples of actions of actually
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implemented adaptation are relatively scarce. Several risk treatments, or possible adaptation measures that have been identified from literature, as well as available adaptation policy specifically for buildings is summarised in Table 3.9. Table 3.9 Climate change impacts on buildings and potential treatment/adaptation options Risk treatment Climate Impact Building Issue Risk Scenario (Adaptation Option) ∗ Flood Site stability - Increased ground -Preventing the sitting of government ∗ Salinity movement building on floodplains and low-lying ∗ Sea level rise - Increased site erosion coastal areas. ∗ Drought and risk of landslip - Limit the use of floodplains for ∗ Rainfall intensity development through land use regulations. - The Government should avoid river floodplains and low-lying coastal areas when planning and approving future government building developments. - The engineering of structures in the floodplain to withstand flood forces e.g. levee banks, flood walls, dams. - Stronger foundations and design the building for flood loading and inundation. ∗ Flood Site drainage - Inability of drainage to -Design to ensure or permit the ready ∗ Sea level rise cope with water volume. drainage water which can easily escape ∗ Rainfall intensity - Storm water flowing once flooding has subsided back into the building - Improve building and site stormwater drainage systems - Increasing drainage system capacity (stormwater drains, sewer connections, physical characteristics of catchment). ∗ Floods Structure - Inability of structures to Stronger foundations and design the ∗ Sea level rise cope with high wind building for flood loading and inundation. ∗ Drought loads ∗ Rainfall intensity - Inability of structures to cope with storm surge - Structural damage from water penetration ∗ Flood Foundations and - Undermining and/or Stronger foundations and design the ∗ Salinity Footings structural failure of building for flood loading and inundation ∗ Drought footings ∗ Rain intensity - Increased foundation movement damage caused by salinity and acid sulphate soils ∗ Drought Floor - Damage and movement -Consider multi-storey construction or ∗ Rain intensity including cracking and build a second or multiple stories and use material degradation the lower storey as non-living or ‘non- productive’ space. - Use or repair with water-resistant construction materials ∗ Drought Durability - Increased material Stronger foundations and design the ∗ Rain intensity degradation resulting in building for flood loading and inundation. structural damage. - Reduced lifespan of building materials ∗ Wind Roof and roof - Damage including -Routine inspection and care to ensure ∗ Temperature cladding cracking and material overflowing gutters do not leak back into ∗ Rain intensity degradation the building. - Roofing material - Upgrading the design of internal box and becoming airborne under valley gutters to cope with higher expected high wind pressure rainfall intensity. - Damage due to overflowing gutters
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Risk treatment Climate Impact Building Issue Risk Scenario (Adaptation Option) ∗ Cyclones Wall and wall -Damage including Use or repair with water-resistant ∗ Salinity cladding cracking and material construction materials ∗ Temperature degradation ∗ Flood - Damage resulting from ∗ Sea level rise water penetration ∗ Rain intensity - Cladding material becoming airborne under high wind pressure ∗ Flood Health and -Increased temperature Reduce internal temperature through the ∗ Sea level rise Amenity affecting building use of ventilation and circulation systems occupants where possible and to explore the - Dampness leading to possibility of external shading to reduce microbiological growth solar gain leading to increased allergies and respiratory problems ∗ Salinity Water penetration -Increased liquid -The ground around the building should ∗ Sea level rise pressure, from the correctly slope away from the building. ∗ Flood ground, damaging - Exceed or increase minimum floor levels ∗ Rain intensity materials above flood level. - Water penetration from - Install essential vulnerable or vital services surface water and equipment, such as lifts, boilers, plant, switchboards, computer networks, and telecommunications above the flood level. - Build a levee or flood wall around the building ∗ Drought Water use -Lack of available water -Promote the use of efficient water fixtures ∗ Temperature for building use and appliances, such as water efficient ∗ Rain intensity - Less reliable showerheads and more efficient toilet infrastructure leading to flushing in order to reduce building water more on-site water demand. harvesting - The public asset manager should propose system change in government building from relying primarily on public water infrastructure to being more self-sufficient building by collecting rainwater or reusing greywater. ∗ Drought Access -Movement and cracking Raise flood awareness and preparedness ∗ Salinity in access paths and steps with building occupants, including ∗ Temperature designing and providing information about ∗ Rain intensity access routes as well as consider access routes to reduce reliance on emergency services ∗ Drought Energy use and -Increased use of air -Promote the use of efficient air ∗ Temperature efficiency conditioners conditioners. - Insulation being - Reduce internal temperature through the inadequate for efficiency use of ventilation and circulation systems requirements where possible and to explore the - Efficiency of installation possibility of external shading to reduce and services being solar gain compromised by climatic conditions Source: ABCB (Australian Building Codes Board) (2010); AGO (2006); (Amitrano et al., 2007); Cuny (1994); Freeman and Warner (2001); Otero and Marti (1995); Snow and Prasad (2011)
Climate change adaptation should be apart from existing policies, legislation, current funding systems as well organisational structures or processes in decision- making. Therefore, existing adaptation-related instruments, structures and processes
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should be reviewed and modified as necessary, to ensure that current and potential future impacts of climate change are considered (Bierbaum et al., 2007).
3.6 APPROACH CONSIDERED FOR DESIGNING A CLIMATE CHANGE ADAPTATION PLAN IN THIS RESEARCH STUDY In order to fulfil the research agenda, a case study of practical application was considered to be appropriate, as it would offer a reasonable level of interaction with the organisational staff and asset management personnel in the use of the framework by public asset management professionals. From the adaptation approaches reviewed in the literature, AS5334 framework for risk assessment and decision making in the face of future climate change was found appropriate for implementation with PAM of the participatory study organisation. The reasons for selecting the framework were: – AS5334 is derived from ISO31000 risk management framework tailored for climate change risk. The ISO31000 is well recognised, and used in the private and public sector in Australia and New Zealand. – Easy access to AS5334 framework and guidance, due to its national context and its application in Australia, where this research study was conducted. – The ability of the framework to consider climate change in the context of business risk (considering climate change as risk in addition to other market risks).
3.7 CONCLUSIONS Australia, the United Kingdom and Indonesia have developed risk-based frameworks for guidance on climate change adaptation strategies. The frameworks set up by the UK and Australia have provided guidelines for climate change adaptation strategies covering public assets including buildings. Australian governments including federal, state and local government have shared roles in strengthening public asset management incorporating climate change adaptation. The UK Government also has focused on the built environment and infrastructure for the work of both UKCIP framework and the Department for Environment, Food & Rural Affairs (Defra). Nevertheless, Indonesia still lacks a specific framework that includes public asset management incorporating climate change adaptation strategies. The existing frameworks were examined to help define and identify PAM and CCA concepts. The selection of the frameworks were based on their reputation and
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establishment in practice and research, in order to enhance the initial validity of the formulated framework (Bassioni et al., 2008).
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Chapter 4 : Research Design and Methodology
4.1 INTRODUCTION The literature reviewed in Chapter 2 and Chapter 3 has informed of an increasing amount of studies about climate change adaptation which revealed several broad issues, such as current developments in public asset management (PAM) and climate change adaptation (CCA); the existing frameworks for CCA; and challenges in CCA in relation to public assets. The literature review was also undertaken to identify an appropriate methodology for this research study. Given the nature of this research, an established research method was not found. Therefore, a generic research method was chosen, which included document analysis, semi-structured interviews, on-site observations and verification of the framework. This chapter is divided into several sections. Methodological approach is explained in Section 4.2, followed by explanation of the methodological approach of Phase I and Phase II of current research in Section 4.3. Section 4.4 and 4.5 discusses the conceptual framework and ethics approval from QUT, respectively. Section 4.6 and 4.7 are about data collection methods and analytic methods. The chapter conclusion is presented in Section 4.8.
4.2 METHODOLOGICAL APPROACH The choice of research method considered the range of techniques available, the research questions, constraints, objectives and the best tool for the research project. The research methodology selected and applied in this study also considered past and current research within the area of PAM and CCA. Yin (2009a) suggested factors essential in the selection of the research method, such as: (1) the type of research questions being posed are ‘how’ or ‘why’ questions; (2) there is limited control a researcher has over events; and (3) the degree of focus being on contemporary events within real life contexts. The research question in this project involved the ‘how’ type of question. The qualitative research approach was chosen with the use of a case study method. The case study in this research employed document analysis, semi-structured interviews, on-site observation and verification (Gillham, 2010; Yin, 2009a). This research consisted of two stages, namely, Phase I and Phase II, in which Phase I was the stage to develop the Generic Framework and this Generic Framework was then modified for the Indonesian context (“Modified Framework”) in Phase II.
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As Bowler (1997) suggests a two phase design in research is ideal for investigating a common phenomenon across various factors whereby the Phase I is designed to give detailed description of phenomena, establish hypotheses, and refine data collection methods. The Phase II is designed to test specific preliminary assumptions established in the beginning of the study, taking into account hypothesis made in the Phase I, attempt to compare findings leading to potentially obtaining generalised findings. The Phase I and II of this research are explained in the next sections.
4.3 RESEARCH DIAGRAM The research diagram shown in Figure 4.1 summarises the flow, processes, and instruments for the research, and the relationships between the various components.
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Phase I Preliminary Literature Review
Research Questions Development
Research Questions 1 Research Questions 2 How can a framework for climate How can the developed framework change adaptation for incorporation in for climate change adaptation for public asset management be incorporation in public asset developed? management be implemented in Indonesia?
Research Methodology Design
• Document of PAM and Compilation and CCA PAM and CCA Extraction of Practices in • Document of PAM • Semi-structured Practices in Australia Other Countries and CCA Interviews Data Analysis
Content Analysis
Results
Generic Framework for CCA for incorporation in PAM
Phase II Application/verification the Generic Framework in Indonesia
• Document of PAM • Document of CCA • Semi-structured PAM CCA • Semi-structured Practices in Indonesia Practices in Indonesia Interviews Interviews • On-site observation
Data Analysis
Content Analysis
Results
Improvement
Modified Generic Framework for CCA for incorporation in PAM • Trial of framework for public assets in Practical application of the Modified Semarang Framework
Figure 4.1 Research Design
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4.3.1 Phase I: Development of Generic Framework Phase I was undertaken to examine the present development in PAM and CCA in Australia, identify elements to be considered in developing a framework for CCA for incorporation in PAM in Australia, examine factors supporting and hindering implementation of CCA in PAM, and develop a framework for CCA for incorporation in PAM. Interview participants from Australia working in a Federal Government agency, a State Government agency and agencies at two local governments took part in the study. According to map of the Australian Building Codes Board, developed from a map produced by the Australian Bureau of Meteorology (BOM), Australia has eight climate zones as follows (ABCB (Australian Building Codes Board), 2015): - Climate zone 1 - High humidity summer, warm winter - Climate zone 2 - Warm humid summer, mild winter - Climate zone 3 - Hot dry summer, warm winter - Climate zone 4 - Hot dry summer, cool winter - Climate zone 5 - Warm temperate - Climate zone 6 - Mild temperate - Climate zone 7 - Cool temperate - Climate zone 8 - Alpine These eight climate zones are illustrated in the form of a climate zone map (see Figure 4.2), which was created using climatic data from BOM. The two local governments that the two interview participants are employed are located in Climate Zone 1 and Climate Zone 2 areas.
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Note: National Construction Code 2016 Volume One licenced under a Creative Commons Attribution 4.0 International licence © 2016 Commonwealth of Australia and States and Territories of Australia Figure 4.2 Climate Zone Map: Australia Wide Figure (Source: Australian Building Codes Board, 2016)
The results from the semi-structured interviews in Phase I were analysed with reference to and reflection of the literature, resulting in identified elements of framework for CCA for incorporation in PAM. The achievement of objective in Phase I was to provide a framework for CCA for incorporation in PAM (‘Generic Framework’). 4.3.2 Phase II: Modification and practical application of the Generic Framework for the Indonesian context The Generic Framework was verified in order to ensure its usability and appropriateness for the Indonesian context. It was firstly introduced to interview participants in Indonesia from two different groups in two different areas, namely, those having responsibilities in PAM (first group) and participants working in the area related to CCA (second group). Accordingly, the results from the semi- structured interviews in Phase II were discussed and analysed with reference to and reflection of the literature, resulting in identified elements of the Generic Framework that should be improved or remain unchanged according to comments and
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suggestions from interview participants, leading to modification of the framework (Modified Framework). The next step was practical application of the Modified Framework to existing public assets (buildings) with respective public asset managers from participating organisations in Indonesia, through case study and observations. The case study approach was considered to be appropriate, as it would offer a reasonable level of interaction with public asset managers in using the Modified Framework. 4.3.2.1 Selection of location for study in Indonesia In Indonesian context, Java, Bali and Sumatra islands are the three most vulnerable areas to climate change because of their geographical location, significant number of residential areas and public assets, population and size according to the scientific-based documents as follows (BAPPENAS (2014); CCROM-SEAP Bogor Agricultural University and Jakarta (2013); Indonesian Ministry of Environment (2013)): (1) Indonesian Climate Change Sectoral Roadmap (ICCSR); (2) National Action Plan on Climate Change Adaptation (RAN-API); (3) Indonesia Second National Communication Under The United Nations Framework Convention on Climate Change (UNFCCC); and (4) Regional Action Plan for Climate Change Adaptation in DKI Jakarta. According to the documents, there are several regions of vulnerable areas that need special attention for CCA and have vulnerability assessment documents developed by various ministries/institutions, development partners and civil society organisation in collaboration with the local governments and central government. A complete vulnerability assessment is important in formulation of local CCA strategy/plan used for the implementation of adaptation. The following table describes the most vulnerable regions in Indonesia including public assets in the area as follows:
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Table 4.1 The Most Vulnerable Regions in Indonesia including Public Assets within the Area Land Buildings Total Regions (IDR (IDR (IDR % billion) billion) billion) Jakarta City 19.018 6.621 25.640 14.12% Semarang City 5.770 3.504 9.275 5.11% Pekalongan City 1.216 3.999 5.215 2.87% Bali Province 2.814 3.014 5.829 3.21% West Java Province 8.397 16.941 25.338 13.95% Lampung Province 19.463 388 19.851 10.93% Greater Malang 32.253 8.777 41.031 22.59% West Nusa Tenggara 824 1.222 2.047 1.13% Province Tarakan District 4.711 3.079 7.791 4.29% North Sumatra Province 9.783 6.890 16.674 9.18% South Sumatra Province 13.898 9.019 22.917 12.62% TOTAL (IDR billion) 118.152 63.460 181.613 100% NATIONAL (IDR billion) 621.679 135.269 756.948 Percentage of national 19.01% 46.91% 23.99% Source: CCROM-SEAP Bogor Agricultural University and Jakarta (2013); DJKN (DGSAM) (2016a); Indonesian Ministry of Environment (2013)
There are only three cities (Jakarta, Semarang and Pekalongan) reported on the Table above. With few areas in Indonesia having CCA projects and many others without them as well as the absence of research in CCA incorporating in PAM, the number of sites available for a comparative framework implementation was limited. There is a need to sample the regions by selecting key regions, i.e. the most vulnerable regions to CC with significant number of assets as concentration cases. Cimato and Mullan (2010) have highlighted climate change is considered as local issue in the sense that responses and benefits of climate change adaptation depend on location and local circumstances. Moreover, Seawright and Gerring (2008) note the generalisability of case studies can be increased by the strategic selection of cases. Accordingly the researcher selected two strategic coastal cities located in Java Island, i.e. City of Jakarta and Semarang for case study because of the following reasons:
a. The interview participants from Central Government located in Jakarta and Semarang, Provincial Government of Jakarta and City Government of Semarang were considered to have authoritative roles in shaping development of policy and implementation of PAM or CCA in Indonesia consisting of 41 organisations (49 individuals) involved in developing the framework;
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b. The increase in sea level by about 25 to 50 cm in 2050 and 2100 as projected by many models will inundate many parts of the coastal cities of Indonesia including Jakarta and Semarang. Land subsidence will exacerbate this whereby between 25% and 50% of area in a number of sub-districts will be under water permanently. c. The commitment of government in Jakarta and Semarang to climate change adaptation, shown by the existing adaptation strategy and plan, mainstreaming to local development plan and budget; d. Previous or existing adaptation-related activities, funded by local budget or other funding sources (private, development partners, etc.); e. Linkage with National Action Plan on Climate Change Adaptation (RAN-API).
In addition, Jakarta represents a large city with population of approximately 10 million with a total area of 662 km2 and Semarang is a medium-size city covering a total area of 373.70 km2 with approximately 1.6 million in population (BPS, 2015; BPS Kota Semarang, 2015). 4.3.2.2 Selection of public assets for practical application in Indonesia Upon selection of Jakarta and Semarang, the researcher obtained information from public asset managers of Central Government, Provincial Government of Jakarta and City Government of Semarang regarding their current PAM and public assets that have experienced climate-related events in the last ten years. Nevertheless, only were the public asset managers of Central Government in Semarang willing to involve in the “Stage 2 of Phase II” (framework implementation) and ready as well as able to provide data and information, i.e. 107 buildings owned by the Central Government of Indonesia that have been affected by flooding events due to sea level rise and intense rainfall as shown in Table 4.2.
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Table 4.2 Flooding events affecting public assets in Semarang No Asset users Units 1 Office of Asset Management 14 2 Indonesian Naval Base 20 3 Office of Customs and Excise 4 4 Office of Semarang Seaport Authority 4 5 Navigation District 20 6 Fishing Technology Development Center 20 7 Fish Quarantine and Inspection Agency 6 8 Agency of Radio Frequency Spectrum Monitoring 7 9 Directorate of Water Police 6 Indonesia National Agency of Drug and Food 4 10 Control 11 State Asset Management Regional Office II 2 Total 107 Source: DJKN (DGSAM) (2016b), KPKNL Semarang (2016) Although there were efforts to encourage the public asset managers/Users of Central Government in Jakarta, Provincial Government of Jakarta and City Government of Semarang to participate in the framework implementation, however, they weren’t ready and unable to provide complete lists of assets affected by climate- related events in their jurisdiction in order for researcher to conduct the “Stage 2 of Phase II” (framework implementation). They can only participated in the “Stage 1 of Phase II” of the research and have facilitated the researcher to observe 4 assets consisting of three assets in Jakarta (owned by Provincial Government of Jakarta) and one asset in Semarang (owned by City Government of Semarang) (Table 4.9). Consequently, the framework implementation was only able to be conducted to public asset (buildings) owned by the Central Government in Semarang only upon the researcher received official permission, ensured data availability, and had confirmation of willingness/readiness from asset managers and users to participate in the framework application. As such, the public assets’ representation was limited to assets in Semarang. With regard to the constraints, there was little opportunity to expand the research any further at the Stage 2 of Phase II and time of investigation. In other words, the practical application of the framework was restricted to public asset (buildings) owned by the Central Government in the City of Semarang. This
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was based on data availability, availability of asset managers and users of assets during the process of framework application, and time availability for the study. Semarang is administratively divided into 16 districts (kecamatan) and 177 villages (kelurahan). The Central Government of Indonesia has a wide range of assets, categorised based on specific terms used in its annual financial report audited by the Supreme Audit Agency of Indonesia (BPK), such as land; equipment and machinery; buildings; road, water and network infrastructure; other fixed assets; and construction in progress. The scope of climate risk assessment was limited as the application of the framework in this study was only to existing buildings owned by the Central Government. The Directorate General of State Asset Management (DGSAM), an agency of the Central Government of Indonesia has developed a computerised asset database known as SIMAN (Government Asset Management Information System). SIMAN has reported that 2,978 Central Government buildings consisting of various types of buildingswith a book value of IDR2.30 trillion (approximately AUD230 millions), are located in Semarang as at September 2016. The SIMAN also reported that 1,818 out of 2,978 Central Government buildings are more than 20 years old (61.05%) with a value of IDR 543.51 billion (approximately AUD 54.35 million). However, assets less than 20 years old account for 38.95% valued at IDR 1,761 billion (around AUD 176.18 million). Only 4.7% comprise of buildings of 50 or more years old with a value of IDR 41.79 (approximately AUD 4.18 million).
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All locations of public assets (buildings) in 16 districts (177 sub-districts) in Semarang were identified and mapped (asset mapping) utilising a climate risk assessment report developed by the Centre for Climate Risk and Opportunity Management in Southeast Asia Pacific/CCROM-SEAP, Mercy Corps Indonesia, Institute for Social and Environmental Transition-International/ISET, and Urban and Regional Development Institute/URDI. The assessment report is considered one of the best available sources of information accessible and publicly available as science-based results under the program of Asian Cities Climate Change Resilience Network (ACCCRN) (ACCCRN, 2010)1. The report was published in 2010 and has been a reference in local government planning and other research. In other words, the assessment results from ACCCRN for area sampling of public assets in Semarang were used. The result from asset mapping was informed and compared to several public assets previously reported by public asset managers in Semarang as those that have been affected by flooding events due to sea level rise and intense rainfall in the past, as shown in Table 4.2. The selection of the assets for application of modified framework was in consultation with respective public asset managers in Semarang and considering the results from the initial assessment from asset mapping. Two assets were selected from the list upon consideration of the required data availability: availability of asset managers and users during the process of framework application, and time availability for the study in Semarang. The first selected asset was a public assets or one building out of 14 buildings used by the Office of Asset Management (number 1 from the list in Table 4.2). The second selected asset was housing, consisting of two units used by State Asset Management Regional Office II (number 11 from the list in Table 4.2). 4.4 THE CONCEPTUAL FRAMEWORK Guidelines for assessing the impacts and adaptation to climate change suggested by the IPCC (e.g. Carter, Parry, Harasawa, and Nishioka (1994)) and the United Nations Environment Programme/UNEP (Feenstra (1998)) are considered the
1 The researcher used the best available data and information including the ACCCRN report to determine Central Government buildings to be included in application of the framework. The report has been accessed in January 2017 from: https://www.acccrn.net/sites/default/files/publication/attach/036_ACCCRN_smrg_ENG_26APRIL201 0_0.pdf
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standard approach (Burton, Huq, Lim, Pilifosova, & Schipper, 2002). Nevertheless, the approach has been critiqued for its inability to provide adaptation responses and policy options due to lack of consideration of key actors or stakeholders or the policy context for adaptation (e.g. (Adger et al., 2009; Burton et al., 2002; Dessai, Hulme, Lempert, & Pielke Jr, 2009). In addressing the above-mentioned limitation, the risk management frameworks are increasingly proposed and accepted to be used, such as the Australian and New Zealand Standard AS/NZS 4360 Risk Management (currently AS/NZS ISO31000:2009 and AS5334:2013) (R. N. Jones (2001); Kirono et al. (2014); Lim, Burton, and UNDP (2005)). In addition, the risk management framework (risk-based approach) is also recommended by the Federal Government of Australia to Local Governments in responding to the impacts of climate change (AGO, 2006; Fisk & Kay, 2010; Kennedy et al., 2010; LGAQ, 2007; Nursey-Bray, 2010). The risk-based approach in this research was considered in designing and developing the generic framework. Accordingly, a systematic approach in Australian Standard AS5334 for developing a CCA plan for incorporation in PAM was applied. AS5334 consists of a risk-based approach framework for CCA for settlements and infrastructure (Standards Australia, 2013). It is a risk management framework derived from another Australian Standard, namely ISO31000, but tailored for climate change risk. AS 5334 applies to infrastructure sectors including buildings, energy, water, green infrastructure, transport, communication, information communication technology and resource development (Standards Australia, 2013). Another existing guideline was also considered, such as a document titled ‘Climate change impacts and risk management: a guide for business and government’ published by the Australia Greenhouse Office of the Department of Environment and Heritage, currently Department of the Environment and Energy (AGO, 2006). This document is a guide to integrating climate change impacts into risk management and other strategic planning activities in Australian public and private sector organisations. A risk-based approach to climate change adaptation in Indonesia, known as the KRAPI or CCRAA approach has been introduced by Salim, Suroso, Fitriyanto, and Bisri (2012). The KRAPI or CCRAA is climate change risk and adaptation assessment originally developed by the Indonesian Ministry of Environment in 2012, aimed at formulating climate change adaptation for development (sectoral) planning
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(Fitriyanto, Supangat, & Ramadhan, 2017). The KRAPI approach was published by the Indonesian Ministry of Environment in a document titled ‘Guidelines for Risk and Adaptation Assessment and for Mainstreaming into Policy’. The most recent guideline (P.33/2016) on “Guidelines for the Preparation of Climate Change Adaptation Action” was issued by the Indonesian Ministry of Environment and Forestry (MOEF) in 2016. It also used a risk-based approach introduced by the Government of Indonesia (Ministry of Environment and Forestry, 2016). The KRAPI and P.33/2016, both use a risk-based approach. Nevertheless, these approaches are considered general, and in which climate change adaptation for public asset management has not been specified. Accordingly, these approaches need to be extended to cover the public asset sector. 4.5 ETHICS Ethical issues in research could arise in specifying research questions, or in collecting and analysing the data. In this research study, these issues arose whilst engaging with organisations in data collection by developing a relationship with the key representative of the organisation. The data pertaining to the organisation’s current policy and strategy in PAM and CCA were collected after consultation with the key personnel. This approach was also maintained with the key personnel participating in the case study, whereby at the end of every stage of the framework, implementation processes were discussed with participants for confirmation. Anonymity of participants and the source of strategic documents was maintained throughout the analysis and reporting stages of this research study. Also, no findings have been made public without prior permission from either the participant or the organisational authorities. Ethical clearance from QUT Human Research Ethics Committee was obtained prior to undertaking the semi-structured interviews in this study. 4.6 DATA COLLECTION METHODS This research study used all available sources of evidence to collect empirical data, including secondary data and primary data. The primary data collection involved semi-structured interviews and document reviews of PAM and CCA policies in Australia and Indonesia. Secondary data collection involved document reviews from literature.
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Amaratunga, Baldry, Sarshar, and Newton (2002) point out the most widely used qualitative method in built-environment research is the interview as a highly flexible method that can be used almost anywhere and capable of producing data of great depth (N. King, 1994). Moreover, (Peräkylä & Ruusuvuori, 2008) emphasise that the most qualitative research is based on interviews as this allows the researcher to reach areas of reality that would otherwise remain inaccessible – such as people’s subjective experiences and attitudes. The most common form of interview includes individual, face to face verbal interchange, i.e structured, semi-structured, or unstructured interviews. Fontana and Frey (2003) highlighted that interviews can be utilised for the purpose of measurement, or its scope can be utilised to understand individual or group perspective. Moreover, interviews have particular strengths as a useful way of involving large amounts of data within a short time period (Marshall & Rossman, 2014). The nature of interviews also allow the researcher to follow‐up and clarify issues that need further explanations. The observation undertaken combined with interviews will allow the researcher to understand the meaning that interviewees hold for their everyday activities. The skills, experience and sensitivity of the interviewer ensure the quality of the research findings. In general, qualitative research specifically semi-structured interview generates rich, detailed and valid data contributing to an in-depth understanding or the research context. Further details of these data collection methods are explained in the following sections. 4.6.1 Semi-structured interview in Phase I The researcher interviewed participants from three levels of government in Australia in order to identify issues not not evident from the document analysis, such as the present developments in PAM and CCA in Australia, factors supporting and hindering implementation of PAM and CCA, and elements to be considered in developing a framework for CCA for incorporation in PAM. 4.6.1.1 Sampling Phase I of this research used a purposive sampling method in determining the selected participants for semi-structured interviews. The sample of participants was selected based on several criteria: (1) considered representative as an expert either in the field of PAM or CCA or both; (2) considered representative as clearly knowing
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the area of study and existing problems in the region; and (3) regarded as a leader or representative according to their duties and functions in their respective organisations related to PAM and CCA. The researcher employed a snowballing technique as well as consulting Federal, State and Local Government’s documents and their websites to collect the most recent information, and considered the lists of local governments participating in the National Climate Change Adaptation Program funded by specific grants under the Local Adaptation Pathways Program Round I (‘Program’) in 2008. The list of local governments that were awarded grants was used to identify those having undertaken climate change risk assessments and or adaptation action plans, and to draw initial contacts based on the list. Discussions were also undertaken with the Local Governments Association of Queensland (LGAQ) to identify local governments who have undertaken climate change risk assessments and/or an adaptation action plans, to obtain contact details and to recommend potential participants. Where appropriate, a formal introduction to potential participants was also requested. For other potential participants, an email was sent directly describing the project, inviting participation and providing information from the QUT Human Research Ethics Committee. There were four governmental agencies in Australia that participated in this research, as listed in Table 4.3 as follows: Table 4.3 List of organisations of interview participants from Australia in Phase I Involvement in No Institution/organisation research Job Levels of Interviewees 1 Federal Government Interview Senior management 2 State Government A Interview Senior management 3 Local Government I Interview Engineer 4 Local Government II Interview Senior management
The interview participants have responsibilities in their respective organisations related to PAM and CCA as follows: 1. The senior management personnel from the Australian Federal Government agency has a role in coordinating works across the Government, working with other agencies and departments and to make available information to its stakeholders so that rational decisions about climate risk can be made.
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2. The senior management personnel from the State Government has responsibility in infrastructure planning and policy including disaster recovery and resilience, as well as economic and regional development. 3. The engineer from Local Government I works in the planning and development division and has been involved in infrastructure planning, flood and coastal hazard, emergency management, as well as land use planning. The Local Government I is situated in Climate Zone 1, which has diverse topography and climate zones (i.e. hot humid, tropical rainforest and coastal areas), and comparable to those in Indonesia where the case study was undertaken in Phase II of this research. This Local Government is leading in the coastal adaptation strategy in which a pilot project on coastal hazard adaptation strategy has been finalised. 4. The senior management from Local Government II is responsible for planning, design, construction management and maintenance of Council’s built assets, including roads, parks, stormwater, buildings and community facilities. The Local Government II is located in Climate Zone 2. This Local Government has developed a climate change adaptation action plan as a basis for undertaking spatial analysis and mapping of potential climate risks to community infrastructure, local assets and operations. 4.6.1.2 Interview procedures and process Interview questions were developed based on the research aim, research questions, and research objectives. The interview questions covered three types of questions: (1) broad questions – to establish knowledge of present development in PAM and CCA in Australia; (2) probing questions – to explore and examine elements to be considered in developing a framework for CCA incorporated into PAM; (3) reflective questions – to explore and identify factors supporting and hindering the implementation of PAM and CCA in Australia. These questions were finalised prior to submitting the ethical clearance application. A consent form was sent to the individuals to be completed for representing the organisations for the interview. Before commencement of the semi-structured interview, the research project being undertaken was explained. The information sheet, consisting of a description of the research project, was also given to the potential interview participants (see Appendix C). The consent form was signed by the participant prior to taking part in the semi-structured interview. Table 4.4
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summarises the purposes of the semi-structured interviews from the three types of questions (see Appendix D for detailed interview questions).
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Table 4.4 List of types of question and purpose of investigating in semi-structured interview with interviewees from Australia Type of questions Purpose Present development Clarify current policy of public asset management (PAM) in PAM and CCA in • Discussions on the most current developments in public asset Australia management in federal/state/local governments. • Discussions on the most current development and implementation of TAMP (Total Asset Management Plan) and SAM (Strategic Asset Management) Framework. Clarify current policy of climate change adaptation (CCA) strategy • Discussions on the development and implementation of climate change adaptation framework from planning, implementation to MRV (Monitoring, Reporting and Verification). Elements to be Discussions on incorporating CCA strategy into PAM considered in • Clarify the use of assessment of CCIS (Climate Change Impact developing framework Statement) for any policy or project proposal seeking approval of CCA incorporated from Queensland Government. in PAM • Discussions on the most current development and implementation on Coastal Hazard Adaptation Strategies (CHAS). • Identify the use of projections, modellings, methods or approaches for assessing risks/vulnerability and adaptive capacity. • Discussions on the development and implementation strategies and actions to manage risks. • Discussions on determination of climate change scenario in relation to the management of public assets especially buildings. • Clarify whether climate change adaptation strategies been implemented and integrated into Government of Australia’s Development Plan. • Clarify whether Government of Australia has incorporated climate change adaptation strategies into public assets or infrastructure life-cycle (from planning to disposal). • Identify options for climate change adaptation for public assets or infrastructure in Australia. • Clarify the importance of building and infrastructure sector in Australia to adapt to climate change. • Clarify whether the strategy measures taken presently are appropriate or if the organisation can go further. • Clarify whether there is regulation to impose these options on local governments and other agencies. Clarify coordination and coordinated efforts to CCA • Identify efforts organisation have undertaken for coordination between and within Federal, State and Local government levels in relation to climate change adaptation. • Discussions on the relationship in terms of climate change adaptation policy coordination between organisations such as CSIRO, NCCARF and other related organisations. Discussions on the role of stakeholders
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Type of questions Purpose Discussions on how people, media and other stakeholders play their roles for the success of CCA implementation in Australia. Factors supporting and Identify factors enabling incorporation of CCA strategy into hindering public asset management. implementation of Identify factors that should be taken into consideration for better PAM and CCA in adaptation to climate change impacts based on interviewee’s Australia understanding and experiences. Problems hindering incorporation of CCA strategy into public asset management. Identify barriers that the interviewees have found during implementation of climate change adaptation.
4.6.2 Semi-structured interview in Phase II Prior to conducting the semi-structured interviews, the Generic Framework developed in Phase I was introduced. The semi-structured interviews was to obtain participants’ opinions about what part of the Generic Framework would work well in the Indonesian context. The participants expressed their comments and suggestions, from which it was possible to gain feedback in order to improve the effectiveness and completeness of the Generic Framework, resulting in modifications in order to design the Modified Framework. 4.6.2.1 Sampling The Phase II of this research used a purposive sampling method in determining the selected participants for semi-structured interviews. As mentioned previously, the framework for CCA for public assets is still absent in the Central and Local Governments of Indonesia. Accordingly, two different groups of interview participants from two different areas with backgrounds in public asset management and climate change-related areas were interviewed. The sample of participants was selected based on the following criteria: (1) considered representative as an expert either in the field of PAM or CCA; (2) considered representative as clearly knowing the area of study and existing problems in the region; and (3) regarded as a leader or representative in PAM and CCA according to their duties and functions in their respective organisations. A snowballing technique was employed as well as consulting the Central, Provincial and Local Government documents and their websites. Document analysis was employed to recruit interview participants and draw on contacts from several research institutions, scientists, private sector and a non-government organisation (NGO). The extensive network of governments’ contacts as well as research
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institutions, scientists, private sector and NGO were requested to recommend and to provide email addresses of the potential participants. Where appropriate, the a formal introduction to potential participants was . In the case of the other potential participants, a direct email was sent describing the project, inviting participation and providing information from the QUT Human Research Ethics Committee. Several organisations that participated in the interview were represented by more than one interviewee. Hence there were 49 individuals from 41 organisations taking part in the interviews, involving three level of governments in Indonesia as well as participants from various backgrounds, such as governmental agencies, academics/scientist, non-governmental organisation and the private sector. The interview participants were considered to have authoritative roles in shaping development of policy and implementation of public asset management (PAM) or climate change adaptation (CCA) in Indonesia. The majority of the interviewees were key persons in their organisations in term of current positions as middle to senior management, ranging from Secretary General, Directors, Head of Agencies, Heads of Regional and Operational Offices, Dean of a University, Head of a Division and director of a company. The first group of interview participants were from 16 Central Government organisations, seven organisations of Provincial Government of Jakarta, and two organisations of City Government of Semarang. The participants were classified according the categories used by the Government of Indonesia, namely, policy maker, asset manager and asset user as listed in Table 4.5. This categorisation represents different responsibilities and provides a broadened view in PAM. Table 4.5 List of organisations from PAM area according to tasks and respected levels of government in Phase II Task Level Total Policy Maker Asset Asset Manager User National 16 5 3 8 Regional/Provincial 8* 3* 1* 4 Local 3 1* 1* 1 27 9 5 13 *) Indicated a local government agency dual main functions as policy maker and asset manager
The second group involved interview participants from climate change- related areas, consisting of five Central Government organisations, one organisation
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from Provincial Government of Jakarta and three agencies of City Government of Semarang. There were also three scientists, one business person and one CCA advisor to an NGO in Indonesia that took part in the interview. The interview participants were categorised according to their main responsibilities, namely, policy maker, scientist, business person and advisor (NGO) as listed in Table 4.6. This categorisation represents different responsibilities and provides a broadened view in climate change issues. Table 4.6 List of organisations from CCA area according to their tasks in Phase II Task Level Total Policy Business Scientist Advisor Maker Person National 10 5 3 1 1 Regional/Provincial 1 1 - - - Local 3 3 - - - 14 9 3 1 1
4.6.2.2 Interview procedures and process Interviews in Phase II was also guided by the interview protocol established. Interview questions were developed based on the research problems, research aim, research questions, and research objectives. he interview questions covered three types including: (1) broad questions – to establish knowledge of present development in PAM and CCA in Indonesia; (2) probing questions – to explore and examine elements previously developed in the Generic Framework to be commented considered the Indonesian context; (3) reflective questions – to explore and identify elements to be revised or keep unchanged in the framework. The interview participants in Phase II were categorised into two groups based on different backgrounds, i.e. public asset management and climate change. Climate change adaptation for incorporation in public asset management is still a new issue in Indonesia. Therefore, the interviews followed two sets of questions; each was tailored to the interviewees with backgrounds in PAM and climate change. Those with PAM background were given a brief introduction about climate change and its predicted impact on public assets and introduction to the Generic Framework developed in Phase I. The questions were finalised prior to submitting an ethical clearance application.
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The researcher sent a consent form to be completed by individuals representing organisations for interview. Before commencement of the the semi- structured interview, the research project being undertaken was explained. The information sheet, consisting of a description about the research project, was also given to the potential interview participant (see Appendix C). The consent form was signed by the participant prior to taking part in the semi-structured interview. Table 4.7 summarises the purposes of the semi-structured interviews from the three types of questions (see Appendix E for detailed interview questions). Table 4.7 List of types of question and purpose of investigating in semi-structured interview with interviewees from Indonesia Type of questions Purpose Present development in Clarify current policy of public asset management (PAM) PAM and CCA in • Discussions on the most current developments in public asset Indonesia management in central/provincial/local governments. Clarify current policy of climate change adaptation (CCA) strategy • Discussions on the development and implementation of climate change adaptation framework. Elements to be Discussions on incorporating CCA strategy into PAM upon considered in modifying introduction the Generic Framework developed in Phase I framework of CCA • Identify type of climate-related hazards having impacted incorporated in PAM public assets. • Identify public assets having been affected by floods due to increasing rainfall, sea-level rise (tidal flooding) or river and change in temperature. • Identify the use of projections, modellings, methods or approaches for assessing risks/vulnerability and adaptive capacity in Indonesia. • Discussions on the development and implementation strategies and actions to manage risks. • Clarify whether climate change adaptation strategies been implemented and integrated into development plan of central/provincial/local governments of Indonesia. • Clarify the importance of building and infrastructure sector to adapt with climate change in Indonesia. Clarify coordination and coordinated efforts to CCA • Identify efforts organisation have undertaken for coordination between and within central, provincial and local government levels in relation to climate change adaptation. • Discussions on the relationship in term of climate change adaptation policy coordination between other organisations such as BPS, BMKG and other related organisations. Discussions on the role of stakeholders • Discussions on how people, media and other stakeholders play their roles for the success of CCA implementation in Indonesia. Factors supporting and Identify factors enabling implementation of PAM and CCA
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hindering strategy implementation of PAM • Identify factors that should be taken into consideration for and CCA in Indonesia better PAM based on interviewee’s understanding and experiences. • Identify factors should be taken into consideration for better adaptation to climate change impacts based on interviewee’s understanding and experiences. Problems hindering incorporation of CCA strategy into public asset management. • Identify barriers that the interviewees have found in the implementation of PAM. • Identify barriers that the interviewees have ever found in the implementation of climate change adaptation.
4.6.3 On-site observations Observation is a fundamental and highly important method in qualitative enquiry used to discover complex interactions in natural social settings (Sapsford & Jupp, 2006). In the present research, the case study and observation were undertaken to test the practical applicability of the framework with the participating organisations. These observations were combined with interviews, conversations (both formal and informal), and recorded both, in audio recordings and field notes. The process of practical application of the framework within the participating organisations was a newly introduced practice for the participants. Therefore, it was necessary to explain clearly each element and step undertaken in the framework. All the observations during the framework application process were documented in note form as each stage progressed and was also transcribed. Where relevant, telephone interviews and conversations as well as email correspondence were undertaken for some issues that needed to be followed up and to obtain further clarifications. Public asset managers and users (operators) from three Central Government agencies in Semarang, such as State Asset Management Regional Office II, State Asset Management & Auction Office VI, and Office of Asset Management, were involved in the practical application of the Modified Framework. These three organisations were also previously involved in semi-structured interviews, whereby each organisation was represented by three interview participants. Nevertheless, only the public asset managers and users considered to be knowledgeable in technical aspects participated in the practical application of the modified framework. In addition, they had familiarised themselves with the Generic Framework and the Modified Framework prior to practical application of the Modified Framework because of their presence during the previous semi-structured interviews of Phase II,
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in order to assist the interviewees with higher level positions with more technical responses on public assets. The list of participants in the practical application of the Modified Framework is listed in Table 4.8. Table 4.8 List of participants in practical application of the framework Participant Institution/organisation Task ID AU1 State Asset Management Regional Office II Asset User/Operator of Ministry of Finance Building II AU2 State Asset Management & Auction Office VI Public Asset Manager of Ministry of Finance Building I and II AU3 Office of Asset Management Asset User/Operator of Ministry of Finance Building I
Six public assets were observed as recommended by interview participants from Central Government, Provincial Government of Jakarta and City Government of Semarang. These assets have been affected by floods events in the last 10 years, as explained by the interview participants. The assets observed are presented in Table 4.9. Table 4.9 List of observed public assets affected by flood events in the last ten years No Buildings Owner 1 1. Ministry of Finance Building, Semarang, Central Central Government of Java Indonesia 2. Civil Servants Housing of Ministry of Finance, Semarang, 2 1. Elementary School (SDN 01 Kamal Muara), North Provincial Government of Jakarta, Province of Jakarta Jakarta 2. Sub District Clinic (Puskesmas) of Kelurahan Kamal Muara, North Jakarta, Province of Jakarta 3. Sub District Office (Kelurahan) of Kamal Muara, North Jakarta, Province of Jakarta 3 Central Java Sub District Office (Kelurahan) of City Government of Terboyo, District Genuk, City of Semarang Semarang
4.6.4 Document Reviews The interviews conducted in a research study can be supported by existing relevant documents because these provide details to support evidence (Yin, 2009a). Review and analysis of documents in this research produced the case study scale, an expanded background, and identified existing problems. Documents obtained from the primary and secondary data collection were the documents considered relevant to the study, particularly in PAM and CCA in Australia and Indonesia (Central Government of Indonesia, Provincial Government of Jakarta and City Government of Semarang).
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4.7 ANALYTIC METHODS This research involved document analysis of policy and performance/reporting documents of PAM and CCA in Australia and Indonesia; semi-structured interviews with participants in Australia and Indonesia; and on-site observation of public assets in Indonesia (Jakarta and Semarang). This section describes data analysis and framework application undertaken in this research.
4.7.1 Documents analysis Documents of policy and performance/reporting related to PAM and CCA from Australia and Indonesia were reviewed in order to gain a deep understanding of the current development of PAM and CCA in term of concepts, strategies, institutional arrangements, legal frameworks, as well as challenges in PAM and CCA. Document analysis assisted in identifying and clarifying several issues that had arisen. The identified issues helped to develop questions that should be addressed in the following data collection. In other words, for this research document, analysis was used as a complementary tool for triangulation of the results in data collection through interviews in Australia and Indonesia. This triangulation also involved cross-checking the data from other sources such as informal conversations with key persons. 4.7.2 Analysis of semi-structured interview in Phase I and Phase II The responses of interviewees from Phase I and Phase II were separately coded into nodes using NVivo11 software. This software assisted in systematic recording, coding and cross checking of qualitative data. Interviewees were identified in code to protect their anonymity. Audio recordings, transcripts and notes from interviews were attached to the NVivo11 software as sources or documents. The analysis of semi-structured interviews was interpretative content and thematic approach exploring the interviewees’ understanding and experiences in PAM and CCA, incorporation of CCA into PAM, and factors supporting or hindering implementation of CCA into PAM. Repeated themes or common ideas were coded within the text and stored in the database of the NVivo11 program, whereby those sharing common themes were grouped together as child nodes. Each theme/idea was identified, compared and contrasted with all the themes/ideas previously formed. An analytical, constant comparative scheme and rules were established with the aim that each theme set should remain internally
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consistent and the entire set mutually exclusive. If there was no similarity with any other theme, then a new node was developed. The child nodes were then grouped as tree nodes to classify the categories (parent nodes). The classified groups were emerging categories identified from the responses of interviewees. The results from semi-structured interviews in Phase I were analysed with reference to and reflection of the literature, resulting in identified elements of the framework for CCA for incorporation in PAM leading to the development of the Generic Framework for considering risk-based approach to climate change adaptation. Moreover, Phase II of semi-structured interviews in Indonesia began with an introduction of the Generic Framework developed in Phase I. The results from semi-structured interviews in Phase II were also analysed with reference to and reflection of the literature, resulting in modification of elements of the Generic Framework leading to development of the Modified Framework. This thesis emphasises the research theoretical contribution by focussing on developing adaptation solutions through the developed frameworks (Generic and Modified Framework). In other words, the “Phase I” and “Stage 1 of Phase II” have been given more attention compared to “Stage 2 of Phase II” (framework implementation). The framework implementation however could provide public asset users/operators as players or implementers with first experience in undertaking climate risk management for public assets and incorporating climate change adaptation into public asset management during their involvement in this research. 4.7.3 Practical application (trial) of the Modified Framework The Modified Framework was trialled to two existing public assets owned by the Central Government of Indonesia in Semarang. As previously explained in Section 4.3.2.2, the selection of the assets for framework application was based on area sampling considered to be affected by climate change according to past research. Furthermore, Semarang is considered as one of the most vulnerable cities in Indonesia due to climate change, and it is also the place where the city centre, main settlement, industrial and significant number of government assets are located in a low-lying area. The selected public assets were a four-storey building owned by the Central Government of Indonesia (‘Ministry of Finance Building I’) located in the centre of Semarang City in Central Semarang District and two housing units for staff of the Ministry of Finance (‘Ministry of Finance Building II’) located in a different area, in
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Bugangan Sub-district in East Semarang. According to area sampling from the report by ACCCRN (explained in Section 4.3.2.2), using the scenario of SRESA2 2025, SRESA2 2050, SRESB1 2025, and SRESB1 2050, these assets are positioned in an area of medium risk (M risk). A complete vulnerability assessment is important in formulation of local CCA strategy/plan used for the implementation of adaptation. The researcher is dependent on the best information available including the calculation of CCHI (Composite Climate Hazard Index) and CCI (Coping Capacity Index) as proxy of Level of Likelihood and Level of Consequences whereby for the time being only Semarang has the CC projections taken from ACCCRN’s report. Without CCHI and CCI, the researcher has to undertake specific research in order to calculate CCHI and CCI which is beyond the scope of this research. Ideally, all assets in all risk rating level from Very High risk (V-H risk) to Very Low risk (VL risk) were included in the trial of the framework (implementation), however, due to several constraints already mentioned above the researcher could only assess asset owned by Ministry of Finance (2 out of 107 assets recommended by Public Asset Managers in Semarang). This 2 assets are located at M risk where approximately 50% of all public assets in Semarang is at this level of risk. Application of the framework was to ensure usability and appropriateness for the Indonesian context. As Cimato and Mullan (2010) have highlighted climate change is considered as local issue in the sense that responses and benefits of climate change adaptation depend on location and local circumstances. Moreover, Seawright and Gerring (2008) note the generalisability of case studies can be increased by the strategic selection of cases. Therefore, the Modified Framework practically applied in Semarang (Indonesia), as a middle-sized coastal city, ideally representing the entire conditions in coastal cities affected by climate change in Indonesia, and could potentially be transferrable and applicable to other regions or cities in Indonesia. To a larger extent, the Generic Framework or Modified Framework can also be potentially adopted and applied to other countries providing prior careful examination according to the conditions and environments of each country. The framework’s suitability to the local context should be deliberated with and agreed upon by a wide range of stakeholders as well as further assessment of the viability of the options required.
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4.7.4 Validity of the framework Studies suggest that an effective framework would start by identifying an organisation’s current interests and concerns vulnerable to climate change (Anisuzzaman, 2014; West & Gawith, 2005). A risk-based approach is generaly used in responding to the impacts of climate change, therefore as suggested by Bassioni et al. (2008) the selection of the frameworks based on their reputation and establishment in practice and research, in this case a risk-based approach, could enhance the initial validity of the formulated framework. Findings from a singular study are mostly challenged by the external validity’s issue, the extent to which results of the research could be generalised. On the other hand, Yin (2009b) points out such a study has an advantage over the survey method and multiple study cases whereby the researcher is able to access unique and most relevant information as the case in current research. The findings from the Stage 1 and 2 of Phase II, particularly the implementation of the framework in Semarang could also be applicable to cases with a similar context. These generalisations are assisted through the study of contextual factors affecting public asset. It has also been suggested by Yin (1984) that study of a single case is appropriate if the objective of the research is to explore a previously un-researched subject, as the case in the present study where the framework for CCA for incorporation in PAM in Indonesia is considered absent. Acordingly, the Modified Framework become the first time framework to be introduced and used by asset users/operators in Indonesia at the time of the research. With few areas in Indonesia having CCA projects and many others without them as well as the absence of research in CCA incorporating in PAM, the number of sites available for a comparative framework implementation was limited. There is a need to sample the regions by selecting key regions, i.e. the most vulnerable regions to climate change with significant number of assets as concentration cases. Cimato and Mullan (2010) have highlighted climate change is considered as local issue in the sense that responses and benefits of climate change adaptation depend on location and local circumstances. Moreover, Seawright and Gerring (2008) note the generalisability of studies can be increased by the strategic selection of cases. Accordingly the researcher selected two coastal cities located in Java Island, i.e. City of Jakarta and Semarang for implementation of the framework because these cities are related to the idea of representativeness of regions vulnerable to climate change
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where the researcher is confident of “generalising” to other cases where the same circumstances hold. The idea of representativeness is expressed through Yin’s insistence on “multiple sources of evidence” (Yin, 1984). The implication is that researcher can be more confident of the findings when many informants offer the same conclusions. The participants of this research consisting of three levels of Indonesian Government, scientists, an advisor to an NGO, and the private sector from various backgrounds were involved (such as policy makers in PAM, CCA, planner of national/regional/local development, public asset manager/user/operator from national/regional/local level, academics/scientist, non-governmental organisations (civil society) and business sector). This participating organisations have authoritative roles in shaping national and respective local policy of PAM and CCA. The researcher is also confident when different types of evidence (e.g. observation, interviews, and documentary sources) point in the same direction. Moreover, documentary sources used for document analysis assisted the researcher in identifying and clarifying several issues that had arisen. This document analysis was used as a complementary tool for triangulation of the results in data collection. This triangulation also involved cross-checking the data from other sources such as informal conversations with key persons.
The analytical method used in this research is summarised in Table 4.10.
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Table 4.10 Analytical Framework for Use with Various Data Sources Data Collection Relevant No Research Objectives Input Data Output Methods Chapter 1 To examine factors Literature Review Document of policies and • Identification of factors supporting and hindering in implementation of Chapter 5 supporting and hindering document of PAM and CCA implementation of CCA for performance/reporting. incorporation in PAM in Semi-structured Interviews with Australia. interview participants from Australia 2 To identify elements that Literature Review Document of policies and • Identification of existing approach used. Chapter 5 need to be considered in performance/reporting • Identification of elements to be considered in existing approach. developing framework for Semi-structured Results from semi- • Identification of elements to be considered in developing a framework
CCA for incorporation in interview structured interviews PHASE I of CCA for incorporation in PAM. PAM. 3 To develop a framework Literature Review Document of policy, Development a framework for CCA for incorporation in PAM (Generic Chapter 5 for CCA for incorporation existing frameworks Framework). in PAM (Generic Semi- structured Interviews with Framework). interview participants from Australia 4 To apply the developed Literature Review Document of policy • Verification of Generic Framework to identify elements to be revised in Chapter 6 framework for CCA for the Generic Framework leading to modification of the framework (the Chapter 7 incorporation in PAM in Semi-structured Interviews with Modified Framework). Indonesia. interview participants from • Revisions of the Generic Framework. Indonesia • Final framework for CCA for incorporation in PAM (Modified PHASE II PHASE Framework). • Practical application (trial) of the Modified Framework in Indonesia
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4.8 THE USERS OF THE FRAMEWORKS The frameworks can be used at policy, program and strategic level. They can be used by policy makers within all levels of Government that own public assets. In Indonesian context, the policy and decision makers are termed as Public Asset Manager as follows: - The Directorate General of State Asset Management/DGSAM for Central Government Assets; and - Government Agencies with main function in asset management for Provincial/Local Government. In program and strategic level, the players and implementers are those in all levels of government using public assets for their own use or investments from asset procurement, maintenance, utilisation to disposal. In Indonesian context, the players and implementers are known as Asset Users as follows: - Ministries (incl. Ministry of Finance) and all Governments agencies at Central Government; and - Government agencies at Provincial/Local Government. Because climate change is a multidimensional issue that covers a range of disciplines in various sectors from science or disciplines to various sectors, hence to maximize the effectiveness of the frameworks Public Asset Managers and Users should apply them in coordination and cooperation with one another and all levels of government as well as several actors having direct and indirect interests in public asset management. Although Indonesian Central Government, local governments and agencies within these governments vary in functions, responsibility and assets’ class owned, however they are governed by a single legislative framework (umbrella regulation) i.e. the Central/Local Government Asset Management Act #27/2014 (PP No.27/2014). Therefore, the policy, views and opinions about public asset management ranging from procurement, maintenance, utilisation to disposal including its incorporation of climate change adaptation should be based on a single standard promulgated in PP 27/2014.
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4.9 CONCLUSION The choice of research method considered a range of techniques available, the research questions, constraints, objectives and the best tool for the research project. The research methodology selected and applied in this study also considered some past and current research within the area of PAM and CCA. The research design has enabled the undertaking of research and addressing research questions. This chapter gives an explanation on who, what, where, how and why a particular research approach was adopted. It also explains and justifies the methods used in this research: document analysis, semi-structured interviews, observations and case study. Research was undertaken in two phases. Phase I was undertaken to examine the present development in PAM and CCA in Australia, identify elements to be considered in developing a framework for CCA for incorporation in PAM in Australia, examine factors supporting and hindering implementation of CCA in PAM, and developing a framework for CCA for incorporation in PAM. Phase II was modification of the framework developed in Phase I through verification in order to ensure its usability and appropriateness in the Indonesian context. All data gathered in Phase I and Phase II in this research were qualitatively analysed assisted by the application of NVivo11 software for systematic recording, coding and cross checking of qualitative data. Phase I provided a generic framework as the basis to develop a framework for the Indonesian context in Phase II. The next step within the Phase II was practical application of the Modified Framework to existing public assets (buildings) with respective public asset managers from participating organisations in Indonesia, through case study and observations. The case study approach was considered to be appropriate, as it would offer a reasonable level of interaction with public asset managers in using the Modified Framework. The next chapter of this thesis reports on research analysis and findings. The result of research analysis and findings, including practical application of the framework in the context of Indonesia, is presented in three chapters. The first results chapter (Chapter 5) reports on the answers to the first research question. The next results chapters (Chapter 6 and Chapter 7) report the findings of the second research question.
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Chapter 5 : Research Analysis and Findings in Phase I: Generic Framework
5.1 INTRODUCTION This chapter serves to identify elements to be considered in developing a framework for CCA for incorporation in PAM, examine factors supporting and hindering implementation of CCA in PAM, and developing the framework (‘Generic Framework’). The Generic Framework was derived from analysis of results of semi- structured interviews presented in this chapter and knowledge obtained from the literature research. This chapter firstly explains profiles of interview participants in Section 5.2. It is followed by Section 5.3, describing the research analysis resulting in elements to be considered in developing a framework for CCA for incorporation in PAM and factors supporting and hindering implementation of CCA in PAM. Section 5.4 discusses development of the framework considering findings in the previous section and literature research resulting in the proposed generic framework (‘Generic Framework’) as shown in the following section. The last section is the chapter conclusion. This Generic Framework was then modified in order to ensure its usability and appropriateness for the Indonesian context, as explained in the next chapters. The effectiveness and applicability of this Generic Framework to the Australian context was not investigated because it is outside the scope of this research.
5.2 PROFILE OF INTERVIEW PARTICIPANTS Federal, State and Local Government’s documents and their websites were consulted to collect the most recent information on PAM and CCA and to identify the local governments which have taken part in the National Climate Change Adaptation Program funded by specific grants under the Local Adaptation Pathways Program Round I (“Program”) in 2008. The list of local governments awarded grants was used to identify local governments which have undertaken climate change risk assessments and/or adaptation action plans (DCCEE, 2011a; Gurran et al., 2011). The local governments that had previously participated in the program are generally located in suburban and coastal areas. Discussions were also undertaken with a representative from an association of local governments of Australia to identify potential interview participants and local governments for semi-structured
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interview, followed by requesting from the recommended local governments, the email addresses of the potential participants. It was possible to finally identify candidates as participants for interviews from local governments previously selected, the Federal Government and the State Government. Emails were sent to recruit upto 15 organisations in Australia. However only four interview participants from three levels of Governments of Australia (Federal Government, State Government and two local governments) took part in the interview, as listed in Table 5.1. Table 5.1 List of Interviewees from Australia in Phase I Interviewee Job Levels of No Institution/organisation ID Interviewees 1 AG1 Federal Government Agency Senior management
2 AG2 Agency of State Government A Senior management
3 AG3 Agency of Local Government I Engineer
4 AG4 Agency of Local Government II Senior management
The Federal Government agency, in which an interviewee (Interviewee ID: AG1) was employed at a senior level management level, is a primary governmental organisation responsible for responding to climate change in Australia. An agency in State Government A, for which an interview participant (Interviewee ID: AG2) was working, is a governmental organisation having a role in planning and policy on infrastructure at state level. Two interview participants (Interviewee ID: AG3 and AG4) were working in Local Government I and Local Government II, respectively. These local governments have previously been involved in the Local Adaptation Pathway Program Round I, having undertaken climate risk assessment and or adaptation action plans. The local governments are located in Climate Zone 1 and 2, according to the map of the Australian Building Codes Board derived from a map produced by the Australian Bureau of Meteorology (BOM), as explained in Chapter 4. The interview process was conducted during April-June 2016. 5.3 ANALYSIS OF SEMI-STRUCTURED INTERVIEWS This section presents research analysis resulting in elements to be considered in developing a framework for CCA for incorporation in PAM and factors supporting and hindering implementation of CCA into PAM.
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The analysis of semi-structured interviews was interpretative content and thematic approach exploring the interviewees’ understanding and experiences. Responses from interviewees were coded into nodes using NVivo11 software. This software assisted in systematic recording, coding and cross checking of qualitative data. Interviewees were identified in code to protect their anonymity. Audio recordings, transcripts and/or notes from interview were attached to the NVivo11 software as sources or documents. Repeated themes or common ideas were coded within the text and stored in the database of the NVivo11 program, whereby those sharing common themes were grouped together as child nodes. As recommended in the literature discussed in Chapter 4, each theme/idea was identified, compared and contrasted with all the themes/ideas previously formed. An analytical, constant comparative scheme and rules were established with the aim that each theme set should remain internally consistent and the entire set mutually exclusive. If there was no similarity with any other theme, then a new node was developed. The child nodes were then grouped as tree nodes to classify the categories (parent nodes). The classified groups were emerging categories that the researcher successfully identified from the responses of interviewees. The researcher successfully identified 21 themes and categorised them into 10 emerging categories as results from the semi-structured interviews in Phase I of this research. Table 5.2 presents the responses of interviews with the four respondents from three tiers of government in Australia.
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Table 5.2 Themes and emerging categories from semi-structured interviews in Phase I No Emerging Categories Themes
1 Climate change has been recognised in infrastructure or public assets a. Building and infrastructure is prioritised to adapt b. Current development of tools and guidance in CCA 2 Existing risk management on infrastructure and assets a. Reconsider and improve CHAS (Coastal Hazard Adaptation Strategy) b. The importance of Business Continuity Management c. Adaptation Pathway as a flexible response to climate risks 3 The importance of integrated AM and its plan a. The importance of integrated AM and its planning 4 Public asset use and knowledge a. Public asset use and knowledge 5 Need understandable data, scenario, modelling, and downscaling a. Need guidance on how to utilise all available information of the climate change data sets b. Difficulty in using CC scenario c. Need centralised platform as house for data sets and knowledge management 6 Need policy decision, direction and developed strategy a. Need coherent legislated and clear direction to undertake CCA b. Need explicit and overall CCA strategy c. Climate Change Impact Statement (CCIS) in building and infrastructure project proposals 7 Concern on community vulnerability and engagement (5.3.1.7) a. Need community engagement b. Prioritising community vulnerability and assets at risk for CCA consideration c. The value of an asset to the community 8 Need more involvement by private sector and stakeholders (5.3.1.8) a. Media role to inform CC with simple language in an accurate and honest manner b. Need private sector involvement 9 Different political view between federal and state government (5.3.1.9) a. Different political view between federal and state government 10 Coordination between agencies and levels of government (5.3.1.10) a. Need more effective coordination between state and federal government b. Regular meetings between all states/territory governments and Federal Government help to overcome CC challenges. 5.3.1 Elements to be considered in developing a framework for CCA for incorporation in PAM The emerging categories and themes as listed in Table 5.2 with reference to and reflection of the literature were analysed. The areas that can be improved as well as issues (themes) that can be addressed in CCA for incorporation in PAM are proposed. Upon discussion with reference to and reflection of the literature for each
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emerging category, accordingly, elements of the framework for CCA for incorporation in PAM (proposed elements) are presented.
Emerging Category 1. Climate change has been recognised in infrastructure or public assets Theme 1.a : Building and infrastructure is prioritised to adapt The type of public assets that should be prioritised to anticipate the impacts of climate change are infrastructure related to sewer systems in low-lying areas, roads near the coast due to its risk of being washed away by seawater, and government buildings (AG3). Discussion: The Government of Australia is committed to undertaking and supporting adaptation to climate change by taking account of future climate risks. Infrastructure, including buildings, is of national priority for climate change adaptation that needs to resist climatic pressures and extremes in fifty or one hundred years from now (e.g. floods, fires and coastal inundation) (DCCEE, 2010b). According to Holper et al. (2007), decision-making on the design, construction and management of infrastructure, including buildings, coastal developments, water pipelines, transmission lines and transport networks are facing challenges due to the impacts of climate change. The prioritisation of buildings and infrastructure in adapting to climate change is in accordance with the suggestion in the Fifth Assessment Report of the IPCC (2014a) which reports that the major risks to Australia are increased frequency and intensity of flood damage to housing, roads and other infrastructure, increased infrastructure damages during heat waves, increasing risks to coastal infrastructure from continued sea-level rise, as well as increased damage to human settlements and infrastructure from bushfires in most of southern Australia. The first Australian standard consisting of a systematic approach to planning the adaptation of infrastructure and settlements based on a risk management process has also been developed, namely, the Australian Standard (AS 5334) for ‘Climate change adaptation for settlements and infrastructure’ (Standards Australia, 2013). The Government of Australia has re-emphasised the national strategy for climate resilience adaptation in a sectoral approach, for example ‘Cities & the Built Environment’ as one of the key critical sectors in its recent document of ‘National
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Climate Resilience and Adaptation Strategy 2015’ (Commonwealth of Australia, 2015). As for the private sector, peak bodies and sectoral representative bodies are providing asset owners with targeted guidance. For example, the Australian Green Infrastructure Council (AGIC) has developed ‘Climate Change Adaptation Guidelines to help industry address climate change risks and opportunities for new infrastructure projects or existing assets. Moreover, the sustainability rating scheme of the Infrastructure Sustainability Council of Australia (ICSA) covers the design, construction and operation of transport, water, and energy and communications infrastructure. At State Government level, several key climate change policies and plans have also been developed, for example, Queensland Local Government Coastal Hazard Adaptation Program (QCoast2100) (LGAQ & Department of Environment and Heritage Protection, 2016), Pathway to a Climate Resilient Queensland: Queensland Climate Adaptation Strategy 2017-2030 (DEHP, 2016), and Victoria’s Climate Change Adaptation Plan 2017-2020 (DELWP, 2016). Managing risks to property, assets, infrastructure and services is part of an adaptation action plan; for example the Queensland Government has set it in their Government Adaptation Action Plan (GAAP). The GAAP provides a coordinated whole-of-government response to climate risks and opportunities, including sustainability objectives in infrastructure projects (DEHP, 2016). In 2010, a National Climate Change Adaptation Research Plan (NARP) was developed for the settlements and infrastructure theme of CCA (SI 2010 NARP). The development of NARP was led by NCCARF and aimed at identification of critical gaps in the information required by governments, industry and the community to develop and implement effective adaptation responses to climate change (Cox et al., 2016). Cox et al. (2016) highlighted NARPs as one important direction for developing capacity, by articulating the key knowledge gaps for an evidence-based, risk management-based approach for adaptation knowledge and action. The identified gaps can be used to establish research priorities that are important, often urgent and will provide knowledge needed by adaptation stakeholders across Australia. The “SI 2010 NARP” was revised in 2012 and has been updated in 2016 (SI 2016 NARP) through literature review and a series of workshops with key
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stakeholders from seven states and territories in 2015-16 (Cox et al., 2016). In addition, the basis for guidance on government action on SI 2016, NARP remains the National Climate Change Adaptation Framework (NCCAF), endorsed by COAG in 2007, able to identify possible actions to assist adaptation to climate change by vulnerable sectors and regions including settlements and infrastructure. It outlines clear direction for investment in science, technology and innovation for adaptation that will help to manage climate risks and emerging opportunities.
Theme 1.b : Current development of tools and guidance in CCA The tools and guidance in CCA covering planning, implementation and MRV (monitoring, reporting and verification), including the element of stakeholder’s engagement and risk management framework, are being developed by the Federal Government (AG1). The respective agency in the Federal Government is undertaking two main works in relation to the development. Firstly, it is funding the National Climate Change Adaptation Research Facility (NCCARF) currently working on a coastal hazard decision-support tool that provides a CCA framework including planning, implementation and MRV. Secondly, the agency also works closely with the Commonwealth Scientific and Industrial Research Organisation (CSIRO) in developing a broader climate adaptation process in the form of guidance, not only covering planning, implementation and MRV, but also including the elements of stakeholder engagement and risk management framework (AG1). Discussion: Action to adapt to climate change is one pillar in the Government of Australia’s comprehensive climate change policy (DCC, 2009). The early development of tools and guidance in CCA in Australia dates back to 2007, when the Council of Australian Governments agreed to a National Climate Change Adaptation Framework (NCCAF) designed to facilitate collaboration between National, State, and Territory governments in order to develop adaptive capacity and reduce vulnerability to climate change (COAG, 2007; T. F. Smith et al., 2011). The Framework has two priorities: to build national adaptation understanding and capacity, and to identify and reduce the vulnerability of, and build adaptive capacity in, regions and in a number of priority sectors such as water resources, coastal regions, biodiversity, agriculture, fisheries and forestry, human health, tourism,
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settlements, infrastructure and planning, and natural disaster management (Commonwealth of Australia, 2015). The NCCAF has catalysed a wide range of projects, initiative, institutions and outcomes, including creation of a significant climate change adaptation research capability within CSIRO and also including the establishment of the NCCARF. In its first phase, NCCARF successfully completed more than 140 research projects. NCCARF and its adaptation networks form a strong interface between stakeholders and the research sector in Australia, which has helped to build capacity of stakeholders in government, business and industry, by providing summary documents and guidance documents that simplify detailed research outputs (Commonwealth of Australia, 2015). In 2014, the Australian Government provided NCCARF with funding for a second phase of work, focused on supporting sound decision-making and practical action, particularly in the coastal zone. An online tool was delivered by NCCARF in 2017 enabling access to the best available science and advice on coastal climate risks and regional sea-level rise projections. The Government of Australia has articulated its strategy as documented in ‘National Climate Resilience and Adaptation Strategy 2015’ to manage risks of a variable and changing climate. It highlights a set of principles to guide effective adaptation practice and resilience building, looks at leading practice nationally, and considers areas for future review, consultation and action (Commonwealth of Australia, 2015).
Proposed element in Generic Framework: I. Recognition of climate change a. Prioritisation of asset to adapt b. Tools and guidance in CCA
Emerging Category 2. Existing risk management on infrastructure and assets Theme 2.a : Reconsider and improve CHAS Coastal Hazards Adaptation Strategy (CHAS) was developed in order to understand the potential risks of coastal hazards to development, infrastructure and properties to the year 2100 and to recommend ways to address the hazards (AG3). The local government in which a particular interview participant is working was the first council in the state to develop an adaptation strategy for managing coastal
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hazards (CHAS). The policy of local government in relation to the climate change within the CHAS, for instance, has been reflected in the availability of mapping and zoning of the coastal hazards based on climate change to the year 2100. The CHAS is a study with the state government funded by the Federal government, whereby the state government created a coastal plan policy in that all local authorities in local governments are recommended to develop similar strategy (AG3). In addition, it is a process consistent with principles of good planning and risk management since it will allow the local governments to systematically analyse coastal risks and propose adaptation measures to mitigate the impacts of the risk. There is a limitation of previous CHAS as stated by a participant that, ‘although the CHAS strategy was finalised, however it was never actually adopted by (our) council as a strategy’ (AG3). The participant stated this was due to the work of CHAS being undertaken by a consultant, with council not purely involved. As a consequence, the CHAS should be improved with a more accurate data set. The improved CHAS would give more accurate representation of true risk and potential damages to existing infrastructure and properties in areas projected to be at high risk from coastal hazards up to the year 2100 (AG3). The CHAS provides the coastal councils with important information needed for strategy development, planning and implementation for generations to come. The interviewee also emphasised the importance of better overall integration of agencies in the local government, including asset management reflected within the CHAS (AG3). CHAS was required to be developed by all councils. However, previous state government administration took away the mandate for CHAS as explained by an interviewee from another local government (AG4). The participant believed the current state government administration would reconsider the CHAS to be redeveloped by councils. The participant was confident CHAS would be able to give more direction in a strategic manner on how a council should respond to address current issues in coastal hazards (AG4). Discussion: The CHAS is a high-level technical background strategy and does not form the local government policy itself. If there is any future adaptation strategy, investigations, consultation or actions that may arise out of the CHAS report are subject to the state government planning review and long-term funding decisions by the Australian Government. The ‘new’ CHAS program under new administration in
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the State Government A has been reintroduced as QCoast2100
(http://www.qcoast2100.com.au). It is intended that QCoast2100 will facilitate the development of high quality information, enabling defensible, timely and effective local adaptation decision-making across key areas of planning and operations, such as: - land use planning and development assessment; - infrastructure planning and management; - asset management and planning including recreation, cultural heritage values and other public amenities; - community planning; and - emergency management. (LGAQ & Department of Environment and Heritage Protection, 2016)
The CHAS has been redeveloped using the scheme of QCoast2100 Program that provides the funding, tools and technical support to enable all coastal local governments in the State Government A to progress the preparation of plans and strategies to address climate change-related coastal hazard risks over the long-term. Theme 2.b : The importance of Business Continuity Management The Business Continuity Management (BCM) should be in place in order to secure the service continuity of assets to public and government programs due to the impacts of climate change (AG1). Developing strategy and action to manage risk are part of good policy process, in which problems have to be identified and defined as well as evidence needs to be gathered (AG2). Discussion: The BCM is a means of risk management, in which the approach is often labelled disaster recovery planning, crisis management, Business Impact Assessment or, more generally, Business Continuity Management (Warren, 2010). As pointed out by Warren (2010), the business continuity plan is essential for critical assets to become more resilient, achieved through risk assessment and the preparation of risk minimisation and mitigation approaches. Moreover, to be effective, a business continuity plan should be fully incorporated across the organisation and include finance, information technology, human resources, and asset plans. It should also be communicated widely within the organisation (Herbane, Elliott, & Swartz, 2004). Theme 2.c : Adaptation Pathway as flexible response to climate risks
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Australia has been doing a lot of work on an idea, namely, the Adaptation Pathway, in order to have flexible responses to climate risks over time. The Adaptation Pathway approach is important for thinking about climate risk to public assets and infrastructure (AG1). An element of the Adaptation Pathway which is important to consider, is ecosystem-based adaptation or green infrastructure. An example of ecosystem-based adaptation is replanting vegetation on the floodplain to address the impact of climate change to public assets or infrastructure (AG1). Discussion: The Local Adaptation Pathway Program (LAPP) was a funding scheme to help councils undertake climate change risk assessments and develop action plans to prepare for the likely local impacts of climate change. It has encouraged local governments in Australia to include climate change in risk management regimes. The risk management process was guided by a document published by the Australian Greenhouse Office, namely ‘Climate change impacts and risk management: a guide for business and government’(AGO, 2006). Bachar (2010) highlighted that LAPP was a good first step in climate change risk assessment and adaptation planning. Moreover, it provides advantages in awareness raising, organisation-wide ownership, and demonstrating leadership. Nevertheless, it is considered to have weaknesses due to its very broad scope, no direct link to funding, and not much help with decision support (e.g. cost benefit analysis). The CHAS, BCM or LAPP are several schemes that have been used as a means of risk management in governmental organisations in Australia. Accordingly, the available information already obtained, including from CHAS, BCM or LAPP, can be used for revision of existing risk management by considering the climate change risk in existing planning and operational processes within a decision-making framework (COAG, 2007; LGAQ, 2007; Standards Australia, 2009, 2013). The climate change risks are considered within the context of other risks that form multiple risk, resulting in a more severe risk.
Proposed element in Generic Framework: II. Current risk management a. Coastal hazard adaptation strategy b. Business Continuity Management c. Local Adaptation Strategy Program
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Emerging Category 3. The importance of integrated asset management and its plan Theme 3.a : The importance of integrated AM and its plan An integrated approach across council has been undertaken by the participating local government (Local Government II) using a framework known as the Total Asset Management Plan (TAMP) and working closely with other departments (AG4). The TAMP is the whole-of-government policy for managing state government assets. A newly published document, “State Infrastructure Plan (SIP)” (DILGP, 2016), has emphasised resiliencies as major issues for councils in their respective regions. As a consequence, infrastructure needs to be built in a resilient way to deal with an extreme climate as well as to have a planning system that is also equally important. Climate change is one of the major challenges the state government has to deal with (AG2). The climate change impact on an infrastructure plan has been addressed as one of the infrastructure challenges. Even though consideration of climate change is also acknowledged as a challenge by local governments, the state government does not specifically tell the local governments in their jurisdiction what they need to do, but they were informed to be aware of climate change impacts (AG2). Public assets or infrastructure need to adapt with climate change, not only because of a lot of economic value is tied up in legacy assets and infrastructure, but also the critical services that the society relies on. Those critical services can be delivered when public assets or infrastructure are not compromised by extreme weather events or by climate change. In public asset planning, an interviewee from State Government gave two examples for consideration prior to development: ‘... do not put expensive infrastructure in an area that will get inundated; that's the kind of approach that we're adopting’ and ‘... look this is just scenario; we shouldn't be putting in any more development because it's prone to sea level rise’ (AG2). Climate change has been taken into account in the infrastructure development plan as part of sustainability issues, as an interview participant stated as follows: ‘… a major project is more into a push in sustainability rather than purely climate change. We are just to take into account all things including climate change impact but that's really a triple bottom-line in sustainability being economic, social, and environment. So, I think the thinking now is much more
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about how you get that sustainability assessment rather than purely assessment on climate change’ (AG2). The participant argued that: ‘... having climate change above everything else is not great because it actually can force us to focus on areas that may be not necessary and lose focus on an area that is necessary’ (AG2). The local government, through its various departments, sought to integrate various plans into a council's corporate plan as a five-year plan, including the Asset Management Plan. The Asset Management Plan is categorised at tactical plan level in a hierarchical plan in the local government. There is also a document reviewed annually, namely, the Technical Service Levels document, which serves the council in ensuring that public assets perform as stated in the Asset Management Plan. The participant from State Government A who also acknowledged that several local governments, including the Local Governments I and II, are in a better position in TAMP and having integrated approaches, mentioned that ‘Councils also have their asset base much better integrated with their financial management system so they get better understanding of what the cost of the asset is to run, what the depreciation on the asset is and the impact for their financial budget’ (AG2). The same participant also explained the current public asset management in the State Government A as being different from that in local governments, whereby no particular agency has a specific function in looking after all assets of the State Government A. The particular assets used for the main functions of certain state government agencies are their own responsibilities in managing those assets. The schools are with the Department of Education, the roads with the Department of Transport as well as public assets and housing with the Department of Public Works. The interviewee said, ‘So they are not saying the assets of the State; they're saying these are the assets of the agencies’ (AG2). The participant emphasised the importance of asset planning, saying that, ‘the asset management plan becomes really a more important part of the overarching approach to infrastructure planning’ (AG2). The interviewee also emphasised effective and optimal use of an asset by utilising existing assets rather than purchasing new ones. The interview participant from local government confirmed the existence of a corporate plan, in which asset management plans are included and fully articulated from policy to operational (tactical) levels (AG4). The participant from State
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Government (AG2) also acknowledged this existing arrangement. Climate change is considered in coastal management policy (the policy) sitting within a strategic policy framework under the council corporate plan and the Waterway and Coastal Management Strategy (AG4). The policy is implemented through development and implementation of shoreline erosion management plans (as required) as well as undertaking coastal land management planning for operational, capital and maintenance works (AG4). Discussion: All regions, most sectors including public assets, all levels of decision making and many actors from various backgrounds would be differently affected by climate change. Therefore, climate change adaptation is complex and the risks involved imply that current practice in planning will be insufficient for comprehensive adaptation (Grothmann, 2011; Prutsch, McCallum, Grothmann, Schauser, & Swart, 2014a). Prutsch, McCallum, et al. (2014a) explain that planning for adaptation takes into account imperfect knowledge and uncertainties potentially conflicting with the expectation that decision making should be based on agreed-upon evidence and robust information. The integrated approach to asset management and acknowledgement of climate change as a strategic issue that needs to be addressed have been demonstrated by the participating local governments, as shown in strategic policy framework under corporate council plans. The local governments have an essential role to play in ensuring that local circumstances are adequately considered in the overall adaptation response and in involving the local community directly in efforts to facilitate effective change. An integrated asset management approach undertaken by local government, using an asset management framework and working closely with other departments is important in addressing the fundamental needs of local and regional communities and to respond to local changes (Commonwealth of Australia, 2015). As the participating state government has introduced a Government Adaptation Action Plan (GAAP), local governments under its jurisdiction will undertake a detailed climate risk assessment and either develop a specific adaptation action plan to address priority climate risks, or incorporate climate adaptation actions into existing plans and risk frameworks (DEHP, 2016). This action plan could be incorporated in a council corporate plan, including the asset management plan. These
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plans will reduce the potential for maladaptation of climate change and describe how local government will consider climate risks and adaptation planning when assessing proposals for new infrastructure and assets.
Proposed element in Generic Framework: III. Integrated AM and planning in AM
Emerging Category 4. Public asset use and knowledge Theme 4.a : Public asset use and knowledge Understanding the government asset use needs good knowledge about the characteristic of the asset, including having appropriate modelling in mapping of the hazard that government assets face (AG3). The respondents emphasised the importance of public asset use in serving the community (AG1, AG2). To incorporate CCA strategy into PAM, the government should understand critical assets serving the public and make sure the asset’s services to the community and government programs are maintained at an agreed service level and are not interrupted by the impacts of climate change (AG1). In addition, the participant also mentioned, ‘… how do we retrofit or protect those assets from climate change impact? So those sorts of thing beg important questions’ (AG1). Governments should be knowledgeable about critical assets and hazards that potentially affect the assets, as pointed out by a respondent from Federal Government (AG1). It is essential for critical assets to be more resilient and that can be achieved through risk assessment and the preparation of risk minimisation and mitigation approaches. The respondent said, ‘How critical are the services that the assets deliver? If they are critical, critical services, so you will need constant business continuity and you need to be more robust’ (AG1). Discussion: Cimato and Mullan (2010) have highlighted that climate change adaptation is often localised, in the sense that responses and benefits of climate change adaptation depend on location and local circumstances. In other words, local or regional action could mostly ensure effectiveness and efficiency of adaptation to climate change. As for public assets as a subsystem of the broader system dwelling in specific locations influenced by local circumstances, M. T. Gibbs (2015) argues the importance of
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understanding the criticality of assets in that they are not necessary large, expensive assets, but rather assets that play a critical role in delivering core services. In other words, critical assets are possibly small assets, such as critical pump stations for water supply, but should be perceived as more critical assets than some other assets in terms of physical scale.
Proposed element in Generic Framework: IV. Asset use and knowledge
Emerging Category 5. Need understandable data, scenario, modelling, and downscaling Theme 5.a : Need guidance on how to utilise all available information of the climate change data sets Guidance on how to utilise all available information on climate change data sets is needed. The assessment of risk, vulnerability and adaptive capability are important resources for better policy development and implementation by government under uncertainty due to climate change (AG1, AG2, AG3, AG4). The participant who suggested that the Federal Government of Australia should do more work to help ordinary people and business to understand how to use the data, stated that, ‘You know when you get projection, that is useful, but it is not the only information you need, so the Australian Government needs also to invest in things like digital elevation modelling, LIDAR data, information about how sediment moves up and down the coast line, information about rainfall, run- off stormwater. So many data sets are required in order to manage climate impact’ (AG1). The Federal Government Department of Environment, Commonwealth Scientific and Industrial Research Organisation (CSIRO) and Bureau of Meteorology (BOM) have strived to ensure that data is easy to access and understand, but it is still considered very complicated resulting in difficulty in data interpretation (AG1). Discussion: The Australian Bureau of Meteorology (BOM) and CSIRO are two organisations playing important roles in developing scenarios and methods used in
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addressing climate change in Australia. They have developed climate projections, not only at the national level and the state level, but also at regional levels of downscaling for eight different regions in Australia. The Federal Government, through its respective agency, works together with CSIRO to provide guidance and provide a set of decision actions about how users of the information can choose a scenario that is relevant to them. CSIRO, BOM, Geoscience Australia and the Climate Commission have also produced updates of current trends and projected impacts of temperature increases and sea level rises at vulnerable locations (Graham, Chen, & Booth, 2011). Theme 5.b : Difficulty in using climate change scenario There is difficulty in using a climate change scenario as explained by an interview participant that: ‘The available scenario of climate change is really useful but many decision makers, asset managers, (and) risk managers do not know how to use the scenario. So how do we do about that, how we fix that problem?’ (AG1). The user of the data set on climate change for policy formulation highlighted that modelling and projections used in developing CCA policy, on which decision making is based, are critical (AG2). The participant expressed an opinion that current modelling in coastal inundation is good, but a question needing to be addressed is about what steps should be taken next: ‘So I think the importance of the model and projection are to give us evidence-based (information). It’s what we can do with that evidence that's really interesting…. I think what you see is the reflection of the fact that we agree with that (currently).. (but) we have to work ahead to adapt that (information for the future)’ (AG2). Another user of a data set on climate change for policy formulation and implementation from Local Government I (AG3) stated that the scenario assessed is based on what is mandated by the state government through the Coastal Plan of State Government A (the Plan), for example sea level increase of 0.8 metre by the year 2100 and the intensification of cyclones. The local governments in State Government A update the modelling based on the Plan (AG3). Discussion: The availability of downscaled projections is an essential tool for decision makers, asset managers, and risk managers because these data sets are fundamental
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to adaptation planning as they set the context for risk and vulnerability assessments, support the development of appropriate adaptation strategies as well as reduce uncertainty. The scenario and the regional projections for Australia have been built on a climate model called the Australian Community Climate and Earth System Simulator (ACCESS) model, a joint product between CSIRO and BOM. The Federal Government commissioned CSIRO and BOM to develop and work on the model that was also in collaboration with the UK Met Office. In addition, the New South Wales (NSW) and Australian Capital Territory (ACT) Governments have also developed their own projection called The NSW and ACT Regional Climate Modelling (NARCliM). Although two models are available in Australia, agencies are free to choose whether they use the Australian Government Projection (ACCESS) or the NARCliM from NSW. The Federal Government ensures that everybody in Australia has easy access and understands the published data, projections and scenarios. Theme 5.c : Need centralised platform as house for data sets and knowledge management Australia needs a central portal, where people can obtain all information related to climate change. The reason behind the need for a centralised platform is to house various data sets required to manage climate impact. The interview participant raised the issue that, ‘... one problem that we have is although data sets are available at different places, it’s hard for people to find them… That is something that Australia is still missing. We don’t have that’ (AG1). The participant from Federal Government (AG1) pointed out that in addition to the importance of this knowledge management system, there is also the need for improvement of current CCA measures. The participant continued to explain that significant amounts of money are invested in science and in climate change programs, but the Australian Government still has no home for all that information related to climate change. Many different institutions are doing similar work, but if someone needs to understand the benefit of all that work, they would have to go to every single institution and ask them. There is not just one place to go in order to understand what good adaptation looks like in Australia (AG1). Discussion:
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No single location is currently available for governments, industry and the community to access consolidated information to assess risks and develop adaptation strategies (ASBEC, 2012; COAG, 2007). Accordingly, there is a need to set up a centralised platform for data sets of climate change, for example a ‘one stop shop’ climate change adaptation website (ASBEC, 2012). The need for centralised information has been acknowledged in the Australian National Climate Change Adaptation Framework (NCCAF) suggesting the establishment of a centre for climate change adaptation that provides governments, industry and the community with clear and reliable guidance material or information about the likely impacts of climate change in Australia and how governments are expected to respond (COAG, 2007). ASBEC (2012) further has specified that the centre should provide information on national climate change data, help peopleto be kept up-to-date with the most recent advice and data, allow industry and communities to be knowledgeable on climate change impacts for actions to enhance resilience; and give stakeholders access to information, synthesise knowledge and supply the tools necessary for adaptation. The necessary information obtained should support climate change adaptation decision-making at all levels of governments. COAG (2007) suggests several potential benefits of centralised information of CCA as it could build capacity of the research community to generate relevant information for decision makers, establish an interface between researchers and decision makers, and enable coordinated and collaborative programs across regional and sectoral contexts.
Proposed element in Generic Framework: V. Accessible and understandable CCA information a. Guidance on utilisation of climate change data sets b. Guidance on interpretation of climate change scenario c. Centralised information and knowledge management
Emerging Category 6. Need policy decision, direction and developed strategy Theme 6.a : Need coherent legislated and clear direction to undertake CCA Lack of policy direction from state government for councils to deal with a 0.8-meter projected sea level rise is an issue raised by participant (AG2). Direction is needed to allow any subdivision in that area to take action, so the importance of modelling and projection is to give the state government evidence-based policy.
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The interviewee gave an example of legal precedent in relation to the issue of climate change and local governments. A state government’s mandate to local government was about a sea level rise planning scheme and retreat zone had significant impacts on property owners in the affected area because their properties would become worthless. The retreat zone was challenged in high court; and the state government lost the high court case. As a consequence, the mandate was removed. The participant states, ‘… so the local government are trying to work within what we believe to be practical and reasonable but sometimes in the absence of high-level direction we are concerned we do not go too far one way or the other and be exposed to a countering by future council. It is very challenging in this regard’ (AG4). The interviewee from the Federal Government stated the Australian Government needed to measure the effectiveness of the policy because, ‘this is really important if you take a policy measure, to ask yourself afterward whether or not it has actually achieved the goal that you should achieve. I think this is a flaw in our approach; we are not doing that well enough’ (AG1). The Federal Government must make sure the financial management plan for certain assets are included in its whole lifespan, however, the element of climate change is still not required as described by the participant: ‘You have taken the climate change into account; have you got a financial management plan for this asset over its whole lifespan taking climate change into account? That’s the missing factor. Something that we need to be doing’ (AG1). Discussion: A clear commitment from decision-makers to support the adaptation process is highly beneficial in order to realise adaptation at a regional, local, sectoral level as well as within an organisation (Prutsch, McCallum, Grothmann, Schauser, & Swart, 2014b). In the public asset management domain, especially for buildings, the government’s role is vital because government is the public building owner, manager and also the regulator that develops planning legislation, codes, standards and guidelines to build more resilient buildings to overcome climate change impacts (Lisa Guan, 2007; Susilawati & Goonetilleke, 2013; Warren, 2010). Consequently,
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the government has to develop, prioritise, implement, and evaluate actions to moderate climate risks and protect critical assets using the best available knowledge (CSIRO, 2007; Government of South Australia, 2012; NSW Government, 2010; Queensland Government, 2011). Through climate change adaptation undertaken, public assets (public buildings) can adjust to future changes, reduce negative effects and capitalise on the opportunities associated with global climate change. Risks to individual public assets such as infrastructure assets (i.e. buildings) from climate change should not be considered in isolation because these assets, which are interdependent and reliant on each other to operate, are part of a whole system. Failure in one sector will impact the whole system, resulting in a cascade of failures (Queensland Government, 2011; The Royal Academy of Engineering, 2011). Snow and Prasad (2011) point out that adjustment (adaptation) to unavoidable climate change is needed to minimise asset maintenance costs and maintain healthy ecosystems and liveable urban areas. Nevertheless, Hasegawa (2004) has noted that less attention is being given to the development of adaptation strategies. In addition, Salagnac (2004) stated that more work is needed to comprehend the implications of climate change and to provide sufficient evidence for policy-makers to make sound decisions. Research studies show that no single adaptation policy recommendation can be universally appropriate (Smit & Pilifosova, 2003). Aldum et al. (2013) have identified 65 climate change adaptation support tools (CCAST) in which over half of the CCASTs identified in Australia were found to be associated with infrastructure and planning and local government sectors. Moreover, the prevalent adaptation activity, and CCAST type, presently taking place is the identification and assessment of climate change risk. Theme 6.b : Need explicit and overall CCA strategy A very well-developed policy of both Federal and State Government is necessary for local governments to better develop strategies of CCA (AG4). The federal and state government have not created a coherent legislated direction on climate change adaptation issues. As a consequence, every local government has to try developing it for itself (AG4). It was also said, ‘That is a real challenge, so if a council has a particularly strong focus on climate change adaptation they might go really hard on it. Other councils may be less inclined to go there’ (AG4).
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The participant from local government continued to explain that, ‘We are doing planning scheme design to be climate change resilient. We're applying adaptive thinking to the current design of our asset. There is a long way to go because we don’t have overall adaptation strategy developed ... What do we need to do in the next 20 years? Do we need to maintain networks? ...(do we need to be) resilient to sea level rise?’ (AG4). Although this local government has already developed a Climate Change Strategy in 2010, nevertheless, for implementation, more detailed strategy is still required (AG4). A question from the same participant (AG4), as to whether the Australian Government had developed specific regulations for government agencies to mainstream climate change adaptation. The participant answered that ‘mainstreaming’ means each government agency and local government needs to make choices and decisions for itself. As a consequence, the Australian Government does not enforce a particular approach (AG4). The Australian Government will support decision making by making sure information and knowledge are accessible and in some cases, the Federal Government supports regional decision making with funding. There is a big regional development fund where local governments can ask the Federal Government for public asset funding (AG1). A query on how current national policy in mainstreaming climate change into an agenda of development and specifically into public asset management was posed to the participant from a federal agency. The interviewee mentioned, ‘I think we’re still quite early in this process of incorporating climate change adaptation strategies into a development plan of public assets’ (AG1). In addition, the participant also mentioned, ‘but we don’t have specific targets for climate change adaptation in the built environment in Australia’ (AG1). Discussion: Even though the Australian Government does not enforce a particular approach, a risk-based approach is generally used by the Local Governments of Australia in responding to climate-related impacts including climate variability (AGO, 2006; Fisk & Kay, 2010; Kennedy et al., 2010; LGAQ, 2007; Nursey-Bray, 2010). Climate-related risks are not new to Local Government planners, resource managers, and hazard and emergency managers in Australia. In other words, climate and weather-related risks have always been present so governments have long
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experience in managing these specific risks. The existing roles and responsibilities of Local Governments are influenced by climate and weather events, which have been addressed by the range of existing planning and management systems employed by a number of Councils (LGAQ, 2007). ASBEC (2012) argue that regulation is not the only solution for both new and existing buildings that are to be made more resilient over time because for the built environment, adaptation is complicated by various factors, such as the ownership, use, age, construction, and climatic location of buildings. ASBEC (2012) identified approximately forty policies, programs and initiatives within the sphere of the Federal Government of Australia, covering sustainability in the built environment. These initiatives are considered duplication and lots of red tape for insignificant benefit. Moreover, ASBEC (2012) also argue adaptation activity across state, territory, and local governments is inconsistent and uncoordinated, leading to wasted resources and higher costs for business. Compliance with such a range of government activities prevents practitioners in the built environment from responding to climate change adaptation in a coordinated, effective manner (ASBEC, 2012). Theme 6.c : Climate Change Impact Statement (CCIS) in building and infrastructure project proposal The CCIS is a document required to be included in any policy or project proposal seeking approval from the state government participating in the interview. It was developed by the Office of Climate Change in the State Government A, as an assessment tool that will assist planners and developers of major projects to take the impacts of climate change into consideration. This tool assesses the potential greenhouse gas emissions as well as the potential risks to major buildings and infrastructure projects from climate change. The CCIS requirement for Government submissions had been valuable in raising awareness of the impacts of climate change across the State Government A. The participant described that under the previous government, CCIS was considered in decision-making. However, the participant who was involved in decision making explained that no CCIS document was found in four recent major infrastructure projects (AG2). The CCIS was previously required as part of the cabinet submission but it is no longer a mandatory part to be written in cabinet submissions. The participant concluded ‘… it is not as essential in policy thinking as
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it was’ (AG2). In other words, the CCIS is no longer mandatory for any policy or project proposal seeking approval from the State Government. Discussion: Climate change adaptation has emerging challenges and opportunities for decision-makers that require clear understanding about vulnerability to climate variability considering current and future climate change (Benjamin Lee Preston & Stafford-Smith, 2009). A Climate Change Impact Statement (CCIS), or assessment of implications of climate change, has been used to consider certain developments in several states in Australia prior to seeking necessary approval (AGIC, 2011), as undertaken by several state governments. In Queensland, CCIS is required for proposed new state roads and major road upgrades. It must include an assessment of climate change risks and adaptation measures. In Victoria, prior to the approval process of major development proposals, the City of Melbourne requires climate change implications to be included. The Tasmanian Government also requires CCIS to be included in proposals for major developments. Sydney Water in New South Wales built its capacity in climate change adaptation using a multi-faceted approach (AGIC, 2011).
Proposed element in Generic Framework: VI. Policy, direction and strategy in CCA a. Clear coherent legislated policy and direction in CCA b. CCA strategy c. Require consideration of climate change impacts in asset development
Emerging Category 7. Concern on community vulnerability and engagement Theme 7.a : Need community engagement The community should be engaged in the conversation with government strategy in development of CCA strategy as explained by an interviewee that “… community engagement in the conversation is important …” (AG4). Discussion: Engaging stakeholders, specifically those affected by climate change such as community, offers an opportunity to identify innovative solutions to climate change that also gain legitimacy and broad support (Schauser, McCallum, Prutsch, Grothmann, & Swart, 2014). Fünfgeld (2012) also argues that ensuring early and
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active engagement of local stakeholders is critical to allow for truly place-based adaptation, where local stakeholders take co-ownership and share responsibility in the directions being taken. The Productivity Commission (2012) also underlines community attitudes to risk that will inform the choice of adaptation responses; any policy approach needs to reflect the community’s acceptable levels of risk. Widespread community consultation is required to examine options for managing climate change risks to existing assets, to consider the costs and benefits of each option, and to start to build consensus on preferred options (Productivity Commission, 2012). Fünfgeld (2012) describes a study by the Victorian Centre for Climate Change Adaptation Research (VCCCAR) suggesting that there is a significant opportunity for co-developing strategies for community engagement in conjunction with already existing social and environmental community initiatives, and to strengthen structures of deliberative decision-making and participatory action on climate change adaptation. Facilitating exchange and mutual understanding between community and government authorities and other administrative agencies can help avoid community confusion and frustration with top-down planning processes. Theme 7.b : Prioritising community vulnerability and assets at risk for CCA consideration Community vulnerability, including the community assets located in at-risk areas, is the most prioritised concern that drives local government in developing a climate change adaptation strategy (AG4). In other words, the vulnerability of community is the highest priority for the local government. Areas where the community is the most vulnerable would be the focus in climate change adaptation strategy. The participant explained that, ‘We try to focus very much on whether there are community assets, such as, road, or lifeguard tower or, public park at risk and personal property, private property that might be at risk so that's really the major factor that drive us to where we seek to protect, where should we invest...’ (AG4). Discussion: Consultation and partnership with relevant stakeholders are required for successful climate change adaptation strategies. Creating an ongoing dialogue would enable government to seek direct input on new initiatives and make them more effective (ASBEC, 2012). Rigorous consultation would ensure that any amendments
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are both appropriate and strongly supported and form the basis of discussion with the community about attitudes towards accommodation, acceptance, and retreat measures as solutions to climate change (ASBEC, 2012). Theme 7.c : The value of an asset to the community The value of an asset to the community is a factor to consider in incorporating CCA in PAM, for instance, the heritage assets (AG1). As the participant stated, ‘you should think about the value of an asset to the community. Is this asset a piece of national heritage?’ (AG1). Discussion: The importance of understanding what people value in the context of planning for climate change is underpinned by three fundamental arguments. Firstly, focussing on the dimensions that matter most to people; secondly, knowing what people value, how these values come into existence and how they change is essential for setting the goals of adaptation; and thirdly, incorporating such values into adaptation strategies should ensure that the process and outcomes of adaptation are more equitable, inclusive and legitimate as well as less contentious (Barnett, Fincher, Hurlimann, Graham, & Mortreux, 2014). Waters, Barnett, and Puleston (2014) study community expectations about the role of government for climate change adaptation that could go beyond present responsibilities and existing capacity of the government. The community viewed adaptation functions at different levels of government. For the Federal Government, it was viewed as necessary to focus on providing risk information and bearing adaptation costs. The State Government was seen as the best entity to coordinate local governments and provide funding support, whilst local government was considered as more appropriate for managing public assets, regulating decision- making related to private sector adaptation and coordinating local planning.
Proposed element in Generic Framework: VII. Community a. Community engagement b. Prioritising CCA for vulnerable communities and assets c. Value of an asset to the community
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Emerging Category 8. Need more involvement by private sector and stakeholders Theme 8.a : Need private sector involvement The climate change issue is not only Government’s responsibility, but also that of individuals, society and private sector as well as media. Therefore, the stakeholders also have roles in facing climate change impacts by working together with government (AG1, AG2). In addition, the community need to understand that Federal, State and Local Governments are not able to save and solve everything and fix every problem regarding climate change impacts. As stated, ‘we need the community to understand that Federal, State and Local Government can't save and solve everything’ (AG4). It is important that people understand climate change and how it is going to affect them. Accordingly, society and individuals could make their own choices and decisions for themselves, families and even society. The government at all levels should support them and make sure the information needed is available and accessible in order for people to make good choices and decisions (AG1). The impacts of climate change are not all government problems, meaning private sector and academics involvement are factors to consider in CCA. The insurance and banking industries as well as their associations, which are able to provide ideas to overcoming climate change impacts, need to be involved in climate change issues (AG2). The same participant said that, ‘Government ends up with a bunch of problems, equally the banking system, they’ve got to be part of it because they hold a big mortgage of properties ... so this has to be collective ... you know, banks and insurers can't just sit on the side doing nothing’ (AG2). The respondent continued to explain, ‘… so it is not only government that is actually the actor, but also the private sector needs to be a key contributor to Climate Change Adaptation’ (AG2). Thus, development of CCA strategy incorporated in PAM has to be a joint approach between government and the private sector (AG2). Discussion: Stakeholders should be involved in processes for prioritising climate change adaptation actions and in discussions on acceptable risks (Grothmann, 2011). They
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are not merely being involved but also being engaged and encouraged to play an active role (Grothmann, Prutsch, Schauser, McCallum, & Rob, 2014). The engagement of stakeholders complemented with commitment from decision makers could enhance the acceptance of adaptation and help to overcome bureaucratic resistance (Prutsch, McCallum, et al., 2014b; Ribeiro et al., 2009; J. B. Smith, Vogel, & Cromwell III, 2009). McCallum and Isoard (2014) point out that the private sector is considered to have not been fully integrated into adaptation policy processes in most countries, due to national frameworks and research activities that often do not explicitly prioritise topics related to the economy and business. Accordingly, there is limited information about adaptation measures being undertaken by the private sector, except for the insurance sector, which is considered to have a relatively high level of awareness and action on adaptation (McCallum & Isoard, 2014). The financial services sector, especially the banking and insurance sectors are expected to improve their strategies and business process to value risk and adaptation activity appropriately (ASBEC, 2012). The insurance sector particularly, could provide information about risks and the potential to obtain coverage, and ensure that low income community members and their property potentially affected by climate change have access to insurance (ASBEC, 2012).
Theme 8.b : Media role to inform CC with simple language in an accurate and honest manner The role of media was also emphasised by a participant, stating that the media has an important role to play in reporting information about climate change in an accurate and honest manner (AG2). One of the important things the Federal Government can do is to make sure the media and the Australian people have sufficient knowledge about science because understanding climate change requires some basic understanding of science (AG1). The participant mentioned, ‘I like to see a better educated media who can more accurately report on those things’ (AG1). Another statement was also expressed by the participant from the State Government about the role of media: ‘... so media have to be able to run the sensible ... not too scary tactic ... because anytime I watch media reporting about climate change it is never great. I don't want to hear it because it all sounds bad. I'd like to hear
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something sensible and good ... what the way is for adapting to this, rather than painting a gloomy picture’ (AG2). Discussion: To implement effective adaptation strategies, building practitioners and the broader community will need to be well informed and even to participate in appropriate training through public education campaigns and better investment in climate change adaptation training programs. Media could take part in public education campaigns promoting the need for climate change adaptation for public assets. Upon dissemination of relevant information, they can notify the general community about the expected impacts of climate change and proposed strategies (ASBEC, 2012).
Proposed element in Generic Framework: VIII. Private sector and stakeholders’ involvement a. Role of stakeholders b. Private sector involvement
Emerging Category 9. Different political views between Federal and State Government Theme 9.a : Different political views between Federal and State Government Different political views about climate change have influenced the effectiveness of coordination between State and Federal Government (AG2) stated by the participant: ‘…that's tricky particularly because Federal Government and State Government have different political views about climate change.’ (AG2). The participant explained further that climate-related policy should be placed beyond politics, which would result in developing better CCA strategies as they said: ‘How much coordination to become better - Governments “playing” nicely with each other would be a good start, putting or taking the politics aside… this would be a good start you know’ (AG2). It was interesting to note the suggestion from the participant of State Government A that climate change should be included in the mainstream political agenda:
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‘We tend to think short term but this actually needs long-term thinking ... it needs long-term thinking but needs a short term action …so what we start thinking about doing now (is) putting it into mainstream political agenda ...’ (AG2). Three participants from the three levels of government gave the same views that politics is an important issue in development of Climate Change Adaptation strategies (AG1, AG2, AG3). Discussion: Prutsch, McCallum, et al. (2014b) point out the needs for increasing awareness of climate change impacts and adaptation needs among political leaders, including politicians in general, in order to facilitate commitment to climate change adaptation. Moreover, politicians should understand the fact that climate change will proceed over the middle-to long-term that extends beyond their mandates. Therefore, responsibility must be taken for building the long-term capacity of society and ecosystems to adapt to climate change. The ongoing power struggles between the different levels of government have been instrumental in the dynamics of intergovernmental relations affecting many policy areas including climate change adaptation (Howes & Dedekorkut-Howes, 2013). Three complementary strategies are suggested that might accelerate the implementation of CCA policies and plans (Howes & Dedekorkut-Howes, 2012): - using the established NEPC (National Environment Protection Council) processes and institutions to create a new measure in environment protection, which is enforceable in every jurisdiction under existing state and federal legislation; - creating a new climate program modelled on Landcare, where the Federal Government offers funds for climate adaptation projects proposed by various combinations of organisations at any level whereby so-called ‘Climatecare’ could be added to the current ‘Caring for Our Country’ suite of programs that generally have support from all sides of politics; and - establishing a new national statutory authority and delegated with the power to make climate change-related decisions. The three aforementioned strategies would work together to support each other and would require significant funding from the Federal Government. Accordingly,
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existing allocated funds could be directed from closely-related programs, for example, Infrastructure Australia.
Proposed element in Generic Framework: IX. Support from all sides of politics
Emerging Category 10. Coordination between agencies and levels of government Theme 10.a : Need more effective coordination between State and Federal government Ineffective coordination between the State and Federal level has been influenced by different political views about climate change in the respective governments. Nevertheless, coordination between state levels is good (AG2). The interviewee described that ‘..coordination across level of government is patchy at the best of time… no matter a lot of climate change adaptation.’ (AG2). Discussion: As recommended by the Productivity Commission (2012) in its report, coordination and collaboration are necessary for governmental organisations with different responsibilities in policy implementation and formulation. For example, planning regulations are set by state governments, but is mostly implemented by local governments. The local governments in Australia have less authority, responsibility and powers than those in several other countries (e.g. the UK and the USA); accordingly most strategic planning is done by state governments. The PC Report is a publication by the Productivity Commission, an Australian Government’s independent research and advisory body on a range of economic, social and environmental issues affecting the welfare of Australians. The role of PC is to help governments make better policies in the long-term interest of the Australian community. In addition to coordination between climate-related organisations, it is also important to have coordination and consistency between different plans for successful adaptation (Bassett & Shandas, 2010; Dedekorkut & Sloan, 2012). In other words, action regarding climate change should also consider other plans, such as local comprehensive plans, local regulatory structures, and state policies and mandates. Coordination is crucial to address fragmentation not only between levels
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of government, but also across sectors/decision levels, thus improving the overall chances of success in CCA.
Theme 10.b : Regular meetings between all states/territory governments and Federal Government help to overcome climate change challenges. Regular coordinated formal meetings between all the states and territories and the Federal Government are held at least three times annually, to talk about adaptation and ways to overcome challenges in climate change-related policy. The meetings discuss current issues, sharing information about policy, implementation and strategies being undertaken, as well as available and used funds (AG1). The participant from the federal agency primarily responsible for responding to climate change in Australia described that the agency’s job or role is not to take a lead role in rolling out national programs and policy about climate change adaptation. Its job is to coordinate works across federal government, other agencies or departments, such as Department of Infrastructure, Department of Foreign Affairs and Trade and Department of Health. The agency is trying to make information available to the users, so that they can make their own choices and decisions about climate risk. In doing so, the agency needs to work very closely with those providing the information as well as providing funds, which means working with CSIRO, NCCARF, BOM and other agencies (AG1). The participant emphasised: ‘I think that coordination between government agencies is very important. We have a group of senior executives from all different departments who give recommendations of certain issues. They have a meeting four times a year’ (AG1). Discussion: Allman, Fleming, and Wallace (2004) have found that difficulty in coordinating different departments within the authorities, between local authorities or district councils and regionally between adjacent areas, are major issues that hinder the progress in addressing climate change issues. The Royal Academy of Engineering (2011) suggests coordination is also needed in research being undertaken in relation to climate change issues. The coordinated adaptation research and programs could have potential in supporting more effective decision making, including brokering research collaborations and providing a means to commission new research (COAG, 2007). Therefore, coordination is substantial in that it includes
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between one organisation with other organisations, between sectoral plans, between research work being undertaken, and existing databases and data-sharing arrangements between relevant authorities. Garnaut (2011) suggests that Australia needs a coordinated set of policy initiatives designed to improve adaptation activity and make the built environment resilient to climate change, because without coordinated action it could result in inefficient and wrongly focused adaptation. For example, short-term benefits delivered, may exacerbate vulnerability to climate change over the longer term. Accordingly, national action is needed to enhance consistency in policy and regulatory settings across jurisdictions, and identify key issues, such as sea-level rise, risk guidance for planning and development, legacy issues and legal liability, building codes and standards, and integrated regional planning approaches.
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Proposed element in Generic Framework: X. Coordination a. Levels of government. b. Sectoral plans. c. Research being undertaken. d. Existing database and data-sharing arrangement.
5.3.2 Factors supporting and hindering implementation of CCA into PAM Specific questions were asked from interview participants about factors supporting and hindering implementation of CCA in PAM in Australia and specifically in respective regions under the jurisdictions of the councils where interview participants were employed. As such, they could express their thoughts based on their understanding and experience about the council’s policy and region in relation to CCA and PAM. 5.3.2.1 Factors supporting implementation of CCA into PAM The results from semi-structured interviews identified three factors that support the implementation of CCA into PAM, as listed in Table 5.3. Table 5.3 Results from semi-structured interviews: factors supporting implementation of CCA into PAM No Factors supporting 1 Review of building code, material change of assets, adjustment in design and retrofitting of assets, and standardised construction 2 Financial budget (cost) and allocated funding 3 Leadership
The analysis of findings shown in Table 5.3 is explained as follows. 1. Review building code, material change of assets, adjustment in design and retrofitting of assets, and standardised construction Review of building code, material change of assets, adjustment in design and retrofitting of assets, as well as standardised construction, are critical for the community and for the public asset to be resilient to the impacts of climate change (AG1, AG2, AG3). In other words, these factors are considered to address the impacts of climate change and maintain service delivery to the community without compromising the levels of health and safety to occupants and public that use the public assets (AG1).
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Changing the building code is an actual response from the State Government A after the flood event in 2011. The interview participant from the State Government A emphasised changes to the building code as an important factor in the implementation of CCA into PAM (AG2). It included permitting electrical substations in high-rise buildings to be located on a higher floor (AG2). Building standards have also been reviewed periodically, especially through research and after occurrence of hazard events. Impacts of climate change to buildings should be considered to make sure adequate levels of health and safety of the public are maintained. Other factors needing to be considered in implementation of CCA for public assets are material changing of assets, adjustment in asset design and retrofitting existing assets. The material and design of public assets are essential to consider in CCA if they are exposed to an increase in storm surge, coastal flooding, riverine flooding and other impacts from climate change (AG1). Moreover, an interviewee explained, ‘I think you should ask yourself whether or not small adjustments and changes in designing and retrofitting can deliver big economic advantages’ (AG1). In addition, it is also suggested that minor modifications can make buildings much more resilient to cyclones, according to previous research (AG1). The respondents from Federal Government and State Government A (AG1, AG2) highlighted that standardised construction as a required factor in the implementation of CCA for public assets. In standardised construction, it is expected that the costs required could anticipate increasing risks and maintain the longevity of assets (AG1, AG2). Discussion: M. T. Gibbs (2015) argues that major infrastructure and assets are already designed with natural hazards in mind. Accordingly, climate change risks to be managed are the residual risks above the risks that are presently being managed. Building regulation in Australia has traditionally been developed to consider historical climate information. However, the location, intensity and frequency of environmental hazards faced by buildings in Australia is expected to change due to climate change. This may impact the ability of building regulation to achieve its objectives mainly related to human safety, and the amenity and sustainability of buildings (Productivity Commission, 2012).
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In addition, Stevens (2008) emphasised that structures designed, constructed and maintained according to the Building Code of Australia and associated Australian standards have been found to perform well under current extreme climatic events. Nevertheless, to cope with climate change, adaptation requirements may require minor-to-significant investment upon consideration of cost benefit analyses of specific elements for local areas prior to making decisions. Decisions regarding amendments to design requirements in codes and standards should also be subject to careful cost-benefit analysis according to the Australian climate scenarios. Structures that have not been designed or constructed to the Building Code of Australia and associated Australian standards may already be vulnerable to current climatic conditions. Therefore, adaptation strategies should consider various classes of construction to determine the most cost effective action, be it no action (with reliance on emergency services and insurance) and retrofitting or replacement (Stevens, 2008). Relevant regulations and guidelines should be reviewed regularly considering related research on climate change and the development of practical adaptation measures (Stevens, 2008). In 2010, the ABCB conducted a review to assess how well the Building Code of Australia (BCA) could address potential environmental hazards under climate change, and found that minimal changes to the BCA were required under a ‘low- emissions’ scenario (ABCB (Australian Building Codes Board), 2010). However, the review noted that if the climate changed in accordance with a ‘high-emissions’ scenario, the current BCA is likely to be inadequate. In addition, the review identified possible adaptation options for the BCA to better manage environmental hazards and proposed areas where further research was needed. The Productivity Commission (2012) has found that buildings designed and constructed in accordance with the current standards under the BCA are likely to be ‘reasonably adequate’ under a ‘low-emissions’ scenario for the next 50 years. However, if the climate were to change in accordance with a ‘high-emissions’ scenario, the current BCA is likely to be deficient. The report noted that the latest climate science indicates a high-emissions scenario is likely in the medium-to-long term (2050 to 2100) and in this case the BCA will need to adapt in order to respond. The review contained a number of suggestions for potential adaptation options to improve the resilience of buildings, including:
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- lessening the impact of higher temperatures by using ‘passive solar design’ including the engineering solutions. - improving the chain of fixtures from roof to foundation and improving bracing to counter more intense cyclones and storms - increasing the capacity of gutters and flashings for managing increased rainfall intensity - increasing the efficiency of plumbing - avoiding construction in flood-prone areas and bushfire-prone areas - considering the use of hail-resistant materials in high-risk areas. 2. Financial budget (cost) and allocated funding A respondent raised an issue about how important allocated funding is and highlighted that, ‘funding is important, we actually have a really clear understanding of what it is costing now, what it will cost in the future and at the end we might find a funding decision.’ (AG4). The respondent continued to explain that having understood the required amount of costs needed for today and future decisions could drive strategic thinking for governments to make sure they will create long-term benefit and make a difference by using the funds (AG4). The budget or cost is substantial, as mentioned by an interviewee: ‘So for me it's cost. A cost is the critical one (because) infrastructure is simple. What cost is cost? Someone has to pay for it, so yes, all infrastructure is expensive because it's built for the long term so there’s key factors that we should consider to better adapt to climate change’ (AG2). The participant (AG1) who explained about several local governments’ inadequate capability and capacity in term of financial or human capital limitations specifically said, ‘… so they don’t have the money, they don’t have the resources to undertake that actions, so this is a big problem.’ (AG1). Discussion: The importance of sufficient capacity and resources in term of financial or human capital limitations are noted by Mukheibir, Kuruppu, Gero, and Herriman (2013) giving an example of when local governments find long-term, large adaptation projects that are beyond their capabilities. 3. Leadership Leadership has an important role for CCA in PAM (AG1, AG4). A respondent emphasised that, “… finding some senior political figures who are deeply
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committed to working on climate change will really help move that along’ (AG1). It was also said that strong political leadership is the single best solution to the challenges of coordination that still occur in CCA practices (AG1). Leadership is a substantial factor because the CCA practices require a good policy developed at the State and Federal Government to give each local government across Australia a clear direction on how local government should best undertake CCA including CCA for incorporation for PAM (AG1, AG4). Discussion: Leadership by governments on climate change adaptation is essential, mainly at early stages in understanding and preparing for the impacts. Leadership is a driver for change including the formulation and implementation of CCA. Leadership is the frontline that demonstrates commitment to the organisation’s vision, by which others are influenced, motivated, and engaged to implement CCA (Gupta et al., 2010). The leader plays an important role in managing to cope with challenges posed by climate challenge by carefully framing the CCA issue to make it more tangible and connect it to existing concerns (Stiller & Meijerink, 2016). It is argued that several mainstreaming strategies in CCA can complement and support each other, typically when combined with strong positional leadership (Stiller & Meijerink, 2016; Wamsler, Luederitz, & Brink, 2014). Dedekorkut and Sloan (2012) point out the importance of strong leadership to address the difficulty of coordinating a regional approach on climate change issues within regional planning systems in the State of Queensland.
Factors supporting for CCA for incorporation in PAM: a. Review building codes and standards. b. Provide funding c. Leadership
5.3.2.2 Factors hindering implementation of CCA in PAM The results from semi-structured interviews have identified three factors that hinder the implementation of CCA into PAM, as listed in Table 5.4. Table 5.4 Results from semi-structured interviews: Factors hindering implementation of CCA into PAM No Factors hindering 1 Difficulty to change planning scheme due to existing legislation
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2 Lack of public consultation and understanding 3 Climate change denial from politicians
The analysis of findings shown in Table 5.4 is explained as follows. 1. Difficulty to change planning scheme due to existing legislation Particular treatment in the legislation of state government, namely ‘injurious affection’, is considered to make it difficult for the councils in the state’s jurisdiction to change planning schemes to address climate change (AG4). The legislation stipulates funding mechanisms; that means if a council takes away someone's development rights by changing planning schemes, including the CCA projection in a certain area, accordingly those affected by the scheme can claim from the government compensation for loss value of their property (AG4). Discussion: Legislation in state government is considered to hinder planning for CCA has also been noted by Howes and Dedekorkut-Howes (2012), specifically explaining Section 704 of the Queensland Sustainable Planning Act 2009 that requires local councils to compensate owners when a planning decision reduces the value of their property. These decisions are all the more difficult given resources constraints, competing priorities from other policy areas within the council, and the power struggles between different levels of government. Howes and Dedekorkut-Howes (2012) describe that such conditions create a real risk of policy failure. There are a number of studies focusing on barriers in CCA and exploring ways to make CCA work. AGIC (2012) considers two main barriers to effective CCA resulting from lack of clear guidance on adaptation of ‘best practice’ for infrastructure and discounting of long-term costs and benefits. Current institutional and legislative frameworks at the level of local or state governments can be barriers because of relatively little transfer of expert personnel between the planning, building and insurance professions (D. King et al., 2012) and not taking into account local conditions are also barriers to CCA (Hadwen, 2012). 2. Lack of public consultation and understanding The lack of public consultation and ability to engage with the community are barriers in the development of CCA strategy (AG3). A previous climate adaptation project, the CHAS first project, did not go through the process of public consultation resulting in outcomes of the project (the developed strategies) were not fully addressing the real needs of the council (AG2, AG3). Moreover, lack of public
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understanding on the CCA issue is a barrier as community acceptance of CCA strategy is essential. People should be well educated about science because understanding climate change needs knowledge of basic scientific concepts. This circumstance affects the degree of public understanding and their acceptance of a particular issue in CCA (AG1). Discussion: Lack of public consultation that becomes a barrier is also mentioned by Poloczanska et al. (2012) when explaining about lack of community support resulting from poor communication with stakeholders. Hadwen (2012) highlighted the lack of system understanding as a barrier limiting the identification of effective adaptation options due to unknown thresholds of ecological resilience and lack of understanding about the interconnectivity within ecosystems. The combination of lack of public consultation and understanding will cause less acceptance and even worst conditions, in the form of public opposition hindering adaptation implementation. Cane et al. (2013) emphasised several barriers to CCA caused by lack of community support, current institutional and legislative framework, capacity and resource constraints, lack of system understanding, and lack of accessibility to up-to- date and relevant information. 3. Climate change denial from politicians It is interesting to note that an interviewee pointed out an experience faced by a council, that, “I think that is a political barrier. I’ve seen a council who wished to undertake climate change work, who were told by an elected official that climate change doesn’t exist.” (AG1). Another example is about different political views on climate change between the Federal Government and State Government that hinders and affects the policy and implementation of CCA (AG2). The interview participant explained, ‘So as you know that climate change is politically a thick issue… The previous government was just happy to look at the impact of climate change but didn't really want to deal with Climate Change Adaptation and Mitigation in a very strong line. So this (current) government is really taking a much more open kind of approach to it and it's also more consistent with what was happening between 2007 and 2012 where Climate Change Adaptation and Mitigation was talked much more freely’ (AG2).
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Discussion: Allman et al. (2004) studied local governments addressing climate change issues and found lack of commitment from elected members is a major issue. Issues raised by their constituents are generally prioritised by the elected members. If the majority of constituents believe that the effects of climate change are in the distant future, the impact on their community will be small and there is little they can do to prevent it; as a consequence, climate change is rarely high on the list of issues. To address this barrier, Howes and Dedekorkut-Howes (2012) suggest creating new measures in environmental protection through organisations that encourage intergovernmental cooperation. This organisation could plan such a program, generally having support from all sides of politics. Understanding the barriers to adaptation is important in decision-making because it could assist decision makers in determining necessary responses to climate change and the periods considered effective for adaptation; engaging with stakeholders to identify relevant issues; as well as prioritising adaptation strategies and refining their objectives (Measham et al., 2011; Morrison & Pickering, 2012).
Factors hindering for CCA for incorporation in PAM: a. Legislation barrier b. Lack of public consultation and understanding c. Climate change scepticism from politicians
5.3.3 Summary of elements to be considered in developing the generic framework The emerging categories and themes were analysed with reference to and reflection of the literature addressing issues (themes) that can be improved and, therefore, elements of framework for CCA for incorporation in PAM have been identified, as summarised in Table 5.5.
Table 5.5 Summary of elements to be considered in developing the generic framework Element of Generic Code Remarks Framework I. RECOGNITION OF I Climate change (CC) should be recognised at CLIMATE CHANGE national/local/organisational level to ensure climate change adaptation (CCA) could be formulated in policy, strategy and program. This recognition is a trigger or entry gate to take action in responding to the impacts/risk of climate change.
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Element of Generic Code Remarks Framework a) Prioritisation of assest to I.a Assets that needs to adapt to CC should be prioritised adapt considering several set criteria including climate risk, criticality of asset, geographical locations, budget availability. b) Tools and guidance in I.b Tools and guidance should be developed upon CCA formulation of CCA policy, strategy and program to ensure CCA could be put into action in an effective manner. II. CURRENT RISK II Existing risk management scheme should be MANAGEMENT considered when formulating CCA for incorporation in PAM in order to extend possibility of CCA implementation in the organisation. Accordingly, CCA could build on current risk management. a) Coastal hazard adaptation II.a CCA for incorporation in PAM should consider an strategy existing coastal adaptation strategy for synchronisation during formulation and implementation of CCA’s policy, strategy, and program. Therefore, CCA could build on current coastal adaptation strategy. b) Business Continuity II.b CCA for incorporation in PAM should be part of Management overall risk management of an organisation. Accordingly, CCA’s policy, strategy, and program should be synchronised with overall risk management including consideration of current business continuity management in the organisation. c) Local Adaptation Strategy II.c CCA for incorporation in PAM should consider Program existing local adaptation strategy for synchronisation during formulation and implementation of CCA’s policy, strategy, and program. III. INTEGRATED ASSET III Integrated PAM or asset life-cycle in Government MANAGEMENT AND ranging from asset planning, procuring, utilising to PLANNING IN ASSET asset disposal could ensure effectiveness in CCA for MANAGEMENT incorporation in PAM. CCA in principal could be applied in every phase of the PAM life-cycle. However, CCA should be firstly included in organisational strategic plan (PAM strategy and planning) to make sure selected adaptation plan option could be implemented. IV. ASSET USE AND IV Public asset manager should be knowledgeable on KNOWLEDGE public assets owned by Government in terms of, but not limited to, assets’ objectives, profiles, conditions, locations, and criticality. Understanding about public assets is important for the public asset manager to classify or map assets that need to have attention and to adapt to CC to ensure service delivery of the assets to public. V. ACCESSIBLE AND V All related information required in CCA for UNDERSTANDABLE incorporation in PAM should be accessible and easy CLIMATE CHANGE to interpret to users, especially for the public asset ADAPTATION managers. INFORMATION a) Guidance on utilisation of V.a Guidance on how to use relevant CC data sets climate change data sets (climate, risk, hazard, vulnerability, exposure, sensitivity, adaptive capacity, etc.) should be developed and provided by authorised organisations or government or research centre and be accessible and easy to understand by users, especially the public
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Element of Generic Code Remarks Framework asset managers. b) Guidance on V.b Guidance on translating CC scenarios (Sea level interpretation of climate rise/SLR, precipitation level, drought, etc.) into change scenarios policy, strategy and program should be developed by authorised organisations or government or research centre and be accessible and easy to understand by users, especially the public asset managers. c) Centralised information V.c Central place of source to retrieve relevant and knowledge information required about CC should be developed management by authorised organisations or government and be accessible by users, especially the public asset managers. VI. POLICY, DIRECTION VI Policy, direction and strategy in CCA especially for AND STRATEGY IN incorporation in PAM should be clearly formulated CLIMATE CHANGE and able to be implemented within agreed timeframe. ADAPTATION a) Clear coherent legislated VI.a Government should formulate clear coherent policy and direction in legislated policy and direction in CCA to ensure CCA public asset managers at all levels of government could implement CCA for incorporation in PAM. b) CCA strategy VI.b Government should design CCA strategy to ensure public asset managers at all levels of government could implement the strategy of CCA for incorporation in PAM. The CCA strategy should be synchronised with the overall Government strategy. c) Require consideration of VI.c Analysis of climate change impacts need to be climate change impacts in included as requirement in the phase of asset planning asset development prior to project development. VII. COMMUNITY VII Community members are important stakeholders that should get involved in developing CCA for incorporation in PAM. a) Community engagement VII.a Community should be engaged to ensure decisions on CCA adaptation options are well examined and able to be implemented with optimal participation from the community. Community engagement could prevent CCA option to be opposed or challenged by the community. b) Prioritising CCA for VII.b Vulnerable communities including the public assets in vulnerable communities the same area should be prioritised for CCA for and assets incorporation in PAM. c) Value of an asset to the VII.c Heritage assets should be carefully considered when community formulating policy, programs, and strategy in CCA for incorporation in PAM. VIII. PRIVATE SECTOR AND VIII Private sector and relevant stakeholders should get STAKEHOLDERS’ involved in CCA policy, program, and strategy. INVOLVEMENT a) Role of stakeholders VIII.a Internal and external stakeholders should get involved in CCA policy, program and strategy to ensure CCA for incorporation in PAM can be implemented. b) Private sector involvement VIII.b Private sector should get involved in CCA policy, program, and strategy in terms of providing ideas and funding. IX. SUPPORT FROM ALL IX CCA for incorporation in PAM should get support SIDES OF POLITICS from all sides of politics. Therefore, the strategy should be designed under any measure in environment protection enforceable in every jurisdiction under existing legislation. A national statutory authority
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Element of Generic Code Remarks Framework should also be established. X. COORDINATION X Coordination should be strengthened to ensure synchronisation in policy, program and strategy in CCA for incorporation in PAM. a) Levels of government. X.a Coordination between level of governments should be strengthened to ensure synchronisation in policy, program and strategy in CCA for incorporation in PAM. b) Sectoral plans. X.b Coordination between sectoral plans should be improved to ensure consistency and synchronisation of the existing plans considered interrelated, and to prevent duplications or repeated plans towards CCA for incorporation in PAM. c) Research being X.c Coordination between research being undertaken undertaken. should be strengthened to ensure synergy of research towards CCA for incorporation in PAM. d) Existing databases and X.d Existing database and data-sharing arrangements data-sharing should be coordinated to strengthen and ensure arrangements synergy towards knowledge management.
Factors: 1. Review building codes and F.1 Review of building codes and standards should be standards. undertaken especially in locations, intensity and frequency of environmental hazards expected to change due to CC. Nevertheless, decisions regarding amendments to design requirements in codes and standards should also be subject to careful cost- benefit analysis according to climate scenarios. 2. Provide funding F.2 Sufficient funding for CCA for incorporation in PAM should be available from internal or external sources 3. Leadership F.3 Leaders should be in the frontline demonstrating commitment to the organisation’s vision toward CCA by which others are influenced, motivated, and engaged to implement CCA. The leader should carefully frame the CCA issue to make it more tangible and connect it to existing concerns. Barriers: 1. Legislation barrier B.1 Legislations that hinder the CCA incorporation in PAM should be amended. 2. Lack of public consultation and B.2 Public consultation and understanding towards CCA understanding should always be promoted and exercised. 3. Climate change scepticism from B.3 Measures and programs should be designed to obtain politicians support from politicians.
5.4 DEVELOPMENT OF GENERIC FRAMEWORK The Generic Framework was developed based on qualitative responses received from semi-structured interviews in Phase I of this research and document analysis and literature review. The content analysis approach was utilised and sought to interpret meanings and explanations as the way interviewees perceived and understood CCA and PAM. The outcome of the analysis was concepts or elements to
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be considered in the framework for CCA for incorporation in PAM (Generic Framework). 5.4.1 The conceptual framework Guidelines for assessing the impacts and adaptation of climate change suggested by the IPCC (e.g. Carter et al. (1994)) and the United Nations Environment Programme/UNEP (Feenstra (1998)) are considered the standard approach (Burton et al., 2002). Nevertheless, the approach has been critiqued for its inability to provide adaptation responses and policy options due to lack of consideration of key actors or stakeholders or the policy context of adaptation (e.g. (Adger et al., 2009; Burton et al., 2002; Dessai et al., 2009). In addressing the above mentioned limitation, the risk management frameworks are increasingly proposed and accepted to be used, such as the Australian and New Zealand Standard AS/NZS 4360 Risk Management (currently AS/NZS ISO31000:2009 and AS5334:2013) (R. N. Jones (2001); Kirono et al. (2014); Lim et al. (2005)). In addition, the risk management framework (risk-based approach) is also recommended by the Federal Government of Australia to Local Governments in responding to the impacts of climate change (AGO, 2006; Fisk & Kay, 2010; Kennedy et al., 2010; LGAQ, 2007; Nursey-Bray, 2010). Therefore, the proposed generic framework in this research adopted a risk- based approach considering results from analysis of semi-structured interviews previously discussed in Section 5.3. In designing and developing the generic framework, the systematic approach in Australian Standard AS5334 in developing CCA plan for incorporation in PAM (see Figure 3.4 and 3.5) was applied. AS5334 consists of a risk-based framework for CCA for settlements and infrastructure (Standards Australia, 2013). It is a risk management framework derived from another Australian Standard, namely ISO31000, but tailored for climate change risk. The AS 5334 applies to infrastructure sectors including buildings, energy, water, green infrastructure, transport, communication, information communication technology and resource development (Standards Australia, 2013). The researcher also considered another existing guideline, the document titled ‘Climate change impacts and risk management: a guide for business and government’ published by the Australia Greenhouse Office of the Department of the Environment and Heritage, currently Department of the Environment and Energy (AGO, 2006). This document is a guide to integrating climate change impacts into
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risk management and other strategic planning activities in Australian public and private sector organisations. The steps taken in developing a framework for CCA for incorporation in PAM are explained in the following section. 5.4.2 Approach for designing of the Generic Framework based on AGO (2006) and Australian standards (ISO31000:2009 and AS5334) The approach provided in the document published by Department of the Environment and Energy (previously Australian Greenhouse Office, Department of the Environment and Heritage) titled ‘Climate change impacts and risk management: a guide for business and government’ and the Australian standards (ISO31000:2009 and AS5334:2013), was adopted in designing of the framework consisting of several major steps and associated key issues (components) that need to be considered in developing a CCA plan. These are summarised in Table 5.6. Table 5.6 Major steps and associated key issues in developing the framework No Major Steps suggested in AS5334 Key Issues
A TRIGGER FOR DEVELOPING • Investment ADAPTATION PLAN FOR • Perceived risk SETTLEMENTS AND • Approval requirement INFRASTRUCTURE Existing risk management being undertaken (e.g. ISO31000 Risk management, Principles and guidelines) B RISK ASSESSMENT AND • Governance Policies, Strategies, and ADAPTATION PLAN Regulations. • RISK ASSESSMENT is undertaken Hazard management through: • Data, Climate, Assets, and Benchmarks • - Risk identification Sector handbooks and guidelines • - Risk analysis Case studies - Risk evaluation • Climate effects • ADAPTATION PLAN is risk treatment Resources – capability and capacity resulting from Risk Assessment. • Community • Other standards • Geographical areas and infrastructure affected. C ACTIONS • Endorsement - Organisational • Accountability and Performance target - Sectoral • Collaboration - Integrated system response Source: Adopted from AGO (2006) and Australian standards (ISO31000:2009 and AS5334:2013)
The three major steps included in the process of developing the framework are as follows. STEP A
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The acknowledgement of the need for response to the impacts of the climate change is recognised as a ‘trigger;. The trigger for developing a CCA framework can be identified from at least three key issues, namely: (1) investment, (2) perceived risk, and (3) approval requirement. An organisation having an existing risk management framework in place, such as ISO31000, could integrate the proposed framework into their overall risk management processes. It is suggested as an effective way to ensure that climate change adaptation is considered as part of existing management and decision-making processes. Accordingly, the climate change risks are considered within the context of other risks that form multiple risk resulting in a more severe risk, which affects the organisation within a similar timeframe. STEP B This major step consists of two consecutive stages: risk assessment and the adaptation plan. Risk assessment is a process beginning with risk identification and followed by risk analysis and the evaluation of the risk. After completion of risk evaluation, a decision could be made to select risks that need treatment and priority for implementation. An adaptation plan as the next consecutive stage after risk assessment is also recognised as the risk treatment. Several key issues to consider in undertaking risk assessment and an adaptation plan, according to AS5334 are as follows: (1) Governance Policies, Strategies, and Regulations (2) Hazard management (3) Data, Climate, Assets, and Benchmarks (4) Sector handbooks and guidelines (5) Case studies (6) Climate effects (7) Resources – capability and capacity (8) Community (9) Other standards (10) Geographical areas and infrastructure affected. STEP C
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Action that should be implemented whether at organisational, sectoral or integrated system response. It is also required for consideration for ensuring the implementation of CCA by taking into account: (1) Endorsement (2) Clear accountability (3) Performance target; and (4) Establishing collaboration.
The above-explained three major steps are the process of developing a CCA plan including its associated key issues, as suggested by AS5334. The next section provides a detailed process in developing a CCA plan based on the results of analysis of the semi-structured interviews in Section 5.3. 5.4.3 Process for developing the Generic Framework The approach in Section 5.4.2 was modified by taking into account the results of analysis of semi-structured interviews, having resulted in 10 elements that need to be considered in the framework for CCA for incorporation in PAM (Generic Framework), including two other elements identified as factors that support and hinder the adaptation plan as presented in Table 5.5. There are five major steps (Step A to E) included in the development process of the Generic Framework by adopting the steps provided in ISO31000 and a guideline published by Australian Greenhouse Office (currently Department of the Environment and Energy). The step-by-step process for developing the Generic Framework is explained in detail as follows (AGO, 2006; Standards Australia, 2009, 2013): STEP A. ACKNOWLEDGEMENT, THE TRIGGER FOR DEVELOPING AN ADAPTATION PLAN Before starting to design a CCA plan, it is important to understand the trigger for developing an adaptation plan, since these triggers can influence the design of the framework. The key issues derived from AS5334 in Table 5.6 show examples of triggers, such as investment, perceived risk and approval requirement (Standards Australia, 2013). ‘Investment’ becomes a trigger when an organisation is in the process of developing a significant settlement or infrastructure, whereby analysis of the climate change risk affecting the infrastructure should be performed as part of the project planning. An
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organisation would also need to undertake risk analysis when investing in establishment of significant settlement or infrastructure. Other trigger is ‘Perceived Risk’ that could occur due to climate change as considered by an organisation or individual. An organisation may be concerned about the increasing sea level rise, rising temperatures, changing intensity of rainfall, and climate-related events such as storm surge and heat waves. ‘Approval requirement’ needed for a project is also a trigger to undertake a risk assessment and develop appropriate risk treatment through an adaptation plan and necessary actions. The trigger that has been identified by researcher as the results of analysis of semi- structured interviews is associated with the element of ‘Recognition of climate change’. This element consists of sub-elements, which has been explained in detail in Section 5.3.1. STEP B. RISK ASSESSMENT AND ADAPTATION PLAN Upon acknowledgement of the trigger for developing an adaptation plan for public assets, in other words there is a need to prioritise public assets to adapt if perceived to be affected by climate change; the next step is (1) establishing climate change context, (2) undertaking risk assessment, and (3) designing adaptation plan. B.1. Establishing climate change context Establishment of the climate change context is defining parameters to be taken into account when managing risk to public assets and setting the scope and risk criteria for the risk management policy, consisting of the following detailed activities: B.1.a) Define the scope The scope is to define what to incorporate and to exclude in risk assessment, such as the geographical region of public assets, the organisational boundaries, the timeframe to be covered, and the operational boundaries. As specified in the results of analysis of semi-structured interviews, the scope is associated with the elements of ‘Integrated AM and Planning in AM’ and ‘Asset Use and Knowledge’. B.1.b) Establish climate change scenarios The best available data and information from authoritative and credible sources should be obtained for use in risk assessment. The insufficiency of the observational base, measurement accuracy and analytical techniques have resulted in uncertainty in global and regional measures of observed climate change (Rayner, 2010). In order to
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address the uncertainty, Rayner (2010) suggests use of realistic scenarios of future global socio-economic development and possible emissions pathways. Therefore, the uncertainty will possibly be narrowed as national and international policies on reducing greenhouse gases emissions are developed and implemented. A range of scenarios used by IPCC are derived from the IPCC Special Report on Emissions Scenario (SRES) (Nakicenovic et al., 2000). Climate change scenarios applied in particular geographical regions and in particular timescales are used for managing risks to public assets. The results of the analysis of semi-structured interviews have identified the relevant element, namely, ‘Accessible and Understandable CCA Information’. B.1.c) Identify objectives Objectives are a set of topics that can be derived based on an organisation’s concerns on separate areas of focus and relating them to the climate scenarios, such as organisational functions or activities (public asset management consisting of activities, such as planning, procuring, utilising and disposal), geographical areas within the region of interest (areas vulnerable to climate change due to sea level rise, increasing rainfall intensity, drought) or certain types of public assets (e.g. office buildings, schools or hospital). Accordingly, the elements that can be considered as a result of the analysis of semi-structured interviews can be considered, such as ‘Integrated AM and Planning in AM’, ‘Asset Use and Knowledge’, and ‘Community’. B.1.d) Identify stakeholders Stakeholders are those having views that need to be considered, ability to contribute to the analysis, concern on public assets and PAM, and who need to be involved to achieve successful CCA. Stakeholders that can be considered include: public and internal organisations as the receivers of service delivery from public assets, other government agencies using the public assets, private sector having business contracts utilising public assets, and regulatory agencies and authorities, political and special interest groups. The results of analysis of semi-structured interviews have identified several required elements, such as ‘Community’, ‘Private Sector and Stakeholders’ Involvement’, and ‘Support from all sides of Politics’. B.1.e) External and internal factors
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The internal factors comprise the internal environment, in which objectives of public asset management should be achieved, such as governance arrangements in PAM, current risk-sharing arrangements, guidelines or standards used in public asset management and internal stakeholders within the organisation. The internal factors that need to be considered, are those such as, ‘Current Risk Management’, ‘Integrated AM and Planning in AM’, ‘Asset Use and Knowledge’, and ‘Policy, Direction and strategy in CCA’. The external factors comprise the external environment in which objectives of the public asset management should be achieved. The external factors that need to be considered, such as the elements, ‘Accessible and Understandable CCA Information’, ’Policy, Direction and Strategy in CCA’, ’Community’, ’Private Sector and Stakeholders’ Involvement’, ’Support from All Sides of Politics’, and ‘Coordination’. B.1.f) Risk criteria The risk criteria is used to evaluate the significance of risk. It is established that it describes the level of consequence of a risk that affects the organisation, specifically public assets and the likelihood of an event occurring. The combination of consequence and likelihood reflects a level of risk that helps an organisation select the priority for attention (Beer & Ziolkowski, 1995; Brooks, 2003; Brooks, Neil Adger, & Mick Kelly, 2005; R. Jones, Boer, Magezi, & Mearns, 2004). This risk criterion should be defined prior to identification of risks that affect public assets and should be reviewed regularly. It is also undertaken through clarification of the objectives or success criteria of the organisation (specifically in PAM) and consideration of legal and regulatory requirements of public assets. The element from the analysis of semi-structured interviews that have been identified for the risk criteria are,’Current Risk Management’, ’Integrated AM and Planning in AM’, ’Asset Use and Knowledge’, ’Accessible and Understandable CC Information’, ’Policy, Direction and Strategy in CCA’, ’Community’, and ’Private Sector and Stakeholders’ Involvement’. The risk criteria can be defined by three components as follows (AGO, 2006; Standards Australia, 2009, 2013): (1) Clarification of the objectives of organisation, success criteria for the organisation, and establishing measures to describe the level of consequence of a risk that affects the organisation.
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The level of consequence of the unexpected climate events that affect PAM is also defined by adopting the level consequence suggested by AS5334, guidelines published by Australian Greenhouse Office (currently Department of the Environment and Energy) (2006), and the Australian Building Codes Board (2010) as presented in Table 5.7.
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Table 5.7 Qualitative level of consequences
SUCCESS CRITERIA FOR MANAGEMENT OF PUBLIC ASSET
Service Infrastructure/ RATING delivery public asset Service quality Administration Social/cultural Services would Significant Services would Administratio Severe adverse be incorrectly permanent damage fall well below n and/or ICT human health targeted, and/or complete acceptable system of the effects, leading delivered late or loss of the PA and standards and this organisation to multiple not at all in a PA service. would be clear to would be events of total large number of Loss of PA support all seen to have disability or cases and translocation of failed and be fatalities. service to other in need of Total sites. external disruptions to intervention Catastrophic Catastrophic Early renewal of PA employees, by >90%. customers or neighbours. Emergency response at a major level. There would be Extensive PA The general Administratio Permanent isolated damage requiring public would n and ICT physical injuries instances of major repair. regard the system of the and fatalities services being Major loss of PA organisation’s organisation may occur. incorrectly service. services as would be Severe
Major targeted, unsatisfactory seen to be disruptions to delivered late or Early renewal of PA deficient and by 50–90%. employees, not delivered at in need of customers or all external neighbours. review There would be Limited PA damage Services would be Administrativ Frequent isolated but and loss of service. regarded as e and/or ICT disruptions to important Damage barely satisfactory system employees, instances of recoverable by by the general failings might customers or services being maintenance and public and the not be widely neighbours. poorly targeted minor repair. organisation’s seen but they Adverse human Moderate or delivered late personnel would cause health effects. Early renewal of PA concern if by 20–50%. they came to light There would be Localized PA service Services would be There would Short-term isolated disruption. regarded as be some disruption to instances of No permanent satisfactory by administrative employees, service delivery damage. Some the general public and/or ICT customers or failing to meet minor restoration but personnel system neighbours. acceptable work required. would be aware shortcomings Slight adverse standards to a of deficiencies demanding human health Minor Minor limited extent Early renewal of PA attention but by 10–20%. effects or they would general amenity Need for not be issues. new/modified regarded as ancillary serious equipment. failures Minor technical No PA damage, Minor There would No adverse faults in service little change to deficiencies in be minor human health delivery would service. principle that areas of effects. attract no would pass concern but attention without comment they would Marginal not demand special attention Source: Adapted from ABCB (2010); AGO (2006); Standards Australia (2013)
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(2) The likelihood of suffering the level of consequence As shown in Table 5.8, it provides qualitative measures of the likelihood of the identified climate change risk suitable for public assets. The probability of an unexpected climate event to occur is by adopting the level consequence suggested by AS5334, a guideline published by the Australian Greenhouse Office (currently Department of the Environment and Energy) (2006), and the Australian Building Codes Board (2010). Table 5.8 Qualitative level of consequences
Recurrent risks Single events Rating Rating Has happened several times in the past year and in More likely than not (probability greater each of the previous 5 years than 50%) Very Likely or Could occur several times per year Has happened during the past 5 years but not in As likely as not (50/50 chance) every year.
Likely or May arise about once in 25 year May have occurred once in the last 5 years Unlikely but not negligible (probability low or but greater than zero) Unlikely during the next 50 years. or
Unlikely Unlikely Unlikely and negligible (probability very small, close to zero) Source: Adapted from ABCB (2010); AGO (2006); Standards Australia (2013)
(3) Identifying level of risk and a priority for attention. The climate risk is already described above; accordingly, it can be presented in the form of a risk matrix as shown in Table 5.9. Table 5.9 Matrix of risk rating Likelihood Consequences Very Likely Likely Unlikely V-H H M-H Catastrophic
H M-H M Major
M-H M M-L Moderate
M M-L L Minor
M-L L V-L Marginal
Source: Adapted from AGO (2006); Standards Australia (2013); Beer & Ziolkowski (1995))
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The interpretation of the priority levels based on risk rating presented in Table 5.9 is as follows (AGO (2006); Standards Australia (2013)): a. Very High (V-H) risks demand urgent attention at the most senior level and cannot be simply accepted as a part of routine operations without executive sanction. b. High (H) and Medium-High (M-H) risks are the most severe that can be accepted as a part of routine operations without executive sanction, but they will be the responsibility of the most senior operational management and reported upon at the executive level. This issue also requires detailed research and planning at senior management level. c. Medium (M) risks can be expected to form part of routine operations but they will be explicitly assigned to relevant managers for action, maintained under review and reported upon at senior management level. This issue requires change to design standards and maintenance of assets. d. Low (L) and Medium-Low (M-L) risks will be maintained under review but it is expected that existing controls will be sufficient and no further action will be required to treat them unless they become more severe. This issue requires action through routine maintenance of assets. B.2. Undertaking risk assessment Upon completion of the establishment of climate change context, risk assessment can be undertaken. The risk assessment should consider available relevant data, current organisation policies, brainstorming, local and overseas experience, available guides as well as related government policies and requirements. It is also important to have communication and consultation with stakeholders as well as expert advice. This assessment is performed through the following process (Standards Australia, 2009): (1) Climate risk identification is aimed at generating a comprehensive list of risks based on events that might create, enhance, prevent, degrade, accelerate or delay the achievement of objectives. Relevant and up-to-date information is important in identifying risks. Those having sufficient knowledge in relevant risk should be involved in risk identification. (2) Risk analysis is a process of understanding the risk, which provides an input to risk evaluation and to decisions. (3) Risk evaluation helps in making decisions based on the outcome of risk analysis: whether risks require treatment and putting them in priority for treatment using
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risk criteria. The criticality of public assets to service delivery need to be considered in the decision making. The elements that should be considered in risk assessment have been identified from results of analysis of semi-structured interviews that are associated with ’Current risk management’, ’Integrated AM and Planning in AM’, ’Asset Use and Knowledge’, ’Accessible and Understandable CCA Information’, ’Policy, Direction and Strategy in CCA’, ’Community’, and ’Private Sector and Stakeholders’ Involvement’. B.3. Adaptation Plan The adaptation plan is developed after undertaking risk assessment. The adaptation plan is also recognised as ‘risk treatment’ resulting from risk assessment. The adaptation plan would be used by the organisation to implement their response to the threats posed by climate change. When selecting adaptation options, the values and perceptions of stakeholders should be considered as well as the most appropriate ways to communicate with them. One or more adaptation options should be identified for use to treat each risk that has been identified. All elements as results from analysis of semi-structured interviews should be considered in the adaptation plan. Several risk treatment or possible adaptation measures that have been identified from literature, as well as available adaptation policy specifically for building, is summarised in Table 5.10. A number of adaptation options can be considered and applied, either individually or in combination.
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Table 5.10 Climate change impacts on buildings and potential treatment/adaptation options Risk treatment Climate Impact Building Issue Risk Scenario (Adaptation Option) ∗ Flood Site stability -Increased ground -Preventing the siting of government ∗ Salinity movement buildings on floodplains and low-lying ∗ Sea level rise - Increased site erosion coastal areas. ∗ Drought and risk of landslip - Limit the use of floodplains for ∗ Rainfall intensity development through land use regulations. - The Government should avoid river flood plains and low-lying coastal areas when planning and approving future government building developments. - The engineering of structures in the floodplain to withstand flood forces e.g. levee banks, flood walls, dams. - Stronger foundations and design the building for flood loading and inundation. ∗ Flood Site drainage -Inability of drainage to -Design to ensure or permit the ready ∗ Sea level rise cope with water volume. drainage water to easily escape once ∗ Rainfall intensity - Storm water flowing flooding has subsided back into the building - Improve building and site stormwater drainage systems - Increasing drainage system capacity (stormwater drains, sewer connections, physical characteristics of catchment). ∗ Floods Structure -Inability of structures to Stronger foundations and design the ∗ Sea level rise cope with high wind building for flood loading and inundation. ∗ Drought loads ∗ Rainfall intensity - Inability of structures to cope with storm surge - Structural damage from water penetration ∗ Flood Foundations and -Undermining and/or Stronger foundations and design the ∗ Salinity Footings structural failure of building for flood loading and inundation ∗ Drought footings ∗ Rain intensity - Increased foundation movement damage caused by salinity and acid sulphate soils ∗ Drought Floor -Damage and movement -Consider multi-storey construction or ∗ Rain intensity including cracking and build a second or multiple stories and use material degradation the lower storey as non-living or ‘non- productive’ space. - Use or repair with water-resistant construction materials ∗ Drought Durability -Increased material Stronger foundations and design the ∗ Rain intensity degradation resulting in building for flood loading and inundation. structural damage. - Reduced lifespan of building materials ∗ Wind Roof and roof -Damage including -Routine inspection and care to ensure ∗ Temperature cladding cracking and material overflowing gutters do not leak back into ∗ Rain intensity degradation the building. - Roofing material - Upgrading the design of internal box and becoming airborne under valley gutters to cope with higher expected high wind pressure rainfall intensity. - Damage due to overflowing gutters ∗ Cyclones Wall and wall -Damage including Use or repair with water-resistant ∗ Salinity cladding cracking and material construction materials ∗ Temperature degradation ∗ Flood - Damage resulting from ∗ Sea level rise water penetration ∗ Rain intensity - Cladding material becoming airborne under high wind pressure
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Risk treatment Climate Impact Building Issue Risk Scenario (Adaptation Option) ∗ Flood Health and - Increased temperature Reduce internal temperature through the ∗ Sea level rise Amenity affecting building use of ventilation and circulation systems occupants where possible and to explore the - Dampness leading to possibility of external shading to reduce microbiological growth solar gain leading to increased allergies and respiratory problems ∗ Salinity Water penetration - Increased liquid -The ground around the building should ∗ Sea level rise pressure, from the correctly slope away from the building. ∗ Flood ground, damaging - Exceed or increase minimum floor levels ∗ Rain intensity materials above flood level. - Water penetration from - Install essential vulnerable or vital services surface water and equipment, such as lifts, boilers, plant, switchboards, computer networks, and telecommunications above the flood level. - Build a levee or flood wall around the building ∗ Drought Water use - Lack of available water -Promote the use of efficient water fixtures ∗ Temperature for building use and appliances, such as water efficient ∗ Rain intensity - Less reliable showerheads and more efficient toilet infrastructure leading to flushing in order to reduce building water more on-site water demand. harvesting - The public asset manager should propose system change in government building from relying primarily on public water infrastructure to being more self-sufficient buildings by collecting rainwater or reusing greywater. ∗ Drought Access - Movement and cracking Raise flood awareness and preparedness ∗ Salinity in access paths and steps with building occupants, including ∗ Temperature designing and providing information about ∗ Rain intensity access routes as well as consider access routes to reduce reliance on emergency services ∗ Drought Energy use and - Increased use of air -Promote the use of efficient air ∗ Temperature efficiency conditioners conditioners. - Insulation being - Reduce internal temperature through the inadequate for efficiency use of ventilation and circulation systems requirements where possible and to explore the - Efficiency of installation possibility of external shading to reduce and services being solar gain compromised by climatic conditions Source: Adapted from ABCB (Australian Building Codes Board) (2010); AGO (2006); (Amitrano et al., 2007); Cuny (1994); Freeman and Warner (2001); Otero and Marti (1995); Snow and Prasad (2011)
STEP C. IMPLEMENTATION OF ADAPTATION PLANS BY INTEGRATING INTO PUBLIC ASSET MANAGEMENT PLAN The climate change adaptation plan that has been developed is then used by the organisation to response to the threats posed by climate change. The implementation of an adaptation plan, to be effective, would require prior endorsement from the management, clear accountability and performance targets, collaboration with relevant stakeholders as well as external and internal factors.
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Several factors that have been identified from analysis of semi-structured interviews as supporting factors, become the enablers in the implementation of CCA for incorporation in PAM as follows: Factors supporting include: a. Review building codes and standards b. Provide funding c. Leadership. In contrast, several factors hindering the implementation of the framework should be overcome: a. Legislation barrier that could be addressed through availability of element ‘Policy, direction and strategy in CCA’. b. Lack of public consultation and understanding that could be overcome by introducing the element ’Community (i.e. community engagement, prioritising CCA for vulnerable communities and assets, and consideration of value of an asset to the community)’ and ‘Private sector and stakeholders’ involvement (i.e. role of stakeholders and private sector involvement)’. c. Climate change scepticism from politicians could be lessened by providing programs as suggested in the element, ’Support from all sides of politics’. In other words, the supporting factors need to be considered in the proposed Generic Framework, whilst the factors hindering the implementation should be addressed for the Generic Framework to be effective. The CCA plans integrated with PAM need to be consulted with appropriate stakeholders to define a timeline for implementation of the selected options. STEP D. MONITORING AND REVIEW An adaptation plan should be viewed as a ‘living document’ that will be updated periodically. Monitoring and review are activities that should be scheduled on a regular basis, as set out in the adaptation plan. These activities are aimed at ensuring the framework remains effective, appropriate, and within the policy. The review period could be arranged according to several factors, such as an organisation’s planning and budgeting cycle, release of relevant climate change projections or scenarios from respective and authoritative institutions and other factors related to the most current scientific information on climate change (Standards Australia, 2013). Accordingly, it is important to review elements of the framework to ensure the effectiveness and appropriateness of these elements. The process of monitoring
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and review could allow a public asset manager to learn from successes and failures and adjust the elements and the climate change adaptation options. Monitoring and evaluation are important vehicles in reflection and learning because climate change adaptation is a change process over time. STEP E. CONTINUAL IMPROVEMENT Continual improvement is aimed at improving the framework, considering results of monitoring and reviews previously undertaken. The decisions in improving the framework should be made to enable better risk management framework, policy and plan.
The summary of how the conceptual framework is adopted in developing the Generic Framework, after consideration of all elements (including the factors supporting and hindering) as results of analysis of semi-structure interviews, is presented in the following Table 5.11.
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Table 5.11 Analysis of how the conceptual framework is adopted in developing the Generic Framework CONCEPTUAL FRAMEWORK GENERIC FRAMEWORK INCLUDING ITS ASSOCIATED Framework adapted from AGO, PROPOSED ELEMENTS (ASSIGNED IN CODES IN BLUE BOX) ISO31000 and AS5334 Key Issues acknowledged in AS5334 (1) (2) (4) A TRIGGER FOR DEVELOPING ADAPTATION • STEP A: PLAN FOR PUBLIC ASSETS Investment ACKNOWLEDGEMENT OF TRIGGER FOR DEVELOPING ADAPTATION • Perceived risk • PLAN FOR PUBLIC ASSETS Approval requirement I
B RISK ASSESSMENT AND ADAPTATION STEP B: PLAN RISK ASSESSMENT AND ADAPTATION PLAN 1. Establish climate change context 1. Establish climate change context a. scope b. climate change scenarios a. Define the scope c. objectives III, IV d. stakeholders b. Choose climate change scenarios e. external and internal factors V f. risk criteria • Governance Policies, Strategies, and Regulations. c. Identify objectives III, IV, VII • Hazard management • Data, Climate, Assets, and Benchmarks d. Identify stakeholders • Sector handbooks and guidelines VII, VIII, IX • Case studies e. Identify external and internal factors • Climate effects • Resources – capability and capacity Internal: II, III, IV, VI External: V, VI, VII, VIII, IX, X • Community • Other standards f. define risk criteria • II, III, IV, V, VI, VII, VIII Geographical areas and infrastructure 2. Risk Assessment is undertaken affected. 2. Risk Assessment is undertaken through: through: - Risk identification - Risk identification - Risk analysis - Risk analysis II, III, IV, V, VI, VII, VIII - Risk evaluation - Risk evaluation
3. Adaptation Plan is risk treatment resulting from Risk Assessment. 3. Adaptation Plan is risk treatment resulting from Risk Assessment. - Appropriate adaptation plan(s) for - Appropriate adaptation plan(s) for II, III, IV, V, VI, VII, VIII,
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CONCEPTUAL FRAMEWORK GENERIC FRAMEWORK INCLUDING ITS ASSOCIATED Framework adapted from AGO, PROPOSED ELEMENTS (ASSIGNED IN CODES IN BLUE BOX) ISO31000 and AS5334 Key Issues acknowledged in AS5334 (1) (2) (4) each risk to be determined. each risk to be determined. IX, X - Implementation plan to be - Implementation plan to be developed. developed. C IMPLEMENTATION OF ADAPTATION PLANS BY INTEGRATING INTO PUBLIC STEP C: IMPLEMENTATION OF ADAPTATION PLANS BY INTEGRATING ASSET MANAGEMENT PLAN INTO PUBLIC ASSET MANAGEMENT PLAN FACTORS SUPPORTING: a. Review building codes and standards. b. Provide funding • Endorsement c. Leadership • Accountability and Performance target ADDRESSING FACTORS • Collaboration HINDERING: a. Legislation barrier VI b. Lack of public consultation VII, VIII and understanding c. Climate change scepticism IX from politicians
D MONITORING AND REVIEW STEP D: MONITORING AND REVIEW E CONTINUAL IMPROVEMENT STEP E: CONTINUAL IMPROVEMENT Source: Adapted from ISO31000 (2009), AS5334 (2013), AGO (2006))
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5.5 PROPOSED GENERIC FRAMEWORK The elements of the Generic Framework, resulting from analysis of semi- structured interviews (Section 5.3) with reference to and reflection from literature review, have been included in the framework. The systematic process of developing a framework for CCA for incorporation in PAM according to guidelines published by the Australia Green Office (AGO, 2006) and the process used in AS5334, ISO31000 has been explained in detail in Section 5.4. The risk from climate change and the requirement for adaptation needs to be considered for all stages in the lifecycle of public assets. The process in public asset lifecycle, ranging from planning to disposal, should be considered and elements of the Generic Framework should be integrated into all stages in the asset lifecycle to facilitate the treatment of risk (adaptation plan) from climate change being optimised and appropriate (Standards Australia, 2013). The ‘entry point’ for integration between climate change adaptation and public asset management in the famework is at the point after the step of Adaptation Implementation where it is connected to the Organisation Strategic Plan (specifically under Asset Management Strategy and Planning stage) of PAM. The integration, and putting the CCA plan into the selected adaptation plan for public assets’ overall organisational strategic planning, could ensure implementation of the selected adaptation plan for public assets. Based on the process undertaken as explained in previous sections and summarised in Table 5.11, the Generic Framework now can be developed as visualised in the following Figure 5.1.
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Figure 5.1 Proposed Generic Framework for Climate Change Adaptation for incorporation in Public Asset Management (Source: This thesis Author; AGO (2006); Standards Australia (2013))
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5.6 CONCLUSIONS This chapter discussed analysis and findings resulting from semi-structured interviews with four participants from the three tiers of governments in Australia with reference to and reflection of the literature. The frameworks have been formulated using a systematic risk-based approach and have identified elements required in the frameworks, including factors supporting and hindering implementation of CCA in PAM. The elements that need to be considered in developing the framework and the factors supporting and hindering implementation of climate change adaptation for incorporation in public asset management are as follows: I. RECOGNITION OF CLIMATE CHANGE a) Prioritisation of asset to adapt b) Tools and guidance in CCA II. CURRENT RISK MANAGEMENT a) Coastal hazard adaptation strategy b) Business Continuity Management c) Local Adaptation Strategy Program III. INTEGRATED ASSET MANAGEMENT AND PLANNING IN ASSET MANAGEMENT IV. ASSET USE AND KNOWLEDGE V. ACCESSIBLE AND UNDERSTANDABLE CLIMATE CHANGE ADAPTATION INFORMATION a) Guidance on utilisation of climate change data sets b) Guidance on interpretation of climate change scenario c) Centralised information and knowledge management VI. POLICY, DIRECTION AND STRATEGY IN CLIMATE CHANGE ADAPTATION a) Clear, coherent legislated policy and direction in CCA b) CCA strategy c) Require consideration of climate change impacts in asset development VII. COMMUNITY a) Community engagement b) Prioritising CCA for vulnerable communities and assets c) Value of an asset to the community
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VIII. PRIVATE SECTOR AND STAKEHOLDERS’ INVOLVEMENT a) Role of stakeholders b) Private sector involvement IX. SUPPORT FROM ALL SIDES OF POLITICS X. COORDINATION a) Levels of government. b) Sectoral plans. Several factors supporting implementation of CCA in PAM have also been identified, such as review of building codes and standards, provision of funding and leadership, whilst factors hindering are legislation barrier, lack of public consultation and understanding, and climate change scepticism from politicians. The selection of the approach used in developing the frameworks was based on reputation and establishment of the existing framework in practice and research. This could enhance the initial validity of the formulated framework and the possibility of framework implementation or applicability. Therefore, the risk-based approach has been considered for the framework development because, based on literature research, this approach is generally used by the Government of Australia and the United Kingdom Climate Impacts Programme (UKCIP) in their existing climate-related risk management. Management of climate change risks is often considered as an extension of existing risk management; accordingly it could build on existing climate risk arrangements. In developing a climate change adaptation plan, the researcher adopted an approach used in the Australian Standard (ISO31000 and AS5334) and a document published by Department of the Environment and Energy (previously Australian Greenhouse Office, Department of the Environment and Heritage) titled ‘Climate change impacts and risk management: a guide for business and government’. Several adaptation options from literature and previous research were also considered to be included in the framework, mainly in the stage of the Adaptation Plan. The adaptation options could give understanding to public asset managers on available options to assess, select and decide based on agreed criteria (e.g. no regrets, non- statutory, community, environmental, financial, cost benefit, and organisational capacity). The semi-structured interviews were conducted with interview participants from selected government agencies of Australia, however, the researcher does not
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investigate effectiveness and applicability of this generic framework to the Australian context because it is outside the scope of this research. The Generic Framework is considered as the “basic” framework that could be adopted and applied in other countries providing prior careful examination according to the conditions and environments of each country. The framework’s suitability to the local context should be deliberated with and agreed upon by the wide range of stakeholders, whereby further assessment of the viability of the options is required. This Generic Framework developed was also the “basic” framework to be implemented in Indonesia. This Generic Framework was then verified in order to ensure its usability and appropriateness in the context of Indonesia, as explained in the next chapters.
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Chapter 6 : Research Analysis and Findings in Phase II: Modification of Generic Framework for the Indonesian Context
6.1 INTRODUCTION Research analysis and findings in Phase II of this research are divided into two chapters. This chapter serves to modify the previously developed Generic Framework in order to ensure its usability and appropriateness in the context of Indonesia. The modified Generic Framework (Modified Framework) was derived from research analysis of results of semi-structured interviews presented in this chapter. The succeeding chapter (Chapter 7) serves to undertake practical application of Modified Framework to existing public assets (buildings) with public asset managers from participating organisations in Indonesia, through case study and observations. The case study was considered to be appropriate, as it would offer a reasonable level of interaction with public asset managers in using the Modified Framework. The Generic Framework was introduced to interview participants from two different groups of two different areas, those having responsibilities in PAM (first group) and participants working in an area related to CCA (second group). Accordingly, the researcher was able to identify elements of the Generic Framework that should be improved, according to comments and suggestion from interview participants, or remain unchanged. This chapter firstly explains the profile of interview participants in Section 6.2. It is followed by analysis of semi-structured interviews and discussions in Section 6.3. Section 6.4 discusses the elements in the Generic Framework that should be revised and the risk-based approach in CCA applied in Indonesia, resulting in the necessary modifications in the Generic Framework. Section 6.5 presents the proposed modified framework applicable to the context of Indonesia. Section 6.6 is the chapter conclusion.
6.2 PROFILE OF INTERVIEW PARTICIPANTS In Phase II of the research, the researcher interviewed two groups of participants consisting of those having responsibilities in PAM (first group) and participants working in an area related to CCA (second group).
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Several organisations participating in the interview were represented by more than one interviewee, hence there were 49 individuals from 41 organisations taking part in the interviews involving three level of governments in Indonesia, as well as participants from various backgrounds, such as governmental agencies, academics/scientist, non-governmental organisation and private sector. The interview participants are considered to have authoritative roles in shaping development of policy and implementation in public asset management (PAM) or climate change adaptation (CCA) in Indonesia. The majority of the interviewees were key persons in their organisations in term of current positions as middle-to-senior management ranging from Secretary General, Directors, Head of Agencies, Head of Regional and Operational Offices, Dean of a University, Head of Division and Director of a company. The first group were interview participants from 16 Central Government organisations, 7 organisations of the Provincial Government of Jakarta, and 2 organisations of the City Government of Semarang. The researcher classified the participants according to categorisation of task generally used by the Government of Indonesia, namely policy maker, asset manager and asset user as listed in Table 6.1. This categorisation represents different responsibilities and provides a broadened view in PAM. Table 6.1 List of organisations from PAM area according to tasks and respected levels of government Task Level Total Policy Maker Asset Manager Asset User National 16 5 3 8 Regional/Provincial 8 3* 1* 4 Local 3 1* 1* 1 27 9 5 13 *) Indicated a local government agency dual main functions as policy maker and asset manager
The full list of the first group of interview participants is shown in Table 6.2.
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Table 6.2 List of Interviewees from Indonesia with public asset management background Participant Institution/organisation Level Task ID AM1 Directorate General of State Asset National Policy Maker AM2 Ministry of Finance I National Asset Manager AM3 Directorate General of State Asset National Policy Maker AM4 State Asset Management Regional Office I National Asset Manager AM5 State Asset Management Regional Office II National Asset Manager AM6 State Asset Management & Auction Office I National Asset User AM7 State Asset Management & Auction Office II National Asset User AM8 State Asset Management & Auction Office III National Asset User AM9 State Asset Management & Auction Office IV National Asset User AM10 State Asset Management & Auction Office V National Asset User AM11 State Asset Management & Auction Office VI National Asset User AM12 Directorate General of State Asset National Policy Maker AM13 Ministry of Finance II National Asset User AM14 Office of Asset Management National Asset User AM15 Directorate General of State Asset National Policy Maker AM16 Ministry of Public Work National Policy Maker AM17 Provincial Government Agency I, Province of Jakarta Provincial Policy Maker/ Asset Manager AM18 Provincial Agency II, Province of Jakarta Provincial Asset User AM19 City Government Agency I, City of Semarang. Local Policy Maker/ Asset Manager AM20 Provincial Government Agency I, Province of Central Provincial Policy Maker Java. AM21 Provincial Government Agency II, Province of Provincial Policy Maker Jakarta AM22 Provincial Government Agency III, Province of Provincial Asset User Jakarta AM23 Provincial Government Agency IV, Province of Provincial Asset User Jakarta AM24 Provincial Government Agency V, Province of Provincial Asset User Jakarta AM25 City Government Agency II, City of Semarang. Local Asset User
The second group involved interview participants from climate change- related areas consisting of five Central Government’s organisations, one organisation of Provincial Government of Jakarta and three agencies of the City Government of Semarang. There were also three scientists, one business person and one CCA advisor to an NGO in Indonesia that took part in the interview. The researcher categorised the interview participants according to their main task, namely policy maker, scientist, business person and advisor (NGO) as listed in Table 6.3. This
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categorisation represents different responsibilities and provides a broadened view in climate change issues. Table 6.3 List of organisations from CCA area according to their tasks Task Level Total Business Policy Maker Scientist Advisor Person National 10 5 3 1 1 Regional/Provincial 1 1 - - - Local 3 3 - - - 14 9 3 1 1
The full list of the second group of interview participants is listed in Table 6.4.
Table 6.4 List of Interviewees from Indonesia with climate change background Participant Institution/organisation Level Task ID AC1 Ministry of Environment and Forestry National Policy Maker AC2 Central Government Agency I National Scientist AC3 NGO National Advisor AC4 University I National Scientist AC5 Central Government Agency II National Policy Maker AC6 Ministry of Fishery National Policy Maker AC7 Provincial Government Agency VI, Province of Provincial Policy Maker Jakarta AC8 City Government Agency III, City of Semarang. Local Policy Maker AC9 City Government Agency IV, City of Semarang. Local Policy Maker AC10 City Government Agency V, City of Semarang. Local Policy Maker AC11 University II National Scientist AC12 Insurance and Brokerage National Business Person AC13 Central Government Agency III National Policy Maker AC14 Ministry of Finance III National Policy Maker
The face-to-face, semi-structured interviews were conducted from July to September 2016. Upon the researcher’s return to Brisbane, phone interviews and email correspondence were undertaken for some issues that needed to be followed up to obtain further clarifications.
6.3 ANALYSIS OF SEMI-STRUCTURED INTERVIEWS This section presents the responses of interview questions from the respondents that represented three tiers of government in Indonesia, academics/scientist, non-governmental organisations and the private sector. The analysis of semi-structured interviews is interpretative content and a thematic approach exploring the interviewees’ thoughts about the Generic Framework
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developed in Phase I according to their understanding and experience in PAM and CCA. Each element of the Generic Framework (listed in Table 6.5) was discussed with the relevant interview participants. Table 6.5 Elements in Generic Framework I. Recognition of climate change II. Current risk management III. Integrated AM and planning in AM IV. Asset use and knowledge V. Accessible and understandable CCA information VI. Policy, direction and strategy in CCA VII. Community VIII. Private sector and stakeholders’ involvement IX. Support from all sides of politics X. Coordination
Factors: - Review building codes and standards. - Provide funding - Leadership Barriers: - Legislation barrier - Lack of public consultation and understanding - Climate change scepticism from politicians
The results from semi-structured interviews gave an idea about what part of the Generic Framework would work well in the context of Indonesia. The interview participants expressed their comments and suggestions, from which the researcher gained feedback in order to improve the effectiveness and completeness of the Generic Framework, resulting in modification its elements. The researcher identified 21 major pieces of feedback as responses on the elements of Generic Framework, as summarised in Table 6.6. The detailed explanation of each element and related feedback are described, followed by discussion.
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Table 6.6 Feedback for each element in the Generic Framework leading to modification of Generic Framework Feedback Element of Generic Framework (Themes) I. RECOGNITION OF CLIMATE a) CC is recognised as national/local issue CHANGE b) Current planning & budgeting of CC II. CURRENT RISK MANAGEMENT a) Existing risk treatment through insurance scheme b) Current responses to climate-related impacts III. INTEGRATED ASSET a) Asset planning is important MANAGEMENT AND PLANNING IN b) M and E on asset is important ASSET MANAGEMENT c) Need more financial budget for PAM d) Need to increase HR capability IV. ASSET USE AND KNOWLEDGE a) Asset use and knowledge V. ACCESSIBLE AND a) Need reliable data for CCA UNDERSTANDABLE CLIMATE CHANGE ADAPTATION INFORMATION b) Need centralised data on climate change VI. POLICY, DIRECTION AND a) Need support through leadership and STRATEGY IN CLIMATE CHANGE government commitment ADAPTATION b) Need sufficient law and regulations c) Need to strengthen monitoring and evaluation in CCA programs d) Need incentives VII. COMMUNITY a) Need promoting public awareness on CC issue VIII. PRIVATE SECTOR AND a) Need more involvement of academics and STAKEHOLDERS’ INVOLVEMENT private sector. b) Need research and practical implementation of CCA in infrastructure or public assets IX. SUPPORT FROM ALL SIDES OF a) Important role of legislative members POLITICS X. COORDINATION a) Need better coordination for timely and effective decision making b) Need to overcome silos and lack of coordination affecting climate change policy and implementation
6.3.1 Feedback on elements in the Generic Framework The feedback on each element of the Generic Framework in Table 6.6 is further explained and discussed. Several elements remain unchanged and the other elements were revised leading to modification of the Generic Framework (Modified Framework). Element 1. RECOGNITION OF CLIMATE CHANGE Feedback 1.a : Climate change adaptation is recognised as national/local issue Climate change is a multidimensional issue that covers a range of disciplines in various sectors from science or disciplines to various sectors, thus it is not merely an environmental matter but also an issue of development (AC3, AC8). The recent Ministry of Environment and Forestry (MOEF) regulation on ‘Guidelines for the Preparation of Climate Change Adaptation Action’ has been established to ensure
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the climate change issue is considered in national and regional/local development (Mid Term National Development Planning [RPJMD]/Mid Term Regional Development Planning [RPJMD]) (AC1). The current SEA (the strategic environmental assessment) in Indonesia has included the climate change issue and its related analysis could be used by government as inputs for CCA planning, particularly in relation to spatial planning (AC1). The CCA issue is still at an early stage in Indonesia compared to that of climate change mitigation; that is why the MOEF and other agencies at national and local levels are putting in big efforts to convince the stakeholders about the importance of CCA. The Indonesian Ministry of Public Work and Housing (MPWH) has shown its concerns on the CCA especially in spatial planning, however the CCA is also still at an early stage in MPWH (AC1). The environmental changes have affected public assets as indicated by the degradation of economic life of public assets such as buildings, road, and irrigation facilities due to sea level rise, increase of precipitation, sea water intrusion and inundation (AM19). Several government buildings have been inundated by sea water, which requires the government to elevate the floors of the buildings for continuation of current use of assets (AM19).
Feedback 1.b : Current planning & budgeting for climate change The Central, Provincial and Local Governments should have concerns in planning and budgeting for CCA policy development (AC1, AC4, AC5, AC14). The Indonesian Government has developed a National Action Plan on Climate Change Adaptation (RAN-API) to identify and formulate initial planning and budgeting on national climate change adaptation (AC14). The governments should be more knowledgeable and specific in budget allocation, whether it is for climate change adaptation or mitigation use followed by having performance measurement of CCA (AC1). The local governments need to pay more attention to the climate change issue, because it is local issue (AC1, AC5). Accordingly, the agency of local government development (BAPPEDA) should consider climate change mitigation and adaptation in its local government development planning (AC1). Implementation of CCA will face difficulties without support from Central, Provincial and Local Governments.
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A respondent put more emphasis on the financing issue, in that the ‘financing factor is important because this climate change policy is costly’ (AC5). A study on Climate Landscape Indonesia in 2011 revealed that the National Budget of the Republic of Indonesia (APBN) has contributed approximately 66.7% of all funding required in national climate change policy, for which other sources of financing are coming from the Regional Budget (APBD) and international donors (AC14). Implementation of climate change policy is slow because it is also about funding required. It seems that national budget for climate change adaptation is insufficient and policy on cost and benefit analysis mechanism needed in climate change adaptation is still absent (AC3). It is necessary for the government to build an enabling environment to address this climate change phenomenon, such as what the economic benefit looks like or the funding scheme for CCA, because the government has limitations and competing programs to prioritise (AC3, AC14). Discussion: Climate change issue has been recognised in the country for the last decade as indicated by several existing legislations incorporating climate change mitigation as part of policy in the government. The Indonesian Ministry of Environment and Forestry (MOEF) is responsible for nationwide coordination, monitoring and evaluation of climate change. In addition, the Indonesian Government also set up Law number 32 of 2009 on Environmental Protection and Management, in which climate change adaptation is part of the strategic environmental assessment (SEA). Nevertheless, the climate change adaptation (CCA) issue is still at an early stage in Indonesia; accordingly for the CCA to be implemented it should be included in the national/local agenda of development. The Indonesian government and international donor’s country and organisations have also supported the country to finance the climate change policy and implementation. Climate change has been well recognised by interview participants with climate change-related background from three levels of government in Indonesia. Interview participants working in PAM mostly have heard about climate change, however, they still have limited knowledge about climate change or CCA for public assets and PAM.
Proposed element in Modified Framework: 1. Recognition of climate change a. Climate change adaptation as national/local issue
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b. Planning and budgeting for CCA
Element 2. CURRENT RISK MANAGEMENT Feedback 2.a : Existing risk treatment through insurance scheme The Provincial Government of Jakarta has already insured several assets including buildings especially public assets in areas vulnerable to natural disaster, primarily from flooding (AM17). The City Government of Semarang has also included its particular assets in insurance programs (AM19). The Central Government of Indonesia has been planning insurance scheme for public assets expected to take effect in 2018 but it is still subject to budget approval (AM1). A participant from the insurance industry in Indonesia was involved in this research. The participant explained that the floods have more frequently occurred due to an increasing level of precipitation that caused bigger insurance claims than any other type of natural disaster event in the last 10 years (AC12). Several insurance companies have avoided or withdrawn from some areas where risks, especially flood risk, are already considered high. In other words, the level of occurrence of climatic-related disasters become no longer suddenly and unforeseen events, such as inundated areas due to gradual increasing sea level rise (AC12). The extremely powerful cyclones (hurricanes and storms) rarely occur in Indonesia (AC12). The increasing temperature due to climate change is also intermittent and insignificantly impacts insured objects, especially buildings (AC12). The Indonesian insurance industry would anticipate the market, especially the risk of natural disaster with or without consideration of climate change. Several products of insurance have coverage schemes that include flood risk for buildings or property, whereby every insurance company has its own policy and mechanism in accepting a certain level of flood risk. In general, insurance companies possess a flood map generated by an external party or authorised sources and use it in risk assessment and insurance acceptance policy (AC12). They also rely on historical data of floods in determining the amount of an insurance premium, which should be compliant with regulation of the Financial Services Authority (Otoritas Jasa Keuangan/OJK) Number 21/SEOJK.05/2015 (AC12).
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Feedback 2.b : Current responses to climate-related impacts The existing policy of the Provincial Government of DKI Jakarta is believed to have already responded to climate-related natural hazards including the impacts of climate change to public assets through building/elevating roads; raising the floor of government buildings; building the sheet piles in coastal areas to anticipate for the next 50 years; and normalisation strategies for river bed sediments (AM17, AM18). The City Government of Semarang has been responding to climate-related disaster especially to the occurrence of flood events caused by sea level rise (AM19). The policy of the City of Semarang has been in place to anticipate the impact of floods to public assets, such as through the provision of additional water pumping systems for flood protection; recondition of office buildings and schools; raising the floor and roof of government buildings; road elevation; building sea walls; building gabion walls (bronjong); normalisation strategies for river bed sediments; building retention basin (embung); and insurance coverage (AC11, AM19, AM25). An agency responsible for asset management at Provincial Government level has branch offices consisting of five Asset Management Offices in five regions in Jakarta. These Asset Management Offices have limited responsibilities, mainly focussing in administering the asset owned by the Province of DKI Jakarta. Each local government agency in Jakarta, or the asset user, is responsible for managing their own assets if they are affected by floods (AM17, AM18). The interview participant has identified and inventoried the affected assets for future asset planning and monitoring. Although several local government assets have been damaged, decreasing in value, functions and economic life, and even swept away by floods in the past, the Asset Management Offices still have no strategy for management of assets affected by climate change (AM18). Several public assets owned by the City Government of Semarang have been affected by this sea level rise in three Districts, such as Genuk District, North Semarang District, and Tugu District (AM19, AM25). The researcher and the asset manager of the City of Semarang have observed local government buildings of Terboyo Wetan Sub-district office that have frequently experienced flooding events due to sea level rise and intense rainfall, as shown in Figure 6.1. The coloured arrows in the pictures indicate the height level of floods that recently occurred (AM19).
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A B
C D
Figure 6.1 Office building of Sub District (Kelurahan) of Terboyo Wetan, District Genuk, City of Semarang experiences frequent tidal flooding. (A) Front view of the building; (B) Floor elevation to adapt with frequent tidal flooding in the area; (C) The level of flooding; (D) Tidal flooding in front of the building. The City Government of Semarang also has policy to ensure the continuation of public services it delivers. Several strategies in the public asset management of the City of Semarang that have been undertaken are as follows: (1) mapping the public asset at risk locations; (2) assessment of public assets for further policy formulation in consideration of relocation, change in design of public assets and utilisation of available technology; as well as dissemination of information to asset users about how to manage the affected public assets due to floods (including the business process in insurance of buildings and asset procurement/recondition) (AC10, AC11, AM19, AM25). Some examples of adaptation, which have been implemented by the City Government of Semarang, are relocation of district office of Genuk and merge of schools from areas at risk of landslide to other safer school buildings at District Ngaliyan. Discussion: Insurance schemes of selected assets have been existing risk management on public assets in the Provincial Government of DKI Jakarta and City of Semarang. Nevertheless, existing risk management on public assets of the Central Government of Indonesia was still considered lacking as indicated by no
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insurance scheme for its assets at the time this semi-structured interview was conducted. In addition, climate-related policies have also been in place as measures mainly for flood protection due to increasing rainfall intensity and sea level rise, causing tidal flooding. As reported by BAPPENAS (2014) in RAN- API, the two cities (Jakarta and Semarang) are recognised as the most vulnerable area in Indonesia due to climate change, climate change risk management could build on existing risk management to public assets.
Proposed element in Modified Framework: 2. Consideration of current risk management a. Insurance b. Responses to climate-related impacts
Element 3. INTEGRATED ASSET MANAGEMENT AND PLANNING IN ASSET MANAGEMENT Feedback 3.a : Asset planning is important The asset planning and budgeting must also be synchronised and meet the real asset needs (AM2). The grand design in PAM is important as the number and value of government assets are growing, such as acquiring from asset procurement, transfers and acquisitions (AM17). The asset planning stage in a PAM process should be integrated with a budgeting function (provisions of funding for purchasing assets). The asset planning should consider current conditions and availability of government budget in order to minimise existing and future surplus or idle assets. A respondent from the Provincial Government of DKI Jakarta stated, ‘Asset procurement or asset planning and budgeting must be synchronised and compliant with current policy… to maintain good quality… and also the procurement process is supposed to be simpler, not complicated in terms of its procedures.’ (AM17). The Central and Local Governments have been working on the integration of asset planning and budgeting functions through the ICT system. Although the Central Government has already put several regulations in place in the last decade, more specific regulations are still needed due to contemporary development of other government policies in relation to PAM in Indonesia (AM4). The regulation on asset planning in Provincial Government of DKI Jakarta has been in place for several years, however, it still needs improvement and
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alignment with a whole of government budgeting plan and asset need analysis (AM17). In other words, the Provincial Government of DKI Jakarta is still improving asset planning and budgeting through the ICT System. The importance of asset planning was also mentioned by the public asset manager of the City of Semarang (AM19). Other local government agencies as users of assets are responsible for the design and proposal of asset planning, such as through procurement/purchasing or recondition of public assets for anticipating future flood risk, including asset relocation and change of building design (AM19). Whilst, the Agency of Asset Management of City of Semarang is tasked with: (1) monitoring whether budget for procurement of new public assets or maintenance of existing assets affected by recent floods or other disasters are already secured within asset planning for the next fiscal year of the local government budget (APBD); and (2) updating the profiles or inventorying of assets based on current conditions after the assets have been affected by flooding or other disasters for further actions, such as continuation of use of asset or disposal (AM19). Feedback 3.b : Monitoring and Evaluation of asset is important Monitoring and Evaluation (ME) in PAM is necessary to promote better communication and coordination as well as improve Public Asset Management process. ME has significant impact as it entails less correspondence between asset management actors upon an issue, is time efficient in decision making as well as enriching the highest and best use analysis of public assets by reducing the number of existing, underutilised assets (AM8). Feedback 3.c : Need more financial budget for PAM More financial budget provision (funds availability) in Public Asset Management is also still needed as mentioned by a participant from the City Government of Semarang. The public asset managers face increasing challenges in undertaking their job that brings the consequences of more budget being required for implementation in the asset life cycle from asset procurement, maintenance, utilisation to disposal (AM19). Feedback 3.d : Need to increase human resources capability Public asset managers, especially in local governments, still tend to do business as usual. Public asset management requires strategic thinking for managing assets as a government’s portfolio (AM2, AM4, AM5, AM11, AM17). An asset
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manager must have capability to determine the best use of assets, whether utilisation for commercial use in the forms of asset lease or commercial partnership or for government use only (AM11, AM17). The degree of capability of those responsible in managing public assets varied across the country, accordingly more supervisions from middle management or regional offices are necessary (AM2, AM5, AM12). This condition become complicated due to the shortage of personnel that contributed to inadequate supervision (AM8, AM22, AM23, AM24). PAM is not the main function of most line ministries/government agencies (AM1, AM4, AM2, AM5, AM12). They are less concerned with PAM as indicated by appointment of outsourced personnel without sufficient skills to manage government assets (AM1, AM5, AM9). Line ministries/government agencies and local governments hire part-time or temporary workers with less expertise (AM5, AM9, AM19). The part-time or temporary workers are generally paid lower than permanent workers in governments due to the limited budget of governments. An example of lack of HR capability was shown by respondents from local government in a state primary school, which shows a shortage of personnel having asset management skills (AM17, AM22, AM23, AM24). As a consequence, the school’s teachers should undertake extra responsibility for managing the school’s assets (AM23). Discussion: The element of ‘Integrated AM and planning in AM’ was considered substantial in the Generic Framework by most of interview participants. They acknowledged this element should be in the Generic Framework, although, several aspects in the PAM would require improvement to ensuring integrated PAM to be completely in place through the availability of ICT and a reliable database of assets, better planning of assets, more financial support for PAM, strengthening monitoring and evaluation of assets, and better human resources capability. The importance of an AM plan was specific in the issues discussed with the interview participants. This needs to be revealed as an element of the Generic Framework, since it is acknowledged as an entry point for CCA to be incorporated in PAM, by interview participants with PAM background.
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Proposed element in Modified Framework: 3. Integrated AM and planning in AM a. Asset planning b. M and E of asset c. Financial budget for PAM d. HR capability
Element 4. ASSET USE AND KNOWLEDGE Feedback 4.a : Asset use and knowledge Indonesia is a developing country, in which assets are still growing in number in order to support national development. The types of assets owned by both Central and Local Governments vary considerably at significant value (AM1, AM22). The value of Central Government assets is approximately IDR1,731 trillion (AU$165 billion), being in the form of land (49.66%), equipment and machinery (13.5%), buildings (9.12%), roads, irrigation systems and transmission networks (20.19%) and other fixed assets (1.84%) and construction works in progress (5.7%). The local governments have also a great number of assets such as land, state schools and health clinics for the public (AM17, AM19). The large number of assets have not been fully supported by an established ICT system and computerised database of assets. Central Government assets are more concentrated in three major islands of Indonesia (Java, Sumatra and Bali) whereby without the availability of an established computerised database the Government still struggles in managing public assets properly (AM1, AM22). The significant number of Government assets is also spreading across the country and overseas (AM1, AM17). Several public assets are also located in flood– prone areas and some already have been swept away by floods just a few years after being built (AM17, AM19). The local governments of Jakarta and Semarang faced budget constraints on the one hand, however they should prioritise acquiring a new asset on the other hand. In the past, they have built new property on their own land because of the immediate need for public assets to serve the public, however the risks of flooding and increasing sea level rise, especially due to climate change, have not been fully anticipated at the time of construction (AM17, AM19). Several Central and Local Government assets are still utilised for public services, although they are situated in ‘at risk’ areas such as those being flood prone or subject to inundation of sea level rise, as shown in Figure 6.2.b and 6.2.c. These
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assets sometimes get inundated for short periods of time and thus interrupt public services. Although governments have other available choices, through new purchase or lease of assets in more secured areas, however due to budget constraints, new asset acquisition will not always be possible or immediately available. The risk of flooding and increasing sea level rise due to impacts of climate change mostly have not been considered at the time of construction for existing buildings (AM14, AM17, AM19). The researcher and the asset manager of the Provincial Government of DKI Jakarta have observed government buildings located in the flood prone area due to sea level rise, as shown in Figure 6.2.c. The flood has forced Central Government to move from its inundated office (Figure 6.2.b) to a new built asset in another secured area.
b c
d
Figure 6.2 Different Asset Condition: (a) The Central Government Asset in Jakarta; (b) The Central Government Asset in Semarang; and (c) Local Government Asset of DKI Jakarta; (d) Local Government Asset of Semarang; (Source: This thesis Author; Bisri, Salim, and Suroso (2012)) Discussion: The element of ‘Asset use and knowledge’ has been the longer and more detailed matter discussed with the interview participants, because public assets are the main topic in this study. The participants also have concerns on current issues in
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public assets and PAM and how to address the issues in order to ensure CCA strategy could be suitable and prioritised in the context of Indonesia. Several concerns on public asset use and knowledge have been categorised into: a significant number of Government assets: asset locations: legal documents of ownership; land certification; improving asset administration and protection; and establishing and amending regulation. In conclusion of the discussion on this element, the interview participants especially those with PAM background mostly approved this element in the Generic Framework.
Proposed element in Modified Framework: 4. Asset use
Element 5. ACCESSIBLE AND UNDERSTANDABLE CLIMATE CHANGE ADAPTATION INFORMATION Feedback 5.a : Need reliable data for CCA Scientific base information, including the process of analysis of the information according to reliable data, should be provided by the department charged with data provision in Indonesia (AC1). The assessment of climate change in the context of Indonesia requires data and information from the Central Statistics Agency (BPS) and Indonesian Agency of Meteorology, Climatology and Geophysics (BMKG) (AC1). The BMKG has provided data for downscaling purposes in some areas in Indonesia by using global data represented in low resolution covering a grid of 100 kilometres, which is still difficult to read; accordingly, the BMKG has improved the resolution to a grid of 20 kilometres crossing the country (AC5). The agency is still working on better resolution to a grid of 5 kilometres with priority forJava and Sumatra. Research and document reports on regional climate change in Indonesia written by Indonesian and international researchers are still very limited in number. This circumstance has triggered BMKG to collaborate with other countries in South East Asia on a project of downscaling (AC5). A policy maker in national climate change adaptation policy mentioned the importance of relevant climate change database availability (AC1).
Feedback 5.b : Need centralised data on climate change Efforts in development of a knowledge management system in relation to climate change projects in Indonesia are not yet optimal (AC3). It is suggested that,
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‘The National Development Agency (BAPPENAS) should take action in the development of knowledge management. The data is still scattered in different organisations or individuals and still partially documented due to the absence of a knowledge management system’ (AC3). Many climate change projects have been undertaken in Indonesia, however, duplication of, or overlapping of projects undertaken by different institutions, occurred due to the absence of a knowledge management system of climate change (AC3, AC5). More coordinated efforts are needed in addressing this issue (AC3). The local governments should play a more significant role in providing accurate data regarding their own regions. It becomes a challenge for local governments to develop more specific data in their own regions that can be used in CCA policy with assistance from research institutions or local higher education institutions (AC1). The readiness of higher education institutions having the ability to analyse climate change vulnerability in their regions is essential in CCA (AC1, AC2). The Ministry of Environment and Forestry has developed a web-based tool known as SIDIK (Information System of Vulnerability Index Data) built to assist vulnerability assessment in some regions in Indonesia (AC1, AC5). The SIDIK utilises data and information from BPS, BMKG, Geospatial Information Agency (BIG), the Indonesian National Board for Disaster Management (BNPB), and other specific sectoral data as input. However, some other types of data at national level for certain variables and regions still needs to be generated (AC1). Through a process in SIDIK, the user could generate output as information on sensitivity and exposure index, adaptive capacity index, coping range index and climate risk.
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Figure 6.3 A web-based tool known as SIDIK (Information System of Vulnerability Index Data) developed by the Ministry of Environment and Forestry Discussion: Only interview participants with climate change background have discussed the element of ‘Accessible and understandable climate change adaptation information’ with researcher. The policy maker, climate change data provider, scientist and advisor/consultant of NGO have expressed their thoughts about two major issues from this element, namely the need for a reliable data set on CCA, centralised climate change data and availability of knowledge management on climate change. The climate change scenario and baseline have not been discussed in detail by the interview participants, because they assumed that these two components are included in a reliable data set on CCA.
Proposed element in Modified Framework: 5. Reliable data set on climate change a. Reliable data for CCA b. Centralised data on climate change
Element 6. POLICY, DIRECTION AND STRATEGY IN CCA Feedback 6.a : Need support through leadership and government commitment Leadership and government commitment are the most considerable elements in PAM in Central Government and Local Governments alike (AC2, AM1, AM2, AM4, AM5, AM6, AM7, AM8, AM9, AM10, AM12, AM13). It is highlighted in the statement of one interview participant that, ‘we need support from the highest
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leader of this country, the President. As well as full support from the leaders in the cabinet.’ (AM4). A participant from the Provincial Government of DKI Jakarta emphasised the importance of leadership shown by the participation of Jakarta as a member of the 100 resilient cities program undertaken by the Rockefeller Foundation (AC7). This participation has indicated Jakarta is led by innovative mayors having experience, such as recent catalysts for change, history of building partnerships and ability to work with a wide range of stakeholders. It is also stated by another interview participant that, ‘leadership is required in every level in government for the success implementation of plan’ (AC8) and ‘leaders’ commitment in PAM can also be reflected in approval of proposed budget needs for asset management’ (AC9). However, PAM is still of less concern to most asset users (line ministries and government agencies) because asset management is not their core organisational function (AM2). The level of awareness and commitment by the leaders in most line ministries or government agencies should be improved and increased. They are supposed to view and manage public assets as if these public assets are their own assets (AM1, AM2, AM16, AM17). The sense of ownership of assets is important because not all line ministries and government agencies have the ability to maximise the use of assets for the main functions and better performance of their own organisation, such as in the implementation of the highest and best use of assets or in generating revenue from managing their assets (AM1, AM2, AM4, AM5, AM9, AM10). The awareness and commitment should be complemented with compliance with existing regulations, in order to better manage public asset as well as add value and benefit from assets (AM2). Feedback 6.b : Need sufficient law and regulations The sufficient law and regulation and its enforcement are the most fundamental factor of effectiveness of PAM in Indonesia (AM1, AM2, AM3, AM6, AM7, AM9, AM10, AM11, AM14, AM22). Regulation is imperative to ensure government decision making in CCA is reliant upon research-based policy and anticipates potential resistance from several local governments and private sectors on climate change issues (AC2, AC14, AM16, AM17). Several regulations on climate change mitigation have been established in Indonesia, nevertheless, more regulations on CCA focussing on specific sectors such as assets and infrastructure are still needed and should be in place as explained by five respondents from different roles,
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such as scientist (AC2), Policy Maker (AC5) and Asset Management Practitioners (AM8, AM16, AM17). A detailed example was given by a respondent about the need to have regulation in place, to be established by the Ministry of Internal Affairs, in order for a local government’s planners to be more knowledgeable about climate change (AC2). The regulation is important to ensure CCA strategies are included or mainstreamed in future local or regional development (AC2). An interviewee from the Provincial Government of DKI Jakarta stated the need sof supervisory and law enforcement are substantial in mainstreaming CCA in Indonesia, as one respondent mentioned, ‘Firstly, I think about supervisory and law enforcement. Today many regulations are already in place. They are good but lacking supervision on the implementation from the beginning. If there is no law enforcement, the regulation becomes nothing. So, in my opinion, those two things are imperative. The supervision is a preventive measure, isn’t it? Before anything happens’ (AM17). The participant also emphasised the need for regulation on buildings to include the use of specific materials for buildings to anticipate future impacts of climate change, as follows, ‘It is for asset resilience. It will extend the economic life of assets. When a building is developed, it needs specific materials. I believe it has significant impacts. It should be included in the regulation. If not included in the regulation, people feel no obligation to do so.’ (AM17). Although most Central and Local Governments are aware of climate change issues, however for CCA incorporated in PAM they are still doing their business as usual in terms of building material use for public asset development (AM20), because no specific regulation is in place for addressing the climate change issue for PAM. This circumstance will make them be under no obligation to implement CCA strategies, especially in PAM (AC1). There is also a regulation hindering local government development such as regulation on a multi-year development project including future climate change adaptation policy. Under current regulation, local government is not permissible to have a multi-year development project that exceeds the maximum administration term of the current incumbent Governor’s administration (AC7). In other words, for example if a Governor as the head of a province has only two remaining years of
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his/her tenure as governor, no multi-year project exceeding two years would be approved. Effectiveness has been proven by the Central Government in imposing disciplines of public asset managers and the public to comply with PAM regulations upon issuance of three laws in Government Finance in 2003-2004. After these laws took effect, the responsibility and authority of actors in PAM is now clear, being Line Ministries/Government Agencies as asset users and Ministry of Finance as policy maker and asset manager (AM3). The law and regulation are key factors that play a role as a tool called ‘social engineering’ including the punishment/sanction measures important to promote discipline in PAM in Indonesia (AM10). The PAM in Indonesia becomes more complicated and challenging, and as a consequence, the law and regulations should have capacity to address all emerging issues in PAM. Public asset managers at central and local government also need to be given extended authorities to enforce current PAM regulation (AM7, AM11). It is necessary to amend and simplify current regulations and impose disincentives/sanctions (AM7, AM9, AM11). A respondent stated the need of specific regulation to enhance flexibilities of procedures in budget use for public asset maintenance (AM14). It is acknowledged that several existing regulations related to PAM are still fragmented (AC1, AC7, AC9, AM20). A local government participant working as a built environment supervisor in the Agency of Human Settlements and Spatial Planning mentioned, ‘... there is no specific regulation for building with regard to climate change except everything stipulated in current Building and Developmental Planning Program.’ (AM20). A participant having a strategic role in the Indonesian Ministry of Public Work and Housing emphasised the importance of regulation and law enforcement, stating that ‘… we should evaluate our regulation. Regulation should be simple and easy’ (AM8). Feedback 6.c : Need to strengthen monitoring and evaluation policy in CCA programs There are at least three types of Monitoring and Evaluation (ME) functions in Indonesian governments, such as BAPPENAS, Ministry of Finance and Ministry of Administrative and Bureaucratic Reform as well as Ministry of Internal Affairs for local governments. Currently, the Ministry of Internal Affairs has no expertise in
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Climate Change’s ME, as to why its institutional capacity need to be upgraded (AC2). The ME mechanism is used as an entry point to know whether current programs have been implemented as planned, and how the realisation of the programs matches the initial plan. The ME is also used to develop the next program’s plan (AC2). The respondent said in detail, ‘If we want to know whether our dissemination addresses an issue or not, and whether our recommendation on science-based policy is implemented or not, we should base on reports made by government as tools of monitoring and evaluation. Well, I think this does not work so well right now…’ (AC2). Feedback 6.d : Need Incentives A respondent who is also a key person in shaping national development specifically in climate change policy has put emphasis on incentives that should be a reward to individuals or those who support or address the climate change issue in their respective regions or organisations (AC1, AC2). Although the respondent gave a general example of how to address the issue of climate change, basically providing incentive policy is a good policy to consider. A respondent who is also a scientist from a prominent university in Indonesia highlighted the absence of an incentive system for CCA programs in Indonesia. The respondent said, “There are no incentive and disincentive measures, the government is only playing around with regulations.” (AC4). Issues on infrastructure sustainability in relation to CCA will also need supporting regulations that provide an incentive’s scheme (AC14). Discussion: Interview participants both with climate change and PAM backgrounds have common expressions on the importance of leadership and government commitment, both in CCA and PAM. The leadership and commitment were also associated with the availability of supporting law and regulations. Indonesia has ratified the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol through Law number 6 of 1994 and Law number 17 of 2004, respectively. In 2007, the Indonesian Ministry of Environment coordinated efforts with other institutions to formulate a RANPI (national action plan in anticipation of climate change) as a guideline in undertaking climate change mitigation and adaptation, which is aligned with the national development objectives. In 2009, the Indonesian Government established Law number 31 of 2009 on Meteorology, Climatology and Geophysics, in which
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climate change mitigation not only has become an important national concern but also obligatory for governments to formulate, coordinate, monitor, and evaluate national policy, strategy, program, and action. As for CCA, although it has drawn attention to the Indonesian Government, however its implementation is considered on a voluntary basis. In the absence of specific law, the CCA could only be implemented by including it in an annual, medium-term or long-term government agenda of development. Other component discussed by the interview participants regarding the need to strengthen monitoring and evaluation in CCA programs aimed at ensuring that continuity of the programs, plan meeting realisation, and recommendation on science-based policy is implemented. The last component needing to be considered is the provision of incentives to stimulate the implementation of CCA.
Proposed element in Modified Framework: 6. Leadership, government commitment and incentives a. Leadership and government commitment b. Sufficient law and regulations c. Monitoring and evaluation in CCA programs d. Incentives
Element 7. COMMUNITY Feedback 7.a : Need promoting public awareness on climate change issue Promoting awareness about climate change, especially CCA practices, to the public is important because CCA is still a new issue in Indonesia (AC1, AC3, AC6, AC8, AC14, AM10). It is difficult to get people involved in climate change issues without publishing adequate pertinent information to the public (AC1, AC3). Government, higher education institutions, mass media and other stakeholders share important roles in promoting climate change awareness to public. A participant emphasised the role of mass media as example, ‘… I think this is important, the role of mass media to support this’ (AC1, AC8). The government should be in the frontline to increase public understanding on climate change issues in a simple, understandable and convincing language (AC1, AC2, AC5, AC8, AC10). Although the government has published several books on climate change (Figure 6.4), information to the public is not sufficient because the
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information should also be easily comprehensible with plain language for the public and mass media to understand (AC5). The participant said that, ‘People do not understand. That is why we educate them everywhere. Mass media as an agent is very important. If they understand, so this makes it easy in term of publications. We also learn from journalists how to write plain language - writing scientific reports in newspaper’s writing style. We invite journalists for them to be knowledgeable about climate. That is really a challenge. We have many programs to support this.’ (AC5) The Central, Provincial and Local Governments need to continuously get involved in promoting climate change issues at schools in order for students to have awareness about this issue at an early age (AC5, AC8). This information about climate change should become knowledge to the public and stay in their memory, so it drives them to action (AC5). The respondent suggests that, “it is about communicating the climate change issue in a plain language” (AC5). The climate change issue can also be uniquely promoted through a cultural approach by NGOs in Semarang, as explained by a participant from the City Government of Semarang (AC8). Discussion: The climate change is still a new issue, not only for most of the public in Indonesia but also for those with a background in PAM involved in this study. Promoting awareness on this issue to the public is still being undertaken by relevant government agencies, research centres and NGO. Therefore, climate change, particularly CCA, is at an early stage in Indonesia. Information on climate change would need to be communicated in plain language to the public.
Proposed element in Modified Framework: 7. Community participation a. Promoting public awareness and engagement
Element 8. PRIVATE SECTOR AND STAKEHOLDERS’ INVOLVEMENT Feedback 8.a : Need more involvement of academics and private sector National and local higher education institutions are hoped to be involved and conduct climate change research and analysis including vulnerability assessment in
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their respective regions (AC1). The involvement of local higher education institutions is necessary because climate change adaptation is a local issue that requires involvement, not only from researchers but also other sectors such as the private sector, which is usually more knowledgeable about practical issues in their own regions (AC1). It is also hoped that banking and financial institution industry could support this climate change issue in term of financing (AC14).
Feedback 8.b : Need research and practical implementation of CCA in infrastructure or public assets Climate change is a multidimensional issue that covers a range of science or disciplines to various sectors. It is not merely an environmental matter but also an issue of development (AC3, AC8). Indonesia is still lacking assessment and research in infrastructure or public assets, incorporating climate change adaptation. Discussion: The Indonesian government is already at the forefront in responding to climate change. Preliminary consideration of climate change in policy related to infrastructure has been in place as stipulated in Regulation number 11/PRT/M/2012 of MPWH on “National Action Plan in Climate Change Mitigation and Adaptation Year 2012-2020”. Considering climate change is a multi-sectoral issue; as a consequence more academics, private sector and other stakeholders should also support and get involved in addressing climate change in the country. More climate change research and analysis should be undertaken to provide science-based recommendation for policy formulation and implementation, including necessary improvement.
Proposed element in Modified Framework: 8. Research, private sector and stakeholders’ involvement a. Involvement of academics b. Involvement of private sector. c. Need research and practical implementation of CCA for public assets
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Element 9. SUPPORT FROM ALL SIDES OF POLITICS Feedback 9.a : Important role of legislative members The legislative members also play important roles because they are involved in making law in relation to CCA in Indonesia (AC6). Another important function of legislative members as representative of political parties was mentioned: ‘... and of course the law makers (legislative members) at local and central levels are important because they have roles in budget allocation’s discussions and decision for climate change ... (AC1). In order to convince the legislative members, dissemination of climate change information to them should be conveyed from real issues already familiar with them, such as more frequent floods due to the impacts of climate change or poverty issues, in relation to the changing of climate in specific area (AC8). Discussion: As previously discussed, climate change is still a new issue in Indonesia. Accordingly, climate change has not taken a significant place in current Indonesian political discourse, such as debates and hearings. The crucial part of involvement of Members of Parliament is during deliberations of annual financial budget proposal of central and local governments, including the proposed financial budget for climate change.
Proposed element in Modified Framework: 9. Role of legislative members
Element 10. COORDINATION Feedback 10.a : Need better coordination for timely and effective decision making Current coordination between government agencies becomes more imperative and has proven to successfully improve the state auditor’s opinion on the annual government financial report (AM1). Good coordination could be improved during technical assistance, supervision and dissemination of policy undertaken periodically (AM1). Other types of coordination to promote synergy can also be achieved through communications in workshops and seminar agenda (AM15). The respondent (AM1), as a decision maker in the Central Government organisation frequently invited stakeholders in such events as the respondent stated, ‘We also invited stakeholders and get them involved in drafting and amendment of regulation’
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(AM15). Similarly, it is necessary to promote good communication in coordination with stakeholders because it has had significant impacts, for example good communication could effectively achieve an organisation’s target, perform monitoring and evaluation, as well as speed up the decision making (AM5, AM8). Nevertheless, the issue of lack of coordination still presents in PAM practices in Indonesia, as pointed out by Policy Maker, Asset Manager and Asset User (AM1, AM5, AM7, AM8, AM15). An example of a coordination challenge was the absence of representative(s) from line ministries, government agencies as well local government agencies in coordination meetings for such an important decision. The respondent said that, ‘This circumstance of prolonged time for the decision-making process on strategic issues requires coordination across government organisations.’ (AM15). Another challenge was that the representatives who attended several coordination meetings were not those consistently involved, since the first coordination meeting up to the last meeting for the final decision. For example, in the first meeting, the high ranking persons attended the meeting, however, in the next meetings until the final meeting, sometimes only the lower ranking officer with no authority attended the meeting (AM15). This circumstance also made the decision- making process take longer than expected.
Feedback 10.b : Need to overcome silo and lack of coordination affecting climate change policy and implementation Silos still exist in the line ministries and government agencies (AC2, AC3, AC4, AC8, AC14) and as a respondent said, ‘We are still silos. If we talk about climate change it cannot be as silos because climate change is a multi-sector issue’ (AC4). Silos in the government agencies is caused by lack of communication within certain government agencies. That is the reason why government commitment is needed to address the silos. The National Development Agency (BAPPENAS) has a very strategic role in addressing this issue and conducting policy alignment amongst government agencies and ministries (AC1). An implementation plan of climate change should be improved in term of coordination amongst agencies, because climate change has cross-sectoral issues (AC1, AC14). A participant explained that,
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‘Climate change is potential, however, in climate change coordination meetings the representatives of several ministries who attended the meeting sometimes have no capabilities and no authority to decide on such an important or strategic climate change adaptation issue …’ (AC3). This became worst because sometimes programs or projects conducted by donors and non-governmental organisations (NGO) also lack coordination, resulting in overlapping or almost duplication of programs. (AC3, AC5). A respondent who is also a local government policy maker in disaster management agency highlighted the need of coordination amongst government agencies, not only in disaster management, but also in CCA implementation (AC10). Discussion: Issues on lack of coordination and existing silos have been two major components discussed with interview participants. Problems of lack of coordination and silos could be addressed by improving communication within government agencies.
Proposed element in Modified Framework: 10. Coordination between government organisations a. Improve coordination b. Overcome silos
6.3.2 Enabling environment in PAM influencing the framework According to literature review and document analysis, PAM in Indonesia is still considered at the early stage. Accordingly, several factors have been identified as components or enablers that need to be considered to support the effectiveness of PAM and therefore support implementation of the framework for CCA for incorporation in PAM in Indonesia. The results from semi-structured interviews are explained as follows.
Enabling Environment 1. Need ICT and computerised asset database The information and communication technology (ICT) is important for PAM in Indonesia. The ICT-based asset management including integrated centralised data is a must today (AM1, AM2, AM3, AM4, AM5, AM7, AM8, AM10, AM16, AM17). The ICT system and computerised database of assets are required for Governments to manage their assets best. As pointed out by a Central Government policy maker, ‘Information system is “the backbone” of public asset management’ (AM3). An asset user also stated,
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‘Firstly, database. Off course. That is fundamental. If we are not aware of existing assets we have, how can we plan for the future. Database must be good. Otherwise, the decision made would be inappropriate’ (AM8). The development of an ICT system is costly and would need extraordinary efforts and high commitment from all actors in PAM, from policy makers, asset managers, to asset users in line ministries and government agencies (AM2). The Central Government and Provincial Government of DKI Jakarta have been developing ICT-based PAM and computerised asset databases, such as SIMAN (Sistem Informasi Manajemen Aset Negara/Government Asset Management Information System) in Central Government assets and e-Assets in Provincial Government of DKI Jakarta (AM1, AM5, AM9, AM17). This computerised database of assets is still being improved and updated to cover all asset classes in the Central Government or Provincial Government of DKI Jakarta as part of current ICT development of PAM (AM3, AM17).
a b
Figure 6.4 Provincial Government of DKI Jakarta Asset Management System in development: (a) e-Aset; and (b) Jakarta Smart City Asset Mapping
In the beginning of 2016, the Central Government has its current computerised asset database system in place, called SIMAN (AM3, AM7, AM10). Besides SIMAN, the Central Government is already implementing a software of application known as SIMAK-BMN (Accountancy and Management Information System of Central Government Asset) as shown in Figure 6.5 (a). It is a tool for the accounting purpose of public assets in central government, utilised for development of the annual financial report of Central Government of Indonesia.
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a b
Figure 6.5 Central Government Asset Management System: (a) SIMAK-BMN; and (b) SIMAN
The SIMAN is different from SIMAK-BMN in the purpose of its development. The SIMAN is developed from the perspective of PAM life cycle, including the accounting perspective of SIMAK-BMN. The SIMAN is still continuously improved to integrate with the whole PAM life cycle and developed to integrate with the whole-of-Government system for better and timely decision- making process. The SIMAN is also a web-based system accessible for actors of PAM in Central Government and is proven to contribute to the improvement of management of large number of Central Government assets across the country (AM1, AM3). In addition to the current development of SIMAN, public services provision by the Central Government have also been digitised to make the asset management process easier and simpler through the government website, with additional features of e-services (AM5). The Central Government of Indonesia always upgrades its website by adding more features and developing more practical e-learning modules for asset users (AM5). As a consequence of current development, the asset managers and users should be equipped with the latest technology of computers to anticipate near future implementation of new technology in PAM (AM1, AM9). The asset data migration and monitoring system of control and inspection are also two important issues that in dealing with, governments need to consider the importance of system transition from old system to new ICT (AM3). The computerised database of assets is very important for better designing asset planning (AM17). Better understanding of profiles of existing assets is reliant on an excellent database of assets. Otherwise, the decisions made could be misleading and inaccurate. The ICT and computerised asset database is a key factor because managing the current large number of public assets in the Central and
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Provincial Government are very difficult without having ICT in place (AM3, AM4, AM5, AM7, AM8, AM10, AM17). However, the use of ICT for military assets should be prudent, due to secrecy considerations (AM5).
Enabling Environment 2. Settlement of existing legal issue Legal document of ownership still remains an issue both in the Local and Central Governments of Indonesia (AM17, AM8). The government are still working to resolve this issue whereby several pertinent organisations have been involved to settle Public Assets, which have no legal ownership. There are still a significant number of assets without proper legal documents of ownership due to poor asset administration in the past, especially assets acquired from grants or given up from people to the government. As a result of the past poor administration, with no sufficient document of asset transfer in current government possession and records, it has put local governments in a vulnerable position when it battles in court, because some people are self-claiming as grantor’s grandchildren or those who claimed to inherit the assets demand the assets to be returned to them through legal proceedings (AM17). The Provincial Government of Jakarta has increased coordination with the National Land Agency (BPN) in order to settle a document of ownership of government land (AM17). The signing of a memorandum of understanding (MOU) between the Governor and the Minister of Land was already scheduled. The participant mentioned that the Land Agency still has a shortage of surveyors, because it only employs 10 land surveyors to undertake the task of determining the land boundary before registering the land for legal ownership (AM17). The Central Government of Indonesia, through the Ministry of Finance, is drafting a law on Asset Management (AM2). The law would be strengthening current public asset management practices sufficient in coping with the growing complicated issues in PAM in Indonesia. In order to get the draft of law approved by government and lawmakers (members of parliament) it could be a relatively a long process. The respondents have highlighted some current existing challenges in PAM faced by government that can only be addressed by new PAM law (AM2, AM3). Incomplete land administration and documents of ownership in the past hinder Government plans for asset utilisation because of one or two documents that are still missing or unavailable, as explained by a respondent:
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‘The regulation in National Land Agency is not simple. Moreover, it is also our weakness due to incomplete land administration and documents of ownership in the past. This factor hinders our plan for asset utilisation because of one or two documents still being missing or unavailable.’ (AM4). Similarly, the government assets occupied by either Government or illegal tenants should be settled with sufficient legal ownership (AM4, AM17). Another issue on legal arrangements in PAM was mentioned by a respondent, in that there are frequent changes in PAM regulations. It is supposed that a newly established regulation especially technical guidance could be put into effect first within a certain period of time and later could be evaluated as needed because not all personnel in PAM could keep up with ‘frequently changing’ regulations (AM3, AM10).
Enabling Environment 3. Improve asset administration and protection in the line ministries Several line ministries and government agencies (as the asset users) have less awareness that public assets should be managed properly (AM2). They are also still reluctant to report the current surplus assets, such as land and buildings, to the Ministry of Finance as the asset owner through the Directorate General of State Asset Management/DGSAM (AM11). This lack of responsibility has caused public assets to become underutilised (AM2). It is the responsibility of line ministries and government agencies to make sure government assets are best utilised. An interviewee acknowledged many assets owned by Provincial Government of DKI Jakarta have been occupied illegally by others (AM17). It is also due to government’s weaknesses in land administration and document of ownership in the past. This circumstance hinders government plans for asset utilisation because of some documents that are still missing or unavailable (AM4). Most respondents were facing challenges whereby the line ministries and government agencies have less attention to asset management because managing assets are not their main functions (AM2, AM4, AM5, AM11, AM17). This situation becomes worst if some personnel responsible for managing assets in the line ministries and government agencies are not permanent employees but are those working based on short-time of job contract (AM5). After the contract ended they
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would periodically be replaced by new contract-based employees, usually in the short term. Protection of public assets by administering them properly has been previously mentioned. It is government role in protecting or securing public assets. If the asset information system is neither reliable nor established, the Supreme Audit Agency (BPK) would be asking the accountability and administration of government asset management that to some extent could affect the opinion of an auditor on the annual financial report of government (LKPP or LKPD) (AM4).
6.4 COMPARISON BETWEEN GENERIC FRAMEWORK AND REVISED FRAMEWORK
6.4.1 Summary of element in the Modified Framework The Generic Framework and its elements have been discussed with interview participants in Indonesia resulting in revisions of element in the Generic Framework as summarised in Table 6.7.
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Table 6.7 Summary of elements to be considered in Modified Framework for the context of Indonesia Element of Modified Code Remarks Framework 1. Recognition of climate 1 Climate change (CC) should be recognised at change national/local/organisational level in Indonesia to ensure climate change adaptation (CCA) could be formulated in policy, strategy and program. This recognition is a trigger or entry gate to take action in responding to the impacts/risk of climate change. a. CCA as national/local 1.a CCA should also be recognised at national/local issue level and formulated in policy, strategy and program in Indonesia. This recognition is a trigger or entry gate to take action in responding to the impacts/risk of CC. b. Planning and budgeting 1.b Planning and budgeting for CC should be in place for CC and clearly developed in Government organisations in Indonesia to ensure the implementation of CCA’s policy, strategy and program. 2. Consideration of current 2 Existing risk management scheme should be risk management considered when formulating CCA for incorporation in PAM in order to extend possibility of CCA implementation in organisation. Accordingly, CCA could build on current risk management. a. Insurance 2.a Insurance as a risk-transfer option to share the loss could be considered by public asset manager in adapting public asset to the impact of climate change. b. Responses to climate- 2.b Existing responses to climate-related natural related impacts hazards should be considered and CCA for incorporation in PAM should build on this existing risk management. 3. Integrated AM and 3 Integrated PAM or asset life-cycle in Government planning in AM ranging from asset planning, procuring, utilising to asset disposal could ensure effectiveness in CCA for incorporation in PAM. CCA in principal could be applied in every phase of PAM life- cycle. However, CCA should be firstly included in organisational strategic plan (PAM strategy and planning) to make sure selected adaptation plan option could be implemented. a. Asset planning 3.a Public asset manager in Indonesia should consider CCA for incorporation in PAM within asset planning phase to ensure CCA plan could be implemented. b. Monitoring and 3.b Monitoring and evaluation (M&E) on asset evaluation of assets should be strengthened by public asset manager in Indonesia because M&E is one critical part/step in CCA framework for incorporation in PAM. c. Financial budget for 3.c Public asset managers face constraint budget in PAM current PAM. The CCA for incorporation in PAM would need more additional funding that should be available from internal or external sources.
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Element of Modified Code Remarks Framework d. HR capability 3.d Human resources’ capability should be improved in order to have sufficient knowledge about CC and CCA needed for public assets. HR should also be capable in designing and developing CCA for incorporation in PAM 4. Asset use 4 Public asset manager in Indonesia should be knowledgeable on public assets owned by Government in terms of, but not limited to, assets’ objectives, profiles, conditions, locations, and criticality. Understanding about the public assets is important for public asset manager to classify or map assets that need to have attention and to adapt to CC to ensure service delivery of the assets to public. 5. Reliable data set on 5 Data of CCA should be available, reliable and climate change provided by Government. a. Need reliable data for 5.a Data of CCA should be available, reliable and CCA provided by Government to ensure CCA for incorporation in PAM could be designed and developed by public asset managers. b. Centralised data on 5.b Centralised sources of relevant information about climate change CC should be developed by government and be accessible by public asset managers. 6. Leadership, government 6 Policy, direction and strategy in CCA especially commitment and for incorporation in PAM should be clearly formulated and able to be implemented within incentives agreed-upon timeframe. a. Leadership and 6.a Leader and Government commitment should be government in the frontline demonstrating commitment to the government’s vision toward CCA including CCA commitment for incorporation in PAM. Leader and government should influence and motivate public as well as make people engaged to implement CCA. b. Sufficient law and 6.b Law and relevant regulations in Indonesia should regulations be amended to sufficiently support CCA. c. Monitoring and 6.c Monitoring and evaluation (M&E) in CCA evaluation in CCA program should be introduced to public asset manager in Indonesia and integrated in M&E in programs PAM because M&E is one critical part/step in CCA framework for incorporation in PAM. d. Incentives 6.d Government of Indonesia should provide incentives to stimulate the formulation and implementation of CCA. CCA is still designed and implemented on voluntary basis, therefore, incentives would provide more opportunity to CCA actions. 7. Community 7 Community is important stakeholders that should participation get involved in developing CCA for incorporation in PAM. a. Promoting public 7.a Promoting public awareness and public awareness and engagement in CC policy should be exercised to engagement. increase public understanding towards CCA. 8. Research, private sector 8 Research, private sectors and relevant and stakeholders’ stakeholders should contribute and get involved in CCA policy, program, and strategy in
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Element of Modified Code Remarks Framework involvement Indonesia. a. Involvement of 8.a Academics from local higher education academics institutions should increase their involvement in research of CCA in general and also focussing on local level. b. Involvement of private 8.b Private sectors should get involved in CCA sector. policy, program, and strategy in term of providing idea and funding. c. Research and practical 8.c Academics should increase their involvement in implementation of research of CCA incorporated in PAM in CCA for public assets Indonesia as case study. 9. Role of legislative 9 CCA for incorporation in PAM should get members support from legislative members, therefore, the strategy should be designed in the form of program with which the legislative members have been familiar, for example CCA for incorporation in PAM intended to address more frequent flooding due to SLR that affects vulnerable communities. 10. Coordination between 10 Coordination should be improved and government strengthened to ensure synchronisation in policy, program and strategy in CCA for incorporation in organisations PAM. a. Improve coordination 10.a Coordination between level of government or between government agencies should be improved to ensure synchronisation in policy, program and strategy in CCA for incorporation in PAM. b. Overcome silos 10.b Silos should be resolved and communication between government organisations should be increased to strengthen coordination and ensure synchronisation in policy, program and strategy in CCA for incorporation in PAM.
6.4.2 Risk-based approach to climate change adaptation in Indonesia A risk-based approach in climate change adaptation, known as KRAPI or CCRAA approach, has been introduced by Salim et al. (2012). The KRAPI or CCRAA is climate change risk and adaptation assessment originally developed by the Indonesian Ministry of Environment in 2012 aimed at formulating climate change adaptation for development (sectoral) planning (Fitriyanto et al., 2017). It consists of the following steps (Salim et al., 2012): 1. Formulation of problems and identification of vulnerable sectors. 2. Climate science-based analysis. 3. Analysis of hazard. 4. Analysis of vulnerability. 5. Risk analysis. 6. Developing adaptation options.
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7. Adaptation prioritisation. 8. Mainstreaming into development policies. The KRAPI approach was published by the Indonesian Ministry of Environment in a document titled ‘Guidelines for Risk and Adaptation Assessment and for Mainstreaming into Policy’. The most recent guideline (P.33/2016) on ‘Guidelines for the Preparation of Climate Change Adaptation Action’ has been issued by the Indonesian Ministry of Environment and Forestry (MOEF) in 2016. It also used a risk-based approach introduced by the Government of Indonesia, consisting of the following steps (Ministry of Environment and Forestry, 2016): 1. Identifying of targeted area and/or specific sectors impacted by climate change. 2. Assessing vulnerability and climate risk. 3. Developing adaptation options. 4. Adaptation prioritisation. 5. Mainstreaming into development policies. The KRAPI and P.33/2016 are both using a risk-based approach, nevertheless, this approach need to be extended to cover the public asset sector because climate change adaptation in PAM has not been specified. Accordingly, the existing approach was also considered in the Modified Framework.
6.4.3 Modifying the Generic Framework Studies suggest that an effective framework would start by identifying an organisation’s current interests and concerns vulnerable to climate change (Anisuzzaman, 2014; West & Gawith, 2005). A risk-based approach is also used by the Government of Indonesia in responding to the impacts of climate change, therefore as suggested by Bassioni et al. (2008) the selection of the frameworks based on their reputation and establishment in practice and research, in this case a risk-based approach, could enhance the initial validity of the formulated framework. The overall process consisting of major steps in the risk-based approach and revised elements (Section 6.4.1) can be summarised, as presented in Table 6.8 as follows.
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Table 6.8 Analysis of how the Generic Framework, findings from analysis results of semi-structured interviews, P.33/2016 and KRAPI (2012) are adopted in framework modification (Modified Framework) EXISTING RISK-BASED APPROACH IN GENERIC FRAMEWORK INDONESIA MODIFIED FRAMEWORK DEVELOPED IN CHAPTER 5 (P.33/2016 and KRAPI, 2012) STEP A: STEP A: ACKNOWLEDGEMENT OF TRIGGER FOR DEVELOPING 1. IDENTIFYING OF TARGETED AREA ACKNOWLEDGEMENT OF TRIGGER FOR DEVELOPING ADAPTATION PLAN FOR PUBLIC ASSETS AND/OR SPECIFIC SECTORS IMPACTED ADAPTATION PLAN FOR PUBLIC ASSETS I BY CLIMATE CHANGE 1
STEP B: 2. ASSESSING VULNERABILITY AND STEP B: RISK ASSESSMENT AND ADAPTATION PLAN CLIMATE RISK RISK ASSESSMENT AND ADAPTATION PLAN 1. Establish climate change context a. Analyse climate condition and 1. Establish climate change context historical extreme weathers in a. Define the scope targeted area. a. Define the scope III, IV b. Choose climate scenario. 3, 4
c. Assess climate change impacts. b. Choose climate change scenarios d. Analyse risk and vulnerability on b. Choose climate change scenarios V targeted area. 5
e. Analyse institutional capacity in c. Identify objectives responding to the impacts of climate c. Identify objectives III, IV, VII change. 3, 4, 5
d. Identify stakeholders d. Identify stakeholders VII, VIII, IX 7, 8, 9
e. Identify external and internal factors e. Identify external and internal factors Internal Internal II, III, IV, V, VI 2, 3, 4, 5, 6 External External V, VI, VII, VIII, IX, X 5, 6, 7, 8, 9, 10
f. define risk criteria f. define risk criteria II, III, IV, V, VI, VII, VIII 2, 3, 4, 5, 6, 7, 8
2. Risk Assessment is undertaken through: 2. Risk Assessment is undertaken through: - Risk - Risk identification II, III, IV, V, VI, VII, VIII identification 2, 3, 4, 5, 6, 7, 8 - Risk analysis - Risk analysis - Risk evaluation - Risk evaluation
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EXISTING RISK-BASED APPROACH IN GENERIC FRAMEWORK INDONESIA MODIFIED FRAMEWORK DEVELOPED IN CHAPTER 5 (P.33/2016 and KRAPI, 2012) 3. DEVELOPING ADAPTATION OPTIONS. 3. Adaptation Plan is risk treatment resulting from Risk 3. Adaptation Plan is risk treatment resulting from Risk a. Literature research on CCA. Assessment. b. Identify existing CCA. Assessment. c. Recommendation on CCA. - Appropriate adaptation plan(s) - Appropriate adaptation plan(s) for for each risk to be determined. II, III, IV, V, VI, each risk to be determined. 2, 3, 4, 5, 6, 7, 8, - Implementation plan to be VII, VIII, IX, X - Implementation plan to be 9, 10 developed. developed.
4. ADAPTATION PRIORITISATION AND STEP C: IMPLEMENTATION OF ADAPTATION PLANS BY MAINSTREAMING INTO DEVELOPMENT STEP C: IMPLEMENTATION OF ADAPTATION PLANS BY INTEGRATING INTO PUBLIC ASSET MANAGEMENT PLAN POLICIES. INTEGRATING INTO PUBLIC ASSET MANAGEMENT PLAN FACTORS SUPPORTING: a. Adaptation prioritisation FACTORS SUPPORTING: a. Review building codes and standards. considering: a. ICT and computerised asset database b. Provide funding - Area coverage affected by CC b. Settlement of existing legal issue c. Leadership - Needed resources c. Asset administration and protection - Potential challenges
ADDRESSING FACTORS HINDERING: - Benefit a. Legislation barrier VI. Policy, direction and - Time horizon strategy in CCA - Institutional capacity b. Lack of public VII. Community b. Mainstreaming and synchronisation consultation and VIII. Private sector and into development policies. understanding stakeholders’ - Short term (synchronisation). involvement - Medium term (mainstreaming). c. Climate change IX. Support from all sides - Long term (mainstreaming). scepticism from of politics politicians
STEP D: MONITORING AND REVIEW STEP D: MONITORING AND REVIEW
STEP E: CONTINUAL IMPROVEMENT STEP E: CONTINUAL IMPROVEMENT Source: Adapted from ISO31000 (2009), AS5334 (2013), AGO (2006), P.33/2016, KRAPI (2012)
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6.5 PROPOSED MODIFIED FRAMEWORK The two participating Australian local governments in the semi-structured interviews in Phase I are located in regions categorised as Climate Zone 1 and 2 according to the map generated by ABCB (Figure 4.2). These regions have diverse topography and climate zones. In conducting Phase I of the research (developing the Generic framework), the researcher considered these regions comparable to Jakarta and Semarang in term of hot humid, tropical rainforest and coastal areas. Again, Cimato and Mullan (2010) have highlighted climate change is considered as local issue in the sense that responses and benefits of climate change adaptation depend on location and local circumstances. Moreover, the impacts of climate change will both vary in their nature and level of risk from one part of the country to another and even for Australia and Indonesia where each case is considered in terms of the local climate risks involved and the assets’ particular sensitivity. Recognising this variation and the need for appropriate CCA solutions, the issue of local climate change risk both in Australia and Indonesia should be considered as a component (i.e. “Climate Change Scenario”) within the process of “Establishing the Context” in Climate Change Risk Assessment process in the framework. The risk-based approach in the framework as a systematic process could be applied at every phase of a public asset life-cycle. The existing public asset management framework in Indonesian Central or Local Governments could be integrated in the implementation phase of the framework of the Organisation Strategic Plan, specifically under Asset Management Strategy and Planning stage in PAM cycle as ‘entry point’. In other words, the risk treatment (adaptation plan) could be implemented at every stage of asset life cycle, providing the adaptation plan is already included in organisation strategic planning, specifically under the planning and budgeting stage. The elements of Generic Framework resulting from analysis of semi- structured interviews (Section 6.4.1) and consideration of existing risk-based approach in Indonesia (Section 6.4.2) have been included in the framework. The systematic process of developing a framework for CCA for incorporation in PAM according to the process used in AS5334, ISO31000, guidelines published by Australia Green Office (AGO, 2006), P.33/2016, and KRAPI (2012), has been
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explained in detail in Section 6.4.3. Based on the process undertaken as explained in previous sections and summarised in Table 6.8, the Modified Framework now can be developed, as visualised in the following Figure 6.6.
Chapter 6 : Research Analysis and Findings in Phase II: Application of Generic Framework for the Context of Indonesia
Figure 6.6 The Modified Framework for the context of Indonesia (Source: This thesis Author, AGO (2006), Standards Australia (2013), Ministry of Environment and Forestry (2016); Salim et al. (2012), (DJKN (DGSAM), 2011))
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6.6 CONCLUSIONS This modification of the Generic Framework, as the basic framework, has been undertaken in this chapter. The modification was required to ensure the usability and appropriateness of the developed framework in the context of Indonesia. The interviewees of Indonesia took participation in the semi-structured interviews involving 41 organisations (49 individuals) from two different groups, being climate change and the public asset management area. The participants have various backgrounds, such as governmental agencies, academics/scientist, non- governmental organisation and private sector. The responses from interview participants on every element in the Generic Framework have been gathered and content analysis has been undertaken, resulting in 21 themes of feedback. The feedback has been discussed and analysed to improve the effectiveness and completeness of the Generic Framework, resulting in modification of elements of the Generic Framework as follows: 1. Recognition of climate change a) CCA as national/local issue b) Planning and budgeting for CC 2. Consideration of current risk management a) Insurance b) Responses to climate-related impacts 3. Integrated AM and planning in AM a) Asset planning b) Monitoring and evaluation of assets c) Financial budget for PAM d) HR capability 4. Asset use 5. Reliable data set on climate change a) Need reliable data on CCA b) Centralised data on climate change 6. Leadership, government commitment and incentives a) Leadership and government commitment b) Sufficient law and regulations c) Monitoring and evaluation in CCA programs d) Incentives 7. Community participation a) Promoting public awareness and engagement. 8. Research, private sector and stakeholders’ involvement a) Involvement of academics b) Involvement of private sector. c) Research and practical implementation of CCA for public assets
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9. Role of legislative members 10. Coordination between government organisations a) Improve coordination b) Overcome silos
There are also three other components considered to contribute to the effectiveness of the framework in the context of Indonesia, such as ICT and computerised asset database, settlement of existing legal issues, and asset administration and protection. The risk-based approach used in Australia, New Zealand and the United Kingdom has also been applied in Indonesia and formulated in a guideline by the Indonesian Ministry of Environment and Forestry in 2016. In the Modified Framework, the researcher also considered the approach used in KRAPI/CCRAA (Salim et al., 2012) and P.33/2016 (Ministry of Environment and Forestry, 2016). The existing public asset management framework in Indonesia could be integrated in the implementation phase of the framework at Organisation Strategic Plan, specifically under the Asset Management Strategy and Planning stage in the PAM cycle as an ‘entry point’. The integration and putting the CCA plan into overall organisational strategic planning could ensure implementation of the selected adaptation plan to public assets. Finally, the Modified Framework, which is also based on a risk-based approach, could have more possibilities to be implemented and be more applicable in Indonesia through the extension of existing risk management according to KRAPI/CCRAA or P.33/2016; accordingly it could build on a climate risk arrangement. Upon presentation of the Modified Framework for its usability and appropriateness in the context of Indonesia in this chapter, the practical application of the Modified Framework will be undertaken for public assets in Semarang, Indonesia, as described in detail in the next chapter.
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Chapter 7 : Practical Application of Modified Framework on Public Assets in Semarang, Indonesia
7.1 INTRODUCTION This chapter serves to undertake practical application of the Modified Framework to existing public assets (buildings) with public asset managers/users from participating organisations in Indonesia, through case study and observations. The case study was considered to be appropriate, as it would offer a reasonable level of interaction with the public asset manager in using the Modified Framework. Application of the revised framework is only for two existing public assets (buildings) owned by the Central Government of Indonesia in City of Semarang (Semarang) due to data availability, availability of asset managers and users of the asset during the process of the framework application. The selection of the assets for framework application was based on area sampling considered to be affected by climate change according to past research. Furthermore, Semarang is considered as one of the most vulnerable cities in Indonesia due to climate change and it is also the place where the city centre, main settlement, industrial and significant number of government assets are located in low-lying areas (Abidin et al., 2010; ACCCRN, 2010; DJKN (DGSAM), 2014; Marfai & King, 2008; Mulyana, Dodman, Zhang, & Schensul, 2013; Yusuf & Francisco, 2009). This chapter firstly presents the profile of participants in Section 7.2, followed by an overview of the Modified Framework from the previous chapter in Section 7.3. The next section explains the step-by-step application of the framework (Section 7.4). Section 7.5 discusses the result of this practical application followed by chapter conclusion.
7.2 PROFILE OF PARTICIPANTS FOR IMPLEMENTATION OF THE MODIFIED FRAMEWORK IN SEMARANG Implementation of the Modified Framework is only for two existing public assets (buildings) owned by the Central Government of Indonesia in City of Semarang. The process of having permission to undertake this “Stage 2 of Phase II” on public assets initially both in Jakarta and finally Semarang only was a lengthy process. The researcher prepared for several months in advance prior to undertake this stage. Several constraints need also to consider including limited time of the researcher in Indonesia and other constraint, such as:
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- official permission given by asset owners (i.e. the respective ministries or government agencies); - data availability; and - willingness, readiness and availability of asset managers and users of assets of respective ministries or government agencies to participate in the framework application. Without permission, data availability as well as willingness, readiness and availability of public asset managers and users of assets to participate in the framework application, the framework implementation could not be conducted. Because the case study and observations in this stage would need not only document analysis, semi-structured interviews, on-site observation and verification but also reasonable level of interaction with public asset managers/users in using the Modified Framework. In addition, a complete vulnerability assessment is important in formulation of local CCA strategy/plan used for the implementation of adaptation. This thesis used ACCCRN’s scientific based report for initial asset mapping as explained in Appendix H (Table C, Table D, Table E, Table F for comprehensive mapping of all assets in Semarang). Asset mapping is to determine area sampling where several buildings are located and to present initial understanding as well as promote awareness on climate risk of Central Government assets in Semarang. Public asset managers and users (operators) from three Central Government agencies in Semarang, such as State Asset Management Regional Office II, State Asset Management & Auction Office VI, and Office of Asset Management, were involved in the practical application of the Modified Framework. These three organisations were also previously involved in semi-structured interviews (as listed in the previous chapter in Table 6.2) whereby each organisation was represented by three interview participants. Nevertheless, only the public asset managers and users considered to be knowledgeable in technical aspects took part in the practical application of the modified framework. In addition, they familiarised themselves with the Generic Framework and the Modified Framework prior to practical application of the Modified Framework because of their presence during previous semi-structured interviews of Phase II, in order to assist the interviewees with higher level positions with more technical responses on public assets. The list
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of participants in practical application of the Modified Framework is listed in Table 7.1.
Table 7.1 List of participants in practical application of the Modified Framework Participant Institution/organisation Task ID AU1 State Asset Management Regional Office II Asset User/Operator of Ministry of Finance Building II AU2 State Asset Management & Auction Office VI Public Asset Manager of Ministry of Finance Building I and II AU3 Office of Asset Management Asset User/Operator of Ministry of Finance Building I
The interview process was conducted with a flexible schedule, starting in September 2016. Some interviews were conducted mostly on the basis of prior notification (formal meeting) or informal meeting, when the researcher made visits to the participants’ offices. Some of the interview process was recorded and some was noted on the researcher’s minutes. The observations were combined with interviews, conversations (both formal and informal), and recorded both in audio recordings and field notes. All interviews and conversations were conducted in ‘Bahasa Indonesia’; accordingly the interviews needed to be translated into English without changing the original data. The process of practical application of the framework within the participating organisations was a newly introduced practice during the research period, where the researcher should explain clearly each element and step undertaken in the framework. All data and information including their sources, as required in the practical application, were also explained to the participants by the researcher. All the observations during the framework application process were documented in note form as each stage progressed and were also transcribed. Upon completion of interviews, undertaking observation of the assets, and conducting formal and informal meetings to gather and discuss relevant data and information about selected public assets in Semarang in September 2016, the researcher returned to Brisbane and continued to communicate with the participants via phone interviews and email correspondence for questions and issues that needed to be followed up and obtain further clarification as well as data and information required, up to May 2017.
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7.3 OVERVIEW OF THE MODIFIED FRAMEWORK OF PHASE II The researcher introduced the Modified Framework to participants and explained in detail each element and the steps undertaken in the framework. The Modified Framework discussed in Chapter 6 has guided the integration of climate change impacts into risk management for public asset management for the context of Indonesia. The framework consists of five major steps and 10 elements involved as systematically has been presented in Table 6.8. There are five primary steps in the modified framework subsequently undertaken. Firstly, it begins from an event resulting in an organisation to commence climate change risk management through adaptation referred to as a ‘trigger’. Secondly, it is followed by climate risk management including design of adaptation plan. Thirdly is the step of implementation of the adaptation plan that is taken upon completion of the risk management process. Fourthly is monitoring and review on the process that has been performed; and finally, continual improvement in the framework as the last step. The steps from climate risk management to continual improvement are iterative processes an organisation should perform periodically, in order to improve the adaptation framework. The application of the two last steps, e.g. Monitoring and Review step and Continual Improvement step, could not be applied in this application because the timeframe for undertaking the stage of Monitoring and Review as well as Continual Improvement would require a longer period, at least two years, following the annual financial budget planning and realisation/implementation in the Government of Indonesia (AU1, AU2, AU3), which is beyond the period of study of the researcher.
7.4 APPLICATION OF THE MODIFIED FRAMEWORK STEP A. Acknowledgement of trigger for developing adaptation plan for public assets in Semarang The environmental changes have affected public assets, as indicated by the degradation of the economic life of public assets such as buildings, road, and irrigation facilities due to sea level rise, increase of precipitation, sea water intrusion and inundation. The Central Government of Indonesia has experienced climate- related impacts affecting their assets and even several government buildings have already been inundated during flood events (AU1, AU2, AU3). Although climate change has been a national issue and several steps have already been taken by the
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Government of Indonesia, however, specific policy, regulation and strategy on climate change adaptation for public assets of the Central Government in Indonesia is considered absent.
STEP B. Risk assessment and adaptation plan Upon acknowledgement of the trigger in STEP A for the needs to develop the adaptation plan, the next step is identification of elements in the climate risk management process beginning with establishment of Climate Change Context, followed by undertaking Risk Assessment, and developing the Adaptation Plan, described as follows. B.1. Establishing Climate Change Context for Central Government assets in Semarang Climate change is a new issue in Indonesia and there is no centralised source of climate change data in Indonesia, as revealed in previous results of analysis of semi- structured interviews. Therefore, researcher and participants should collect relevant data and information from different agencies and then use the best available information and specific data considered current, authoritative and credible from various sources. The practical application of the Modified Framework also relied on secondary data provided by Central Government agencies, reports of previous study, higher degree institutions, and other research institutes (such as the Centre for Climate Risk and Opportunity Management in Southeast Asia Pacific/CCROM-SEAP, Mercy Corps Indonesia, Institute for Social and Environmental Transition-International/ISET). The researcher built communication and consultation on current development in the region, in relation to climate change and public asset management from relevant stakeholders. The application of the framework required current data and information from relevant local government agencies because they are responsible and knowledgeable, with various local aspects relevant to assets and management of assets of Central Government, such as local government development plan, disaster management and environmental issues. Several components to establish in order to build the climate change context of Central Government assets in Semarang consist of : (1) scope; (2) climate change scenario; (3) objectives ; (4) stakeholders, external and internal factors; and (5) risk criteria. The establishment of each component in this climate change context is explained below. Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia 205
B.1.a. Define the scope The scope of climate risk management for public assets in Semarang can be defined as it is associated with element in the Modified Framework of ‘Asset use and knowledge’ and ‘Integrated AM and planning in AM’. The geographical area to be covered is City of Semarang that has a total area of 373.70 km2 with population of 1.595 million people (BPS Kota Semarang, 2015). It is administratively divided into 16 districts (kecamatan) and 177 sub-districts (kelurahan). The Central Government of Indonesia has a wide range of assets categorised in specific terms as used in its annual financial report, audited by the Supreme Audit Agency of Indonesia (BPK), such as land; equipment and machinery; buildings; road, water and network infrastructure; other fixed assets; and construction in progress. The Directorate General of State Asset Management (DGSAM), an agency of the Central Government of Indonesia, has developed a computerised asset database system known as SIMAN (Government Asset Management Information System). The SIMAN has reported 2,978 Central Government buildings from various types of buildings at a book value of IDR2.30 trillion (approximately AUD230 million) are located in Semarang as of September 2016 (SIMAN-generated data as shown in Figure 7.1).
Figure 7.1 SIMAN-generated data of Central Government buildings in Semarang (DJKN (DGSAM), 2016b) The SIMAN also reported that 1,818 out of 2,978 Central Government buildings are mostly more than 20 years old (61.05%) at a value of IDR 543.51 billion (approximately AUD 54.35 million). However, assets less than 20 years old account for 38.95% valued at IDR 1,761 billion (around AUD 176.18 million). Only 4.7% is the buildings 50 or more years old with value of IDR 41.79 (approximately AUD 4.18 million) as listed in Table 7.2 and presented in Figure 7.2.
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Table 7.2 Profiles of age of Central Government Buildings in Semarang Number of Value Period (age) % Buildings in IDR billion (AUD million) Thru 1966 ( 50 years < ) 140 4.70% 41.79 (4.18) 1967 - 1976 (40 - 49 years) 202 6.78% 54.29 (5.43) 1977 - 1986 (30 - 39 years) 1055 35.43% 313.86 (31.39) 1987 - 1996 (20 - 29 years) 421 14.14% 133.57 (13.36) 1997 - Now ( < 20 years) 1160 38.95% 1,761.85 (176.18) Source: DJKN (DGSAM) (2016b)
Thru 1966 ( 50 yr < ) 5% 1967 - 1976 (40 - 49 yr) 1997 - Now ( < 20 yr) 7% 39%
1977 - 1986 (30 - 39 yr) 35%
1987 - 1996 (20 - 29 yr) 14% Figure 7.2 Profiles of age of Central Government buildings in Semarang City (DJKN (DGSAM), 2016b)
The researcher has identified all building locations in 16 districts (177 sub- districts) in Semarang and has mapped all these assets (asset mapping) as initial assessment utilising climate risk assessment undertaken by the Centre for Climate Risk and Opportunity Management in Southeast Asia Pacific/CCROM-SEAP, Mercy Corps Indonesia, Institute for Social and Environmental Transition- International/ISET, and Urban and Regional Development Institute/URDI under the program of the Asian Cities Climate Change Resilience Network (ACCCRN) (ACCCRN, 2010). In other words, the researcher used assessment results from ACCCRN for area sampling of Government assets (See Appendix H). Risk assessment on public assets is still absent in Indonesia. This climate risk assessment published by ACCCRN is the best available information that could be used by researcher to determine areas where level of risks for every buildings can be
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recognised. The classification also presents initial screening of Central Government assets in Semarang exposed to climate risks. Upon screening the assets, the public asset managers in Semarang have understanding not only about level of risk at the sub-district area but also could prioritise area for further action regarding response to climate change. The following comprehensive asset mapping (see also Appendix H, Table C, Table D, Table E, Table F) shows the distribution of assets based on the level of risks (risk rating) in each scenario as follows. Table 7.3 The Distribution of Assets Based on the Level of Risks (Risk Rating) in Each Scenario SRESA2 2025 SRESA2 2050 SRESB1 2025 SRESB1 2050 Risk rating Number Number Number Number % % % % of Assets of Assets of Assets of Assets
VH 0 0,00% 0 0,00% 0 0,00% 0 0,00%
H 10 0,34% 10 0,34% 10 0,34% 10 0,34%
MH 116 3,91% 259 8,84% 193 6,57% 122 4,11%
M 1603 54,06% 1437 49,06% 1494 50,89% 1572 53,02%
ML 182 6,14% 142 4,85% 180 6,13% 180 6,07%
L 45 1,52% 51 1,74% 52 1,77% 45 1,52%
VL 1009 34,03% 1030 35,17% 1007 34,30% 1036 34,94% Source: DJKN (DGSAM) (2016b)
According to above Table, there is no asset categorised at V-H risk, nevertheless 10 assets are at H risk. It is approximately 50% of all assets in all scenario being at M risk. The results of the ACCCRN program was published as a report in 2010 and has been a reference in local government planning and other research. The researcher used the best available data and information including the ACCCRN report to determine Central Government buildings to be included in application of the framework. The result of asset mapping in Appendix H was informed and compared to several public assets previously reported by public asset managers in Semarang as public assets that have been affected by flooding events due to sea level rise and intense rainfall in the past (AU1, AU2, AU3), as shown in Table 4.2. The researcher then checked the result of asset mapping in Table 7.3 with
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the 107 assets provided by Pubic Asset Managers of Central Government in Semarang in Table 4.2 resulting in risk matrix in Table 7.4 below. Table 7.4 Risk Matrix of Central Government Buildings Affected by Floods in Semarang Coping Composite Climate Hazard Index (CCHI) Capacity Index Very Likely Likely Unlikely (Quadrant) (More than 3.5) (Between 2.0 – 3.5) (Less than 2.0) V-H H M-H 5 40 HM-HM 4 20 23 M-H M M-L 3 20 MM-LL 2 M-L L VL 1 4
According to Table 7.4, there is no asset categorised at V-H risk and H risk, nevertheless 60 assets are at M-H risk. The buildings categorised at M-H risk, for example, 4 out of 107 assets located in Tanjung Mas Sub-district of North Semarang (M-H Risk, CCHI=2-3.5, CCI=4) previously used by Office of Customs and Excise where the buildings site are in the flood prone area due to sea level rise. The flood has forced the Office of Customs and Excise to move from its inundated office to a new built asset in another secured area. Other assets at the same risk level (M-H) are still being used by Central Government Agencies although their buildings sometimes get inundated but they still manage to use the buildings, e.g. - Office of Semarang Seaport Authority - Navigation District - Fishing Technology Development Center - Fish Quarantine and Inspection Agency - Directorate of Water Police Cimato and Mullan (2010) have highlighted climate change is considered as local issue in the sense that responses and benefits of climate change adaptation depend on location and local circumstances. Moreover, Seawright and Gerring (2008) note the generalisability of case studies can be increased by the strategic selection of cases. The selection of the assets for application of a modified framework has also been based on consultation with public asset managers of the Central Government in Semarang suggesting public assets as listed in Table 7.4 and considering the result of Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia 209
initial assessment from asset mapping in Appendix H. Ideally, all assets in all risk rating level from V-H to M-L should be included in the trial of framework implementation, however, due to several constraints already mentioned above the researcher could only assess asset owned by Ministry of Finance (2 out of 107 assets recommended by Public Asset Managers in Semarang). This two assets are located at M risk where approximately 50% of all public assets in Semarang is at this level of risk (Table 7.3). The researcher selected these two assets considered strategic selection for implementation of the framework which are also from the list in Table 7.4 upon consideration of as follows: 1. The required data availability. 2. High utilisation of building where the Ministry of Finance Building I is a house for five primary offices that serve the public in City of Semarang. 3. The size of the building and number of users whereby the Ministry of Finance Building I is a four-storey building known as a heritage building. There are 490 employees as users of the building that work for 5 primary offices that deliver services to public (thousands of customers). 4. The type of service provided by the buildings which is public service delivery. 5. The researcher’s time constraint of study in Semarang. 6. Official permission given by asset owners (i.e. the respective ministries or government agencies); 7. Willingness, readiness and time availability of asset managers and users of assets of respective ministries or government agencies to participate in the framework application. The first selected asset was public assets or one building out of 14 buildings used by the Office of Asset Management (number 1 from the list in Table 7.4). The second selected asset was housing consisting of two units used by the State Asset Management Regional Office II (number 11 from the list in Table 7.4). The profile of each selected asset is described in detail as follows. (1) Ministry of Finance Building I The first asset is a four-storey building known as a heritage building, located in the centre of Semarang City in Central Semarang District (Figure 7.3)
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Figure 7.3 Ministry of Finance Building I in Semarang City Source: Direct Observation (2016) and DJKN (DGSAM) (2016b)
Asset summary 1 Built about 1954 2 Style 4-storey building 3 Main walls Brick 4 Flooring Concrete 5 Site area 8,740 m2 6 Total building area 14,923.56 m2 (or 3,739.89 m2 each floor) 7 Book value IDR 43,874,704,270 (+AUD 4,387,470) 8 Legal ownership SHM (Freehold Certificate) 9 Address Kauman, Central Semarang District, City of Semarang 10 Building location North: Main road South: Office of TELKOM East : Berok River West : Post office 11 Electricity 690 KVA 12 Air Conditioned 183 unit 13 Elevator 2 Unit Diesel/Electric 14 300 KVA/ 1 Unit Generator 15 Parking area 2.412 m2 16 Garden area 614 m2
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(2) Ministry of Finance Building II The second building assessed in this study is housing for staff at the Ministry of Finance located in Bugangan Sub-district, East Semarang District. Figure 7.4 The Ministry of Finance Building II in Semarang Source: Direct Observation (2016) and DJKN (DGSAM) (2016b)
Asset summary 1 Built about 2015 2 Style single-storey building 3 Main walls Brick 4 Flooring Concrete 5 Site area 140 m2 6 Total building area 70 m2 7 Book value IDR 553,588,000.00 (+AUD 55,360) 8 Legal ownership SHM (Freehold Certificate) 9 Address Bugangan, East Semarang District, City of Semarang 10 Building location North: Road South: Road East : Indera Giri & Citarum River West : Jl. Musi II 11 Electricity - KVA 12 Air Conditioned 2 unit
Based on area sampling from the report of ACCCRN, using the scenario of SRESA2 2025, SRESA2 2050, SRESB1 2025, and SRESB1 2050 the selected assets are positioned at an area of Medium risk (CCHI less than 2.0 and CCI of 4) as shown in Table 7.5 below.
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Table 7.5 Positions of Ministry of Finance Buildings and Housings for staff in Semarang under SRESA2 2025, SRESA2 2050, SRESB1 2025, and SRESB1 2050
Composite Climate Hazard Index (CCHI) Coping Capacity Very Likely Likely Unlikely Index (Quadrant) (More than 3.5) (Between 2.0–3.5) (Less than 2.0) 5 VH H M-H H M-H M 4 1. MOF Building I 2. MOF Building II M-H M M-L 3
M M-L L 2
1 M-L L VL Source: Adapted from ACCCRN (2010) and Author’s analysis B.1.b. Choose climate change scenario in Semarang The current and historical climate information and projection of climate change are used to establish a climate change scenario. It is associated with the element in the Modified Framework of ‘Reliable data set of climate change’. This step required the researcher and participants to consult the appropriate documents and experts in climate and meteorology and modelling, however the availability of information about likely future climate is still of concerns to users of the framework, and there are only a few people with this expertise in Indonesia currently (Salim et al. (2012)). Therefore, it is suggested that the climate change scenario development should be conducted under the guidance of the experts and projections should be made based on the best available information. The researcher used the best available data and information from research already published in order for the researcher to conduct this study. The data and information are based on sources that are current, authoritative, and credible, such as publication of BAPPENAS, BAPPEDA Semarang, and Centre for Climate Risk and Opportunity Management in Southeast Asia Pacific (CCCROM-SEAP), Mercy Corps Indonesia, Institute for Social and Environmental Transition-International (ISET). The researcher and participants also referred to a report on the Semarang Climate Change Resilience Strategy produced by the Rockefeller Foundation ACCCRN (The Asian Cities Climate Change Resilience Network) Program. Several non- governmental organisations, higher education institutions and team of some agencies
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of the City of Semarang were involved in developing this report. This report is important to consider not only due to its formulation and format involving a range of organisations but also in the context of planning for the City of Semarang, it has been synergised with the Medium Term Development Plan of Semarang or RPJMD (ACCCRN, 2010). The RPJMD should be considered in the application of the framework because Central Government assets in Semarang are part of a broader system within City of Semarang affected by the local government development agenda. Climate change scenarios applied in particular geographical regions and in particular timescale are used for managing risks. The emission scenarios selected for this study are SRESA2 and SRESB1, as they reflect current understanding and knowledge about underlying uncertainties in the emissions (ISET, 2010). The differences between these two climate change scenarios are as follows. Table 7.6 Differences between Scenario SRESA2 and SREAB1 Emission Scenario SRESA2 Emission Scenario SRESB1 - As a reference scenario describing a very - As a policy scenario describing a convergent heterogeneous world. The underlying theme world. is self-reliance and preservation of local - The same global population that peaks in mid- identities. century and declines thereafter. - Fertility patterns across regions converge very - Rapid change in economic structures toward a slowly resulting in continuously increasing service and information economy, with global population. reduction in material intensity, and the - Economic development is primarily introduction of clean and resource-efficient regionally oriented and per capita economic technology. growth and technological change are more - Leads to lower future GHG emissions. fragmented and slow. - Leads to higher future GHG emissions Source: ACCCRN (2010); ISET (2010); Nakicenovic et al. (2000) In addition to climate risk scenario, the potential impacts are described in this section based on literature review undertaken as part of establishing climate change context and complemented by results from semi-structured interviews, discussions, and on- site observations. There is still limited study focusing on public assets especially buildings in Indonesia. The best available information relevant to public assets is used in order to investigate the potential climate change impacts to Government Assets in Semarang. As it is reported in the RAN-API, the threats of climate change in Indonesia are the increase of surface temperature, changes in rainfalls, change in sea surface temperature, and the sea level rise (BAPPENAS, 2013a, 2014). The projection of climate features such as rainfalls, temperature, and the sea level rise for the context of Semarang are described in the next section. The potential impacts of
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climate change that could be considered as results of these projection are further explained in Section B.2.a. Rainfall The researcher referred to analysis of rainfall data in Semarang generated by the Centre for Climate Risk and Opportunity Management in Southeast Asia Pacific (CCROM-IPB, 2010). The CCROM originally used observed rainfall grid data from the Climate Research Unit (CRU) known as CRU TS2.0 (CCROM-IPB, 2010; Mitchell & Jones, 2005). The trend of rainfall is increasing, especially during wet season in September, October and November (SON) and December, January, and February (DJF), approximately from 950 to 1,000 mm and 250 to 300 mm respectively. This indicates that the increasing rainfall during 20th century in Semarang was caused by the more frequent rains increasing the probability of floods in this region (ACCCRN, 2010). In contrast, rainfall shows decreasing trends in March, April, and May (MAM) and June, July and August (JJA). Based on the result and the fact of increasing trend found in rainfall data, it is evident that global warming has an important role in these changes (CCROM-IPB, 2010). The threshold analysis of rainfall of Semarang has been provided by CCROM-IPB that concluded that flooding would occur if rainfall is 302 mm or above, whilst drought will happen if rainfall is less than 84 mm (CCROM-IPB, 2010). Temperature The analysis of temperature data in Semarang was generated based on CRU TS2.0 by CCROM-IPB (2010) that indicated the upward trend of average temperature in each season in the last 100 years. The temperature increased from 25.9 to 26.3 degree Celsius during DJF, likewise during JJA that also increased from 25.3 to 26.3 degree Celsius (CCROM-IPB, 2010). It is also estimated, with the baseline in 2000, the increase of temperature in Semarang will be approximately 0.5-0.7 degree Celsius in 2025, 1.1-1.2 degree Celsius in 2050, and 1.9-2.9 degree Celsius in 2100 as shown in Table 7.7. Table 7.7 Temperature Scenario in Semarang (degree Celsius) 2000 2025 2050 2100 SRESA2: moderate 0.2 0.5 1.2 2.9 Range 0.15-0.25 0.3-0.7 0.8-1.6 2.0-4.1 SRESB1: moderate 0.2 0.7 1.1 1.9 Range 0.15-0.25 0.5-0.9 0.7-1.6 1.2-2.27 Source: ISET (2010)
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Increase in Sea-level rise Some parts of Semarang are already inundated due to sea-level rise (SLR). It is estimated the SLR in Semarang will rise steadily to 2100 as shown in Table 7.8 (ISET, 2010). Table 7.8 Sea-level rise scenario in Semarang (cm) 2000 2025 2050 2100 Scenario SRESA2: Best 2 10 21 60 guess Range 0-4.0 4.0-20 9.0-41 25-112 Scenario SRESB1: Best 2 10 21 48 guess Range 0-4.0 4.0-22 9.0-42 18-85 Source: ISET (2010) Based on Table 7.7, the SLR in Semarang will be increasing approximately to 10 cm by 2025, 21 cm by 2050 and 48-60 cm by 2100. Other SLR simulation is provided by the Marines and Fisheries Agency of Semarang (DKP Kota Semarang). It is estimated 0.8m SLR by 2110 in Semarang. The simulation of sea-water inundation by 2110 in Semarang, in which area of flooding and tidal inundation will reach distances that range from 1.7-3.0km inland, covering an area of approximately 86 km2 (ACCCRN, 2010; DKP Kota Semarang, 2008).
B.1.c. Identify objectives According to Indonesian law, there is separation between management of assets owned by Central Government and Local Government in term of legal and institutional arrangements, financial planning and budgeting as well as reporting mechanisms to stakeholders. The Central Government assets are spreading across the country including several significant assets in Semarang in terms of total number and value. These assets have strategic roles as extended functions and provision of services from Central Government of Indonesia to the public at provincial and local level. The locations of the public assets are in the concentration of population and economic activity; however these assets are exposed to coastal flooding, and sea level rise as well as being located in a floodplain (ACCCRN, 2014; BAPPENAS, 2013a; DJKN (DGSAM), 2014; Mulyana et al., 2013; Taylor, 2011). This step is associated with at least three elements of Modified Framework, such as ‘Integrated AM and planning in AM’, ’Asset use and knowledge’ and ’Reliable data set of climate change’.
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The success criteria or objectives of PAM in Indonesia, specifically PAM in Semarang, are as follows (AU1, AU2, AU3, DJKN (DGSAM) (2016a)): (1) Optimising government revenue, advancing efficiency in the government expenditure, and improving effectiveness of public asset management; (2) Safeguarding physical, administrative, and legal aspects of public assets; (3) Maintain service quality that meets minimum service standard; (4) Improving the quality of human resources, organisation, Information and Communication Technology (ICT), and budget management. These objectives should also focus on stakeholders’ safety, which is also an element of safeguarding the physical aspects of public assets. Ensuring the public assets, such as building, is able to withstand climate change induced events, is critical in protecting the lives of occupants. For example, protecting people in buildings from the effects of extreme wind relies on the building continuing to provide a shelter for the duration of the hazard and remaining intact (ABCB (Australian Building Codes Board), 2010). Therefore, potential effects on the building as a result of climate change should include potential impacts on stakeholders’ safety. Thus, upon agreement with the participants, the researcher added an additional objective that is Stakeholders’ Safety, included as the fifth objective in PAM of Central Government in Semarang. B.1.d. Identify stakeholders, and external and internal factors The Asset User is a term used to refer to the Central Government agencies (also known as Line Ministries/Agencies) that occupy or use the assets for their main functions in serving the public. Some assets are also leased to or borrowed by other individuals, organisations or other government agencies for not-for-profit or commercial purpose. The Line Ministries/Agencies (Asset User) have limited authority in decision-making of public assets, especially land and buildings that they currently utilise. It is the Asset Manager who has more authority in the decision- making of Central Government land and buildings in term of utilisation (such as asset lease, loan) and disposal (such as asset sale and auction). The Asset Manager is a term used for a government agency having primary role in policy formulation, monitoring and evaluation as well as decision-making on specific asset cycle stages. The Asset Manager of public assets in Indonesia is Minister of Finance. The public asset management task is delegated to the Directorate General of State Asset Management (DGSAM). For Central Government assets in Semarang, the State Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia 217
Asset Management Regional Office II has a role as Asset Manager at provincial level covering two provinces, however at the city level it is the role of State Asset Management & Auction Office VI as the Asset Manager. The Office of Asset Management involved in the application of this framework is a unit under the Ministry of Finance, however it has a role as Asset User/operator. Other agencies that should be considered as stakeholders are local government agencies, higher degree institutions, research institutes, and non-governmental agency. These stakeholders have roles in the achievement of successful Public Asset Management (PAM) and Climate Change Adaptation (CCA) in Indonesia. B.1.e. The risk criteria The risk criteria are established, describing the level of consequence of a risk that affects the organisation, specifically public assets and the likelihood of an event occurring whereby the combination of consequence and likelihood reflects a level of risk that helps an organisation select priority for attention (Beer & Ziolkowski, 1995; Brooks, 2003; Brooks et al., 2005; R. Jones et al., 2004). The risk criteria should be defined prior to identification of risks that affect public assets and should be reviewed regularly. This is also undertaken through clarification of the objectives or success criteria of the organisation (specifically in PAM) and consideration of legal and regulatory requirements of public assets (relevant laws in public assets/buildings issued by relevant agencies, such as Ministry of Public Works, Ministry of Environment and Forestry, Ministry of Finance). The researcher has discussed and consulted with participants (AU2, AU2, AU3) regarding this risk criteria. The risk criteria in this study of Central Government assets in Semarang has been defined as follows: (1) Level of consequence As explained in Section B.1.c, the success criteria of PAM of Central Government in Semarang were defined as follow: a) Optimising government revenue, advancing efficiency in the government expenditure, and improving effectiveness of public asset management; b) Safeguarding physical, administrative, and legal aspects of public assets; c) Maintain service quality that meets minimum service standard; d) Improving the quality of human resources, organisation, Information and Communication Technology (ICT), and budget management; and 218 Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia
e) Stakeholders’ Safety Accordingly, the qualitative level of consequences was set as presented in Table 7.9 as follows.
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Table 7.9 Qualitative level of consequences
Success Criteria for Management of Public Asset (PA) in Semarang
Quality of
Rating Effectiveness of Safeguarding Maintain service administrative, Stakeholders public asset physical aspects quality to meet ICT system, safety use1) of public assets2) standard3) and budget management4) Services would be Significant Services would Administration Severe adverse incorrectly permanent damage fall well below and/or ICT human health targeted, and/or complete acceptable system of the effects, leading to delivered late or loss of the PA and standards and organisation multiple events of not at all in a PA service. this would be would be seen total disability or large number of Loss of PA support clear to all. to have failed fatalities. cases. and translocation of and in need of Total disruptions to service to other external employees, intervention. Catastrophic sites. customers or Early renewal of PA neighbours. by >90%. Emergency response at a major level. There would be Extensive PA The general Administration Permanent physical isolated instances damage requiring public would and ICT system injuries and fatalities of services being major repair. regard the of the may occur. incorrectly Major loss of PA organisation’s organisation Severe disruptions Major targeted, service. services as would be seen to employees, delivered late or unsatisfactory. to be deficient Early renewal of PA customers or not delivered at and in need of neighbours. all. by 50–90%. external review. There would be Limited PA damage Services would be Administrative Frequent isolated but and loss of service. regarded as and/or ICT disruptions to important Damage barely satisfactory system failings employees, instances of recoverable by by the general might not be customers or services being maintenance and public and the widely seen but neighbours. poorly targeted or organisation’s they would Moderate minor repair. Adverse human delivered late. personnel. cause concern health effects. Early renewal of PA if they came to by 20–50%. light. There would be Localized PA Services would be There would be Short-term isolated instances service disruption. regarded as some disruption to of service delivery No permanent satisfactory by the administrative employees, failing to meet damage. Some general public but and/or ICT customers or acceptable minor restoration personnel would system neighbours. standards to a work required. be aware of shortcomings Slight adverse Minor limited extent. deficiencies. demanding human health Early renewal of PA attention but by 10–20%. effects or general they would not amenity issues. Need for be regarded as new/modified serious failures. ancillary equipment. Minor technical No PA damage, Minor deficiencies There would be No adverse human faults in service little change to in principle that minor areas of health effects. delivery would service. would pass concern but attract no without comment. they would not Marginal attention. demand special attention. Source: Adapted from ABCB (2010); AGO (2006); Standards Australia (2013) Note: Success criteria of PAM in Semarang as follows (DJKN (DGSAM),: 1) Optimising government revenue, advancing efficiency in the government expenditure, and improving effectiveness of public asset management; 2) Safeguarding physical, administrative, and legal aspects of public assets; 3) Maintain service quality that meets minimum service standard; 4) Improving the quality of human resources, organisation, Information and Communication Technology (ICT), and budget management.
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(2) Level of likelihood As previously mentioned in Section B.1.b, the availability of information about likely future climate is still limited. Therefore, it is suggested that the climate change scenario development should be conducted under the guidance of the experts and projections should be made based on the best available information, such as publication of BAPPENAS, BAPPEDA Semarang, Centre for Climate Risk and Opportunity Management in Southeast Asia Pacific (CCCROM-SEAP), Mercy Corps Indonesia, Institute for Social and Environmental Transition-International (ISET). The study under the ACCCRN program in Semarang evaluated the level of climate risk at sub-district (Kelurahan) level. The risk criteria established in the report describes the likelihood of an event to occur modified as Composite Climate Hazard Index (CCHI). The CCHI allowed multiple climate hazards being accommodated in the climate risk assessment. Composite Climate Hazard Index (CCHI) and Coping Capacity Index baseline year 2005, the SRESA2 scenario in 2025, SRESA2 scenario in 2050, SRESB1 scenario in 2025, and SRESB1 scenario in 2050 generated by CCCROM-IPB in ACCCRN Report can be seen in Appendix G. Table 7.10 Qualitative measures of Likelihood Composite Climate Hazard Index (CCHI) Very Likely Likely Unlikely (More than 3.5) (Between 2.0 – 3.5) (Less than 2.0) Source: Adapted from ACCCRN (2010)
(3) Climate risk matrix The level of consequence and likelihood were used to develop climate risk of public assets in Semarang presented in the form of risk matrix (Table 7.11).
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Table 7.11 Matrix of Climate Risk of public assets in Semarang Composite Climate Hazard Index (CCHI) Consequences Very Likely Likely Unlikely (More than 3.5) (Between 2.0 – 3.5) (Less than 2.0) VH H M-H Catastrophic H M-H M Major M-H M M-L Moderate
M M-L L Minor
M-L L VL Marginal
Source: Adapted from ABCB (2010); AGO (2006); Standards Australia (2013), ACCCRN (2010) and this thesis Author
Note: V-H = Very High risk H = High risk M-H = Medium to High risk M = Medium risk M-L = Medium to Low risk L = Low risk
B.2. Risk assessment The risk assessment should consider elements in the Modified Framework. It is also important to have communication and consultation with stakeholders as well as expert advice. This assessment is performed through a process of climate risk identification, risk analysis and risk evaluation as explained below. B.2.a. Climate risk identification The potential impacts of climate change brought about by these climate features (e.g. the changes in the intensity and patterns of rainfalls, the sea level rise, the changes of temperature) have already been identified by utilising the best data and information available from literature, government policies and requirements, communication with stakeholders and discussions with participants (AU1, AU2, AU3) as follows. The potential impacts or risk of rainfall on buildings The increasing intensity of rainfall that overwhelms stormwater and drainage infrastructure as well as overtops streams and rivers would put the building in greater risk. (ABCB (Australian Building Codes Board), 2010; Amitrano et al., 2007; BAPPENAS, 2014; Cuny, 1994; Freeman & Warner, 2001; K. Jones, 2012; K. Jones & Brosnan, 2014; Otero & Marti, 1995; Snow & Prasad, 2011).
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The increase of rainfall would also result in more damage to building contents, such as interior, furnishings, appliance, and equipment. During the wet season in SON and DJF, the increased rainfall intensity could cause risk of water ingress and the moisture penetration into buildings. The water ingress into buildings could occur as a result of leaking roofs and overflowing gutters draining back into the building, whilst the increased moisture penetration of buildings could lead to internal damage of the building. The decreasing trend of rainfall in MAM and JJA would cause greater risk of drought that affects the government buildings in term of its footing system, due to soil movement and reduced availability of water supply for daily needs of occupants. Drier conditions or drought (e.g. increased temperature, increased evaporation and reduced rainfall) would potentially lead to increased ground movement, increased cracking of drier soils and increased ground movement impacting on foundations, structural integrity of water supply, sewer and stormwater pipelines (ABCB (Australian Building Codes Board), 2010; Amitrano et al., 2007; Snow & Prasad, 2011). The potential impacts or risk of temperature on buildings A comprehensive study related to extreme events in Indonesia is still very limited (BAPPENAS, 2014). Increased extreme temperature events will potentially have a greater impact on buildings in term of material durability and intensified material degradation, such as the risk of cracking or failure of building envelopes (roofing, cladding, window system) (ABCB (Australian Building Codes Board), 2010, 2014; Amitrano et al., 2007; Cuny, 1994; Freeman & Warner, 2001; Otero & Marti, 1995; Snow & Prasad, 2011). Nevertheless, the temperature change-related extreme events such as heat waves do not show a significant trend, either from historical data (Manton et al., 2001) or from Global Climate Model (GCM) output until 2050 (BAPPENAS, 2014). Although it is considered insignificant, it is still important to anticipate the impacts of higher temperature due to climate change in the future that affects the health and safety of building occupants. Government buildings should have the ability to maintain stable internal temperature in order to reduce health risks associated with increased temperature. In the future, the building code could address issues of thermal comfort. During high temperatures, government buildings would use air conditioning that causes increased energy consumption, placing greater pressure on Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia 223
electricity infrastructure and compromising the ability of buildings to achieve levels of sustainability (ABCB (Australian Building Codes Board), 2010, 2014; Lishan Guan, 2006; Lisa Guan, 2007; K. Jones & Brosnan, 2014). The potential impacts or risk of increase sea level rise on buildings The increased sea level rise due to climate change would make greater risks and more frequent sea water inundation flowing onto the area where Government buildings are located. The potential damage to Government buildings would affect the following areas (ABCB (Australian Building Codes Board), 2010; Amitrano et al., 2007; BAPPENAS, 2014; Cuny, 1994; Freeman & Warner, 2001; Otero & Marti, 1995; Snow & Prasad, 2011). - Widespread inundation of seawater to government buildings in coastal areas could cause shoreline retreat. - Coastal erosion and water intrusion that would result in loss or damage to government buildings including building contents (interior linings, furnishings, appliances, equipment and plant). - Possible contamination of interior of government building from sewage, soil and mud that renders some buildings uninhabitable. - Possible undermining or destroying of foundations of government building that lead to structural collapse. - Salt spray in coastal areas that would affect durability of materials of the building. B.2.b. Risk analysis The risk analysis of the two selected buildings in this study began with qualitative measures of the likelihood or the probability of unexpected climate events to occur that would affect the assets. The researcher used the Composite Climate Hazard Index (CCHI) developed by the ACCCRN (2010) to assess the level of likelihood of climate events to occur in Semarang. The reason of using the CCHI was because the climate scenario projected by CCROM-IPB (2010) was also incorporated in assessing the CCHI with the year of 2005 as baseline. The Appendix G shows detailed CCHI per sub-districts in Semarang. As for the level of consequence, the Table 7.9 provides a qualitative estimate of the consequences of the identified climate change risk suitable for public asset management of Central Government of Indonesia. I. Ministry of Finance Building I a. The level of likelihood (composite climate hazard index) 224 Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia
The CCHI as results of assessment undertaken by ACCCRN under SRESA2 and SRESB1 scenario in a specific area where the Ministry of Finance Building I is situated (Kauman Sub-district, District of Central Semarang), is as follows. Table 7.12 Level of likelihood for Ministry of Finance Building I under CCHI scenario SRESA2 and SRESB1 Composite Climate Hazard Index 2005 A2 2025 A2 2050 B1 2025 B1 2050 0.27 0.27 0.21 0.35 0.26 Source: ACCCRN (2010) Because the baseline of CCHI is 2005, the researcher only used CCHI SRESA2 2025, SRESA2 2050, SRESB1 2025, and SRESB1 2050 in determining the climate risk of Ministry of Finance Building I. b. The level of consequences The next step was to assess the level of consequence of the unexpected climate events that affect the Ministry of Finance Building I. The researcher conducted discussion and on-site observation with participants (AU1, AU2, AU3). As previously discussed in Section B.1.c, success criteria or objectives of Central Government PAM in Semarang are as follows: - Effectiveness of public asset use - Safeguarding physical aspects of public assets - Maintain service quality to meet standard - Quality of administrative, ICT system, and budget management - Stakeholders’ safety The results of interview and discussion with participants are as follows. 1) Effectiveness of public asset use The Ministry of Finance Building I is a house for five primary offices that serve the public in City of Semarang. These five offices consist of, as follows: Table 7.13 List of tenants in Ministry of Finance Building I No Name of the office, Location, Area used, Number of personnel 1 Regional Office of Directorate General of Treasury 3rd Floor (Block A, B, C, D), 4.164m2 193 persons 2 Tax Office I 1st ,2nd , 4th Floor (Block A dan B), 1.964m2 103 persons 3 Tax Office II 2nd Floor (Block A, B, D), 2.334 m2 69 persons
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4 Tax Office III 2nd Floor (Block A and C), 2.163 m2 80 persons 5 Asset Management Office Floor 1st ,2nd , 4th (Blok A, C, and D), 4.949 m2 45 persons Source: Secretariat General, Ministry of Finance All areas in the building are in use, except the first floor that has already been uninhabitable due to water ingress and inundation from frequent flooding events (flooding events caused by intense rainfall and tidal flooding). Nevertheless, the use of the building for these five offices are still effective although the first is unused for safety of occupants and public, security reasons for people, document and office equipment, and human health reasons due to dampness leading to microbiological growth and then increased health problems (e.g. allergies and respiratory) (AU3). Based on the above-mentioned, the participants agreed that the consequence is considered ‘minor’. 2) Safeguarding physical aspects of public assets The increased rainfall intensity also frequently caused flooding events in Semarang. Floods have been the most frequent natural disaster causing several government buildings in Semarang to be inundated during the wet season (AU1, AU2, AU3). The risk of damage to government buildings due to flooding, especially in low lying or coastal areas as a result of climate change, is most likely to increase (AU1, AU2, AU3). The increase of intense rainfall in the past has already affected the building. The increasing of the sea level has resulted also in the inundation of the building and other buildings in some areas in Semarang (AU1, AU2, AU3). The first floor of the building was damaged by water ingress, resulting in significant repair. The water ingress has already lead to significant loss because the first floor of the building became uninhabitable since 2000 and continues to be so until today (AU3). The New Replacement Cost (value) of the first floor of the building is approximately IDR 20 billion (AUD 2 million), whilst the book value of Ministry of Finance Building I in 2016 is IDR 43.87 billion (approximately AUD 4.39 million). The NRC for the first floor is almost
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50% of the overall Ministry of Finance Building I (AU2).
Figure 7.5 Frequent water ingress has already lead to significant loss because the first floor of this building of Central Government of Indonesia at Central Semarang District has become uninhabitable since 2000.
Severe and longer droughts that exacerbate footing stress towards a greater incidence of footing failures of Government buildings hardly occur in Semarang and there is no data available regarding this issue (AU3). Based on interviews with AU1, AU2, AU3 and given the current variability of rainfall events, the likelihood of increase in damage to government buildings caused by inadequate internal box or gutters, or external gutters as result of rainfall intensity, is likely to be low. Based on the above-mentioned, the consequence is considered ‘moderate’. 3) Maintain service quality to meet standard The building is still maintaining the service quality to meet a minimum standard use of the building to occupants, customers and stakeholders. Although the first floor of the building is unusable, the other floors are still in use by the five offices to serve the public in the City of Semarang (AU3). The site of Ministry of Finance Building I has already been elevated approximately 90 cm above the ground (level of the front street) to prevent water ingress to the building during flooding events due to intense rainfall or tidal flooding (AU3). The problem that still faces the building is the parking issue due to limited area. The customers/public should park their vehicles outside the building (street parking). In general, services are regarded as satisfactory Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia 227
by the general public, as indicated by very low number of complaints made by the public in the last five years. Based on the above-mentioned, the consequence is considered ‘minor’. 4) Quality of administrative, ICT system, and budget management The participant (AU3) explained that some administrative and/or ICT systems become disrupted and needed attention only during the flooding events in the past. The system could be functioning again the same day. This circumstance would not be regarded as serious failure (AU3). The annual budget for the Ministry of Finance Building I maintenance is approximately IDR 1.6 billion (AUD 0.16 million); this financial budget will be increased annually by 10%. It is hopeful the budget for maintenance of Ministry of Finance Building I could be more than the amount provided this year (AU3). Based on the above-mentioned, the consequence is considered ‘minor’. 5) Stakeholders safety There are 490 employees, mostly government officers of the Ministry of Finance working in five different offices, such Regional Office of Directorate General of Treasury, and three Tax Offices. These five offices serve the public and around a thousand customers. During the flooding events that affected the Ministry of Finance Building I (the last flooding event in 2013), there was short-term disruption to employees, customers or neighbours and only slight adverse human health effects or general amenity issues (AU3). Although the temperature change in Semarang is considered insignificant, it is still important to anticipate the impacts of higher temperature due to climate change in the future that affects the health and safety of building occupants, customers and other stakeholders. The Ministry of Finance Building I should have the ability to maintain stable internal temperature in order to reduce health risks associated with increased temperature (AU1, AU2, AU3). As previously mentioned, the first floor of the Ministry of Finance Building I is already uninhabitable for Stakeholders safety/health reason for people due to dampness leading to microbiological growth leading to increased health problems (e.g. allergies and respiratory) (AU3). Based on the above mentioned, the overall consequence is considered 228 Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia
“minor”. The summary of qualitative level assessment for the level of consequences of the Ministry of Finance Building I is presented in Table 7.14.
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Table 7.14 Qualitative level of consequences of The Ministry of Finance Building I Success Criteria for Management of Public No Remarks Consequences Asset (PA) in Semarang
Effectiveness of There would be isolated but important Moderate 1 instances of services being poorly public asset use targeted or delivered late - Limited building damage and loss of Moderate service on the 1st floor (uninhabitable). Safeguarding physical - Damage recoverable by maintenance 2 aspects of public and minor repair however for safety assets reasons the 1st floor has been vacant since 2000. - Early renewal of Ministry of Finance Building I by 20–50%.
Maintain service Services would be regarded as Minor satisfactory by the general public but 3 quality to meet personnel would be aware of standard deficiencies Quality of There would be some administrative Minor administrative, ICT and/or ICT system shortcomings 4 system, and budget demanding attention but they would not management be regarded as serious failures - Short-term disruption to employees, Minor customers or neighbours. 5 Stakeholders safety - Slight adverse human health effects or general amenity issues.
c. Climate risk matrix All scenarios of CCHI projected for year 2025 and 2050 (both SRESA2 and SRESB1) showed the CCHI index for Kauman Sub-district area, where the Ministry of Finance Building I is located, is less than 2.0 (“Unlikely”) (Table 7.12). The level of consequence for the Ministry of Finance Building I based on risk analysis varied from ‘minor’ to ‘moderate’ (Table 7.14). Accordingly, upon completion of defining the level of likelihood and level of consequences, the next step is to determine risk rating with participants (AU1, AU2, AU3) resulting in the risk matrix presented in Table 7.15.
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Table 7.15 Matrix of risk rating for The Ministry of Finance Building I under Scenario of under SRESA2 2025, SRESA2 2050, SRESB1 2025, and SRESB1 2050 Composite Climate Hazard Index (CCHI) Consequences Very Likely Likely Unlikely (More than 3.5) (Between 2.0–3.5) (Less than 2.0) Catastrophic VH H M-H H M-H M Major
M-H M M-L • Effectiveness of public asset use • Maintain service quality to meet Moderate standard • Quality of administrative, ICT system, and budget management • Stakeholders safety M M-L L Minor Safeguarding physical aspects of public assets M-L L VL Marginal
Based on the matrix of Risk Rating in Table 7.15, it can be concluded that: 1. The effectiveness of The Ministry of Finance Building I use is at MEDIUM-TO-LOW RISK. 2. Safeguarding the physical aspects of The Ministry of Finance Building I is at LOW RISK 3. Maintain service quality to meet standard, Quality of administrative, ICT system, and budget management, and Stakeholders safety of The Ministry of Finance Building I is at MEDIUM-TO-LOW RISK. II. Ministry of Finance Building II (housing) a. The level of likelihood (composite climate hazard index) The CCHI results derived from assessment undertaken by ACCCRN under SRESA2 and SRESB1 scenarios is as follows.
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Table 7.16 Level of likelihood for Housing for Staff under CCHI scenario SRESA2 and SRESB1 Composite Climate Hazard Index 2005 A2 2025 A2 2050 B1 2025 B1 2050 0.30 0.30 0.38 0.60 0.44 Source: ACCCRN (2010) Because the baseline of CCHI is 2005, the researcher only used CCHI SRESA2 2025, SRESA2 2050, SRESB1 2025, and SRESB1 2050 in determining the climate risk for the housing staff. b. The level of consequences The next step was to assess the level of consequence of the unexpected climate events that affect the housing. The researcher conducted discussion and on-site observation with the Asset Manager and Asset User of this housing (AU1, AU2, AU3). As previously discussed in Section B.1.c, success criteria or objectives of Central Government PAM in Semarang are as follows: - Effectiveness of public asset use - Safeguarding physical aspects of public assets - Maintain service quality to meet standard - Quality of administrative, ICT system, and budget management - Stakeholders safety The result of semi-structured interview and discussion are as follows. 1) Effectiveness of public asset use The housing for staff of Ministry of Finance in Semarang consists of two units newly renovated in 2015. The previous units prior to major renovation are shown in Figure 7.6 (AU1).
Figure 7.6 The units prior and after renovations (left to right) (Source: Direct Observation (2016) and DJKN (DGSAM) (2016b))
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In 2015, the two units were renovated and have already been occupied in July 2016 upon completion of the renovations. Based on the above-mentioned, the consequence is considered ‘marginal’. 2) Safeguarding physical aspects of public assets The increased rainfall intensity frequently caused flooding events in Bugangan Sub-district. The increase of intense rainfall in the past has already affected the old units. The whole area of these two units has been elevated approximately 80 cm from the street level in front of the units in order to prevent water ingress from flooding to the units (Figure 7.7).
Figure 7.7 Elevation of the units to prevent water ingress during flooding events. The house next to the units has the same level with the front street (left). Another house in front of the units has already been inundated and is uninhabitable (right). (Source: Direct Observation (2016) and DJKN (DGSAM) (2016b))
Based on interview with AU1, AU2, AU3 and given the current variability of rainfall events, the likelihood of increase in damage to these two units caused by leaking roofing material, inadequate internal box or gutters, or external gutters as result of rainfall intensity, is likely to be very low. The location of the units is near Citarum River, consequently the units are prone to riverine flood although the units have been elevated. Based on the above-mentioned, the consequence is considered ‘marginal’. 3) Maintain service quality to meet standard These two units are newly renovated in 2015; accordingly service quality definitely meets minimum standard use of the building to occupants (AU1). There is no issue in service quality of these units. In general, services are regarded as satisfactory by the occupants. Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia 233
Based on the above-mentioned, the consequence is considered ‘marginal’. 4) Quality of administrative, ICT system, and budget management There is no issue in quality of administrative, ICT system, and budget management of these units (AU1). Based on the above-mentioned, the consequence is considered ‘marginal’. 5) Stakeholders safety There are two families that reside in these units. There were no flooding events in the last two years in the area, however, considering the locations of these units near the river, the units are considered vulnerable to floods, due to overtopping streams and rivers (AU1). Based on the above-mentioned, the consequence is considered ‘moderate’. The summary of qualitative level assessment for the level of consequences of housing for staff of the Ministry of Finance in Semarang is presented in Table 7.17. Table 7.17 Qualitative level of consequences of housing for staff of Ministry of Finance
Success Criteria for Management of No Remarks Consequences Public Asset (PA) in Semarang Effectiveness of Minor technical faults in service Marginal 1 public asset use delivery would attract no attention Safeguarding physical No damage, little change to Marginal service. 2 aspects of public assets Maintain service Minor deficiencies in principle Marginal 3 quality to meet that would pass without comment standard Quality of There would be minor areas of Marginal administrative, ICT concern but they would not 4 system, and budget demand special attention management - Frequent disruptions to Moderate 5 Stakeholders safety occupants or neighbours. - Adverse human health effects. Source: Adapted from this thesis Author (2017), ABCB (Australian Building Codes Board) (2010); AGO (2006); Standards Australia (2013))
c. Climate risk matrix All scenarios of CCHI projected for year 2025 and 2050 (both SRESA2 and SRESB1) showed the CCHI index for Bugangan Sub-district area, where the 234 Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia
housing units are located, is less than 2.0 (‘Unlikely’) (Table 7.18). The level of consequence for the Ministry of Finance Building II (housing) based on risk analysis varied from ‘marginal’ to ‘moderate’ (Table 7.17). Accordingly, upon completion of defining the level of likelihood and level of consequences, the next step is to determine risk rating with participants (AU1, AU2, AU3), resulting in the risk matrix presented in Table 7.18. Table 7.18 Matrix of risk rating for housing for staff of Ministry of Finance under Scenario of SRESA2 2025, SRESA2 2050, SRESB1 2025, and SRESB1 2050 Composite Climate Hazard Index (CCHI) Consequences Very Likely Likely Unlikely (More than 3.5) (Between 2.0–3.5) (Less than 2.0) VH H M-H Catastrophic
H M-H M Major
M-H M M-L Moderate Stakeholders safety M M-L L Minor
M-L L VL • Maintain service quality to meet standard • Quality of administrative, ICT Marginal system, and budget management • Safeguarding physical aspects of public assets • Effectiveness of public asset use
Based on matrix of Risk Rating on Table 7.18, it can be concluded that: 1. Effectiveness of public asset use is at VERY LOW RISK. 2. Safeguarding physical aspects of public assets is at VERY LOW RISK 3. Maintain service quality to meet standard is at VERY LOW RISK. 4. Quality of administrative, ICT system, and budget management is at VERY LOW RISK. 5. Stakeholders’ safety is at MEDIUM-TO-LOW RISK.
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B.2.c. Risk evaluation Risk evaluation is used to decide which risks need treatment (adaptation) and the priority for treatment implementation. The risk evaluation in this section is based on the outcomes of risk analysis already described in the previous section. It involved comparisons of the level of risk found during the analysis stage with risk criteria previously set. The researcher conducted discussions on this risk evaluation with the participant (AU3) managing the Ministry of Finance Building I and participant (AU1) who manages the Ministry of Finance Building II (housing). The results are summarised in Risk Matrix in Table 7.19 and Table 7.20 respectively.
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Table 7.19 Risk matrix: evaluating the likelihood and consequences of climate change impacts on Public Asset Management of Ministry of Finance Building I Success Criteria for Risk No Management of Public Building Issue Remarks Consequences Likelihood Priority Rating Asset (PA) in Semarang
Effectiveness of public First floor is uninhabitable, which There would be isolated but important Moderate Unlikely Medium- 1 1 causes tenants to use other available instances of services being poorly to-Low asset use and more secure floors (2nd, 3rd, 4th). targeted or delivered late - Limited building damage and loss of - First floor is uninhabitable due to st Moderate Unlikely Medium- 1 water ingress and inundation from service on the 1 floor to-Low frequent flooding events (flooding (uninhabitable). events caused by intense rainfall and - Damage recoverable by maintenance and minor repair however for safety Safeguarding physical tidal flooding). The cost of renovations st 2 for this 1st floor would be expected reasons the 1 floor have been vacant aspects of public assets significant. since 2000. - Site drainage, inadequate internal - Early renewal of Ministry of box or gutters, or external gutters as Finance Building I by 20–50%. result of rainfall intensity is likely to be low - Limited space for parking lot, the Services would be regarded as Minor Unlikely Low 2 customers/public should park their satisfactory by the general public but vehicles outside the building (street personnel would be aware of parking). deficiencies Site of Ministry of Finance Building I Maintain service 3 has already been elevated quality to meet standard approximately 90 cm above the ground (level of the front street) to prevent water ingress to the Ministry of Finance Building I during flooding event due to intense rainfall or tidal flooding. Quality of Disruption of administrative and/or There would be some administrative Minor Unlikely Low 2 administrative, ICT ICT due to electricity outage that need and/or ICT system shortcomings 4 attention during the flooding events to demanding attention but they would system, and budget ensure the system could be functioning not be regarded as serious failures management again in the same day.
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Success Criteria for Risk No Management of Public Building Issue Remarks Consequences Likelihood Priority Rating Asset (PA) in Semarang - Energy efficiency: need anticipation of - Short-term disruption to employees, Minor Unlikely Low 2 increased energy use to cope with customers or neighbours. higher temperature affecting - Slight adverse human health effects occupants. or general amenity issues. 5 Stakeholders safety - Health and amenity: for Stakeholders safety/health reason for people due to dampness leading to microbiological growth leading to increased health problems (e.g. allergies and respiratory).
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The risk evaluation is needed to determine risk that requires treatment that leads to selection of adaptation to climate change. The adaptation selection is undertaken after determining the priority for implementation of climate change adaptation. The process of adaptation selection has been discussed with AU1, AU2, AU3. The results of discussions and decisions of priority for each objectives of PAM are explained as follows. 1. Effectiveness of public asset use First floor is uninhabitable, which causes tenants to use other available and more secure floors (2nd, 3rd, 4th). The risk rating for this objective is at Medium-to- Low risk and is proposed to be considered as first priority for further treatment (adaptation). 2. Safeguarding physical aspects of public assets - First floor is uninhabitable due to water ingress and inundation from frequent flooding events (flooding events caused by intense rainfall and tidal flooding). The cost of renovations for this 1st floor would be expected to be significant. - Site drainage, inadequate internal box or gutters, or external gutters as result of rainfall intensity is likely to be low. The risk rating for this objective is at Medium-to-Low risk and proposed to be considered as first priority for further treatment (adaptation). 3. Maintain service quality to meet standard - Limited space for parking lot, the customers/public should park their vehicles outside the building (street parking). - Site of Ministry of Finance Building I has already been elevated approximately 90 cm above the ground (level of the front street) to prevent water ingress to the Ministry of Finance Building I during flooding event due to intense rainfall or tidal flooding. The risk rating for this objective is at Low risk and is proposed to be considered as the second priority for further treatment (adaptation). 4. Quality of administrative, ICT system, and budget management Disruption of administrative and/or ICT due to electricity outage that needs attention during the flooding events to ensure the system could be functioning again in the same day. The risk rating for this objective is at Low risk and is proposed to be considered as second priority for further treatment (adaptation).
Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia
5. Stakeholders safety - Energy efficiency: need anticipation of increased energy use to cope with higher temperature affecting occupants. - Health and amenity: for Stakeholders safety/health reason for people due to dampness leading to microbiological growth leading to increased health problems (e.g. allergies and respiratory). The risk rating for this objective is at Low risk and is proposed to be considered as the second priority for further treatment (adaptation).
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Table 7.20 Risk matrix: evaluating the likelihood and consequences of climate change impacts on Public Asset Management of Ministry of Finance Building II (housing) Success Criteria for Risk No Management of Public Building Issue Remarks Consequences Likelihood Priority Rating Asset (PA) in Semarang Effectiveness of public Newly renovated, occupied in 2016 Minor technical faults in service Marginal Unlikely Very Low 2 1 asset use delivery would attract no attention Site has been elevated approximately No damage, little change to service. Marginal Unlikely Very Low 2 Safeguarding physical 80 cm above the street level in front 2 aspects of public assets of the units in order to prevent water ingress from flooding to the units. Maintain service Newly renovated, occupied in 2016 Minor deficiencies in principle that Marginal Unlikely Very Low 2 3 quality to meet standard would pass without comment Quality of Newly renovated, occupied in 2016 There would be minor areas of Marginal Unlikely Very Low 2 administrative, ICT concern but they would not demand 4 system, and budget special attention management - Energy efficiency: need - Frequent disruptions to occupants Moderate Unlikely Medium- 1 anticipation of increased energy or neighbours. to-Low 5 Stakeholders safety use to cope with higher - Adverse human health effects. temperature affecting occupants.
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The process of adaptation selection has been discussed with key persons (AU1, AU2, AU3). The results of discussions and decisions of priority for each objectives of PAM for this asset are explained as follows. 1. Effectiveness of public asset use The assets were newly renovated and have been reoccupied since 2016. The risk rating for this objective is Very Low risk and it is considered no further treatment (adaptation) required. 2. Safeguarding physical aspects of public assets The site of the units has been elevated approximately 80 cm above the street level in front of the units in order to prevent water ingress from flooding to the units. The risk rating for this objective is at Low risk and it is considered no further treatment (adaptation) required. 3. Maintain service quality to meet standard The explanation in this objective is similar to the first objective, in that the assets were newly renovated and have been reoccupied since 2016. The risk rating for this objective is Very Low risk and it is considered no further treatment (adaptation) required. 4. Quality of administrative, ICT system, and budget management The explanation in this objective is similar to the first and third objective in that the assets were newly renovated and have been reoccupied since 2016. The risk rating for this objective is Very Low risk and it is considered no further treatment (adaptation) required. 5. Stakeholders safety Energy efficiency: need anticipation of increased energy use to cope with higher temperature affecting occupants. The risk rating for this objective is at Medium-to- Low risk and it is proposed to be considered as the first priority for further treatment (adaptation) for this units. The next step is planning for adaptation based on a complete list of the risks rankings presented in Table 7.19 and Table 7.20. B.3. Adaptation plan This section describes possible adaptation options for the Ministry of Finance Building I and Ministry of Finance Building II in relation to the various risks due to climate change. In developing the adaptation plan, it is important to ensure that risk assessments and strategies of adaptation are developed effectively. The results of the 242 Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia
Risk Analysis (Section B.2.b) and Risk Evaluation (Section B.2.c) are critical inputs into the last stage of the risk assessment process that is Risk Treatment (adaptation). There are several steps in adaptation planning, such as identify options, select the best, and develop plans as follows. B.3.a. Identify and selection adaptation option Several risk treatment or possible adaptation measures that can be identified from literature and available adaptation policy are presented in Table 5.11 (Chapter 5). The next stage is selection of the adaptation plan that needs to be discussed with participants. The selection of adaptation has been discussed with AU1, AU2, AU3. The results of discussions and decisions of adaptation option and priority for each objective of PAM for Ministry of Finance Building I are explained as follows. 1. Effectiveness of public asset use The building issue: the first floor is uninhabitable, which causes tenants to use other available and more secure floors (2nd, 3rd, and 4th). The risk rating for this objective is at Medium-to-Low risk and it is proposed to be considered as first priority for further treatment (adaptation). The adaptation option is: Keep using the lower storey as non-living or ‘non-productive’ space or use/repair with water-resistant construction materials. 2. Safeguarding physical aspects of public assets The building issue: - First floor is uninhabitable due to water ingress and inundation from frequent flooding events (flooding events caused by intense rainfall and tidal flooding). The cost of renovations for this 1st floor would be expected to be significant. - Site drainage, inadequate internal box or gutters, or external gutters as result of rainfall intensity is likely to be low. The risk rating for this objective is at Medium-to-Low risk and it is proposed to be considered as first priority for further treatment (adaptation). The adaptation is:
1) Keep using the lower storey as non-living or ‘non-productive’ space or use/repair with water-resistant construction materials. 2) Ensure or permit the ready drainage water can easily escape once flooding has subsided. 3) Improve building and site stormwater drainage systems. 4) Increasing drainage system capacity (stormwater drains, sewer connections, physical characteristics of catchment). Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia
5) Routine inspection and care to ensure overflowing gutters do not leak back into the building. 6) Upgrading the design of internal box and gutters to cope with higher expected rainfall intensity. 7) The ground around the building should correctly slope away from the building. 3. Maintain service quality to meet standard The building issue: - Limited space for parking lot, the customers/public should park their vehicles outside the building (street parking). - Site of the building has already been elevated approximately 90 cm above the ground (level of the front street) to prevent water ingress to the building during flooding event due to intense rainfall or tidal flooding. The risk rating for this objective is at Low risk and it is proposed to be considered as the second priority for further treatment (adaptation). The adaptation is:
1) Build a levee or flood wall around the building 2) Install essential vulnerable or vital services and equipment, such as lifts, switchboards, computer networks, and telecommunications above the flood level. 4. Quality of administrative, ICT system, and budget management The building issue: Disruption of administrative and/or ICT due to electricity outage that needs attention during the flooding events to ensure the system could be functioning again in the same day. The risk rating for this objective is at Low risk and it is proposed to be considered as second priority for further treatment (adaptation). The adaptation is: Promote the use of efficient water fixtures and appliances, such as water efficient shower heads and more efficient toilet flushing in order to reduce building water demand. 5. Stakeholders safety The building issue: - Energy efficiency: need anticipation of increased energy use to cope with higher temperature affecting occupants. - Health and amenity: human safety/health reason due to dampness leading to microbiological growth, leading to increased health problems (e.g. allergies 244 Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia
and respiratory). The risk rating for this objective is at Low risk and it is proposed to be considered as the second priority for further treatment (adaptation). The adaptation is:
1) Reduce internal temperature through the use of ventilation and circulation systems where possible and to explore the possibility of external shading to reduce solar gain. 2) Promote the use of efficient air conditioners. 3) Raise flood awareness and preparedness with building occupants, including designing and providing information about access routes as well as considering access routes to reduce reliance on emergency services.
The results of discussions and decisions of adaptation option and priority for housing units are explained as follows. Stakeholders’ safety Building issue: Energy efficiency that required anticipation of increased energy use to cope with higher temperature affecting occupants. The risk rating for this objective is at Medium-to-Low risk and it is proposed to be considered as the first priority for further treatment (adaptation) for this unit. The adaptation is:
1) Reduce internal temperature through the use of ventilation and circulation systems where possible and to explore the possibility of external shading to reduce solar gain. 2) Promote the use of efficient air conditioners.
All results of climate change adaptation for the Ministry of Finance Building I and Ministry of Finance Building II are presented in Table 7.21 and Table 7.22 respectively.
Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia
Table 7.21 Selection of adaptation option for Ministry of Finance Building I Success Criteria for Adaptation option Risk No Management of Public Building Issue Priority Rating Asset (PA) in Semarang Medium- First floor is uninhabitable, which causes Keep using the lower storey as non-living or ‘non-productive’ space or 1 Effectiveness of public 1 to-Low tenants to use other available and more use/repair with water-resistant construction materials asset use secure floors (2nd, 3rd, 4th). • Medium- - First floor is uninhabitable due to water Keep using the lower storey as non-living or ‘non-productive’ space 1 to-Low ingress and inundation from frequent or use/repair with water-resistant construction materials. • flooding events (flooding events caused Ensure or permit the ready drainage water can easily escape once by intense rainfall and tidal flooding). flooding has subsided • The cost of renovations for this 1st floor Improve building and site stormwater drainage systems • Increasing drainage system capacity (stormwater drains, sewer Safeguarding physical would be expected significant. 2 - Site drainage, inadequate internal box or connections, physical characteristics of catchment). aspects of public assets • gutters, or external gutters as result of Routine inspection and care to ensure overflowing gutters do not rainfall intensity is likely to be low leak back into the building. • Upgrading the design of internal box and gutters to cope with higher expected rainfall intensity. • The ground around the building should correctly slope away from the building. • Low - Limited space for parking lot, the Build a levee or flood wall around the building 2 • customers/public should park their Install essential vulnerable or vital services and equipment, such as vehicles outside the building (street lifts, switchboards, computer networks, and telecommunications parking). above the flood level. Maintain service 3 - Site of the Building has already been quality to meet standard elevated approximately 90 cm above the ground (level of the front street) to prevent water ingress to the building during flooding event due to intense rainfall or tidal flooding.
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Success Criteria for Adaptation option Risk No Management of Public Building Issue Priority Rating Asset (PA) in Semarang Low Disruption of administrative and/or ICT • Promote the use of efficient water fixtures and appliances, such as 2 Quality of due to electricity outage that needs water efficient shower heads and more efficient toilet flushing in administrative, ICT 4 attention during the flooding events to order to reduce building water demand. system, and budget ensure the system could be functioning management again in the same day. • Low - Energy efficiency: need anticipation of Reduce internal temperature through the use of ventilation and 2 increased energy use to cope with higher circulation systems where possible and to explore the possibility of temperature affecting occupants. external shading to reduce solar gain. • - Health and amenity: humansafety/health Promote the use of efficient air conditioners. 5 Stakeholders safety • reasons for people due to dampness Raise flood awareness and preparedness with building occupants, leading to microbiological growth, including designing and providing information about access routes as leading to increased health problems well as consider access routes to reduce reliance on emergency (e.g. allergies and respiratory). services
Table 7.22 Selection of adaptation option for Ministry of Finance Building II Success Criteria for Adaptation option Risk No Management of Public Building Issue Priority Rating Asset (PA) in Semarang Medium- Energy efficiency: need anticipation of • Reduce internal temperature through the use of ventilation and 1 to-Low increased energy use to cope with higher circulation systems where possible and to explore the possibility of 5 Stakeholders safety temperature affecting occupants. external shading to reduce solar gain. • Promote the use of efficient air conditioners.
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STEP C. IMPLEMENTATION OF ADAPTATION PLANS The climate change adaptation options have been selected in Section B.3.a., and the organisation should design the adaptation plans to implement these adaptation options as their response to the threats posed by climate change. The adaption options described in Table 7.21 and Table 7.22 were discussed with the AU1, AU2, AU3. The discussion was to define a timeline for implementation of the selected options, given the criteria in Table 7.23 below. Table 7.23 Criteria to assess adaptation option
Criteria Description No regrets The option is beneficial in the absence of climate change Non-statutory The option can take place without any policy or legislative changes Community The option is likely to be perceived to be amendable to community members Environmental The option is not likely to have any adverse environmental impacts Financial The option can be implemented within current budgets. No external funding will besought Cost benefit The long-term benefits of adaptation clearly exceed its upfront costs (strategic estimate only) Organisational capacity The option can be implemented based on current staff capacity and resourcing Source: Adapted from AGO (2006)
Based on discussion with the participants, the financial constraints were considered the highest barrier to implementation. As previously mentioned, annual budget for the maintenance of Ministry of Finance Building I is approximately IDR 1.6 billion (AUD 0.16 million), this financial budget will be increased annually by average of 10% of previous financial budget. It is hopeful the budget for maintenance of Ministry of Finance Building I could be more than the amount provided every year, however it would take more than two years because an additional budget for climate change adaptation should be discussed and escalated to the Secretariat General for further discussions prior to submission of the financial budget to the Minister of Finance (AU1, AU3). There is a possibility for it to be approved and implemented in the next 2-3 year of Annual Budget in the Ministerial Annual Work Plan (Rencana Kerja Pemerintah/RKP). The criteria of ‘no regret’ in assessing the adaptation plan is usually the most preferred criteria due to financial budget constraint in managing the public assets (AU1, AU3).
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In 2014, the Government of Indonesia issued a regulation about integrated asset planning and budgeting. The process of financial budget approval for PAM in the Ministerial Annual Work Plan (Rencana Kerja Pemerintah/RKP) within a financial year is illustrated in Figure 7.8.
Jan-April May-Jul Aug-Oct Nov-Dec
Preliminary Talks Deliberations (Fiscal, Macro Approval of House of of Economic and Government Represen Government Government Budget Budget Plan Budget Plan tatives Plan)
Policy directions Approval and and development Signed Final President priorities Budget Allocation
Ministry of Preparation of the Preparation Deliberations Endorsement Budget Final Finance of resource of of Allocation Budget Fiscal and Government (DG of envelope and Government Government based on Allocation Budget) Macro Budget Plan Budget Plan Budget Governme budget policy Economic and proposals nt Budget Preliminary Plan Ministry of Asset Talks Finance Planning (DG of State Assets)
Proposed Line Adjustment Initial Budget
& BUDGETING Action Plans Minisries/ Action Plans implementation from all
ASSET PLANNING PLANNING ASSET based on Government check list Minisries/Gov’t approved budget Agencies Agencies allocation
Figure 7.8 Asset Planning in Budgeting Cycle of Government of Indonesia (Source: DJKN (DGSAM) (2013))
The adaptation plans that require significant financial budget would take a longer time and should be proposed to be included (mainstreamed) in a medium (5 years) or long-term development plan (20 years) at national level (Rencana Pembangunan Jangka Menengah/RPJM and Rencana Pembangunan Jangka Panjang/RPJP).
Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia
The results from discussions after consideration of the above criteria are as follows. Table 7.24 Climate Change Adaptation Plan for Ministry of Finance Building I in Semarang Timeframe
No Adaptation option Long Short Short Medium Medium Immediate Immediate
First priority 1 Keep using the lower storey as non-living or ‘non-productive’ X space or use/repair with water-resistant construction materials 3 Ensure or permit the ready drainage water can easily escape X once flooding has subsided 4 Improve building and site stormwater drainage systems X 5 Increasing drainage system capacity (stormwater drains, sewer X connections, physical characteristics of catchment). 6 Routine inspection and care to ensure overflowing gutters do not X leak back into the building. 7 Upgrading the design of internal box and gutters to cope with X higher expected rainfall intensity. 8 The ground around the building should correctly slope away X from the building. Secondary priority 9 Build a levee or flood wall around the building X 10 Install essential vulnerable or vital services and equipment, such as lifts, switchboards, computer networks, and X telecommunications above the flood level. 11 Promote the use of efficient water fixtures and appliances, such as water efficient shower heads and more efficient toilet flushing X in order to reduce building water demand. 12 Reduce internal temperature through the use of ventilation and circulation systems where possible and to explore the possibility X of external shading to reduce solar gain. 13 Promote the use of efficient air conditioners. X 14 Raise flood awareness and preparedness with building occupants, including designing and providing information about X access routes as well as consider access routes to reduce reliance on emergency services
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Table 7.25 Climate Change Adaptation Plan for Ministry of Finance Building II in Semarang Timeframe
No Adaptation option Long Short Short Medium Medium Immediate Immediate
First priority 1 Reduce internal temperature through the use of ventilation and circulation systems where possible and to explore the X possibility of external shading to reduce solar gain. 2 Promote the use of efficient air conditioners. X
Upon completion of setting the timeframe for adaption plans, these adaptation options should be put into action by integrating them into public asset management (PAM) and should be, in advance, consulted with the Public Asset Manager. The entry point for the climate change adaptation plan in the existing PAM framework of Indonesian Central Governments is through the Organisational Strategic Plan in the phase of Asset Management and the Strategic Plan within Stage C (Implementation Stage) of the Modified Framework as presented in Figure 7.9.
Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia
Figure 7.9 Implementation of climate change adaptation option for the Ministry of Finance Building in PAM of Central Government of Indonesia
As previously mentioned, the framework for CCA for incorporation in PAM is based on risk management, where each case is considered in terms of the local climate risks involved and the assets’ particular sensitivity. Therefore, the risk treatments (adaptation options) explained in Table 7.24 and Table 7.25 are only specific to the 2 assets of case study in the thesis, hence the adaptations options can be varying to each asset in certain area according to Climate Change Context, e.g. local circumstances and climate scenario (See STEP B specifically within the Modified Framework in Figure 6.6 or also the Generic Framework in Figure 5.1). In other words, the adaptation options in this chapter are subject to particular assets in particular regions.
Several risk treatment or possible adaptation measures that have been identified from literature, as well as available adaptation policy specifically for building, is summarised in Table 5.10 in the thesis. A number of adaptation options can be considered and applied, either individually or in combination. The researcher restricted the application of this framework up to the stage of Implementation of Adaptation Plans. The application of the two last stages, e.g. Monitoring and Review stage and Continual Improvement stage, were not able to be
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carried out because of time constraints and it would require additional time beyond the maximum time of the researcher’s study. It would also require dedicated resources on the part of both the researcher and the Asset Manager/User of participating organisations. Although the Monitoring and Review stage and Continual Improvement Stage were not undertaken in the application, the researcher was able to demonstrate how to implement the framework that led to response addressing the second research question of this research. In addition, the Central Government asset manager/user could gain their first experience in undertaking climate risk management for public assets and incorporating climate change adaptation into public asset management during their involvement in this research.
The Modified Framework for Indonesian context has been successfully implemented, The findings from framework implementation in Indonesian context have proven that framework provide principles (elements and factors) and general procedures on the identification and risk management that public assets face from climate change. The systematic approach to planning the adaptation of public assets based on the risk management process are also described in the thesis. The framework facilitate the integration of climate change adaptation considerations into public asset management practices.
7.5 CONCLUSION This chapter has discussed the practical application of the framework for public assets in City of Semarang, Indonesia. The researcher selected two types of public assets (buildings) owned by the Central Government of Indonesia. The first asset is a four-storey building known as Ministry of Finance Building I located in Kauman Sub-district, Central Semarang and the second is the Ministry of Finance Building II (two units of housing) for staff of the Ministry of Finance located in Bugangan Sub-district, East Semarang. The practical application of the Modified Framework involved Asset User of the buildings (AU1, AU2, AU3). The Modified Framework was a newly introduced practice during the research period, so the researcher needed to explain clearly each element and step undertaken in the framework. All data and information including their sources required in the practical application were also explained by the researcher to the participants. These participants provided the researcher with relevant data and information through formal and informal interviews or
Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia
conversation during observations, telephone and email correspondences. They were also informed of the process of practical application of the framework. The researcher should also refer to secondary data and consultations with stakeholders and experts during the process of application of the framework. The application of the Modified Framework consists of five steps, namely trigger for adaptation plan, climate risk management, implementation of adaptation plan, monitoring and review, and continual improvement. Nevertheless, the researcher only conducted the three first steps in this chapter due to time constraints since the Monitoring and Review step and Continual Improvement stage would require a significant time horizon exceeding the duration of doctoral study of the researcher for assessing the effectiveness of the final adaptation framework. The climate scenario projected in this chapter and other required data were also reliant on the best data and information available from sources considered current, authoritative and credible. As for public assets, the database or SIMAN developed by the DGSAM Ministry of Finance has reported 2,978 buildings in Semarang. The selection of the assets for framework application was based on area sampling affected by climate change and the availability of data required. The Government assets in Semarang are mostly more than 20 years old (61%). The buildings used in the application varied, in which the first building is 20 years old and the other building is less than 20 years old. The development of risk rating also used secondary data for establishing level of likelihood of hazards to occur and primary data in setting up level of consequences. Upon completion of risk analysis, the adaptation plan can be designed because the output in risk analysis is risk treatment or adaptation. The researcher discussed with participants (Asset Manager and User of the buildings) in order to select adaptation options and determine adaptation options that should be prioritised for implementation. After an adaptation option has been chosen, the next stage was implementation of the adaptation plan. The implementation of adaptation plan was carried out by integrating it into public asset management (PAM). The entry point of this adaptation plan into PAM in Indonesia was through an organisational strategic plan especially in the phase of Asset Management Strategy and Planning (planning and budgeting). The summary of the climate change adaptation plan for the public assets in this study is as follows.
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a. Immediate implementation . Keep using the lower storey as non-living or ‘non-productive’ space or use/repair with water-resistant construction materials. . Routine inspection and care to ensure overflowing gutters do not leak back into the building. . Reduce internal temperature through the use of ventilation and circulation systems where possible and to explore the possibility of external shading to reduce solar gain. . Promote the use of efficient air conditioners. . Raise flood awareness and preparedness with building occupants, including designing and providing information about access routes as well as considering access routes to reduce reliance on emergency services . Promote the use of efficient air conditioners. b. Implementation in short term . Ensure or permit that the ready drainage water can easily escape once flooding has subsided. . Promote the use of efficient water fixtures and appliances, such as water efficient shower heads and more efficient toilet flushing in order to reduce building water demand. c. Implementation in medium term . Improve building and site stormwater drainage systems. . Increasing drainage system capacity (stormwater drains, sewer connections, physical characteristics of catchment). . Install essential vulnerable or vital services and equipment, such as lifts, switchboards, computer networks, and telecommunications above the flood level. . Upgrading the design of internal box and gutters to cope with higher expected rainfall intensity. . The ground around the building should correctly slope away from the building. d. Implementation in long term . Build a levee or flood wall around the building Although the Monitoring and Review stage and Continual Improvement Stage were not undertaken in the application, the researcher was able to demonstrate
Chapter 7 : Practical Application of Modified Framework: Case Study of Public Assets in Semarang, Indonesia
how to implement the framework. The Central Government asset manager/user has gained a first experience in undertaking climate risk management for public assets and incorporating climate change adaptation into public asset management during involvement in this research.
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Chapter 8 : Conclusions
This concluding chapter provides a summary of key findings, which have answered all research questions. The original contributions of this study are discussed based on the data analysis and findings, proposed framework and implications to the body of knowledge. The implications of findings for government are also described. Finally, recommendations for further study conclude this chapter. This study has answered all research questions and met all research objectives specified in Section 1.3 and 1.4. Research questions: 1. Can a framework for climate change adaptation for incorporation in public asset management be developed? 2. Can the developed framework for climate change adaptation for incorporation in public asset management be implemented in Indonesia? Research objectives: 1. To identify elements that need to be considered in developing a framework for climate change adaptation for incorporation in public asset management. 2. To examine factors supporting and hindering implementation of climate change adaptation for incorporation in public asset management. 3. To develop a framework for climate change adaptation for incorporation in public asset management. 4. To apply the developed framework for climate change adaptation for incorporation in public asset management in Indonesia.
8.1 RESPONSE TO RESEARCH QUESTIONS This research was undertaken to fulfil the aim of this research, that is, to develop a framework for climate change adaptation for incorporation in public asset management and apply the developed framework in Indonesia. The framework could support decision-makers to understand, incorporate and apply climate change adaptation into public asset management policy and operational decisions at all phases of the public asset lifecycle. Climate change adaptation is also covering a medium and long-term agenda that provides time and opportunity for governments to reduce risks of climate change impacts on public assets, to build capacity to minimise costs, and to take advantage
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of any benefits. The frameworks (both the Generic Framework and Modified Framework) developed in this research offer foundation for governments, especially three-levels of Government of Indonesia, to position to reduce risks of climate change impacts on their public assets, build their capacity to deal with climate change impacts, and realise any opportunities. The detailed responses to the research questions of this research are as follows: 8.1.1 Can a framework for climate change adaptation for incorporation in public asset management be developed? This research question was designed to identify elements that need to be considered in developing a framework for climate change adaptation for incorporation in public asset management that has included findings as results of analysis of semi-structured interviews from participants in Australia, with reference to and reflection of the literature. The factors supporting and hindering implementation of climate change adaptation for incorporation in public asset management have also been identified. The approach used in developing the Generic Frameworks was based on reputation and establishment of the existing framework in practice and research, such as a document published by Department of the Environment and Energy (previously Australian Greenhouse Office, Department of the Environment and Heritage) titled ‘Climate change impacts and risk management: a guide for business and government’ and Australian Standards (ISO31000 and AS5334). This could enhance the initial validity of the formulated framework and the possibility of framework implementation or applicability. Therefore, the risk-based approach has been considered for the framework, consisting of five steps as follows: STEP A: Acknowledgement of trigger for developing adaptation plan for public assets. STEP B: Risk assessment and adaptation plan. B.1. Establish climate change context a. define the scope b. choose climate change scenarios c. identify objectives d. identify stakeholders e. identify external and internal factors
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f. define risk criteria B.2. Risk Assessment is undertaken through: - Risk identification - Risk analysis - Risk evaluation B.3. Adaptation Plan is risk treatment resulting from Risk Assessment. - Appropriate adaptation plan(s) for each risk to be determined. - Implementation plan to be developed. STEP C: Implementation of adaptation plans by integrating into public asset management plan STEP D: Monitoring and review STEP E: Continual improvement Accordingly, the plan and implementation of climate change adaptation could also be considered as an extension of existing risk management. There are ten elements as findings resulting from the analysis of semi- structured interviews, with reference to and reflection of the literature, which should be considered in the Generic Framework as follows: (1) Recognition of Climate Change Climate change (CC) should be recognised at national/local/organisational level to ensure climate change adaptation (CCA) could be formulated in policy, strategy and program. This recognition is a trigger or entry gate to take action in responding to the impacts/risk of climate change. Accordingly, public assets that need to adapt to CC should be prioritised considering several set criteria including climate risk, criticality of asset, geographical locations, budget availability. Moreover, tools and guidance should be developed upon formulation of CCA policy, strategy and program to ensure CCA could be put into action in an effective manner. (2) Current Risk Management An existing risk management scheme should be considered when formulating CCA for incorporation in Public Asset Management (PAM) in order to extend the possibility of CCA implementation in organisation. Accordingly, CCA could build on current risk management, such as existing coastal hazard adaptation strategy, business continuity management, and local adaptation strategy program. (3) Integrated Asset Management and Planning in Asset Management
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Integrated PAM or asset life-cycle in Government ranging from asset planning, procuring, utilising to asset disposal, could ensure effectiveness in CCA for incorporation in PAM. CCA in principal could be applied in every phase of the PAM life-cycle. However, CCA should be firstly included in an organisational strategic plan (PAM strategy and planning) to make sure a selected adaptation plan option could be implemented. (4) Asset Use and Knowledge A public asset manager should be knowledgeable on public assets owned by Government in terms of, but not limited to, assets’ objectives, profiles, conditions, locations, and criticality. Understanding about the public assets is important for a public asset manager to classify or map assets that need to have attention and to adapt to climate change to ensure service delivery of the assets to public. (5) Accessible and Understandable Climate Change Adaptation Information All related information required in CCA for incorporation in PAM should be accessible and easy to interpret by users, especially the public asset managers. For example, guidance on how to use relevant CC data sets (climate, risk, hazard, vulnerability, exposure, sensitivity, adaptive capacity, etc.) and translate CC scenario (sea level rise/SLR, precipitation level, drought, etc.) into policy, strategy and program should be developed and provided by authorised organisations or government or research centre. The central place of source (web/portal) to retrieve relevant information required about CC should also be developed and accessible by users. (6) Policy, direction and strategy in climate change adaptation Policy, direction and strategy in CCA, especially for incorporation in PAM, should be clearly formulated and able to be implemented within an agreed-upon timeframe. Accordingly, a government should formulate clear, coherent legislated policy and direction in CCA, to ensure public asset managers at all levels of government could implement CCA for incorporation in PAM. In addition, a government should design CCA strategy to ensure public asset managers at all levels of government could implement the strategy of CCA for incorporation in PAM. The CCA strategy should be synchronised with the overall Government strategy. Analysis of climate change impacts need to be
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included as a requirement in the phase of asset planning prior to project development of public assets. (7) Community Community is an important stakeholder that should get involved in developing CCA for incorporation in PAM. Therefore, community should be engaged to ensure decisions on CCA adaptation options are well examined and able to be implemented with optimal participation from the community. Community engagement could prevent a CCA option from being opposed or challenged in court by the community. It is important to note that vulnerable communities including the public assets in the same area should be prioritised for CCA for incorporation in PAM. In addition, heritage assets should be carefully considered when formulating policy, programs, and strategy in CCA for incorporation in PAM. (8) Private Sector and Stakeholders’ Involvement Private sectors and relevant stakeholders should get involved in CCA policy, program, and strategy to ensure CCA for incorporation in PAM can be implemented. Likewise, private sectors should get involved in CCA policy, program, and strategy in term of providing ideas and funding. (9) Support from All Sides of Politics CCA for incorporation in PAM should get support from all sides of politics, therefore, the strategy should be designed under any measure in environment protection enforceable in every jurisdiction under existing legislation. A national statutory authority should also be established. (10) Coordination. Coordination should be strengthened to ensure synchronisation in policy, program and strategy in CCA for incorporation in PAM. For example, coordination between level of governments, sectoral plans, research being undertaken as well as existing database and data-sharing arrangements, should be improved and strengthened to ensure consistency and synchronisation of the existing plans considered interrelated and to prevent duplications or repeated plans towards CCA for incorporation in PAM, as well as synergy towards knowledge management.
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Several factors supporting implementation of CCA in PAM have also been identified, such as (a) review building codes and standards; (b) provide funding; and (c) leadership. Accordingly, review on building codes and standards should be undertaken especially in location, intensity and frequency of environmental hazards expected to change due to climate change. Nevertheless, decisions regarding amendments to design requirements in codes and standards should also be subject to careful cost-benefit analysis according to climate scenario. Moreover, sufficient funding for CCA for incorporation in PAM should be available from internal or external sources. Leaders at all level of governments in relation to CCA should be in the frontline, demonstrating commitment to the organisation’s vision toward CCA by which others are influenced, motivated, and engaged to implement CCA. The leader should carefully frame the CCA issue to make it more tangible and connect it to existing concerns. Factors hindering, which should be addressed, are (a) legislation barrier; (b) lack of public consultation and understanding; and (3) climate change scepticism from politicians. The governments should identify and consider amending legislations that hinder the CCA for incorporation in PAM, ensure public consultation and understanding towards CCA be promoted and exercised, and design and develop measures and programs that have support from politicians.
8.1.2 Can the developed framework for climate change adaptation for incorporation in public asset management be implemented in Indonesia? The Generic Framework is considered as the ‘basic’ framework that could be adopted and applied in other countries providing prior careful examination according to the conditions and environment of each country. The framework’s suitability to the local context should be deliberated and agreed upon by the wide range of stakeholders, whereby further assessment of the viability of the options is required. The Generic Framework could throw light on the area of public asset management and climate change adaptation, which currently has still been limited. The second research question was designed to apply the Generic Framework for climate change adaptation for incorporation in public asset management in Indonesia. Prior to application of the framework, verification of the Generic Framework to ensure its usability and appropriateness for the context of Indonesia was undertaken, resulting in modification of the framework. Several organisations participated in the interview representing 41 organisations (49 individuals) involving
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three level of governments in Indonesia and participants from various backgrounds, such as policy makers (in PAM, CCA, planner of national/regional/local development), public asset manager/user/operator from national/regional/local level, academics/scientist, non-governmental organisations (civil society) and business sector. The Modified Framework has incorporated the findings (feedback) from participants resulting from analysis of semi-structured interviews from participants in Indonesia with reference to and reflection of the literature. Four out of ten elements in the Generic Framework have been revised to become new elements, such as, (1) Reliable data set on climate change; (2) Leadership, government commitment and incentive; (3) Research, private sector and stakeholders’ involvement; and (4) Role of members of parliament. Upon completion of verifying the Generic Framework as a basic framework to generate the Modified Framework, practical application of the Modified Framework has also been successfully undertaken in Indonesia. Practical application of the Modified Framework to existing public assets (buildings) was conducted with public asset manager/operators from participating organisations in Indonesia through case study and observations. All elements in the Modified Framework that should be considered, to ensure its usability and appropriateness for the context of Indonesia, are as follows: (1) Recognition of Climate Change Climate change (CC) should be recognised at national/local/organisational level in Indonesia to ensure climate change adaptation (CCA) could be formulated in policy, strategy and program. This recognition is a trigger or entry gate to take action in responding to the impacts/risk of climate change. In addition, planning and budgeting for CC should be in place and clearly developed in Government organisations in Indonesia to ensure the implementation of CCA’s policy, strategy and program. (2) Consideration of current Risk Management The existing risk management scheme should be considered when formulating CCA for incorporation in PAM in order to extend the possibility of CCA implementation in an organisation. Accordingly, CCA could build on current risk management. Existing insurance schemes as a risk-transfer option to share the loss could be considered by the public asset manager in adapting public asset to the impact of climate change. The current responses to climate-related natural
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hazards should be considered and CCA for incorporation in PAM should build on this existing risk management. (3) Integrated Asset Management and Planning in Asset Management Integrated PAM or asset life-cycle in Government ranging from asset planning, procuring and utilising to asset disposal could ensure effectiveness in CCA for incorporation in PAM. CCA in principal could be applied in every phase of the PAM life-cycle. However, CCA should be firstly included in the organisational strategic plan (PAM strategy and planning) to make sure selected adaptation plan option could be implemented. It is recognised that public asset managers face constraint budget in current PAM. The CCA for incorporation in PAM would need more additional funding that should be available from internal or external sources. Human resources’ capability should be improved in order to have sufficient knowledge about the CC and CCA needed for public assets. Human resources should also be capable in designing and developing CCA for incorporation in PAM (4) Asset Use Public asset managers in Indonesia should be knowledgeable on public assets owned by the Government in terms of, but not limited to, assets’ objectives, profiles, conditions, locations, and criticality. Understanding about the public assets is important for the public asset manager to classify or map assets that needs to have attention and to adapt to CC to ensure service delivery of the assets to public. (5) Reliable Data Set on Climate Change Data of CCA should be available, reliable and provided by Government to ensure CCA for incorporation in PAM could be designed and developed by public asset managers. In addition, centralised sources of relevant information about CC should be developed by government and be accessible by public asset managers. (6) Leadership, Government Commitment and Incentives Policy, direction and strategy in CCA especially for incorporation in PAM should be clearly formulated and able to be implemented within an agreed-upon timeframe. Leader and Government commitment should be in the frontline, demonstrating commitment to the government’s vision toward CCA including CCA for
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incorporation in PAM. They should influence and motivate the public as well as make people engaged to implement CCA. Law and relevant regulations in Indonesia should be amended to sufficiently support CCA. The government of Indonesia should provide incentives to stimulate the formulation and implementation of CCA, because CCA incorporated in PAM is still a new issue, therefore, incentives would provide more opportunity to CCA actions. (7) Community Participation Community is important stakeholders that should get involved in developing CCA for incorporation in PAM. Promoting public awareness and public engagement to CC policy should be exercised to increase public understanding towards CCA. (8) Research, Private Sector and Stakeholders’ involvement Research, private sectors and relevant stakeholders should contribute and get involved in CCA policy, program, and strategy in Indonesia. Academics from local higher education institutions should increase their involvement in research of CCA in general and also by focussing on the local level, including case studies. Likewise, private sectors should get involved in CCA policy, program, and strategy in term of providing idea and funding. (9) Role of Legislative Members CCA for incorporation in PAM should get support from legislative members, therefore, the strategy should be designed in the form of programs with which the legislative members have been familiar, for example, CCA for incorporation in PAM intended to address more frequent flooding due to SLR that affects vulnerable communities. (10) Coordination between Government Organisations Coordination should be improved and strengthened to ensure synchronisation in policy, program and strategy in CCA for incorporation in PAM. Moreover, silos should be resolved and communication between government organisations should be increased to strengthen coordination and ensure synchronisation in policy, program and strategy in CCA for incorporation in PAM. There are also three other components considered to contribute to the effectiveness of the framework in the context of Indonesia, such as information and communication technology (ICT) and computerised asset database, settlement of existing legal issues, and asset administration and protection.
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Practical application of the Modified Framework for public assets in Indonesia (City of Semarang) was undertaken to ensure applicability of the framework in Indonesia. It involved the operator of the buildings and also referred to secondary data and consultations with stakeholders and experts during the process of application of the framework. The climate scenario projected, risk rating and other required data were reliant on the best data and information available from sources considered current, authoritative and credible. Upon completion of risk analysis, the adaptation plan can be designed and discussed with the public asset manager and users of the buildings in order to select adaptation options and determine adaptation options that should be prioritised for implementation. Although the Monitoring and Review stage and Continual Improvement stage were not undertaken in the application, due to resource constraints, the practical application was able to demonstrate the implementation of the framework whereby the participating asset managers/users in Indonesia have gained first experience in undertaking climate risk management for public assets and incorporating climate change adaptation into public asset management during their involvement in this research. The summary of a climate change adaptation plan for the public assets in this study is as follows. a. Immediate implementation • Keep using the lower storey as non-living or ‘non-productive’ space or use/repair with water-resistant construction materials. • Routine inspection and care to ensure overflowing gutters do not leak back into the building. • Reduce internal temperature through the use of ventilation and circulation systems where possible and to explore the possibility of external shading to reduce solar gain. • Promote the use of efficient air conditioners. • Raise flood awareness and preparedness with building occupants, including designing and providing information about access routes as well as considering access routes to reduce reliance on emergency services • Promote the use of efficient air conditioners. b. Implementation in short term
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• Ensure or permit the ready drainage water can easily escape once flooding has subsided. • Promote the use of efficient water fixtures and appliances, such as water efficient shower heads and more efficient toilet flushing in order to reduce building water demand. c. Implementation in medium term • Improve building and site stormwater drainage systems. • Increasing drainage system capacity (stormwater drains, sewer connections, physical characteristics of catchment). • Install essential vulnerable or vital services and equipment, such as lifts, switchboards, computer networks and telecommunications, above the flood level. • Upgrading the design of internal box and gutters to cope with higher expected rainfall intensity. • The ground around the building should correctly slope away from the building. d. Implementation in long term • Build a levee or flood wall around the building.
8.2 ORIGINAL CONTRIBUTIONS OF THE RESEARCH Phillips and Pugh (2007) described some fifteen specific features that can be considered as demonstrating originality in academic research. This section summarises the ways in which this research is original and significant. 1. This study contributes to discussions of public asset management theory, and to understanding how climate change affects public assets and CCA to public asset management. As Grothmann (2014) has pointed out, research in CCA to date has primarily focused on potential climate change impacts and vulnerabilities (as adaptation problems) and barriers to solutions (e.g. barriers to the realisation of adaptation measures), while research on adaptation solutions, such as how to plan, implement and evaluate adaptation measures, is still relatively rare. This research contributes to research on adaptation solutions, that is, how to plan and implement them. With its focus on developing adaptation solutions through the developed frameworks, the application of the framework could help shift the focus of CCA research from adaptation problems to adaptation solutions.
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This study also contributes to transdisciplinary research (research involving stakeholders affected by climate change impacts or adaptation policies and practical experts) in order to generate new knowledge for preparing public assets for future climate change by developing both the Generic Framework and Modified Framework. Several organisations participated in this research, involving three level of governments in Australia and Indonesia as well as participants from various backgrounds, such as policy makers (in PAM, CCA, planners of national/regional/local development), public asset managers/users/operators from the national/regional/local level, academics/scientists, non-governmental organisations (civil society) and the business sector. The frameworks have been formulated using a systematic risk-based approach and have identified elements required in the frameworks including factors supporting and hindering implementation of CCA in PAM and implemented in Indonesia as a case study, as explained in Sections 8.1.1 and 8.1.2. Furthermore, by involving stakeholders and practitioners, transdisciplinary research leads to more practice-oriented research results and can actually contribute to solving problems, rather than simply analysing them (Grothmann, 2014). Lebel, Grothmann, and Siebenhüner (2010) explain that ‘social learning’ provides six advantages potentially important for CCA, that can also be viewed as the potential advantages of transdisciplinary methods in research in CCA for incorporation in PAM as follows: a. Transdisciplinary research can help cope with informational uncertainty. Informational uncertainty is defined as deficits in knowledge regarding future developments. Uncertainties with regard to potential climate change impacts, vulnerabilities of public assets and feasible adaptation options can be reduced through involvement of stakeholders, local experts, and practitioners who are knowledgeable about CCA and PAM. b. Transdisciplinary research reduces normative uncertainty. Normative uncertainty refers to uncertainty about goals and actions and also relates to perceptions of acceptable risk. In this research, stakeholder participants from CCA and PAM backgrounds can clarify priorities (e.g public assets or vulnerable communities in at-risk areas) and identify acceptable risks.
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c. Transdisciplinary research helps to build consensus on criteria used for monitoring and evaluation, essential components in the framework as already represented in the Generic Framework and Modified Framework. d. Transdisciplinary research empowers stakeholders to influence adaptation and to take appropriate actions themselves, such as by sharing of knowledge. Empowerment should expand the options, opportunities and quality of local adaptation (i.e. the Modified Framework is a framework that is specific for the context of Indonesia). e. Transdisciplinary research can reduce conflicts and identify synergies between adaptation activities of various stakeholders, thus improving the overall chances of success. Coordination is crucial to overcoming fragmentation across levels of government, sectors, regions and decision levels. f. Transdisciplinary research can improve the likely fairness and legitimacy of decisions and actions in CCA in PAM by addressing the concerns of all relevant stakeholders as presented in all required elements of the framework. 2. This study also contributes to discussions of integration between CCA and PAM. The ‘entry point’ for integration between climate change adaptation and public asset management in the Generic and Modified Framework was after the Adaptation Implementation step, where it was linked to the Organisational Strategic Plan (specifically under the Asset Management Strategy and Planning stage) of PAM. Integration of the CCA plan into overall organisational strategic planning would ensure implementation of the selected adaptation plan for public assets. 3. The frameworks highlight a systematic risk-based approach and a set of identified elements required that could fill the current research gaps, such as the lack of decision-making methodology to address climate risk in a systematic way. The frameworks could assist the actors in CCA and PAM to prepare for the impacts of climate change, as well as filling the gaps in policy and the specific needs of the public assets, to capture significant potential benefits of early action in climate change adaptation. 4. The Generic Framework is considered as the ‘basic’ framework that could be adopted and applied in other countries providing prior careful examination of the conditions and environments of each country. The framework’s suitability to
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the local context should be deliberated and agreed upon by a wide range of stakeholders to assess the viability of the options. Accordingly, the Generic Framework throws light on the area of public asset management and climate change adaptation, which is currently under-researched. 5. The Modified Framework for CCA’s incorporation into PAM, specific to the Indonesian context, consists of a number of required elements as explained in Section 8.1.2 including three components considered to contribute to the effectiveness of the framework in this context. This research provides evidence based on practical implementation that throws light on public asset management and climate change adaptation in Indonesia that has not been established before. The Modified Framework in this research is the first framework for CCA’s incorporation into PAM to be developed for the context of Indonesia 6. This study provides practitioners with a framework for CCA’s incorporation into PAM that suggests elements, uptake and application of the framework by policy and decision makers. The study also contributes to the capacity of policy and decision-makers to use the framework from this research. Accordingly, it will help public asset managers in the decision-making process, in improvement of existing policy, and/or development of new policies towards climate change adaptation for public assets. 7. The Generic Framework has been verified in Indonesia after modification, to make it suitable for the context of Indonesia resulting in the Modified Framework. The Modified Framework has been practically applied in Semarang (Indonesia), a middle-sized coastal city representing the condition of coastal cities affected by climate change in Indonesia. It could potentially be adopted and applied to other regions or cities in Indonesia. Therefore, this research contributes to knowledge transfer from research to policy and decision‐making for CCA in PAM in Indonesia, as demonstrated in the practical application of the framework. The research could also bridge the gap between academic researchers and practitioners, as few studies have considered CCA in asset management in the government sector (public asset management) and its practical application in Indonesia.
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8.3 RESEARCH LIMITATIONS This research was undertaken in Australia and Indonesia resulting in development of Generic Framework and Modified Framework. The Generic Framework is not tested for its applicability in Australia. Therefore, detailed examination and investigation is required before generalising the results of the research in developing this Generic Framework. It would have extended the relevance of the research if more interview participants, representing all states and selected local governments in Australia, could have participated. The incorporation of CCA into PAM requires a data set of climate change that should be available, reliable and accessible to public asset managers. This study used secondary data publicly available, to establish the level of likelihood as a component in the risk matrix prior to undertaking risk assessment. This secondary data was considered the best information available at the time that the practical application was undertaken. It would be more effective if the public asset managers were able to establish the level of likelihood based on an available data set of climate change. Thus, data sets of climate change and guidance on their use and interpretation should be provided in Indonesia, particularly by the Government. Moreover, centralised sources of relevant information about climate change should be developed by government and be accessible by public asset managers. The practical application using the Modified Framework has been conducted only for Central Government Asset (i.e. buildings) and in one area, i.e. Semarang City. As a consequence, detailed examination and investigation is also necessary before generalising the results of the research in developing and applying the Modified Framework. It would have been better to conduct multiple case studies for framework application for wide range of class of assets and in other parts in Indonesia. In assessing the climate change adaptation options for the public assets, this research used qualitative criteria, in which the participants in case study preferred to choose the criteria of ‘No regrets’ and ‘Non-statutory’. The cost benefit analysis criteria and other quantitative analysis is not undertaken, due to limitation in data availability. In addition, practical application of the Modified Framework has not been undertaken for the stages of ‘Monitoring and Review’ and ‘Continual
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Improvement’, due to the longer time required by the researcher that would be beyond the maximum time duration for this research/project.
8.4 RECOMMENDATION FOR FUTURE RESEARCH The following directions for future research arise in reflection upon the research findings and limitations. First, risk assessment process and assessment for selecting adaptation options can involve not only qualitative technique but also quantitative or both qualitative and quantitative techniques, such as cost benefit analysis, multi criteria analysis and Delphi techniques. As a consequence, more resources e.g. data availability are required. Second, the practical application using the proposed framework can be expanded to various classes of new and existing assets or infrastructure in different geographical areas. In addition, the research could be expanded to cover the whole process/steps in the framework during practical application of the framework. Accordingly, it requires additional resources and timeframe. Third, the steps in the framework are iterative activities, accordingly, the steps of ‘Monitoring and Review’ and ‘Continual Improvement’ can be undertaken to update/improve the framework periodically for its effectiveness, appropriateness, and within the policy, enable better framework. Fourth, the research could be enhanced to involve a wider range of interview participants represented from all states and selected local governments in Australia. Moreover, the Generic Framework as result of the research could be tested in Australia in order to ensure its usability and appropriateness. Fifth, the research could be enhanced to involve a wider range of interview participants represented from all provinces and selected local governments considered to be vulnerable to climate change in Indonesia. Moreover, more awareness and knowledge of climate change issues in Government officials/staff involved in the research could contribute to the results of the research undertaken and future implementation in Government planning.
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Appendices
Appendix A. Recruit Email
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Appendix B. Recruit Email in Bahasa Indonesia
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Appendix C. Participant Information for QUT Research Project
288 Appendices
Appendices 289
290 Appendices
Appendix D. List of questions for semi-structured interview (interview participants from Australia)
1. Can you tell me briefly about yourself, as to how long you have been with the organisation and what is your primary role in the organisation?
2. Can you explain on how your organisation has addressed climate change impacts on public assets and infrastructure planning and policy?
3. Can you explain the most current development and implementation of TAMP (Total Asset Management Plan) Framework? How does TAMP play a role in developing State/Local Government Budget and State/Local Government Infrastructure Plan?
4. How do you assess the Climate Change Impact Statement for any policy or project proposal seeking approval from the State/Local Government? Do you have some examples?
5. Mainstreaming climate change adaptation into the agenda of government at all levels has been argued at the broader international level as imperative to enhance the capacity of community, government and other related stakeholders of developed and developing countries to address climate change successfully. Now, I would like to ask your opinion regarding mainstreaming climate change adaptation into the development agenda of government (Federal, State and Local levels). 6. To what extent have climate change adaptation strategies in management of the State/Local Government assets been integrated into the State/Local Government’s Development Plan? 7. To what extent have climate change adaptation strategies in public assets and infrastructure planning and policy been implemented by the State/Local Government? Do you have some examples?
8. What key factors should your organisation consider for public assets and infrastructure to better adapt in climate change impacts? Do you have some examples?
9. What are the factors that hinder your organisation in undertaking climate change adaptation strategies for public assets and infrastructure planning and policy? Do you have some examples?
10. Climate Change Adaptation’s options and risk management strategy
a) What are the most anticipated impacts of global climate change in your region? b) How do you assess the risks of public assets and infrastructure due to climate change impacts? c) How do you assess the adaptive capacities and vulnerability of public assets and infrastructure due to climate change impacts?
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d) Is your organisation using projections, climate change scenario, modellings, methods or approaches for assessing vulnerability and risks of public assets and infrastructure? Do you have some examples? e) How do you determine the climate change scenario in relation to public assets and infrastructure planning and policy? Is there any tool your organisation use in developing climate change related policy? f) How do you design, develop and implement risk management strategy in CCA for public assets and infrastructure? Do you have some examples? g) What are the Climate Change Adaptation’s options for public assets and infrastructure in Australia?
11. In overcoming the challenge of climate change adaptation at the State/Local Government level, sectoral coordination between and within State and Local government levels are important components.
a) What has you/your organisation done to undertake coordination between and within Federal, State and Local government levels in relation to climate change adaptation?
b) What problems do you see with regard to this coordination between and within Federal, State and Local government levels in responding to climate change impacts and do you have any ideas/suggestions to address these problems?
c) Alternatively, how might coordination be done better and at what levels: the Federal, State and Local government level or a combination?
12. Do you feel that the measures and strategies taken presently are appropriate or that the organisation can go further?
13. Is there anything else that you want add to the discussions?
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Appendix E. List of questions including slides of introduction/background for semi-structured interview and list of questions for application of the framework in Semarang (interview participants from Indonesia)
I. QUESTIONS TO BE ADDRESSED TO INTERVIEW PARTICIPANTS IN INDONESIA
A. INTRODUCTION & BACKGROUND The following slides explain about climate change adaptation and its relevant policies in Indonesia as well as the research being undertaken.
1. Can you tell me briefly about yourself, as to how long you have been with the organisation and what is your primary role in the organisation? 2. What are the primary tasks and functions of your organisations? 3. Can you explain current development of public asset management at central/provincial/local governments as follows: - Current development of regulations. - Profiles of assets in your region/jurisdiction. - The number of public asset managers/operators in your region/jurisdiction. - Opinion of Annual Government Financial Report from Supreme Auditor Board (BPK) in the last 5 years (2011-2015). - The blue print of public asset management from year 2011 onward.
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B. ELEMENTS OF THE GENERIC FRAMEWORK DEVELOPED IN PHASE I
Element I : RECOGNITION OF CLIMATE CHANGE
1. To what extent has climate change adaptation strategies in public asset planning and policy been introduced by Central/Regional/Local Government in Indonesia? Do you have some examples? If yes, please explain.
2. What are the most anticipated impacts of global climate change in your jurisdiction/region? a. Floods due to sea level rise; b. Floods due to incresing precipitation; c. Heat or rising temperature; d. Increasing intensity of windstorm; e. Prolonged drought. Element II : CURRENT RISK MANAGEMENT
3. How does the government respond to the climate-related hazards that impact public assets in Indonesia? Do you have some examples? If yes, please explain. 4. How does your organisation respond to the climate-related hazards that impact public assets in your region/jurisdiction? 5. How do asset managers respond to the climate-related hazards that impact public assets? 6. Are the climate-related hazards that impact public assets inventoried, monitored and used for evaluation?
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7. What adaptation measures have been undertaken by Government of Indonesia?
Element III: INTEGRATED ASSET MANAGEMENT AND PLANNING IN ASSET MANAGEMENT
8. To what extent has climate change adaptation been considered in public asset planning and policy by Central/Regional/Local Government in Indonesia? Do you have some examples? If yes, please explain.
Element IV : ASSET USE AND KNOWLEDGE
9. To what extent do public asset managers informed about public assets that have been exposed and affected to the impacts of climate change? Do you have some examples? If yes, please explain. 10. Do you maintain any records of public assets exposed and already affected by the impacts of climate change? If yes, please explain.
Element V : ACCESSIBLE AND UNDERSTANDABLE CLIMATE CHANGE ADAPTATION INFORMATION
11. How do you access and utilise data and information from Bureau of Meteorology, Climatology and Geophysic (BMKG), Bureau of Geospatial Information (BIG) for asset management?
12. How do you determine the climate change scenario and assess the risks of climate change impacts? How do you use projections, modellings, methods or approaches for assessing climate risks? How do you develop and implement strategies and actions to manage the risks? Do you have some examples? If yes, please explain.
13. To what extent has the information about climate change been provided by Government of Indonesia?
Element VI : POLICY, DIRECTION AND STRATEGY IN CLIMATE CHANGE ADAPTATION
14. To what extent have climate change adaptation strategies been implemented and integrated into Government’s Development Plan?
15. To what extent has climate change adaptation strategies in public asset management been integrated into Development Plan?
16. Do you feel that the climate change-related policy or direction or strategy and measures taken presently are appropriate or they can go further?
Element VII : COMMUNITY
17. What do you think is the role of community in climate change adaptation in Indonesia?
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Element VIII : PRIVATE SECTOR AND STAKEHOLDERS’ INVOLVEMENT
18. To what extent is the involvement of stakeholders and private sectors in current development of climate change adaptation strategy in Indonesia?
19. Do you think their involvement presently is appropriate or they can go further? Do you have some examples? If yes, pleas.e explain.
Element IX : SUPPORT FROM ALL SIDES OF POLITICS
20. To what extent has the importance of the climate change adaptation issue been considered and discussed by members of legislative at national and local levels in Indonesia?
Element X : COORDINATION
21. What has your organisation done to coordinate between and within Central/Provincial/Local government levels in relation to climate change adaptation?
22. What problems do you see with regard to coordination between and within Central/Provincial/ Local government levels in responding to climate change impacts and do you have any ideas/suggestions to address these problems?
23. How is your coordination with National/Local Agency of Disaster Management so far? Can you give more explanation?
Enablers:
24. What factors should be considered for public assets in Indonesia to adapt in climate change impacts? Do you have some examples?
Others:
25. Is there anything else that you want add to the discussions?
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II. QUESTIONS TO BE ADDRESSED TO INTERVIEW PARTICIPANTS IN INDONESIA THAT OPERATE THE PUBLIC ASSETS C. APPLICATION OF THE FRAMEWORK IN SEMARANG
1. What are the profiles of public assets owned by Central Government in Semarang?
2. What are the most anticipated impacts of climate change on public assets in your jurisdiction/region? a. Floods due to sea level rise; b. Floods due to incresing precipitation; c. Heat or rising temperature; d. Increasing intensity of windstorm; e. Prolonged drought.
3. How many Central Government assets, especially buildings, are at risk area in Semarang? How much do these assets cost to Central Government or how much does Central Government provide maintenance costs for its assets?
4. Can you explain the profiles of tenants (asset users) of Ministry of Finance Building I and II in Semarang?
5. How do you access and utilise data and information from Bureau of Meteorology, Climatology and Geophysic (BMKG), Bureau of Geospatial Information (BIG) for asset management?
6. What are the objectives of Central Government asset management in Semarang?
7. What is the risk of increasing precipitation to buildings in Semarang?
8. What is the risk of increasing temperature to buildings in Semarang?
9. What is the risk of increasing sea level rise to buildings in Semarang?
10. What are existing issues of Ministry of Finance Building I and II in Semarang that affect the objectives of Central Government asset management in Semarang? What is the level of consequence (catastrophic, major, moderate, minor, marginal) for each existing issue to Ministry of Finance Building I and II in Semarang?
11. Upon identification of building issues (Ministry of Finance Building I and II in Semarang), what is the risk rating for each objective that has been affected?
12. What climate change adaptation option that can be identified and selected for the Ministry of Finance Building I and II in Semarang?
13. What criteria that can be used to select and prioritise climate change
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adaptation option to ensure implementation of adaptation?
14. What is the timeframe for each selected climate change adaptation option?
15. How do you undertake steps of ‘Monitoring and Review’ and ‘Continual Improvement’ in the future?
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List of questions including slides of introduction/background for semi- structured interview and list of questions for application of the framework in Semarang in Bahasa Indonesia (interview participants from Indonesia) DAFTAR PERTANYAAN INTERVIEW
I. PERTANYAAN WAWANCARA UNTUK PARTISIPAN IN INDONESIA A. LATAR BELAKANG Berikut ini terlampir slide penjelasan tentang Adaptasi Perubahan Iklim dan kebijakan yang relevan di Indonesia serta kaitannya dengan penelitian yang sedang dilakukan
1. Apakah Bapak/Ibu dapat menyampaikan sekelumit tentang diri Bapak/Ibu? Berapa lama bekerja di organisasi saat ini dan kedudukan/jabatan saat ini? 2. Apa yang menjadi tugas dan fungsi dari unit yang Bapak/Ibu pimpin? 3. Bagaimana perkembangan pengelolaan aset negara/daerah saat ini dari aspek: • Dasar hukum pengelolaan aset yang masih berlaku sampai saat ini? Berapa banyak (yang masih berlaku) mulai dari Undang-Undang, Peraturan Pemerintah, Peraturan Menteri s.d. Peraturan/Surat Edaran Sekretaris Jenderal? • Bagaimana profil aset yang menjadi kewenangan Bapak/Ibu saat ini; berapa nilai aset sesuai Laporan Keuangan Pemerintah Pusat/Daerah (LKPP/LKPD dalam 5 tahun terakhir? • Berapa banyak Pengguna Barang di seluruh wilayah kewenangan Bapak/Ibu terkini? • Bagaimana perkembangan opini Badan Pemeriksa Keuangan (BPK) dalam 5 tahun terakhir? • Jika dipergunakan istilah roadmap, maka mohon penjelasan apa yang
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menjadi sasaran/target roadmap pengelolaan aset di unit Bapak/Ibu sejak tahun 2011 s.d. masa yang akan datang (periode jangka pendek, menengah, dan panjang)?
B. ELEMEN-ELEMEN DALAM “GENERIC FRAMEWORK” HASIL PENELITIAN FASE PERTAMA
Elemen I : RECOGNITION OF CLIMATE CHANGE (REKOGNISI ATAS PERUBAHAN IKLIM)
1. Apakah strategi adaptasi perubahan iklim telah dipertimbangkan dalam perencanaan dan kebijakan pengelolaan aset negara/daerah oleh Pemerintah Pusat/Daerah? Apakah Bapak/Ibu dapat memberikan contohnya berikut penjelasan lebih lanjut?
2. Dari beberapa kejadian alam terkait iklim (perubahan iklim) selama ini, apakah dampak perubahan iklim yang paling dipertimbangkan di wilayah Bapak/Ibu? a. Banjir akibat kenaikan permukaan air laut (rob); b. Banjir akibat tingginya intensitas curah hujan; c. Meningkatnya suhu sekitar yang lebih panas dari tahun-tahun sebelumnya. d. Tingginya intensitas angin ribut e. Musim kering berkepanjangan Element II : CURRENT RISK MANAGEMENT (MANAJEMEN RESIKO SAAT INI)
3. Bagaimana respons dari Pemerintah Pusat/Daerah terhadap bencana terkait iklim yang berdampak terhadap aset negara/daerah? Apakah Bapak/Ibu dapat memberikan contohnya berikut penjelasan lebih lanjut? 4. Bagaimana pengalaman selama ini terhadap aset yang terkena bencana
300 Appendices
terkait iklim misalnya dampak banjir? 5. Apa yang dilakukan oleh manajer atau pengguna aset? Apa saja dampak yang dapat diidentifikasi selama ini terhadap aset dan pengelolaan aset tersebut? 6. Apakah dampak tersebut diinventarisasi, dimonitor, dan dijadikan bahan evaluasi untuk pengelolaan aset di tahun berikutnya? Jika ya, mohon penjelasan lebih lanjut apa strategi yang telah dilakukan. 7. Bagaimana strategi adaptasi yang sudah dilakukan?
Element III: INTEGRATED ASSET MANAGEMENT AND PLANNING IN ASSET MANAGEMENT (MANAJEMEN ASET YANG TERINTEGRASI DAN PERENCANAAN DALAM MANAJEMEN ASET)
8. Apakah Pemerintah Pusat/Daerah telah mempertimbangkan adaptasi perubahan iklim dalam perencanaan dan kebijakan aset negara/daerah? Apakah Bapak/Ibu dapat memberikan contohnya berikut penjelasan lebih lanjut?
Element IV : ASSET USE AND KNOWLEDGE (PENGGUNAAN DAN PENGETAHUAN TENTANG ASET NEGARA/DAERAH)
9. Apakah Bapak/Ibu selaku manajer aset negara/daerah memiliki pengetahuan tentang aset negara/daerah mana saja yang rawan dan pernah mengalami dampak dari perubahan iklim? 10. Apakah Bapak/Ibu dapat memberikan contohnya berikut penjelasan lebih lanjut mengenai data/informasi berapa banyak dan nilai aset yang berada di area rentan kejadian alam terkait iklim seperti: - Aset di area rawan bencana terkait iklim. - Jumlah aset yang terdata rusak, besarnya nilai kerugian, dan biaya untuk perbaikan. - Berapa besar peningkatan biaya perawatan aset per tahun (termasuk aset yang spesifik berada di area rawan bencana terkait iklim).
Element V : ACCESSIBLE AND UNDERSTANDABLE CLIMATE CHANGE ADAPTATION INFORMATION (INFORMASI TENTANG PERUBAHAN IKLIM YANG MUDAH DIPAHAMI DAN DIAKSES)
11. Apakah Bapak/Ibu memanfaatkan akses atau menggunakan data/informasi dari instansi lain dalam rangka pengelolaan aset seperti peta wilayah rawan bencana terkait iklim, penilaian resiko (indeks resiko) akibat perubahan iklim, skenario perubahan iklim dari BMKG (Badan Meteorologi, Klimatologi, dan Geofisika), atau data Badan Informasi Geospasial (BIG)?
12. Bagaimana Bapak/Ibu menentukan skenario perubahan iklim dan melakukan asesmen terhadap resiko perubahan iklim? Apakah bentuk proyeksi, modelling, metode yang dipergunakan saat ini? Bagaimana Bapak/Ibu merencanakan, mengembangkan dan melaksanakan strategi
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serta aksi dalam rangka menghadapi resiko perubahna iklim? Apakah Bapak/Ibu dapat memberikan contohnya berikut penjelasan lebih lanjut?
13. Apakah seluruh informasi yang diperlukan terkait perubahan iklim telah disediakan oleh Pemerintah?
Element VI : POLICY, DIRECTION AND STRATEGY IN CLIMATE CHANGE ADAPTATION (KEBIJAKAN, ARAHAN, DAN STRATEGI ADAPTASI PERUBAHAN IKLIM)
14. Apakah strategi adaptasi perubahan iklim telah dilaksanakan dan terintegrasi dalam Perencanaan Pembangunan di tingkat pusat dan daerah?
15. Apakah strategi adaptasi perubahan iklim telah dilaksanakan dan terintegrasi dalam manajemen aset negara/daerah dan dalam perencanaan pembangunan di tingkat pusat dan daerah?
16. Bagaimana pendapat Bapak/Ibu terhadap kesesuaian kebijakan atau arahan atau langkah-langkah dalam adaptasi perubahan iklim yang dilakukan saat ini? Apakah hal-hal yang masih diharapkan untuk ditingkatkan lebih lanjut?
Element VII : COMMUNITY (KOMUNITAS)
17. Bagaimana pendapat Bapak/Ibu terhadap sejauh mana peran komunitas atau kelompok masyarakat dalam adaptasi perubahan iklim di Indonesia?
Element VIII : PRIVATE SECTOR AND STAKEHOLDERS’ INVOLVEMENT (KETERLIBATAN PEMANGKU KEPENTINGAN DAN SEKTOR SWASTA)
18. Bagaimana pendapat Bapak/Ibu terhadap keterlibatan pemangku kepentingan dan sektor swasta dalam adaptasi perubahan iklim di Indonesia?
19. Apakah keterlibatan pemangku kepentingan dan sektor swasta selama ini dalam adaptasi perubahan iklim di Indonesia sudah memadai atau sesuai? Apakah ada yang masih perlu ditingkatkan? Apakah Bapak/Ibu dapat memberikan contohnya berikut penjelasan lebih lanjut?.
Element IX : SUPPORT FROM ALL SIDES OF POLITICS (DUKUNGAN SECARA POLITIS)
20. Apakah isu adaptasi perubahan iklim telah menjadi pertimbangan dan bahasan oleh anggota legislatif (DPR/DPRD) dengan Pemerintah Pusat/Daerah?
Element X : COORDINATION (KOORDINASI)
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21. Apa yang telah unit Bapak/Ibu lakukan dalam kegiatan koordinasi baik antar Pemerintah Pusat dan Daerah atau antar internal Pemerintah Pusat/Daerah dalam kaitannya dengan adaptasi perubahan iklim?
22. Apa yang masih menjadi persoalan dalam kaitannya dengan pelaksanaan koordinasi tersebut? Apakah saran yang dapat Bapak/Ibu berikan dalam rangka mengatasi persoalan koordinasi dan meningkatkan pelaksanaan koordinasi tersebut?
23. Bagaimana bentuk koordinasi dan kerjasama dengan instansi terkait seperti BNPB (Badan Nasional Penanggulangan Bencana) atau BPBD (Badan Penanggulangan Bencana Daerah) setempat sebelum, saat dan sesudah kejadian bencana terkait iklim? Bagaimana bentuk adaptasinya?
Enablers (Faktor Pendukung Efektifitas):
24. Apakah faktor-faktor yang perlu dipertimbangkan bagi pengelolaan aset negara/daerah di Indonesia dalam rangka adaptasi perubahan iklim? Apakah Bapak/Ibu dapat memberikan contohnya berikut penjelasan lebih lanjut?.
Others (Lain-lain):
25. Apakah masih ada hal lain yang Bapak/Ibu ingin utarakan?
II. PERTANYAAN WAWANCARA UNTUK OPERATOR/PENGGUNA ASET PUBLIK DI INDONESIA
C. DAFTAR PERTANYAAN INTERVIEW DALAM RANGKA APLIKASI FRAMEWORK DI SEMARANG
1. Bagaimana profil aset yang menjadi kewenangan Bapak/Ibu saat ini; berapa nilai aset sesuai Laporan Keuangan Pemerintah Pusat/Daerah (LKPP/LKPD dalam 5 tahun terakhir?
2. Dari beberapa kejadian alam terkait iklim (perubahan iklim) selama ini, apakah dampak perubahan iklim yang paling dipertimbangkan di wilayah Bapak/Ibu? a. Banjir akibat kenaikan permukaan air laut (rob); b. Banjir akibat tingginya intensitas curah hujan; c. Meningkatnya suhu sekitar yang lebih panas dari tahun-tahun sebelumnya. d. Tingginya intensitas angin ribut e. Musim kering berkepanjangan
3. Apakah Bapak/Ibu dapat memberikan contohnya berikut penjelasan lebih lanjut mengenai data/informasi berapa banyak dan nilai aset yang berada di
Appendices 303
area rentan kejadian alam terkait iklim seperti: - Aset di area rawan bencana terkait iklim. - Jumlah aset yang terdata rusak, besarnya nilai kerugian, dan biaya untuk perbaikan. - Berapa besar peningkatan biaya perawatan aset per tahun (termasuk aset yang spesifik berada di area rawan bencana terkait iklim).
4. Bagaimana profil dari para pengguna aset di Gedung Kementerian Keuangan I dan II di Semarang?
5. Apakah Bapak/Ibu memanfaatkan akses atau menggunakan data/informasi dari instansi lain dalam rangka pengelolaan aset seperti peta wilayah rawan bencana terkait iklim, penilaian resiko (indeks resiko) akibat perubahan iklim, skenario perubahan iklim dari BMKG (Badan Meteorologi, Klimatologi, dan Geofisika), atau data Badan Informasi Geospasial (BIG)?
6. Apa yang menjadi sasaran/target atau kriteria keberhasilan dalam pengelolaan aset di Semarang?
7. Apakah dampak atau resiko dari peningkatan curah hujan terhadap aset (gedung) di Semarang?
8. Apakah dampak atau resiko dari peningkatan temperatur terhadap aset (gedung) di Semarang?
9. Apakah dampak atau resiko dari peningkatan permukaan air laut terhadap aset (gedung) di Semarang?
10. Apa saja permasalahan yang dapat diidentifikasi dari Gedung Kementerian Keuangan I dan II yang mempengaruhi sasaran/target atau kriteria keberhasilan dalam pengelolaan aset di Semarang? Bagaimana asesmen secara kualitatif (catastrophic, major, moderate, minor, marginal) untuk setiap sasaran/target yang terkena dampaknya?
11. Setelah permasalahan dari Gedung Kementerian Keuangan I dan II dapat diidentifikasi yang mempengaruhi sasaran/target atau kriteria keberhasilan dalam pengelolaan aset di Semarang, bagaimana pendapat Bapak/Ibu terhadap tingkat resiko (risk rating) untuk setiap sasaran/target yang terkena dampaknya?
12. Apa opsi adaptasi perubahan iklim yang dapat diidentifikasikan dan dipilih/diprioritaskan untuk Gedung Kementerian Keuangan I dan II?
13. Apa kriteria yang dipergunakan dalam memilih/memprioritaskan opsi adaptasi perubahan iklim agar lebih menjamin implementasinya?
14. Bagaimana jangka waktu pelaksanaan (segera, jangka pendek, jangka menengah, atau jangka panjang) dari setiap opsi adaptasi perubahan iklim yang telah dipilih?
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15. Bagaimana step ‘Monitoring and Review’ dan ‘Continual Improvement’ dapat dilaksanakan?
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Appendix F. Map of Semarang, Semarang is administratively divided into 16 districts (kecamatan) and 177 villages (kelurahan) (Copyright of Pemerintah Kota Semarang)
1. Central Semarang District; 2. North Semarang District; 3. East Semarang District; 4. Gayamsari District; 5. Genuk District; 6. Pedurungan District; 7. South Semarang District; 8. Candisari District; 9. Gajahmungkur District; 10. Tembalang District; 11. Banyumanik District; 12. Gunungpati District; 13. West Semarang District; 14. Ngaliyan District; 15. Mijen District; 16. Tugu District.
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Appendix G. Composite Climate Hazard Index and Coping Capacity Index of sub-districts in Semarang2
2 Note: Composite Climate Hazard Index (CCHI) and Coping Capacity Index baseline year 2005, the SRESA2 scenario in 2025, SRESA2 scenario in 2050, SRESB1 scenario in 2025, and SRESB1 scenario in 2050 generated by ACCCRN (A study coordinated by Institute for Social Environmental Transition-International (ISET) conducted by Mercy Corps Indonesia, CCCROM-SEAP, and URDI) (Source: https://www.acccrn.net/sites/default/files/publication/attach/036_ACCCRN_smrg_ENG_26APRIL2010_0.pdf)
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______Note: Composite Climate Hazard Index (CCHI) and Coping Capacity Index baseline year 2005, the SRESA2 scenario in 2025, SRESA2 scenario in 2050, SRESB1 scenario in 2025, and SRESB1 scenario in 2050 generated by ACCCRN (A study coordinated by Institute for Social Environmental Transition-International (ISET) conducted by Mercy Corps Indonesia, CCCROM-SEAP, and URDI) (Source: https://www.acccrn.net/sites/default/files/publication/attach/036_ACCCRN_smrg_ENG_26APRIL2010_0.pdf)
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______Note: Composite Climate Hazard Index (CCHI) and Coping Capacity Index baseline year 2005, the SRESA2 scenario in 2025, SRESA2 scenario in 2050, SRESB1 scenario in 2025, and SRESB1 scenario in 2050 generated by ACCCRN (A study coordinated by Institute for Social Environmental Transition-International (ISET) conducted by Mercy Corps Indonesia, CCCROM-SEAP, and URDI) (Source: https://www.acccrn.net/sites/default/files/publication/attach/036_ACCCRN_smrg_ENG_26APRIL2010_0.pdf)
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Appendix H. Study on vulnerability and adaptation assessment to climate change conducted by Mercy Corps, URDI and CCROM SEAP-IPB at Semarang City is used for application of climate risk index for mapping the public assets in Semarang as initial assessment to determine selected public assets for case study
ISET under the Asian Cities Climate Change Resilience Network (ACCCRN) with the support from the Rockefeller Foundation, coordinated a study on vulnerability and adaptation assessment to climate change conducted by Mercy Corps, URDI and CCROM SEAP-IPB at Semarang City. This assessment was carried out and published as a report in 2010 and has been a reference in local government planning and other research. The researcher used the best available data and information including the ACCCRN report to determine Central Government buildings to be included in application of the framework. The asset mapping was used not only to determine area sampling where several buildings are located for application of the framework but also to present initial understanding and promote awareness on climate risk of Central Government assets in Semarang. The process of asset mapping is explained as follows. 1. Level of Consequences, Level of Likelihood, and Climate Risk Index developed by ACCCRN The study under ACCCRN program in Semarang evaluated the level of climate risk at sub- district (Kelurahan) level. The risk criteria established in the report describes the level of consequence if unexpected event (risk) occurs that affects the sub-districts of Semarang and the likelihood of an event to occur. a. Coping capacity index as proxy of “level of consequences” The consequence of the events will be depending on the coping range measured using a range of biophysical, social and economic factors. The coping range (the coping capacity index) is developed based on the vulnerability (VI) and capacity indices (CI) of the sub- districts and divided into five levels (quadrants). The scores of VI and CI were normalised to have value range from 0 to 1. This scores were subtracted by 0.5 in order to obtain the VI and CI ranging from -0.5 to +0.5 as shown in Figure A. The sub-districts were then classified into respective quadrants (Quadrant 1 to 5) based on their coping capacity index value.
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Figure A. Classification of the sub-district based on their coping range in Quadrant 1 to 5 (ACCCRN, 2010) The relative position of sub-district according to its respective VI and CI is determined based on position in the five Quadrants. The Sub-districts in ‘Quadrant 5’ have high VI and Low CI. Whereas Sub-districts in ‘Quadrant 1’ have low VI and high CI. Based on this classification system, the sub-districts in ‘Quadrant 5’ are exposed to certain hazards whereby the consequences/impacts (e.g. damage, economic loss) would be more severe compared to sub-districts in ‘Quadrant 1’. However, for the sub-districts in ‘Quadrant 4’ despite their high VI, they would be less severe from the consequences/impacts because of having high CI. Thus, it can be defined that the climate risk will be very high in sub-district at ‘Quadrant 5’ if probability of the extreme climate events to occur in this sub-district is high. In contrast, climate risk will be very low in sub-district at ‘Quadrant 1’ and the probability of the extreme climate events to occur in these sub-district is also low. See Table in Appendix G for detailed vulnerability and adaptation capacity (coping capacity index) of sub-districts in Semarang b. Composite climate hazard index/CCHI as proxy of “level of likelihood” The level of likelihood of an event to occur was modified as Composite Climate Hazard Index (CCHI) which also allowed multiple climate hazards being accommodated in the climate risk assessment. The types of climate hazards included flood, drought, landslides, and sea level rise. The index value ranges from 0 to 4.5 classified into three categories, i.e. less than 2.0, between 2.0 and 3.5 and more than 3.5. The sub-district with index of 4.5 (CCHI = 4.5) means that all area of this sub-district is exposed to flood and drought, and land slide every year and it is completely inundated when tidal flooding occurs. Conversely, the sub-district with CCHI of zero means none of the hazards occur in the sub-district. The ACCCRN also used the rainfall outputs from general circulation models (GCM) run under SRESA2 and SRESB1 scenarios. The weight and the formula used to calculate the index of the climate hazard is given in Table A. The weight is very subjective and determined based on expert judgement. Drought has the highest weight as its impact may be more severe than flood due its duration and extend of impacted area. Impact of flood, land slide and sea level rise is more localised than that of drought (ACCCRN, 2010). Table A. Weight and formula for calculating climate hazards index (ACCCRN, 2010) Type of hazard Weight Formula Flood 1.25 Probability of having monthly rainfall of more than 302 mm multiplied by average of area of sub-district impacted by flood. In order to get the index value of between 0 and 1, the calculated value is normalised by the maximum value. Drought 1.50 Probability of having dry month with length of more than 6 month multiplied by number of dry month above the 6 month (DM6+). Dry month is defined as month with rainfall of less than 84 mm. If total length of dry month is 8 month, the DM6+ = 2 months. In order to get the index value between 0 and 1, the calculated value is normalised by the maximum value. Land slide 0.75 Probability of having monthly rainfall of more than quarter 2 multiplied by slope indicator of the corresponding sub-district. The sub-district that has locations with slope of more than 45o, the indicator value will be equal to 1, otherwise zero. Sea Level Rise 1.00 Fraction of sub-district (Kelurahan) area being inundated by the sea level rise
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Maximum 4.50 CCHI The study suggested that in 2005, the CCHI in most areas of Semarang City was mostly less than 2.0, and only a small portion of more than 2.0, which is situated in a small part of the northern part of Semarang (ACCCRN, 2010). See Table in Appendix G for detailed Composite Climate Hazard Index (CCHI) of sub- districts in Semarang. c. Climate risk matrix of sub-districts The level of climate risk of the sub-districts in Semarang was presented in the form of risk matrix (Table B). For more detailed Composite Climate Hazard Index (CCHI) and Coping Capacity Index baseline year 2005, the SRESA2 scenario in 2025, SRESA2 scenario in 2050, SRESB1 scenario in 2025, and SRESB1 scenario in 2050 generated by ACCCRN can be seen in Appendix G. Table B Matrix of Sub-districts’ Climate Risk according the coping capacity index and composite climate hazard index (ACCCRN, 2010) Composite Climate Hazard Index (CCHI) Coping Very Likely Likely Unlikely Capacity Index (More than 3.5) (Between 2.0 – 3.5) (Less than 2.0) (Quadrant) V-H H M-H 5
H M-H M 4
M-H M M-L 3
M M-L L 2
M-L L VL 1
Note: V-H = Very High risk H = High risk M-H = Medium to High risk M = Medium risk M-L = Medium to Low risk L = Low risk According to the report of ACCCRN (2010), detailed classification of sub-district based on the level of exposure to climate risks is shown in Appendix G. It shows that there are no sub- districts with V-H risk at baseline (2005). The highest category is only M-H risk (15 Sub- districts, 8%) that includes Sub-district of Bandaharjo, Bangetayu Kulon, Bubakan, Gunungpati, Kudu, Mangkang Kulon, Mangkang Wetan, Mangunharjo, Mangunsari, Ngadirgo, Penggaron Lor, Podorejo, Tanjungmas, Tanjungmas, Tugurejo, amd Wonoplumbon. The remaining sub-districts are at M risk (63 Sub-districts, 36%), L-M risk (47 Sub-district, 27%), L risk (6 Sub-districts, 3%) and 46 Sub-districts at V-L risk. In the future (2025 and 2050), more Sub-districts will be exposed to higher climate risk, particularly under SRESA2 scenario. There would be two Sub-districts would move from M-H to High risk (Mangunharjo at Tugu District and Mangunharjo at Tembalang District) in 2025 and 2050. While mostly Sub-districts at L-M risk would move to M risk category. See Appendix G for detailed Climate Risk Index of sub-districts in Semarang. 2. Distribution of Central Government assets (buildings) according to climate risk index of ACCCRN (overlay climate risks to public asset in Semarang)
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Climate risk assessment undertaken and reported by ACCCRN helped the researcher to classify 2,978 central government assets in Semarang. Risk assessment on public assets is still absent in Indonesia. This climate risk assessment published by ACCCRN is the best available information that could be used by researcher to determine areas where level of risks for every buildings can be recognised. The classification also presents initial screening of Central Government assets in Semarang exposed to climate risks. Upon screening the assets, the public asset managers in Semarang have understanding not only about level of risk at the sub-district area but also could prioritise area for further action regarding response to climate change.
i. Overlay climate risks to public asset in Semarang under SRESA2 2025 Table C. Overlay climate risks to public asset in Semarang under SRESA2 2025 (adapted from ACCCRN (2010)) Coping Composite Climate Hazard Index (CCHI) Capacity Index Very Likely Likely Unlikely (Quadrant) (More than 3.5) (Between 2.0 – 3.5) (Less than 2.0) V-H H M-H 5 96 H M-H M 4 10 20 1567 M-H M M-L 3 36 182 M M-L L 2 45 M-L L VL 1 1009 Based on this scenario, in 2025, there would be 10 Central Government buildings at High risk (Composite Climate Hazard Index (CCHI) more than 3.5 and Coping Capacity Index (CCI) of 4). There would also be 20 Central Government buildings at Medium-to-High risk whereby the CCHI between 2.0-3.5 and CCI of 4. Other 96 Central Government buildings would also be at Medium-to-High risk (CCHI less than 2.0 however CCI of 5). There would also be 36 Central Government buildings at Medium risk (CCHI between 2.0- 3.5 and CCI of 3). Other 1567 Central Government buildings would also be at Medium risk whereby the CCHI less than 2.0 however CCI of 4. There would also be 182 Central Government buildings at Medium-to-Low risk (CCHI between less than 2.0 and CCI of 3). The remaining of 45 Central Government buildings would be at Low risk (CCHI less than 2.0 and CCI of 2). Whilst 1009 Central Government buildings would be at Very Low risk (CCHI less than 2.0 and CCI of 1). ii. Overlay climate risks to public asset in Semarang under SRESA2 2050 Table D. Overlay climate risks to public asset in Semarang under SRESA2 2050 (adapted from ACCCRN (2010)) Coping Composite Climate Hazard Index (CCHI) Capacity Index Very Likely Likely Unlikely (Quadrant) (More than 3.5) (Between 2.0 – 3.5) (Less than 2.0) V-H H M-H 5 87 H M-H M 4 10 112 1437 M-H M M-L 3 60 142 2 M M-L L
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45 M-L L VL 1 6 1030 Based on this scenario, in 2050, there would be 10 Central Government buildings at High risk (Composite Climate Hazard Index (CCHI) more than 3.5 and Coping Capacity Index (CCI) of 4). There would also be 112 Central Government buildings at Medium-to-High risk whereby the CCHI between 2.0-3.5 and CCI of 4. Other 87 Central Government buildings would also be at Medium-to-High risk (CCHI less than 2.0 however CCI of 5). There would also be 1437 Central Government buildings at Medium risk whereby the CCHI less than 2.0 however CCI of 4. There would also be 142 Central Government buildings at Medium-to-Low risk (CCHI between less than 2.0 and CCI of 3). The remaining of 45 Central Government buildings would be at Low risk (CCHI less than 2.0 and CCI of 2) and 6 Central Government buildings would be at Low risk (CCHI between 2.0-3.5 and CCI of 1). Whilst 1030 Central Government buildings would be at Very Low risk (CCHI less than 2.0 and CCI of 1). iii. Overlay climate risks to public asset in Semarang under SRESB1 2025 Table E. Overlay climate risks to public asset in Semarang under SRESB1 2025 (adapted from ACCCRN (2010)) Coping Composite Climate Hazard Index (CCHI) Capacity Index Very Likely Likely Unlikely (Quadrant) (More than 3.5) (Between 2.0 – 3.5) (Less than 2.0) V-H H M-H 5 87 H M-H M 4 10 106 1492 M-H M M-L 3 2 180 M M-L L 2 45 M-L L VL 1 7 1007 Based on this scenario, in 2025, there would be 10 Central Government buildings at High risk (Composite Climate Hazard Index (CCHI) more than 3.5 and Coping Capacity Index (CCI) of 4). There would also be 106 Central Government buildings at Medium-to-High risk whereby the CCHI between 2.0-3.5 and CCI of 4. Other 87 Central Government buildings would also be at Medium-to-High risk (CCHI less than 2.0 however CCI of 5). There would also be 2 Central Government buildings at Medium risk (CCHI between 2.0- 3.5 and CCI of 3). Other 1492 Central Government buildings would also be at Medium risk whereby the CCHI less than 2.0 however CCI of 4. There would also be 180 Central Government buildings at Medium-to-Low risk (CCHI between less than 2.0 and CCI of 3). The remaining of 45 Central Government buildings would be at Low risk (CCHI less than 2.0 and CCI of 2) and 7 Central Government buildings would be at Low risk (CCHI between 2.0-3.5 and CCI of 1). Whilst 1007 Central Government buildings would be at Very Low risk (CCHI less than 2.0 and CCI of 1).
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iv. Overlay climate risks to public asset in Semarang under SRESB1 2050 Table F. Overlay climate risks to public asset in Semarang under SRESB1 2050 (adapted from ACCCRN (2010)) Coping Composite Climate Hazard Index (CCHI) Capacity Index Very Likely Likely Unlikely (Quadrant) (More than 3.5) (Between 2.0 – 3.5) (Less than 2.0) V-H H M-H 5 96 H M-H M 4 10 26 1572 M-H M M-L 3 180 M M-L L 2 45 M-L L VL 1 1036 Based on this scenario, in 2050, there would be 10 Central Government buildings at High risk (Composite Climate Hazard Index (CCHI) more than 3.5 and Coping Capacity Index (CCI) of 4). There would also be 26 Central Government buildings at Medium-to-High risk whereby the CCHI between 2.0-3.5 and CCI of 4. Other 96 Central Government buildings would also be at Medium-to-High risk (CCHI less than 2.0 however CCI of 5). There would also be 1572 Central Government buildings at Medium risk (CCHI less than 2.0 however CCI of 4). There would also be 180 Central Government buildings at Medium- to-Low risk (CCHI between less than 2.0 and CCI of 3). The remaining of 45 Central Government buildings would be at Low risk (CCHI less than 2.0 and CCI of 2). Whilst 1036 Central Government buildings would be at Very Low risk (CCHI less than 2.0 and CCI of 1). As described in Table C and Table D, under SRESA2 scenario, 10 Central Government buildings would be at High risk. There would be 116 buildings at Medium-to-High risk that potentially become increasing to 259 buildings within 25 years from 2025 to 2050. In other words, 143 buildings previously at lower risk (e.g. Medium risk) would become at riskier conditions based on the SRESA2 scenario. As shown in Table E and Table F, if using SRESB1 scenario, 10 Central Government buildings would be at High risk. These are the same buildings at High risk under SRESB1 scenario. There would be 193 buildings at Medium-to-High risk (consisting of 106 building with coping capacity index/CCI of 4 and 87 buildings with CCI of 5) that potentially become decreasing in total to 122 buildings (consisting of 26 building with coping capacity index/CCI of 4 and 96 buildings with CCI of 5) within 25 years from 2025 to 2050. In other words, 80 buildings previously at CCHI between 2.0-3.5 and CCI of 4 would move to either less or more climate risk conditions, whilst 9 buildings previously at CCHI less than 2.0 and CCI of 5 would move to either less or more climate risk conditions.
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Appendix I. Email request for undertaking practical application of the
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Framework for two public assets in Semarang, Indonesia.
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