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Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context

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Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context 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. Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context i 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. Framework for Climate Change Adaptation for Incorporation in Public Asset Management: an Indonesian Context iii 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 ...........................................................................................
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