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INTERNATIONAL MONETARY FUND WORLD BANK GROUP 2018 ANNUAL MEETINGS CIVIL SOCIETY POLICY FORUM THE ENERGY TRANSITION IN EMERGING ECONOMIES: ROLE OF POLICY-MAKERS Surabaya, BICC Bali, Indonesia Thursday, October 11, 2018 11:00 a.m. LIST OF PARTICIPANTS HON. SATYA WIDYA YUDHA MP, Indonesia Chair, Green Economy Caucus Board Member, SW-AQA House of Representatives, Indonesia HON. MEENAKSHI LEKHI Member of Parliament, Lok Sabha, India DR. GUOQING SHI Professor & Director Social Development Center Hohai University) DR. YAXIONG CAO Director Contemporary China Studies Centre Wuhan University The Energy Transition in Emerging Economies: Role of Policy-Makers (11:00 a.m.) MR. WANG: Hello everyone. Let's start now. Good morning, everyone. My name is Jianpeng Wang, I'm the Chairman of Global China Research foundation. Welcome everyone to be here to attend our session today. And let me -- first of all let me introduce our speaker; Honorable Yudha, Member Of Parliament, Indonesia, board member of Air Quality Asia and Green Economy Caucus. Beside me is Honorable Yudha and followed by him is Honorable Sadeem (phonetic), he is also Member of Parliament, Indonesia, chair the budget committee. And followed by him is Professor Guoqing Shi, he is professor and the director of social development center, Hohai University. The last one is Doctor and Professor Yaxiong Cao, he is Director of Contemporary China Study Center, Hohai University, China. Welcome. (Applause) And my position, I'm going to chair this event and my position will be neutral, which means I won't ask a question. I would like to leave more time and opportunity to our audience and please do ask question after the presentation of our speaker. And make sure to make it short and, yeah, that's it. Are you ready, Honorable Y Yudha? MR. YUDHA: Yeah. MR. WANG: Okay. So let me pass he microphone to Honorable Yudha. And, yeah, thank you. MR. YUDHA: Well, thank you very much, and thanks for kind introductions about the panelists. I'm one of them and I'm happy to be here. And I'd like to share with all of you with regard to what's the policy of Indonesia, particularly in transitioning from fossil fuel to renewables. And I'm also trying to portray later on Indonesia versus the other country and how do we achieve the goals that has been committed on the sustainable development goals and as well as our participation as part of the Paris Agreement. There's two kind of policy that has been really develops and we're also trying to break it down into detailed actions. So probably before I go to detail, I would like to give you some flavor that Indonesia has been enjoying the fossil fuel economy for a long time, even now we're still considering that we are in the fossil fuel economy. So -- but our commitment to the world when we ratify Paris Agreement back in 2016, if I'm not wrong, because I was one of committee who signed for the ratification of the Paris Agreement and it was really fantastic because this is the first ever probably in the history of the Indonesian parliament that we ratify this less than one week. So we are so committed on the ratification of the Paris Agreement. But again when it comes to the implementation, probably a little bit different story. And as you may know that before we're talking about Paris agreements that we do have what's so called the sustainable development goals. We have 17 goals and if we are talking about the sustainability of energy, it falls under the SDG number 7s. Okay. While the climate change is SDG number 13. So we're trying to combine between the two, and the Government of Indonesia has given to at least two ministries become a focal point on the implementation of those two big commitments. So the Ministry of State Planning Agency is responsible as the focal point for the implementation of the SDG as a whole. And while for the Paris Agreement, we agreed to put the ministry of environments and forestry become the focal point. So those two ministry from the eyes of the parliament, we'd like them to cooperate, to coordinate when it come to the implementation because we don't want that one, you know, focal point is contradictions with the other focal point, this is not the idea that we are looking for. So we need to have cohesions, you know, between those two administrations, you know, between the ministry of state planning agency and also ministry of environment and forestry. So gentlemen, if I -- using the data, this is not the end of my slide, but I can read it here, if you look at the implementation of the SDGs 7 and 13 because we are talking more on the renewable or cleaner energy. So Indonesia is, you know, come to 64.1 on the scale of 100, this is the way we're trying to achieve the SDG number 7, the goals of the SDG number 7. While on the SDG 13, so Indonesia is on the score of 89.1, which is on the 13 is quite progressive. If you look at the number from the statistics that I have here and compare with SDG number 7. Why is that, because of, you know, SDG 13 is covering not only the energy sectors, but also the land use, land use and land use change forestry with all those sectors that we cascade down into what's so called nationally determined contributions. So we are okay because of –- we have 89 in 100 scale, but on the SDG 7 we are reaching on the 64.1 percent. While the other country, I can quote here like China, China is, you know, for the SDG 7 is ranking 69.1, which is better than Indonesia. Indonesia is 64, China is 69.1 on the SDG 7. But on SDG 13, China is 69.3, which is lower than Indonesia, we are on 89.1 percent. But as a whole, if you look at the SDG 17 goals, there are several ranking on it and Indonesia is really unfortunate, we come to the rank number 99, yeah, out of more than 150 countries. So on the SDGs as a whole from goals number 1 up to the goals number 17s. But if you're talking goal number 7 and 13, there're a lot of improvements in this regard. So that's the thing that I like to give you a kind of portray that where we stand at the moment, where Indonesia stands at the moment. So when you look at our ambitions, we're trying to reach, you know, reducing the emission up to 29 percent by 2030. This is conditionals. But if unconditional, meaning that if we kept the international aids or international assistance, we are aiming up to the 41 percent by 2030, but quite ambitious. If you look at all those numbers, even for using the renewable energies by 2025, we are aiming to reach up to 23 percent. But at the moment, if we're talking about today, the renewables is around 9 percent, 7 to 9 percent. So still a big task ahead in order for us to achieve the 23 percent by 2025. So that has become our challenge here. If you look at the nationally determined contributions, we'll come back to it, that's all those items. Energy occupies around 30 percent of it because the rest of it mostly dominated by the land use and land use and land use change forestry who can contribute more on reducing the emissions. So now how do we move forwards in order for us to really achieve like what we expect. If you look at the ranking of Indonesia, you look at the progress, what we have done, if you look at from those two ministries become the focal point. So we are aiming to achieve like what we expect, you know, at the beginning as part of our international commitment. But here if you see all those actions need to be done, particularly on the land use and land use change forestry, it's a really big, big job because of we have to be able to manage on the forestry sectors, which is more environmentally friendly and, you know, we have reduced lot of illegal activities in this regard and also we have to be able to manage the forestry sector in a good manner. And on the energy sector, we occupy more than 30 percent from our nationally determined contribution. There are several actions needed to be done because if you look at from the pricing issues at the moment, I'd like to touch very basic thing because of the way we manage at the moment, how to see whether the renewables really move faster than the others. It depends on how we can offer to the world, I mean, to the investors for instance because we cannot rely on our state revenue. Probably Honorable, as he is going to talk in more detail about our capability to fund from the state budget revenue. So if you look at from, you know, the way we see the renewables versus the non-renewables, so I'd like to see the slide comparison between renewable and non-renewables. We should be able to, you know, introduce what's so called externality costs. The externality cost, it really drives us, if we want to compete between renewable and nonrenewable, without the externality the renewable is expensive.