Study on Practice Diffusion and Adoption Process under Cities for Climate Protection (CCP) Program in Indonesia FINAL REPORT Researcher: Prof. Dr. Danang Parikesit Funded by: The Institute for Global Environmental Strategies (IGES) a not-for-profit corporation organised in accordance with the Japanese Civil Code CENTER FOR TRANSPORTATION AND LOGISTICS STUDIES (PUSTRAL) UNIVERSITAS GADJAH MADA FINAL REPORT Study on Practice Diffusion and Adoption Process under Cities for Climate Protection (CCP) Program in Indonesia (Contract signed on 23 June 2008) Disclaimer: The content of the report is solely the responsibility of the researchers and does not represent the policy of The IGES Forewords This Final Report on Study on Practice Diffusion and Adoption Process under Cities for Climate Protection (CCP) Program in Indonesia is submitted to comply with the Contract signed on June 23rd, 2008 between The Institute for Global Environmental Strategies (IGES) and the Center for Transportation and Logistics Studies (PUSTRAL) Gadjah Mada University Yogyakarta, Indonesia. This report contains the findings of the practise for the diffusion and adoption process of Streetlights Management Scheme Project in Yogyakarta, Community-Based Biogas Project: Converting Liquid Waste to Energy Project in Denpasar and Fuel Switching for City Government Vehicles Project in Surabaya. We would like to acknowledge Ir. I Gusti Putu Suparsa, MT from University of Udayana, Denpasar for his assistance in coordinating the survey in Denpasar and Ir. Hera Widyastuti, MT from Sepuluh November Institute of Technology in Surabaya for her assistance in coordinating the survey in Surabaya. The hard work of surveyors in Yogyakarta (Robby Adiarta, Lukman Syarifuddin, Yenny Beatrix, Baharufahmi and David E.H.P), Denpasar (I Gusti Ayu Putri Adnya Swari, Komang Adi Prabawa, Dewa Putu Adi Sucipta and I Gusti Ngurah Made Abdi Yasa) and Surabaya (M. Hafiizh, Adistra Widyanie and Tommy Febri Setyawan) are very much appreciated. The report will not be completed without the assistance from various individuals and organizations in Yogyakarta and Denpasar. We wish to express our sincere appreciation to The City Council of Yogyakarta and Denpasar, The City Planning Office of Yogyakarta and Denpasar, City Environment Office of Yogyakarta and Denpasar, City Infrastructure Office of Yogyakarta, Electricity Company in Yogyakarta, BORDA, Bali Fokus, Lestari Indonesia, WALHI Yogyakarta, BERNAS Yogyakarta, Kedaulatan Rakyat Yogyakarta, and individuals for their active participation and support that can make this report completed and presented to relevant parties. We hope that the results of the study can be of the consideration for other cities to reduce the green gas houses through local initiatives. The report will not be completed without the assistance from various individuals and organizations in Yogyakarta, Denpasar and Surabaya. We wish to express our sincere appreciation to The City Council of Yogyakarta, Denpasar and Surabaya, The City Planning Office of Yogyakarta, Denpasar and Surabaya, City Environment Office of Yogyakarta, Denpasar and Surabaya, City Infrastructure Office of Yogyakarta, Electricity Company in Yogyakarta, BORDA, Bali Fokus, Lestari Indonesia, Jawa Pos Surabaya, WALHI Yogyakarta, BERNAS Yogyakarta, Kedaulatan Rakyat Yogyakarta and individuals for their active participation and support that can make this report completed and presented to relevant parties. We hope that the results of the study can be of the consideration for other cities to reduce the green gas houses through local initiatives. i Summary of City Profile No Criteria Yogyakarta Denpasar Surabaya 1 Area (km2) 32.5 127.78 326.37 2 Population (persons) 528,789*** 583,600** 2,861,928*** 3 GDP (Mio USD) 791.4** 711** 9,170* 4 City GDP to Provincial GDP 20** 20** 23* (%) 5 City GDP to National GDP 0.3** 0.23** 3* (%) 6 Economic Growth (%) 4.13** 5.88** 5.67* 7 Income per capita (USD) 1,787** 1,218** 3,400* 8 City Revenue (Mio USD) 62.64*** 55.74*** 203.5*** 9 Average allocated budget for 4-5 6-8 NA Environmental program (%) Notes: *2005 **2006 ***2007 ii Table of Content Forewords Summary of City Profile Table of Content List of Tables List of Figures List of Boxes List of Abbreviations CHAPTER 1 INTRODUCTION ............................................................................................1-1 1.1. Background............................................................................................1-1 1.2. Objective ................................................................................................1-1 1.3. Methodology ......................................................................................... 1-2 1.4. Schedule................................................................................................ 1-3 CHAPTER 2 CITIES PROFILE............................................................................................ 2-1 2.1. Yogyakarta ............................................................................................ 2-1 1. General Description....................................................................... 2-1 2. Economic Condition ...................................................................... 2-1 2.2. Denpasar...............................................................................................2-4 1. General Description.......................................................................2-4 2. Economic Condition ......................................................................2-6 2.3. Surabaya ...............................................................................................2-7 1. General Description.......................................................................2-7 2. Economic Condition ......................................................................2-9 CHAPTER 3 STAGES OF POLICY PROCESS..................................................................... 3-1 3.1. Regional Mid-Term Development Plan ............................................... 3-1 3.2. Process of Establishing City RPJMD ................................................... 3-1 3.3. Development Challenges of the City ....................................................3-2 3.4. Regional Development Policy and Programme ...................................3-3 CHAPTER 4 CONDITION OF PUBLIC SECTOR FUNDING............................................. 4-1 4.1. Regional Budget Plan (APBD).............................................................. 4-1 1. Regional Revenue .......................................................................... 4-1 2. Regional Expenditure ....................................................................4-4 3. Regional Financing ........................................................................4-5 4.2. Public Sector Financing by Sectors ......................................................4-6 CHAPTER 5 CAPACITY BUILDING OF GOVERNMENT STAFFS AND ROLE OF INTERCITY PROGRAM................................................................................. 5-1 iii CHAPTER 6 PROGRAMME OF EACH CITY...................................................................... 6-1 6.1. Yogyakarta ............................................................................................ 6-1 1. Project Description: Streetlight Management Scheme Programme..................................................................................... 6-1 2. Methodology in Reducing the GHG Emission ..............................6-2 3. Scope of the Project........................................................................6-2 4. Stakeholders Involvement .............................................................6-3 5. Financing........................................................................................6-5 6. Project Co-Benefits........................................................................6-5 6.2. Denpasar...............................................................................................6-6 1. Project Description: Community-Based Biogas Project: Converting Liquid Waste to Energy ..............................................6-6 2. Methodology in Reducing the GHG Emission ............................. 6-8 3. Scope of the Project....................................................................... 6-8 4. Stakeholders Involvement .............................................................6-9 5. Financing........................................................................................6-9 6. Project co-benefits.......................................................................6-10 6.3. Surabaya .............................................................................................6-10 1. Project Description: Fuel Switching for City Government Vehicles...................................................................6-10 2. Methodology in Reducing the GHG Emission ............................6-12 3. Scope of the Project......................................................................6-12 4. Stakeholders Involvement ...........................................................6-12 5. Financing......................................................................................6-14 6. Project Co-benefits.......................................................................6-14 CHAPTER 7 CONCLUDING REMARKS ............................................................................ 7-1 REFERENCES ANNEXES 1. LIST OF RESPONDENTS 2. COEFFICIENT VALUE 3. TABLES AND FIGURES