OECD GREEN GROWTH POLICY REVIEW OF INDONESIA 2019.

Preface
Foreword
Reader’s guide
Abbreviations and acronyms
Country abbreviations
Basic statistics of Indonesia
Administrative map of Indonesia
Executive summary
Assessment and recommendations
	1. Key environmental trends: An overview
		Accelerating climate change action to achieve mitigation targets
		Developing a comprehensive strategy to address air pollution
		Narrowing the gap between legal waste provisions and actual practice
		Developing a national inventory of hazardous waste and chemical substances
		Accelerating implementation of the biodiversity strategy
		Improving monitoring of groundwater levels and enforcement of permits
		Expanding and improving sanitation facilities to reduce water pollution
	2. Environmental governance and management
		Decentralised governance in need of better co-ordination
		Building technical capacity for environmental assessment
		Data gaps and weak sanctions impede compliance assurance
	3. Towards green growth
		Using market-based incentives to support the green economy transition
			Moving towards cost-reflective pricing in the energy sector
		Investment in the green economy is increasing
			Enhancing incentives for investment in waste, water and sanitation
			Implementing the sustainable finance regulation
		Renewables, energy efficiency and sustainable transport are priority areas
			Developing a plan to scale up renewables
			Continuing improving energy efficiency…
			…and investing in public transport infrastructure
		Strengthening eco-innovation and green markets
			Balancing the focus of energy-related R&D budgets
		The role of development co-operation and trade
			Continuing to fight illegal wildlife trade
	4. The land-use, ecosystems and climate change nexus
		Achieving a sustainable land-use sector is pivotal for green growth
			Deforestation rates are decreasing, but remain high
			Peat fires and peat decomposition are driving GHG emissions
			Intact natural forests are essential for sustaining ecosystem services
		Coherence between policy objectives could be improved
		Land allocation, permitting and enforcement are improving
			Streamlining the issuance of land-use permits
			Clarifying the legal status of land
			Peatland mapping remains a challenge
			Strengthening compliance monitoring and enforcement is a government priority
			The contribution of Forest Management Units
		The policy mix relies heavily on regulatory tools
			Restoring peatlands and preventing fires
			Accelerating implementation of certification to reduce illegal land conversion
			Improving community access to land through social forestry and agrarian reform
			Improving connectivity of protected areas to protect biodiversity
			Realising the value of ecosystem services
			Further strengthening REDD+
	Notes
	References
Chapter 1.  Environmental performance: Recent trends and developments
	1.1. Introduction
	1.2. Main economic and social developments
		1.2.1. Economic performance
		1.2.2. Structure of the economy and employment
		1.2.3. Inclusiveness of growth
		1.2.4. Administrative structure
		1.2.5. Population and urbanisation
		1.2.6. Progress towards the Sustainable Development Goals and environmental quality of life
	1.3. Transition to a low-carbon and energy-efficient economy
		1.3.1. Energy structure, use and intensity
			Energy mix
			Deployment of renewable energy sources
			Energy demand and intensity
			Access to energy
		1.3.2. Transport
		1.3.3. Climate change
			GHG emission profile
			Mitigation targets
			Climate policy
			Climate change vulnerability and adaptation policy
		1.3.4. Air pollution
			Emission of atmospheric air pollutants
			Ambient air quality
			Main policies and measures
	1.4. Transition to a resource-efficient economy
		1.4.1. Waste management
			Generation, collection and disposal of municipal solid waste
			Marine plastic pollution
			Main policies and measures
			Hazardous and toxic waste
		1.4.2. Chemical management
		1.4.3. Agricultural inputs and fisheries
			Agriculture and nutrient inputs
			Fisheries
	1.5. Managing natural capital
		1.5.1. Physical context and land cover
		1.5.2. Biodiversity
			Forest and peatland ecosystems
			Coastal and marine ecosystems
			Threatened species
			Protected areas
		1.5.3.  Management of water resources
			Access to water supply and sanitation
			Water resources
			Water quality
	Notes
	References
		Annex 1.A. Regional statistics
Chapter 2.  Towards green growth
	2.1. Introduction
	2.2. The policy and institutional framework for green growth
	2.3. Greening the system of taxes, charges and prices
		2.3.1. Environmentally related taxes: an overview
		2.3.2. Taxes on energy use and carbon pricing
		2.3.3. Transport taxes and charges
			Vehicle taxes
			Road pricing
		2.3.4. Taxes and fees on natural resource extraction
			Water abstraction and use
			Fiscal treatment of other natural resources
				Oil, gas and mining
				Forestry
				Fisheries
	2.4. Reforming environmentally harmful subsidies
		2.4.1. Support to fossil-fuel consumption and production
			Petrol and diesel
			Electricity
			Kerosene and LPG
			Oil, gas and coal production
		2.4.2. Support for agricultural production
	2.5. Investing in the environment to promote green growth
		2.5.1. Public environmental expenditure
			Budget allocation to the environment
			Green planning and budgeting
		2.5.2. Greening the financial sector
		2.5.3. Investment in environment-related infrastructure
			Investment in clean energy
				Power sector
				Biofuels
				Geothermal
			Investment in energy efficiency
			Investment in sustainable transport
			Investment in urban water supply
			Investment in waste management
	2.6. Eco-innovation and green markets
		2.6.1. Eco-innovation
		2.6.2. Green markets and sustainable businesses
			Corporate social responsibility and promotion of compliance and green practices
	2.7. Environment, trade and development
		2.7.1. Development co-operation
		2.7.2. Trade and environment
			Wildlife trade
	Notes
	References
Chapter 3.  The land-use, ecosystems and climate nexus
	3.1. Introduction
	3.2. Trends in land-use change
		3.2.1. Changes in land use
			Forest and peatland resources
			Timber production and forestry concessions
			Agricultural production
			Mining concessions
			Current and projected impact of climate change on the land-use sector
		3.2.2. Impact of land-use change on the environment
			Forest ecosystem services
			Peatland ecosystem services
			Air, soil and water pollution
			Emissions from land use, land-use change and forestry
		3.2.3. Economic and social role of land-based sectors
	3.3. The institutional and policy frameworks for the nexus: Improving coherence
		3.3.1. Identifying trade-offs and synergies between sectoral policy goals for the nexus
		3.3.2. Central government and horizontal co-ordination
		3.3.3. Subnational institutions and vertical co-ordination
	3.4. Enabling environment for sustainable land management
		3.4.1. Land classification and rights
		3.4.2. Improving mapping of land resources
		3.4.3. Social forestry and agrarian reform
	3.5. Aligning goals and policy instruments
		3.5.1. Regulatory instruments
			Protected areas
			Moratoriums
			Timber legality system
			Compliance, monitoring and enforcement
		3.5.2. Economic instruments
			Payment for ecosystem services
			Agricultural subsidies
		3.5.3. Voluntary instruments
			Voluntary certification
			“Zero deforestation” commitments by companies
			Ecosystem restoration concessions
	3.6. Financing for the nexus
		3.6.1. Intergovernmental fiscal transfers
		3.6.2. International support
	Notes
	References