The 7th Study Meeting on Asia
1. Date: April 12, 2011 15:00 – 17:00
2. Venue: Meeting Room, the Takeda Foundation
3. Title: Indonesia’s Climate Change Projects and Support from Japan
Speaker: Mr. Yoshitaro Fuwa, Senior Consultant, Global Group 21
4. Participants：
01

Yoshitaro Fuwa

Senior Consultant, Global Group 21

02

Tsuneo Kanazawa

03

Ikuo Takeda

CEO, Excel of Mechatronix.CoChairman, the Takeda Foundation

04

MIstuo Akagi

SeniorManagingDirector,theTakeda

Foundation
05

Ysuo Tarui

Managing Director, the Takeda Foundation

06

Yuzo Mizobuchi

Director, the Takeda Foundation

07

Norio Ohto

Director, the Takeda Foundation

08

Naoaki Aizaki

Program Officer, the Takeda Foundation

09

Aiko Ubasawa

Program Specialist, the Takeda Foundation

10

Setsufumi Kamuro

Program Specialist, the Takeda Foundation

11

Mototaka Kamoshida

Program Specialist, the Takeda Foundation

12

Emiko Mitsui

Program Officer, the Takeda Foundation

13

TakamiMember, the Takeda Foundation

5. MemoCurrent status of Climate Change in Indonesia
The GDP of Indonesia was about 50 trillion yen in 2009, about one tenth ofJapanese GDP, but Indonesia is the 4th largest Green House Gas emitting
country in the world following the US, China, and India. This is becausesignificant amounts of Indonesia’s GHG emissions come from the burning ofpeatlands and the cutting down of tropical forests. Indonesia’s economy has
been growing rapidly: its GDP tripled from 16 trillion yen in 2001 to 50 trillion yen
in 2009. GHG emissions have increased as the economy has grown. Indonesia
consists of many islands and they suffer from inundation of residential andagricultural areas caused by rising sea levels and also by the subsidence of theground caused by the pumping of underground water.
Measures of the Indonesian Government to combat Climate Change1

The Indonesian government has been tackling climate change by formulating aNational Action Plan for Climate Change in 2007, and setting up a Council for
Climate Change that reports to the President in 2008. Actual measures areundertaken by relevant ministries, and coordination among them is not working
well. Indonesia is a multiethnic nation and has many local governments withindependent powers. Coordination between the federal government and local
governments also is not working well. The G77, a league of developing countries,
insists that developed countries should help developing countries plan andreduce GHG with grants because the current GHG levels are the result ofindustrial activities by developed countries, and so developed countries areresponsible for the climate change caused by their GHG emissions. At first,
Indonesia took the same attitude, but this has changed, and Indonesia has beentackling its GHG emission issues with their own investments as well as withinternational support from donor countries. This change came about as it wasrealized that significant amounts of Indonesia’s GHG emissions come from theburning of peatlands and cutting down of its tropical forests. In 2007, Indonesia
organized the COP 13 meeting in Bali.
Indonesia’s goals for the reduction of GHG emissions
Indonesia has established a goal of reducing its GHG emissions by 26 % ascompared with the predicted level under a business as usual scenario (when noaction against GHG emissions is taken.). They also have a higher goal (a 41%reduction) under the condition that they receive international support from donor
countries. The following items are actual measures.
- Sustainable management of peatlands- Reduction of forest loss and land deterioration- Development of carbon fixation projects in forestry and agricultural areas-Promotion of energy saving
Development of alternative and renewable energies-Reduction of waste
Shift to low carbon emission transportation

Support from Japan (major examples)- Climate Change Program Loan
A loan from international donors (World Bank, France, and Japan) to support
climate change projects agreed upon by both Indonesia and the donor countries.

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Next year’s loan depends on the performance of the projects of the policy matrix
for climate change. The lecturer monitors the projects of the policy matrix, andadvises the Indonesian government. The support from Japan is a non-binding
general financial loan with low interest that does not have to be spent on climatechange projects. The Indonesia government itself conducts climate change
projects mainly with its own funds, and government officials are not necessary
cooperative in project monitoring by the Japanese agency.
- Climate Change Capacity Building Project (technical cooperation)
The project aims to build the capacity of the Indonesian government to develop
plans for the mitigation of GHG emissions, and projects to address climatechange, evaluate vulnerabilities to climate change, analyze and compare climatechange models, and develop a national inventory for GHG.
QUESTIONS & ANSWERS

Question 1
What kinds of roles do peatlands play in the emission of GHG in Indonesia? Also,
why is it so difficult to manage GHG emissions from peatlands in Indonesia?
Mr. Fuwa
Peatlands are wetlands in which dead trees sink under the water, decay andform peat. Peatlands are usually covered with water, but when they dry out forsome reason, they become flammable. In Indonesia, minority groups conduct
slash and burn agriculture, and sometimes the peatlands catch fire when theforests are burned. Of course, the slash and burn of forests produces GHG.
Lightning also causes fire in peatlands. Peatlands also dry up when drainage
canals are constructed in peatlands plantations are developed. For instance, theSuharto administration used to promote the Mega Rice Project to develop large
rice paddies in wetland areas. They constructed many drainage canals inwetlands, and as a result of drainage construction, the wetlands dried up andbegan emitting large amounts of GHG due to accelerated decaying of the peatand the occasional fire. The production of rice in wetlands also did not go well.
Indonesia has abundant tropical rainforests, but cutting down trees in therainforests reduces the GHG absorbing power of the rainforests. One of thereasons that the management of peatlands is difficult is that peatlands aremanaged by several relevant ministries, and coordination among the relevant
ministries is not going well. Timber production from the tropical rainforests and3

the development of plantations are also important parts of the economic
activities of Indonesia, and there is no easy compromise between economic
activities and climate change measures.
Question 2
What kinds of climate change effects are observed in Indonesia?
Mr. Fuwa
One of the most significant effects is a rising sea level. Thirty percent of Jakarta’surban areas are inundated at high tide. Jakarta citizens commute to and fromtheir offices so as to avoid the high tides. Indonesia’s urban areas use groundwater for drinking and manufacturing at factories, and drawing up ground water
has caused the subsidence of the ground in urban areas, which accelerates
inundation in combination with the rising sea level.
Question 3
How is the relationship between Indonesia and Japan? Is it going well? Are there
many Japanese companies that have penetrated the Indonesian market?
Mr. Fuwa
Indonesia was occupied by the Japanese army during World War II, and their
feelings toward Japan were not good when Prime Minister Tanaka visited
Indonesia in 1974. Now, feelings are not so bad as they were in 1974.
Indonesia’s industrialization has been progressing quite rapidly, and many
Japanese companies including Panasonic, Omron, and Bridgestone havebranch offices and factories in Indonesia.

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