Greening Infrastructure in

Indonesia
Delivered on the 7th OECD Regional
Policy Network

D i re c t o r a t e o f N a t i o n a l P r i o r i t y I n f r a s t r u c t u re
P ro j e c t s D eve l o p m e n t a n d P l a n n i n g
D e p u t y o f I n f r a s t r u c t u re
M i n i s t r y o f N a t i o n a l D eve l o p m e n t P l a n n i n g / B a p p e n a s

Jakarta, 10th October 2023

Kementerian PPN/Bappenas
 Transforming Indonesia towards 2045: Setting the Long-term
and Medium-term Development Planning

Long-Term Development Plan (RPJPN) 2005-2025 Long-Term Development Plan (RPJPN) 2025-2045

Five-years Five-years Five-years Five-years Five-years Five-years Five-years

Five-years
Development Development Development Development Development Development
Development Development
Plan (RPJMN) Plan (RPJMN) Plan (RPJMN) Plan (RPJMN) Plan (RPJMN) Plan (RPJMN)
2005-2009 2010-2014 Plan (RPJMN) Plan (RPJMN) 2030 - 2034 2035 - 2039
2005-2025 2040 - 2045
2020-2024 2025 -2029

SIPA-OCED Now

Key Points Drafting for the Five-years Development Plan 2025 – 2029
 The year of 2024 will be the end of the Long-term Development Plan (RPJPN) 2005-2025 and the five-years
development plan (RPJMN) 2020-2024
 Final Draft of the Long-term Development Plan (RPJPN) 2025-2045 has been formulated.
 General Election will be conducted in February 14, 2024
 The Five-year Development Plan 2025-2029 will be finished by May 2024. It is a planning document containing the
vision, mission and development priorities of the elected president
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Indonesia: Shifting from Middle-Income
into High-Income Country
Towards Indonesia 2045:
Transformation and Acceleration

3
 Game Changer for Transforming Indonesia

“Build Forward Better”

Strategy #1 Strategy #3 Strategy #5

Competitive HR: Green and Blue economy: Domestic integrated economy:
• Health system • Low carbon economy and (economic powerhouse)
• Education (education system circular economy • Connectivity infrastructure:
and character development) • Energy transition Superhub, Sea hub, Air Hub
• Research and Innovation • Domestic Value Chain

Strategy #2 Strategy #4 Strategy #6

Economic sectors Digital New Capital:
productivity: Transformation: • New source of
• Industrialization • Digital Infrastructure development
• SME productivity • Digital utilization • Regional economic balance
• Agriculture modernization • Enabling factors

The six strategies above are a “game changer” towards advancing Indonesia before 2045

4
 Issues, Risks and Challenges on Mainstreaming
Sustainable Infrastructure in Indonesia

ISSUES RISKS CHALLENGES

• Delay in project completion • Restructuring

LAND • Land ownership conflict • Expensive procurement administration and land
costs management
• Cancellation of project
KNOWLEDGE, • Technology Gap • Low quality of • Up-grading skills
TECHNOGY AND • Unequal distribution of infrastructure projects • Promoting infrastructure
MACHINE equipment • High-cost Construction technology innovation
• Integrating and reforming
• Overlap Authority • Infrastructure projects organizational
ASSET MANAGEMENT • Discontinuity Priority become complicated and • Adopting fully Good
• Mark Up and Corruption expensive Infrastructure Governance

FUNDING AND • Spending vs Asset • Infrastructure stock is • Blended financing

management stagnant • Promoting Long-term
INVESTMENT • Limited source of fund and • Low competitiveness Investment Scheme
investment • Investment is hampered
• Strengthening local
government capacity
OPERATION AND • Less operational and • Infrastructure is quickly • Improving community
MAINTENANCE maintenance budget destroyed and damaged participation
• Strengthening private
companies 5
Key Challenges to Mainstreaming Infrastructure
Governance
1. Political Constraint. Decision making process is often influenced by short-
term political interests.
2. Corruption and Transparency. Corruption and lack of transparency can be
a significant barrier to good governance in infrastructure.
3. Lack of Capacity. Effective infrastructure governance requires skilled labor.
4. Complex Regulatory Environment. Navigating complex regulatory
frameworks and bureaucratic procedures can be time-consuming and
costly.
5. Funding Constraints. Governments in the Central and Southeast Asia
countries may struggle to secure the necessary funding for operating and
maintaining infrastructure projects in the long run.
6. Public Involvement and Community Participation. Involving public and
stakeholders in the decision-making process, and ensuring that the voices
of affected communities are considered is essential for good infrastructure
governance.
7. Project Viability and Risk Management. Assessing the viability of
infrastructure projects and managing risks effectively are critical for long-
term success. Mismanagement of risk can lead to project delays and cost
overruns.
8. Asset Management. Properly maintaining and upgrading existing
infrastructure assets is just as important as building new ones.
66
Sustainable Infrastructure for the New Capital Nusantara

7
 Sustainable Infrastructure Development for
The New Capital Nusantara (IKN-Ibu Kota Nusantara)

3 IKN Area Development Concept

A city dominated by A city with circular A city that utilizes digital
landscapes with a water system that technology to improve its
Forest forest structure, with Sponge combines architecture, Smart performance, reduce costs
City an integrated City urban design, City and consumption usage,
landscape approach infrastructure and and to engage more actively
for living side by side sustainable principles and effectively with its
with nature citizens.

Sustainable Infrastructure Development to Achieve IKN Key Performance Indicator (KPI)

• Usage of Renewable Energy by ensuring access to
• Sustainable transportation policies in IKN give priority to affordable, reliable, sustainable and modern energy
pedestrian, cycling, and transit convenience. (80% of trips by for all inclusive economic development. (Net zero
public transportation or active mobility) emission for the Nusantara Capital City in 2045 in an
area of 256,142 Ha)
• Preserve the forests in IKN as the lungs of the world and • Infrastructure development design is adapted to
support the implementation of low carbon emission natural conditions and pays attention to green open
development (100% green space replacement for each spaces. (100% of residents can access recreational
institutional, commercial, and residential high-rise building). green space within 10 minutes)
• Infrastructure development is carried out with due regard to • Realizing infrastructure development with circular and
the preservation of forest flora and fauna and does not environmentally friendly principles (60% recycling of
exploit the forest and change its function. (>75% of 256,142 all waste generation and 100% treatment of domestic
Ha area for green space (65% protected area and 10% food wastewater)
production area) Sumber: URBAN DESIGN DEVELOPMENT PLAN: Panduan Rencana Konsep Transportasi KIPP, diolah. 8
 Highlight Collaboration Indonesia-OECD-WWF:
Workshop and Sharing Knowledge

Infrastructure Governance Climate Resilience WWF SIPA

Indicators (IGI) Infrastructure
Good governance of infrastructure – the policies, A report on the state of play as regards climate
frameworks, norms, processes and tools, used by public resilience mainstreaming in infrastructure Bappenas and OECD have carried out
bodies to plan, make decisions, implement and monitor the planning and investments as well as the ecosystem services analysis
entire life cycle of public infrastructure – is essential to recommendations to strengthen the climate workshop
promote economic development, reduce poverty and resilience of infrastructure
inequality, create jobs and ensure environmental
sustainability. followed by the distribution of a questionnaire
Conducting IGI Workshop to
Bappenas as to relevant stakeholders to better understand NEXT STEP:
explain and involve stakeholders
contact point the current practice and needs of agents in the
in the IGI survey
climate resilience mainstreaming process WORKSHOP
1. Technical analysis
Filling out the
Collecting data, information 2. Policy maker
survey on
and questioners from Bappenas and OECD have carried out
LimeSurvey the of the “Building climate resilient
stakeholders Both about analysis of ecosystems
infrastructure in Indonesia” Project service
The survey was conducted in order to deepening
the infrastructure governance in Indonesia

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 Collaboration for Sustainable Infrastructure

Central Government
• Planning and budgeting for climate resilience
activities at the national level
Central • Implementation of sectoral climate resilience
Government development
(K/L)
Local Government
• Synchronize/mainstream PBI with local planning
documents
• Consider climate resilience actions in KLHS
• Ensure the effectiveness of climate resilient
development in the region

Local Non-Governmental
Institutions Non Governmental Inst.
Government (CSOs, Academics, Private,
(Prov/Regency/City) Individuals)
• Assistance to the community and infrastructure
development.
• Targeting the smallest administrative areas and
embracing communities formed in the community.

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 Towards Indonesia 2045: Low Carbon and
Climate Resilient Policy

SDGs, Target Paris Agreement, dan Article 3.4 UNFCCC

Low Carbon Development and Climate Resilience are Building the Environment, PRK and PBI have been
National Priorities as climate change adaptation and Increasing Disaster Resilience, determined as Policy Directions
mitigation efforts in the RPJMN 2020-2024. and Climate Change RKP 2023

Ocean Health
Water Farm
&
Coastal
Waste
Management & Development Sustainable Ocean & Sustainable
Circular Green Industry Energy Coastal Low Land
Economy Development Carbon Restoration

Development
Development
Low-Carbon

Resilient
Climate
Indonesia's 5 main Low Carbon Development strategies aim to
boost economic growth while reducing GHG emissions by
27.3% by 2024.

Several strategic issues studied by

Bappenas to support Indonesia's
economic transformation: food loss Bappenas has analyzed the distribution of priority
and waste and Circular Economy locations for climate resilience actions in 4 priority
studies. sectors
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Source: Dit. KKSDA Bappenas, 2023
 Energy Transition:
Coal-fired Power Generation Transition
Power sector’s emissions will peak beyond 2030 as a
GHG Emissions in Annual CH4 consequence of coal-fired power plants domination
Indonesia Energy Emissions in
CFPP
Sector capacity projection was

60%
Indonesia Coal-fired generation developed to be declining until
still accounts of the 2060. The development of CFPPs
What’s
Coal-fired Power Plant

power generation share. in RUPTL PLN is only for the ones that are

?
Moreover, electricity generation already under construction or ongoing
Source: Laporan Inventarisasi Gas Rumah Kaca
(GRK) dan Monitoring, Pelaporan, Verifikasi (MPV)
2021 (2022) Source: IEA Methane Tracker Database (2020)
accounts for more than 40% of total
emissions in the energy sector as a
next projects, and those that are implementing the
phase out of the existing CFPP through natural
consequence of the coal domination retirement or depending on the plant’s life
time.

Existing thermal power plants could contribute to Presidential Regulation No. 112/2022 mandates
enhancing grid flexibility and increasing VREs’ share the creation of a roadmap for the early
in Indonesia’s power system retirement of CFPP
• To date, Indonesia has about 27
GW of hydro, diesel engine, the early retirement program
and gas turbine-based power should also consider the
plants installed nationally, with technical aspect such as
more than 13.2 GW were installed supply and demand balance
In the Java-Bali system. of the electricity. Renewable
• Going forward, relying solely on energy should be used to fill
these power plants may not be the gap that left by the
sufficient, constituting retired CFPP
additional sources of flexibility
from other forms of generation
to maintain future supply-
demand balance. Source: Indonesia Energy Transition Outlook (2023),
 Energy Transition to Achieve Net Zero Emission and Green
Economy

Energy Transition Scenario Early Study of CFPP Retirement*

The relationship between the financial implications of early retirement for coal power plants

• Increased energy efficiency of up to 3%/year for

the industrial, commercial and household sectors
since 2030
Fiscal & Socio-
Economy
STUDY Policy
• Increased electrification of the household,
commercial and transportation sectors
• The adoption of CCS technology in the power • Fiscal flows are impacted by Financial • driving and inhibiting focus
and industrial sectors is slowly increasing until it early retirement early retirement program
reaches 100% by 2060 • Cost borne by the state • Possibility of Indonesia
• Increasing the EBT mix in power plants, because of early retirement, • PLN financial condition and Government and
especially focusing on PLTS which will reach such as compensation early retirement impact on development partner or
47% in 2060, and • Direct and indirect impact from cash flow donor, such as JETP
• Reducing the mix of coal-fired power plants early retirement to coal supply • Financial landscape and • Possibility of impact on
to phase-down before 2060 chain opportunity to accelerate electricity tariffs
• Impact on direct and indirect energy transition • Additional policy to
employment • Recommendation to get support electricity of
Indonesia has submitted an NDC (Nationally cost resources for early
• Early retirement impact on decarbonization system
Determined Contribution) document committed to retirement
electricity generation costs
reducing GHG emissions by:

29% 41%
*Disclaimer Based on Bappenas Study 2023
With Indonesian With
ownship International
partnership
 Environmental Impact Assessment Must Be Included as
Part of Project Readiness Criteria

The Readiness Criteria

Document Consists of: The EIA Document Consists of:
EIA
PROCESS

1. Project Feasibility Study Terms Of ANDAL RKL-RPL

Reference
Document Form
2. Detail Engineering Design
(DED)
SCREENING
3. Term Of Reference (TOR) With the following stages:
4. Cost Budget Plan (CBP)
5. Budgeting Plan Community Completion, Preparation ANDAL
6. Bidding Document Engagement submission, and and EIA EIA EIA
7. Land Acquisition and examination submission RKL- ADMINISTRATIVE PLANNING DOCUMENTATIO
and issuance of reliable RPL PROCESS PROCESS N PROCESS
Restlement Action Plan of minutes of and RKL- Assess-
(LARAP) the terms of RPL ment
8. Document/Proof of Land reference
Clearance form
9. Enviromental Document
REVIEW &
DECISION
MAKING

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 What Next

Medium-
Priority Actions 2023-
2024
2024-2025 term
2025-2030
1. Preparing the Long-term Development Plan (2025-2045) and the
Medium-term Development Plan (2025-2029) by incorporating SFDRR,
SDG’s, CCA and other global commitments as reference for sustainable
infrastructure
2. Mainstreaming infrastructure governance at national, regional and local
level (Digital transformation and One Data One Map Policy)
3. Building the capacity of local goverments in adopting infrastructure
governance (benchmarking, training, exchange, internships)
4. Strenthening the capacity of local communities on sustainable
infrastructure planning and budgeting (socialization, involvement,
inclusion, and self-awareness)
5. Conducting collaboration with universities and research institutions to
conduct study and analysis, build infrastructure modelling and develop
policy scenario and simulations
6. Calculating pre-disaster and sustainable infrastructure investment
7. Strengthening international cooperation and collaboration on providing
technical assistances on sustainable infrastructure
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15
 Thank You Very Much.
Merci
Terimabeaucoup.
Kasih
Direktorat Perencanaan Pengembangan Proyek Infrastruktur Prioritas Nasional
Kedeputian Sarana dan Prasarana
Kementerian PPN/Bappenas

Jakarta, 09 Agustus 2023

 Infrastructure Policy Framework for 2020-2024

BASIC SERVICE INFRASTRUCTURE ECONOMIC INFRASTRUCTURE URBAN INFRASTRUCTURE

Access to decent, safe, and Connectivity ECONOMIC SECTOR

affordable housing and Urban Transportation
settlements Sea Toll + Intermode
Program Urban Sustainable
Safe and sustainable
Energy
groundwater and raw water Land Connectivity Manufacturing
Tollways, new roads, trans-roads on
frontier and least development Urban ICT Infrastructure
Proper and safe access to and Ecosystem
islands, new ferry ports
drinking water and sanitation
Railways Connectivity
High-speed Rail And Freight Train Services and Proper and Safe Access
Transportation safety and
Tourism to Piped Water and
security
Water Connectivity Urban Sanitation
Disaster resilient Integrated Port Network
infrastructure
Access to Decent, Safe,
Agriculture and
and Affordable Housing
Multipurpose reservoirs and Air Connectivity Plantation
and Settlements in Cities
irrigation modernization New Airports and “Air Bridges” Areas/Clusters of
Marine-Fishery

ENERGY AND ELECTRICITY INFRASTRUCTURE

ENERGY AND ELECTRICITY ICT FOR DIGITAL TRANSFORMATION
 Sustainable energy and electricity  Completion of ICT Infrastructure
 Adequate energy and electricity  Utilization of ICT infrastructure
 Accessible and affordable energy and electricity  Supporting infrastructure for digital transformation 17
 Towards Indonesia 2045: Infrastructure Development
to Support Socio Ecological Resilience

Provision of Infrastructure to Support Ecological Resilience

Ecological Resilience Policy

Promoting low-carbon-based infrastructure development to

reduce greenhouse gas emissions

Providing integrated waste and waste management from

Quality Living Energy Security, Water and Resilience Towards upstream to downstream
Environment Food Independence Disasters and Climate
Change
Adopting low-carbon transportation by development of
mass transportation and electric vehicles
Transformation Stages: Socio-Cultural and Ecological
Resilience
Building infrastructure to reduce the risk of disasters and
climate change

Developing integrated and sustainable water resource

management
Strengthening socio- Strengthening socio-cultural Realizing the resilience of Realizing Indonesia as the
cultural and ecological and ecological resilience as humans, society, nature and center of sustainable world
resilience as the drivers of equal and inclusive the environment in facing civilization
foundation and basic socio-economic development various changes
capital of development
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 Towards Indonesia 2045: Infrastructure as Foundation for
Social and Economic Transformation

Infrastructure Development in the RPJPN 2025 - 2045

Economic Transformation Policy

Science and Technology,

Cities as Centers of Implementation of Domestic and Global Digital Transformation Innovation and Economic
Economic Growth Green Economy Economic Integration Productivity

Social Transformation Policy ​ Ecological Resilience Policy

Health for All Equitable Quality Adaptive Social

Education Protection
Quality Environment Energy, Water, and Resilience to
Health Development aims to enable Education policy is directed at Aimed at accelerating poverty alleviation
Food Self-Sufficiency Disasters and
every citizen to live a healthy life which inclusive and adaptive education as and expanding comprehensive
is directed at improving health efforts well as improving the quality and protection for all residents according to Climate Change
and the health system as well as relevance of education to global vulnerability that is carried out on the
creating a resilient and responsive demands based on the principle of principles of equity and inclusiveness
health system long-life learning.

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 Towards Indonesia 2045:
Steps to Adopt Infrastructure Governance

Infrastructure Planning Environmentally sustainable and

Considering Sustainability climate-resilient infrastructure

National cross-sectoral and sectoral

infrastructure plan covers more than 10 years • Reglulations regarding assessments of impact on the environment (Law No.
32/2009 Concerning Environmental Protection and Management)
•National Long-Term Development Plan (RPJPN 2005-
• Government and/or sub-national regulations on spatial planning and
2025)
construction address environment and climate-related risks and impacts on
•National Medium Term Development Plan (RPJMN public infrastructure in land planning, urban planning, and construction
2020-2024) through building code

•Safely managed sanitation roadmap (2020-2030) • Integration NbS into infrastructure design has been done in developing a
Mangrove Tourism Park and the Indonesian Germplasm Center in the Ibu Kota
•Safely managed drinking water roadmap (2020-2030) Negara (IKN) and also in National Long-term Developement Plan (RPJPN)
•Solid waste management platform 2025-2045 final draft.
• infrastructure guidelines for climate change mitigation and/or adaptation:
•Transportation Long-Term Development Plan (RPJP
Ministry of Transportation 2005-2025) a. PermenLHK No. P.33/Menlhk/Setjen/Kum.1/3/2016 concerning Guidelines
for Preparing Climate Change Adaptation Actions
•Regional Infrastructure Development Plan
b. PermenLHK No. 21/2022 concerning Procedures for Implementing the
Economic Value of Carbon
c. PermenLHK No. P.21/Menlhk/Setjen/Kum.1/12/2107 concerning the
Implementation of the National Registry System for Controlling Climate Change

20
 Towards Indonesia 2045:
Strategic Environmental Assessment (SEA)

Strategic Environmental Mandate of Law no. 32 of 2009

Assessment must be concerning the Environment
carried out in all long and
The government (both central and local) is obliged
medium term documents. to prepare SEA to ensure that the principles of
sustainable development have become the basis
and are integrated in the development of a region
and/or policies, plans and/or programs

Strategic Environmental Assessment (SEA)

SEA is a series of systematic, comprehensive and participative analyzes to ensure that the principles of Sustainable Development have
become the basis and are integrated in the development of a region and/or Policies, Plans and/or Programs – PP No. 46 of 2016

Law No
Objective of SEA 32/2009
Concerning
Ensure that development policies in the RPJPN take into
account aspects of the availability of natural resources as
Environmental PP No 46 of 2016
Protection and concerning Procedures for Carrying out Strategic
well as the carrying capacity and capacity of the Management Plan Environmental Studies
environment
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 SDGs: Green, Resilient and Sustainable Infrastructure Supports

Sustainable Development in RPJMN 2020 – 2024 Infrastructure Support Highlights

•
The RPJMN 2020-2024 has mainstreamed GOAL 66
GOAL GOAL 7
118 targets of the Sustainable ENSURE
EnsureTHE
theAVAILABILITY
MANAGEMENT
AND sustainable
availability and SUSTAINABLE ensure access to affordable, reliable,
managementOF ofCLEAN
clean WATER AND sanitation
water and SANITATIONfor sustainable and modern energy for all
Development Goals (SDGs). FOR ALL
all

• Infrastructure development contributes to Households using safely managed Gas grid connection for household
the achievement of 10 of the 17 drinking water

sustainable development goals consisting

of 32 targets. Households using safely managed
sanitation services
Electrification Ratio

The sustainable development goals (infrastructure) in the RPJMN

Installed capacity of power generation
2020-2024 are achieved through a number of key targets below: Level of implementation of integrated
water resources management and renewable energy

Goal 9
Build resilient infrastructure, promote inclusive and sustainable
industrialization and foster innovation.
2.500 Kms 70% Housholds
100%
New Toll Road
Occupying Adequate
Housing with Access to
Drinking Water
27,3% Performance and
Housing
Steady Condition of
[2022 : 91.60%] Reduction of Greenhouse
Gas Emissions (GHG)
management standardization Urban Mass
Transit System
National Road
10 Main Port
Towards a target of 29% by Sea Connectivity
90%
2030 (Paris Agreement)
21 New Airport
6 Metropolitan City Toll construction Number of Ferry Ports,
Length of Toll construction Strategic Ports
25% 46 4 Million
Housing with Access to
Adequate Sanitation
Target Achievement of
Multifunction
Dam
New House Connection Train Construction
of City Gas Pipe
[2022 : 80.92%]
Renewable Energy Mix in
[2022 : 1.1 million house
Railroad Length Proportion of population
Electrification
2025
The end of 2021 has only
100% Ratio
connection] served by mobile broadband
reached 11,5%
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 Adopting Resilient and Sustainable Infrastructure into
Development Plans and Projects as a Standard Practice

Ensure good Government Approach for Mainstreaming Resilient in

governance :
❖ Transparency Infrastructure Plan and Projects:
Institutional ❖ Accountability
Sustainability
❖ Measurability
❖ Trackability of
results

Promoting
Enhancing the
4 Dimensions of Creating Markets for Infrastructure for
Attractiveness of
Infrastructure Projects Innovation and
Social Resilient for Environmental Infrastructure
Sustainability and Services Productivity of
Projects for Private
Growth
Funding
Create a strong
• Establish funding and
infrastructure market by • Develop electric vehicle
financing framework
focusing on: • drone for transportation
which prioritize
• Long term pipeline of • Build smart logistic
private funding and
projects/program • Develop utilization of
put the state budget
• Prioritize outcome and hydrogen energy
Economic service delivery
as last-resource
• Develop green
• Establish The Job
• Focus on innovation, infrastructure
Creation Act (UU
partnership and • Implement the MLFF
Cipta Kerja) to attract
cooperation for scaling- (Multi-Lane Free Flow) for
business entities for
up investment Toll Road
infrastructure
investment

23