Urge the Economic Development Orientation to Sustainable Practices

InfoSAWIT, JAKARTA – Program Director of Yayasan Madani Berkelanjutan, Nadia Hadad said that the economic development in Indonesia still depends on the natural resource exploitation. This model is vulnerable to the protest and should be transformed.

The impact of the extractive model development is ahead, such as, the fire in the forest and areas which hardly takes place in every year. Though the recent fire was not as extreme as it was in 2015 but if compared in 2018 – 2019, the fire significantly happened, from 720 cases to be about 3.700 cases. On the other hand the budget to prevent the fire in ministry of environment and forestry got less. “This is the challenge both for the government and us,” she said, as in the official statement to InfoSAWIT recently.

The Covid-19 pandemic is the nowadays shock for the economy whole over the world. In Global Risks Report 2020, it is predicted that the economic progress or gross domestic product in Indonesia could be only 0% by the end of 2020. But the longer term risk to the economy globally is the environmental issues, including the loss of ecosystem, such as, the forest, peat, mangrove, failure to adapt, and climate change mitigation.

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About the economic recovery nationally, the government focuses to health, food security, economic, and social helps. It needs to confirm that the economic recovery nationally should strengthen the economic base in Indonesia to transform to be more sustainable and not damage the forest,” she said.

Meanwhile, the Founder and Board of Supervisor Yayasan KEHATI, Prof. Emil Salim, told that the forest enrichment is the main key. “The main key is the forest enrichment, not exploitation. Forest should be well maintained but the resources from the forest should be well advantaged to enrich the development,” he said.

The researcher of Badan Kebijakan Fiskal, Ministry of Finance, Joko Tri Haryanto proposed that the fire could be the work index of the public leaders. “Fire prevention is not sector issue; therefore every element in the regional to central governments should contribute by determining the work index,” he said.

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He also proposed that the fund has something to do with the forest conservation and create the fair environment. “It needs to make ecological fiscal transfer (EFT) scheme, particularly from the province to district/city and village or called as transfer anggaran provinsi berbasis ekologi (TAPE) and from the district to the village through alokasi dana desa (ADD) or known as the transfer anggaran kabupaten berbasis ekologi (TAKE),” he said.

He also mentioned that this could happen knowing that in every single year, the provincial government allocates the fiscal budget to the district/city through financial helps, social helps, grant, tax division, and retribution. (T2)

This article is a media coverage which cites 1000 Economic Ideas Without Damaging the Environment published in Palm Oil Megazine on 25 July 2020, 06:26 WIB.