Biofuels (BBN) are fuels derived from plants, animals, and plantation and livestock waste other than fossils. Biofuel can be in the form of solid, liquid, or gas.
Learn more about Biofuel (BBN) below.
In addition to being committed to controlling Greenhouse Gas (GHG) emissions as stated in the Nationally Determined Contribution of the Republic of Indonesia and the Long-Term Strategy for Low Carbon and Climate Resilience (LTS-LCCR) 2050, Indonesia has also set a carbon net sink ambition by 2030 specifically for the forest sector. and land.
Forestry and other land uses (FOLU) net sink is a condition when the amount of carbon absorbed by the forest and land sector is equal to or greater than the emissions it produces. This target is very ambitious for Indonesia considering that the forest and land sector still accounts for 40% of total GHG emissions.
Learn more below.
In addition to being committed to controlling Greenhouse Gas (GHG) emissions as stated in the Nationally Determined Contribution of the Republic of Indonesia and the Long-Term Strategy for Low Carbon and Climate Resilience (LTS-LCCR) 2050, Indonesia has also set a carbon net sink ambition by 2030 specifically for the forest sector. and land.
Foresty and other land uses (FOLU) net sink is a situation when the amount of carbon absorbed by the forest and land sector is equal to or greater than the emissions it produces. This target is very ambitious for Indonesia considering that the forest and land sector still accounts for 40% of total GHG emissions.
Learn how forest clearance prevention plays a role in FOLU Net Sink 2030 below.
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[Jakarta, Tuesday, April 5, 2022] The IPCC Report on Mitigation released on April 4, 2022 unequivocally states that we must act now to reduce global emissions by half by 2030 in order to hold global warming to no more than 1.5 degrees. Countries’ current climate commitments (NDCs) would take us to 2.8 degrees of global warming by 2100, well above the safe limit of 1.5 degrees. The report also explicitly states that emissions reductions in the agriculture, forestry and land (AFOLU) sector can help reduce global emissions at scale, but cannot compensate for delayed emissions reductions in other sectors.
“Therefore, for Indonesia’s future generations to have a chance of survival, the government must do two things at once: drastically reduce fossil energy and maintain and restore the remaining natural ecosystems that play a major role in absorbing GHG emissions from the atmosphere. This includes protecting all remaining natural forest landscapes, no more clearing and draining of peat, and massive mangrove preservation and restoration.This is a very important issue,” said Nadia Hadad, Executive Director of Yayasan Madani Berkelanjutan in response to the IPCC Report on Mitigation that was issued on April 4, 2022.
Currently, Madani’s spatial assessment finds that around 9.7 million hectares of Indonesia’s natural forests and 2.9 million hectares of peat ecosystems that are outside of licenses/concessions and areas allocated for social forestry remain unprotected by the new license suspension policy. These natural forests need to be urgently protected by various policy instruments. In addition, there are 27.2 million hectares of natural forests within licenses/concessions (palm oil, IUPHHK-HA, IUPHHK-HT, mineral and coal concessions and oil and gas concessions) that also need to be considered for strategies to protect them.
“The Indonesian government has set a target of Indonesia FOLU Net Sink 2030, with the ambition that Indonesia’s forest and land sector will no longer be an emitter but a carbon sink by 2030. One of its goals is to reduce deforestation and degradation. This ambition deserves appreciation and support for its implementation. However, this ambition needs to be reflected in Indonesia’s NDC, which will be updated in 2022 (Second Updated NDC).,” said Yosi Amelia, Forest and Climate Program Officer of Yayasan Madani Berkelanjutan.
The government has also established a Value for Carbon Economy (NEK) policy to achieve Indonesia’s NDC target and control emissions in development. “Given the urgency of reducing emissions and the 2030 target, the Value of Carbon Economy (NEK) should be prioritized for actions that actually reduce emissions from the atmosphere – including those undertaken by indigenous peoples and local communities as forest guardians – and should not rely on offsets, which without strict rules and transparency can undermine climate ambition,” added Yosi Amelia.
The IPCC Report also states that to maximize the mitigation potential of the AFOLU sector, policies that directly address emissions and encourage the implementation of land-based mitigation options are needed – one of which is through establishing and respecting tenure rights and community-based forest management.
“In this case, the Government of Indonesia needs to be appreciated considering that Indonesia’s Updated NDC document has emphasized respect and recognition of the rights of indigenous and local communities through empowerment and recognizing the rights of indigenous and local communities in development. In line with this, the Government has also opened up opportunities for granting forest management rights through Social Forestry. However, to date, the granting of social forestry management licenses for forest management communities is still far from the target set by the government. Meanwhile, in Indonesia’s FOLU Net Sink 2030 target, the social forestry program is one of the key strategies to achieve it. To align with this target, the Government needs to accelerate the granting of Social Forestry licenses for indigenous and local communities and strengthen assistance in its implementation.,” added Yosi Amelia.
Local governments, as one of the Non-Party Stakeholders, are key in carrying out emission control actions in their regions. “To accelerate the achievement of climate commitment targets, local governments have been mandated to take part in organizing climate change mitigation and adaptation, as well as playing a role in organizing the Value of Carbon Economy (NEK) as stipulated in Presidential Regulation 98/2021. More specifically, Perpres NEK requires provincial governments to develop baselines, targets and action plans for GHG emission reduction, conduct guidance, inventory, monitor and report on GHG emission control actions. However, to carry out the mandate, it is important to ensure the alignment of national and regional policies, improve the ability and capacity of regions in sustainable planning, strengthen green funding sources, and involve other multi-sectors, both academics and the private sector, to carry out low-carbon and climate-resilient development,” said Resni Soviyana, Program Officer Green Development of Yayasan Madani Berkelanjutan.
M. Arief Virgy, Biofuel Program Officer of Yayasan Madani Berkelanjutan, added that the New and Renewable Energy Bill (RUU EBT) can be a strategic opportunity for Indonesia to encourage energy transition from fossil energy to renewable energy, including biofuels as transitional energy. “However, in order for the national biofuel policy to be in line with the achievement of Indonesia’s climate commitments and net zero emissions, RUU EBT needs to include arrangements for fulfilling the principles of social and environmental sustainability in the development of biofuel from upstream to downstream aspects and prioritize diversification of raw material commodities by emphasizing the use of 2nd generation biofuel technology or waste,” said M. Arief Virgy. [ ]
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There is no viable pathway to securing a long-term goal of sustainable, low emission, and climate resilience development that does not involve multi-stakeholders and multi-layers of collaboration on climate actions, both state and non-state actors.
This is also aligned with the spirit of the Paris Agreement to ensure a transparent, fair, and collaborative framework of climate change. Changes to better and more sustainable practices shall be guided by cross-sectoral, interlinked, and holistic national policies that consistently bring in global and sub-national perspectives. Non-Party Stakeholders (including but not limited to: local governments, civil society organizations, adat, and local communities, private and academia) are partners of Party Stakeholders in achieving these commitments.
In August 2021, the Working Group I of IPCC AR 6 concluded its report that it is very likely that the world will warm up more than 1.5o C by the year of 2030 and could reach 4.4o C by the end of the century if no aggressive and comprehensive climate actions are taking place today.
Devastating consequences such as irreversible impacts, increasing disaster, and decreasing economic growth are the foreseen future for the next generations Indonesia has submitted two important documents, Updated Nationally Determined Contribution (NDC) and Long Term Strategy on Low Carbon and Climate Resilience 2050 (LTS-LCCR 2050), emphasizing the country’s plans in sectoral emission reductions and actions to achieve Net Zero Emission by 2060 or sooner.
These documents will guide the implementation of a low emission development in Indonesia. All stakeholders, state and non-state, need to work in partnerships to take forward actions that will lead the country to become a champion in the transition towards a sustainable, resilient, fair, and low-emission future.
Get the Inclusive And Collaborative Climate Action Under The Next Generation Leaderships: NPS Contributions to Long Term Development Strategy report in this link.
From 31 October to 12 November, the UK will host the 26th UN Climate Change Conference of the Parties (COP26) located in Glasgow, Scotland. COP26 aims to accelerate climate action to achieve the goals of the Paris Agreement and the UNFCCC. COP26 is important because this decade is the last opportunity for us to scale up climate action to achieve the 1.5-degree goal.
In order to welcome this grand agenda, civil society organizations, Madani Berkelajutan Foundation, Walhi, Kemitraan, and LTKL took part in the Indonesian pavilion at COP26.
One of the activities that will be held is a discussion with the theme Inclusive And Collaborative Climate Action Under The Next Generation Leaderships: NPS Contributions to Long Term Development Strategy, On Tuesday, 9, November 13.20 to 14.40 WIB.
In this discussion, a number of presenters were present, namely the Executive Director of the Partnership, Laode Muhammad Syarif, Adat Women Leaders Ammatoa Kajang Community, Ramlah, Prokilm-Social Forestry of Nagari Sirukam West Sumatra, Selfi Suryani, Head of Gorontalo District, Prof. Nelson Promalingo, Adat Youth Leaders from Dusun Silit West Kalimantan, and Duayam x Krealogi, Hanna Keraf.
Register yourself to take part in the event at the following link www.indonesiaunfccc.com
In March 2021, the Indonesian government released Indonesia’s latest deforestation figures (2019-2020) and announced the largest reduction in deforestation in history by 75%. The reduction in deforestation received international applause because it portrays a positive trend amid the increasing rate of forests losses globally.
This April edition of Madani Insight aims to increase public understanding of Indonesia’s recently announced deforestation figures and its meaning for the achievement of Indonesia’s climate commitment (NDC) and the Paris Agreement targets to keep the Earth’s temperature rise at 1.5 degrees Celsius.
This paper is divided into three parts. The first part examines Indonesia’s deforestation figures and where deforestation has occurred the most, including within the permitted or concession areas. The second part examines the extent of Indonesia’s natural forests that have not been protected and are therefore vulnerable to deforestation. The third part examines the meaning of Indonesia’s declining deforestation from the perspective of achieving both the climate commitments and target of the Paris Agreement.
DEFINITIONS
In order to understand the meaning of Indonesia’s deforestation figures, it is crucial to understand various definitions of deforestation used by the Government of Indonesia as described below.
This paper will focus on gross deforestation or deforestation of natural forests which are crucial for maintaining global climate stability, preserving biodiversity, and most relevant to efforts to achieve Indonesia’s climate commitments.
Understanding is too shallow if the “new normal” only means the limited application of health protocols such as wearing a mask or just washing your hands using soap. However, far from that new normal should be interpreted as a fundamental movement to change old habits that previously had a bad impact, into new habits that are not harmful.
One of the old habits that must be immediately abandoned in the new normal scenario is related to the use of disposable plastics. What’s with disposable plastic?
It is undeniable that during the pandemic, or especially when working from home (WFH) and Large-scale Social Restrictions (PSBB) recommendations are carried out, increasing the amount of plastic waste in the community is increasingly worrying.
The results of studies from the Center for Oceanographic Research and the Indonesian Institute of Knowledge (LIPI) mention WFH as well as various recommendations to carry out activities at home during the pandemic, instead of making the use of disposable plastic in the community increased sharply than usual.
In a study entitled “The Impact of PSBB and WFH on Plastic Waste in the Greater Jakarta Area”, it was revealed that the main cause of the increase in the amount of plastic waste was because people were increasingly diligent in online shopping.
How not, activities carried out at home each encourage people to forego conventional shopping transactions and switch to online in order to minimize COVID-19 exposure. People who usually shop online 1 to 5 times a month, increase to 1 to 10 times a month during the recommended move at home.
In fact, 96 percent of packages sent by sellers to consumers is wrapped in thick plastic even added with bubble wrap as additional protection. In the Jabodetabek area it self, the amount of plastic waste from packages resulting from online shopping far exceeds the amount of plastic waste from packaging.
Nevertheless, the results of this study also revealed that public awareness of the issue of plastic waste is fairly high. For example, 60 percent of respondents thought that the use of plastic wrap did not reduce the risk of COVID-19 exposure. This is certainly in accordance with the research that says that COVID-19 can survive on plastic surfaces for three days, longer than other surfaces such as cardboard or stainless steel.
However, again, this high level of public awareness has not been accompanied by concrete actions to reduce disturbing plastic waste. It cannot be denied that during the pandemic, environmental issues were not highlighted as strategic and important issues to be executed immediately. All of that is because attention and concentration are heading towards the epicenter, called health and the economy. Thus, the notion that the use of disposable plastics will be far more efficient, because they can be discarded immediately, so as to minimize the possibility of exposure to the virus – this becomes a pseudo-truth that is trusted and followed during this pandemic.
Not only during the implementation of activities at home during the pandemic, in the transition period of the PSBB, or in the new normal period, the use of disposable plastics is also increasingly prevalent. For example, when I joined the prayer Juma’s congregation in one of the mosques that use the COVID-19 protocol. The mosque caretaker even distributed plastic bags to worshipers who were present to wrap sandals or shoes they were carrying. The step was taken to minimize the spread of COVID-19 through footwear worn by worshipers.
The Essence of Plastic Excise
The more widespread use of disposable plastic, especially plastic bags, the higher the threat of the danger of plastic waste to the environment and life. It is well known that the problem of plastic waste is not only a problem of Indonesia but has become a global problem which until now is still difficult to handle, as it is difficult to decompose plastic.
To curb the rate of use of plastic bags, in 2019 the Indonesian government issued a policy of imposing an excise tax on plastic bags. The excise tax scheme is IDR 30,000/kg or IDR 200/sheet of plastic bags. The excise value is relatively cheap when compared to several other countries such as Denmark with an excise tax of IDR 46,763/kg, South Africa with IDR 41,471/kg, Malaysia with IDR 63,503/kg, Taiwan with IDR 84,239/ kg, Cambodia with IDR 127,173/kg, the Philippines with IDR 259,422/kg, and Ireland with IDR 322,990/kg.
Excise itself can be understood as a state levy imposed on certain goods which have properties or characteristics that have a negative impact; this is certainly already stipulated in the Excise Law.
The higher the value of the excise tax on plastic bags, the more it proves the seriousness of a country to face the impact of pollution due to increasingly worrisome plastic. Prior to the application of plastic bag excise tax in Indonesia, Minister of Finance Sri Mulyani Indrawati had calculated the impact of inflation which was said to be very small at 0.045%. Sri Mulyani also mentioned assuming that 53 million kilograms of plastic consumption per year, the country has the potential to receive revenue of IDR 1.6 trillion from plastic excise.
The income will certainly increase considerably if the value of the plastic excise tax is increased. The increase is certainly very relevant: simply put, people will choose to pay for a plastic bag that costs IDR 200 more than buying a non-plastic or non-disposable shopping bag whose price is far above that price. As a result, the excise tax that is applied with the aim of holding back the rate of use of plastic bags will only add coins to the country without being able to achieve the original goal of reducing or even eliminating the habit of using disposable plastic bags.
Therefore, it would be nice if the COVID-19 pandemic becomes a momentum to remember the importance of the environment by reducing or even eliminating the bad habit of using disposable plastics.
A new normal application should not just be orderly and obedient in using a mask and washing hands with soap, but starting a new life by forming new habits that are more useful. Previously, the community was not sensitive to maintaining health, so it was normal to advocate better health. Likewise, with plastic, if previously we always used disposable plastic, then just teach how it is now normal to abandon the habit. Such is the essence of the new normality itself.
In the midst of the increasingly troubling Covid-19 pandemic, WHO (World Health Organization) in the Eastern Mediterranean and Europe instead made it uneasy by saying that unprocessed palm oil products were consumed. Through an online campaign, WHO published articles related to palm oil, each entitled was “Nutrition Advice for Adults during Co-19” and “Food and Nutrition Tips During Self Quarantine”.
Both articles contain health information and tips on eating food during the Covid-19 pandemic. In an article titled “Nutrition Advice for Adults during Covid-19“, WHO recommends that during the Covid-19 pandemic to consume unsaturated fats (such as those found in fish, avocados, nuts, olive oil, soybeans, canola, flower oil sun, corn) compared to consuming saturated fats (such as meat, butter, coconut oil, palm oil, cream, cheese, ghee, and lard).
Meanwhile, the article entitled “Food and Nutrition Tips During Self Quarantine” contains a call to reduce consumption of foods such as red and fatty meat, butter, fatty milk products, palm oil, coconut oil, coconut oil, and lard.
Because of this, Indonesia was also inflamed, through the Indonesian Deputy Foreign Minister, Mahendra Siregar, Indonesia formally submitted the objection letter to WHO Indonesia representatives. For Indonesia itself, the campaign will certainly have a negative impact on the economy because palm oil is the queen of the economy itself.
Palm Economy
It cannot be denied that palm oil is one of the pillars of the national economy. Palm itself is the biggest foreign exchange supply commodity for the country so far. The contribution of foreign exchange palm exports even had reached a record high in 2017 which reached USD 22.9 billion or around Rp320 trillion. The value of Indonesia’s palm oil foreign exchange contribution during 2018 also reached US $ 20.54 billion or equivalent to Rp 289 trillion.
Based on this value, it is certain that palm oil plays an important role in supporting the national economy. Not only about foreign exchange, the potential tax revenue from the palm oil industry is estimated to reach Rp 45-50 trillion per year.
Because palm oil is a contributor to the rupiah coffers with fantastic value, it is natural that this commodity gets the red carpet. In fact, until now palm cannot be separated from a myriad of complex problems.
The Community Economy in Palm Area
However, the assumption that palm oil is prosperous, seems to need to be reviewed more comprehensively. The reason, the notion that palm oil is no more than a mere myth. Related to this, in research conducted by Madani Bekelanjutan in two provinces that are rich in palm oil, namely the Provinces of West Kalimantan and Riau, it was found that there is a sharp inequality. In fact, the massive expansion rate of palm oil is not directly proportional to the improvement in the welfare of the village community. In fact, there is no place other than the village that can accommodate palm oil to grow and produce. Then, why the village is not prosperous?
Based on Village Development Index (Indeks Desa Membangun/IDM) of the Ministry of Villages, the Development of Disadvantaged Areas and Transmigration (Kemendes PDTT) and the existence of palm oil plantations in the village, Madani Berkelanjutan found that only 3 percent of villages were classified as independent villages in West Kalimantan. Then, 6 percent is classified as a developed village and 31 percent is in the developing category. While 48 percent of villages occupied by oil palm plantations are classified as underdeveloped villages and 11 percent are even classified as villages that are very underdeveloped.
Meanwhile, only 1 percent of villages in Riau are classified as independent villages. Then, about 6 percent of villages are classified as developed villages, 64 percent as developing villages. While villages that are classified as disadvantaged villages are as much as 27 percent and 3 percent are classified as villages that are very underdeveloped.
This fact is certainly very ironic. In the midst of the pride of many parties for such a large palm oil, it turns out the results are not as big as what is imagined. In fact, palm oil does not really provide welfare for the public. Whereas all this time, palm oil has been cultivated as an excellent commodity for the country’s economy.
The low welfare of the public in terrain areas with palm is also allegedly due to the large ownership of oil palm from private companies. In fact, of the 14.3 million hectares of palm oil plantations in Indonesia, the majority is controlled by private palm oil companies. Noted, an area of 7.7 million hectares (ha) or 54% of the total area of palm oil land in Indonesia is controlled by private companies. Then, palm oil land owned by the state through State-Owned Enterprises (BUMN) reached 715 thousand ha or 5%. The remaining area of smallholder plantations reaches 5.8 million ha or 41% of the total area.
Judging from the performance of produced palm oil, private companies are arguably the most resilient in production, with a capability of 26.5 million tons or 51%, state plantations of 2.5 million tons or 6%. While community plantations contributed 14 million tons of CPO or 33%.
With this relatively large number, it is natural that the government and many parties provide extra support to the palm oil industry in the country. Even the government is ready to put on a body when palm oil gets negative sentiment from the European market. It is also not wrong if many say that the government’s attitude towards palm oil commodities is interpreted as a form of gratitude for the Indonesian government to business people who are involved in the national palm oil industry. Obviously, all of that is because oil is so profitable.
With the largest land tenure and production capability, private companies are clearly the biggest beneficiaries of palm oil. Meanwhile, the size of the people’s ownership of the palm oil did not contribute greatly to the prosperity of the village because it could be that the oil palm owned by the smallholders was sold at a low price to middlemen or many other causes.
The low level of welfare of oil palm farmers can also be caused by the amount of farmers spending in the production process is greater than the income received from the selling price of production. This means that the addition of planting areas is not an absolute requirement in an effort to improve the welfare of the palm oil farmers.
In fact, differences in ability and market access make palm oil tend to be enjoyed by a small number of people. Therefore, it is natural that there is no correlation between the increasingly widespread and the size of the palm oil industry with the welfare of the community. It is appropriate that the welfare of the people from palm oil is just a myth.
By: Delly Ferdian
Researcher in Madani Berkelanjutan
This article was published in the June 12, 2020 Independent Observer.
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