The Sustainable Madani Foundation summarizes several important events related to the economic-political conditions that occurred in the past week (July 20, 2021 – July 26, 2021). Here are the excerpts:

1. Points Holding Back G20 Commitments to Address Climate Change

The G20 ministerial conference failed to agree on the wording of key commitments to address climate change. Italian Minister for Ecological Transition Roberto Cingolani stated on Friday (July 23) that the outstanding points would be brought forward for discussion at the G20 summit in Rome next October.

Cingolani said the G20 negotiations with China, Russia, and India proved extremely difficult. According to Cingolani, China and India ultimately refused to sign on to the points in question. One of those points was the phasing out of coal-fired power plants. Most G20 member countries want that goal achieved by 2025. However, several other countries stated that this target is impossible for them to meet.

Another point of contention concerns the global temperature limit, which, according to the 2015 Paris Agreement, is set at 1.5 to 2 degrees Celsius. Some countries want to go faster than the Paris agreement, aiming to cap temperatures at 1.5 degrees within a decade. But others, with more carbon-based economies, say let's stick to what was agreed in Paris.

The G20's failure to agree on common language ahead of the meeting is likely to be seen as a setback for the world's hopes of securing a meaningful deal at COP 26.

2. ADB Allocates US$80 Billion for Climate Change Program Funding

The Asian Development Bank (ADB) has expressed its commitment to continue supporting developing countries' efforts to transition to a green economy in a just and affordable manner. ADB President Masatugu Asakawa stated that it will provide US$80 billion cumulatively from 2019 to 2030 for climate change program financing.

Furthermore, Asakawa stated that the ADB is encouraging private sector sponsorship programs to develop the Energy Transition Mechanism (ETM) in Southeast Asia, including Indonesia. Asakawa further described the ETM as a market-based and equitable method to accelerate the transition away from coal-fired power plants and jump-start the growth of renewable energy.

3. Indonesia's Preparation for the World Conference on Climate Change

Ahead of the 26th UNFCCC COP negotiations to be held in Glasgow, United Kingdom, the Minister of Environment and Forestry (LHK), Siti Nurbaya, virtually at the beginning of this week provided guidance to the prospective Delegations of the Republic of Indonesia (DELRI) who will be negotiators in various COP-26 UNFCCC sessions.

In a written statement received on Wednesday (July 21, 2021), Minister Siti outlined several points that could provide insights for the prospective Indonesian delegations. First, regarding the update of Indonesia's Nationally Determined Contributions (Updated NDC).

In its updated NDC, Indonesia has committed to raising its climate change adaptation ambitions by including more concrete actions, adaptation in the marine sector, and greater integration with other important issues, such as biodiversity and desertification.

Minister Siti further stated that the Updated NDC implicitly demonstrates the ambition to achieve the 41% target by strengthening international technical cooperation in technology and private sector development. For example, this applies to pioneering electric mobility activities, such as solar panel development.

It also emphasizes the role of technology and international private cooperation and international support, such as in the projection of mangrove rehabilitation of up to 600,000 hectares by the end of 2024, increasing the role of land rehabilitation by the private sector to more than 200,000 hectares, and the development of a green industry complex supported by green energy in North Kalimantan covering an area of ​​12,000 hectares.

Second, the Indonesian government has developed a long-term strategy that will serve as a guideline for implementing climate change mitigation and adaptation, as well as its subsequent five-year NDC commitments. Since 2020, Indonesia has been working on developing the Long-Term Strategy on Low Carbon and Climate Resilience 2050 (LTS-LCCR 2050), aiming for net-zero emissions while still considering a growing, climate-resilient, and equitable economy. The Agriculture, Forestry, and Land Use (AFOLU) and energy sectors will significantly influence the pathways to 2050. Under the most ambitious scenario, Low Carbon Compatible with the Paris Agreement (LCCP), Indonesia will reach peak national output in 2030, with the FOLU sector approaching net sink.

Third, Minister Siti then assured the prospective delegates that Indonesia is quite effective in climate change management efforts. In multilateral forums, Indonesia frequently receives attention for its achievements, accomplishments, and policies offering solutions. Meanwhile, bilaterally, Indonesia has been approached on various occasions by countries seeking partnerships in addressing climate change.

4. Bappenas: Potential Economic Losses Due to Climate Change Reach Rp 115 Trillion

The Ministry of National Development Planning (PPN) or Bappenas estimates that economic losses due to the impacts of climate change could reach Rp 115 trillion by 2024. Therefore, the government continues to encourage environmentally friendly sustainable development. Bappenas' Expert Staff for Economic Synergy and Financing, Amalia Adininggar Widyasanti, said the losses come from four sectors: water, health, coastal marine, and agriculture.

Therefore, it is crucial for Indonesia to adopt measures towards low-carbon development and implement the circular economy concept. This is because the circular economy offers significant potential for Indonesia.

Indonesia itself has committed to adopting the circular economy concept into its 2045 vision, and has prioritized it in the 2020-2024 National Medium-Term Development Plan (RPJMN). He believes a circular economy can increase resilience and long-term economic benefits. Implementing a circular economy in five priority sectors could increase Gross Domestic Product (GDP) by up to IDR 642 trillion.

In addition, the circular economy also helps Indonesia achieve a reduction in greenhouse gas emissions of 126 million tons of CO2 by 2030. In addition, it also estimates that food waste (food loss and food waste) from 2000-2019 resulted in economic losses of up to IDR 551 trillion.

5. Ombudsman: 75 KPK Employees Must Be Inaugurated as Civil Servants Before October 30

The Indonesian Ombudsman revealed findings of maladministration in the process of the national insight test (TWK) for the transfer of status of Corruption Eradication Commission (KPK) employees to state civil servants (ASN). Ombudsman Chairman Mokhammad Najih said that his party focused the investigation on three issues, namely the series of processes for forming the policy for the transfer of KPK employees to ASN, the implementation process of the transfer of KPK employees to ASN, and at the stage of determining the results of the national interview test (TWK) assessment. These three things were found by the Indonesian Ombudsman to have the potential for maladministration.

Regarding these findings, the Ombudsman issued recommendations for improvements to the Corruption Eradication Commission (KPK). Among them, the status transfer must be implemented in accordance with Law No. 19 of 2019 concerning the Corruption Eradication Commission and Government Regulation No. 41 of 2020 concerning the Transfer of KPK Employees. Furthermore, the status transfer must be based on the considerations of the Constitutional Court (MK), President Joko Widodo's statement, and the Ombudsman's findings regarding maladministration.

Based on this, the Ombudsman assessed that the 75 KPK employees who failed the TWK (Teaching Test) were entitled to become civil servants. The Indonesian Ombudsman discovered this maladministration after completing a series of investigations into complaints from representatives of the 75 KPK employees who were suspended due to the policy. Another requirement is that the KPK must provide employees with an explanation of the consequences of the TWK implementation and its results, in the form of information or legal documents.

The Ombudsman further stated that the TWK results should be used as input for corrective measures and not as a basis for dismissing the 75 KPK employees who did not meet the requirements. Furthermore, KPK employees found ineligible should be given the opportunity to improve through on-the-job training on national insight.