The Sustainable Madani Foundation summarizes several important events related to the economic-political conditions that occurred in the past week (June 15-June 21, 2021). Here are the excerpts:
1. The government targets 20,000 climate villages by 2024.
The Indonesian government, through the Ministry of Environment and Forestry (KLHK), is targeting the establishment of the Climate Village Program (Proklim) in 20,000 villages by 2024. To date, approximately 3,000 Proklim villages have been established throughout Indonesia. The Director General of Climate Change Control (PPI) of the KLHK, Laksmi Dhewanti, hopes that through this Proklim, the government will invite all individuals in society to work together to become pioneers and drivers of clean and healthy lifestyles in their respective communities.
2. NATO Efforts on Climate Change
For the first time in its history, the North Atlantic Treaty Organization (NATO) has begun to seriously include the global issue of climate change in its high-level meetings or summits.
At a meeting in Brussels, Belgium, on June 14, 2021, the military alliance of Western countries included efforts to combat climate change and its impacts, such as floods and droughts, in the summit communique.
As reported by Reuters earlier this week, NATO's communique incorporated climate change considerations into its full spectrum of work, from defense planning and capability development to civilian preparedness and training. The United States, France, and others agreed on a climate action plan at NATO headquarters to achieve a military carbon emissions reduction by 2050.
According to Teuku Rezasyah, an international relations observer from Padjadjaran University, this is inseparable from the role of the United States (US), now led by President Joe Biden. According to Rezasyah, Biden's position also breaks with US leadership in the world, which during the previous period under President Donald Trump turned its back on climate change and global warming. Rezasyah's opinion aligns with the views of several senior NATO diplomats in Brussels. One senior European diplomat told Reuters that their shared focus on combating climate change was hampered during Trump's tenure in the US.
By committing to zero carbon emissions by 2050, NATO's next plan is to align the organization on a path to achieving the Paris Agreement's goal of limiting global warming to 1.5 degrees Celsius (34.7°F). The Western military alliance will also conduct trials and research on war equipment powered by renewable energy.
3. Downward Trend in CPO Prices
The downward trend in crude palm oil (CPO) prices is far from over. This week, CPO prices fell 6.5%, following a more than 11% drop last week. This is believed to be due to persistently high CPO inventories in Malaysia and Indonesia, coupled with low demand, which has led to continued price declines, with further falls predicted in the coming months. CGS-CIMB's research indicates that the downward price sentiment will continue to weigh on CPO prices until there is clarity regarding production levels.
4. Papua Special Autonomy Bill
Komarudin Watubun, Chairman of the Special Committee (Pansus) for the Revision of Law (RUU) Number 21 of 2001 concerning Special Autonomy (Otsus) for Papua, stated that many members of the committee have proposed that discussions should not focus solely on two articles: Article 34 concerning special autonomy funds and Article 76 concerning regional expansion. He believes that discussions on the Special Autonomy Bill must also consider recent developments in Papua.
According to Home Affairs Minister Tito Karnavian, the main points of the revision to the Papua Special Autonomy Law are limited to two articles. Regarding the Special Autonomy Fund, this government funding will be continued for 20 years and then increased from 2 percent to 2.25 percent of the National General Allocation Fund (DAU). However, the Special Autonomy Fund also needs more detailed financial management regulations. Meanwhile, Article 76 concerning Regional Expansion aims to provide the central government with space to listen to the aspirations of authorities in Papua, such as the Regional People's Representative Council (DPRP), the Regional People's Consultative Assembly (MPRP), the Provincial Government, the Regency/City Government, and all community stakeholders. Therefore, on this basis, Tito emphasized that the government does not rule out the possibility of revising other articles to accelerate development in Papua. The Ministry of Home Affairs (Kemendagri) hopes that the revision of the Draft Law on Special Autonomy (Otsus) for Papua can be completed before November 1, 2021.
