POLICY
JAKARTA (FORESTHINTS.NEWS) - In 2023, Indonesia's Ministry of Environment and Forestry (MoEF) has achieved significant milestones and performances; from environmental conservation, sustainable forestry practices, and wildlife protection to carbon governance. The MoEF’s efforts throughout the year showcase a commitment and, crucially, a consistency in preserving the nation's major natural resources.
As the year comes to an end, the MoEF's initiatives continue the positive trajectory towards balancing development and ecological well-being.
“Today, we have reflected on the developments that have taken place in the environmental and forestry sector throughout 2023 under the watch of the MoEF,” said Environment and Forestry Minister Siti Nurbaya in her year-end remarks at the Ministry building (Dec 28).
“We have looked at numerous important aspects, including the 2024 State Budget allocation, and have incorporated my thoughts and notes on the relevant issues,” she continued.
Minister Nurbaya further emphasized, “This year affirmed our dedication to consistency between Fundamental Policies, Operational Policies, and Program Implementation despite facing notable challenges. 2023 has been characterized by a strong emphasis on synchronization, aligning seamlessly with positive outcomes directly affecting our community.”
Addressing pivotal decision-making scenarios, the Minister observed that, “the term 'consistency' has gained vital importance.”
“Whether streamlining procedural aspects through the two years of UUCK’s (Omnibus Law on Job Creation) implementation or anticipating the swift entry of essential investments, our focus remains on accommodating stakeholder aspirations, emphasizing rapid investments for job creation, and meeting the challenges of natural resource utilization with proactive measures from the planning stage,” she explained.
Distinguishing the concept of Environmental, Social, and Governance (ESG) from CSR, Minister Nurbaya asserted, “As national and international landscapes evolve, the significance of ESG factors in assessing entity performance has become greater. Introduced in 2019 and gaining popularity in 2023, ESG prioritizes sustainable development, investment, and business based on specific criteria.”
“The Ministry of Finance has outlined ten ESG standards, providing a robust framework for entities to align their activities with sustainable practices, fostering economic growth and environmental stewardship. These standards have become integral in supporting business performance,” Minister Nurbaya elaborated.
Environmental Quality Index improvements
“In 2023, Indonesia's Environmental Quality Index (IKLH) demonstrated positive growth, reaching 72.54, a 0.12-point increase from the previous year,” affirmed Minister Nurbaya.
This upturn in the index, encompassing water, air, land, and sea quality, was due to intensified monitoring across districts and provinces, underscoring the MoEF's unwavering commitment to environmental initiatives.
“Aligned with the strategies outlined in 'The Earth for All - A Survival Guide for Humanity', we've strategically focused on five critical leaps, integrating advancements in AI, robotics, connectivity, and biotechnology for sustained progress,” the Minister stated.
These, she listed, as ‘poverty alleviation, inequality reduction, women's empowerment, fostering a healthy food system for both humans and ecosystems, and transitioning to cleaner and more efficient energy systems.’
“Recognition for our environmental stewardship efforts is exemplified through the Proper program and Corporate Green Leadership initiative, where the environment-related performances of 3,694 businesses were evaluated,” Minister Nurbaya said proudly.
This program and initiative were honored with the Top 5 Outstanding Achievement of Public Service Innovation Award which celebrates innovations like Life Cycle Analyses, Social Innovations, and Social Returns on Investment for their impactful contributions to environmental management.
“In 2023, eco-innovation took center stage with 1,193 recorded initiatives, resulting in impressive savings of Rp 158.53 trillion,” Minister Nurbaya shared.
These initiatives, spanning energy efficiency, emissions reduction, waste management, water efficiency, and biodiversity protection, reflect a firm commitment to sustainable practices and environmental well-being.
Concrete and positive progress
“Efforts to enhance environmental management are making a positive impact on society,” Minister Nurbaya continued.
“In 2023, an impressive Rp 1.56 trillion was dedicated to community empowerment, supporting 20,052 activities aligned with SDGs - a remarkable 33% increase since 2018. Addressing societal needs, companies introduced 168 social innovations focusing on food security, poverty alleviation, and empowerment,” she added.
According to the Minister, Indonesia ‘has achieved a significant 2-3% reduction in the environmental burden. This success is attributed to decreased forest and land fires, minimized degradation, and enhanced environmental parameters, including more effective waste reduction.’
Despite concerns about El-Nino in 2023, Minister Nurbaya confirmed that, “Joint efforts have effectively managed the situation. While there are more recorded hotspots than in 2019 and 2015, the projected burned area is expected to reach 1.1 million hectares by December, far less than in the other two aforementioned years.”
Highlighting other tangible progress made, Minister Nurbaya stated, “We've witnessed the birth of 64,339 individuals of crucial species in various areas, demonstrating positive strides. In Kapuas Hulu which was once devastated by fires, for example, orangutans are making a return, indicative of ongoing forest recovery and growth.”
Climate Action Agenda
“Data shows a significant drop in Indonesia's deforestation, dipping to 104 thousand hectares by 2022, and a marked decrease in forest fires during the same year,” Minister Nurbaya explained.
The Minister spoke about an anticipated continued decline in deforestation for 2023, with greenhouse gas emissions from forest fires as of October standing at 141.8 million tons. Notably, in previous years, emissions decreased by 40.09% in 2022 (814 million tons), 43.8% in 2021 (889 million tons), and 47.3% in 2020 (945 million tons).
“In 2023, despite a projected decrease in deforestation, there has been an observed increase in forest and land fires. However, the impact is minimal as the burned areas are largely composed of savannah which regenerates quickly,” Minister Nurbaya pointed out.
“Burned peat area has decreased from 34% to 16%. While comprehensive data for 2023 is awaited, the national GHG inventory for 2022 recorded emissions at 1,220 million tons of CO2e, distributed across various sectors,” she added.
Accomplishments partially recognized
Minister Nurbaya said, “Our commitment to climate change mitigation, particularly through REDD+ initiatives, has earned significant recognition through our partnership with Norway. In October 2022, Norway's contribution of USD 56 million was a testament to Indonesia's success in curbing forest depletion.”
“Building on this success,” Minister Nurbaya continued, “On December 13, 2023, Norway doubled its support, contributing USD 100 million to acknowledge our achievements in reducing forest degradation in 2017/2018 and 2018/2019.”
However, she said, “these 'results-based contributions (RBCs)' from Norway only match emissions reductions worth 11.2 million tons of CO2 for the first round and around 20 million tons of CO2 for the second and third RBCs.”
“Given that, in real terms, we have actually reduced emissions by as much as 577 million tons of CO2, it is essential to recognize that the REDD+ efforts we have made are still largely unrewarded,” the Minister asserted.
Minister Nurbaya underscored that Indonesia's global collaborations in climate action extend beyond Norway's support.
“We’ve actively engaged in programs like Reducing Emissions from Deforestation and Forest Degradation, supported by the Green Climate Fund (GCF), Forest Carbon Partnership Facilities, and the Bio Carbon Fund, amounting to a substantial value of USD 263.8 million. An additional USD 2.5 million has been dedicated to community-based and social forestry activities,” she detailed.
Economic role and poverty alleviation
“Rural poverty, notably at the forest's edge, presents a major challenge,” Minister Nurbaya revealed, backing this up with various pertinent statistics.
“Efforts to empower communities in managing 6.37 million hectares of forest land have led to the establishment of 10,158 Social Forestry Business Groups (KUPS). The intensive work on Social Forestry has been ongoing since 2015/2016, marking a challenging but meaningful initiative,” she added.
“Studying the effects of these initiatives has been an exhaustive collaborative process,” the Minister continued.
“For instance, in the last 1-2 years, a noteworthy impact has been observed in Aie Dingin Village in Solok regency. The elevation of KUPS groups to gold and platinum categories has resulted in a remarkable improvement in this village’s Village Development Index (IDM) – progressing from a lagging category in 2021 to a developing category in 2022.”
The Minister went on to cite various other examples of the positive impact of KUPS on IDM, including in Air Berik in Central Lombok regency, Nano in Sigi regency, Kuta Gajah in Langkat regency, Gewat in Central Aceh regency, and Pakan Rabaa Tengah in Solok Selatan regency.
“Moreover, data from various regions indicates that elevating KUPS classifications has a positive effect on increasing farmers' Net Trading Price (NTP),” she said, picking out the provinces of Lampung, South Sulawesi, and South Kalimantan in this regard.
Minister Nurbaya lauded both the success of community engagement in state forest management, emphasizing that this extends to areas outside state forests, and the surging amount of timber production between 2014 and 2022 from community forests, as well as non-timber forest product output.
“Economic circularity development also lessens the environmental burden,” the Minister added, mentioning positive progress achieved in the value of waste bank activities and the utilization of hazardous waste.
Minister Nurbaya hailed soaring environmental sector investment and its contribution to GDP from 2014 to 2022, also alluding to skyrocketing environment-related domestic investment in that period, as well as an increase in contributions from the environmental sector under KBLI (Indonesian Standard Industrial Classifications).
Enhanced governance
“Governance is the MoEF's core focus, overseeing 125 million hectares, or 60% of the country's territory, which is vital for environmental sustainability and falls under constitutional mandates,” Minister Nurbaya pointed out.
“2023 has been a pivotal year for streamlining permits and enhancing environmental safeguards. UUCK strengthens corrective measures, ensuring efficient, affordable licensing for citizens' productive endeavors. Simplified environmental approvals and transparent oversight signal positive change,” the Minister continued.
She added, “The MoEF maintains control, adhering to standards and addressing challenges in sub-national development.”
“Effectively managing unauthorized land use in forestry is a top priority, ensuring fairness and solutions for local entities. Governance of palm oil and mining within forests aims for justice and increased state revenue,” Minister Nurbaya explained, stressing that all of this was carried out in 2023 to ensure a smooth transition into the next administration in 2024.
Furthermore, according to the Minister, 'completion of the basic forest area boundary instrument for all state forest areas in 2023 will significantly reduce unauthorized activities and encroachments, with legal enforcement accompanying corrective measures.'
What’s next?
“In 2024, we aim to solidify policies, procedures, and program implementation after almost a decade of work. This is critical for sustainable resource utilization, aligning with constitutional and international obligations,” Minister Nurbaya explained.
“Governance, especially in non-forestry land use and community access, is a focal point. Sustainable forest management principles steer us, with climate action as a concrete indicator of environmental improvement,” the Minister added.
“Existing instruments will be consolidated, providing clarity for all involved in forestry, environmental governance and carbon considerations, within the framework of economic growth, investment, and job creation. The corrective measures taken over the past 10 years will guide future work,” she elaborated.
The Minister concluded her yearly summation with some significant facts and figures concerning the year ahead.
“In 2024, investments are expected to reach Rp 17.91 trillion, creating 307,000 jobs. Processed wood exports target USD 16 billion, supported by 60 million cubic meters of round wood and 52.38 million cubic meters of processed wood from 540 forest industry units. Financial transactions of forest farmer groups, including social forestry initiatives, are projected to be worth Rp 1.8 trillion.”
“In 2024, the MoEF expects Rp 7.49 trillion from the State Budget, with a spending ceiling of up to Rp 7.71 trillion. Key goals include 3-4% GDP and Environment & Forestry export growth to boost Indonesia's economy, improve the investment climate, and achieve a non-oil trade surplus,” she detailed.
“Additionally, there's a target of 5-7% growth in economic activities for community groups, contributing to regional development, poverty alleviation, and enhanced rural development. Meanwhile, a 2-3% reduction in the environmental burden aligns with improving environmental quality and advancing Indonesia's sustainable development narrative,” Minister Nurbaya ended.
RELATED STORIES
POLICY
JAKARTA (FORESTHINTS.NEWS) - In 2023, Indonesia's Ministry of Environment and Forestry (MoEF) has achieved significant milestones and performances; from environmental conservation, sustainable forestry practices, and wildlife protection to carbon governance. The MoEF’s efforts throughout the year showcase a commitment and, crucially, a consistency in preserving the nation's major natural resources.
As the year comes to an end, the MoEF's initiatives continue the positive trajectory towards balancing development and ecological well-being.
“Today, we have reflected on the developments that have taken place in the environmental and forestry sector throughout 2023 under the watch of the MoEF,” said Environment and Forestry Minister Siti Nurbaya in her year-end remarks at the Ministry building (Dec 28).
“We have looked at numerous important aspects, including the 2024 State Budget allocation, and have incorporated my thoughts and notes on the relevant issues,” she continued.
Minister Nurbaya further emphasized, “This year affirmed our dedication to consistency between Fundamental Policies, Operational Policies, and Program Implementation despite facing notable challenges. 2023 has been characterized by a strong emphasis on synchronization, aligning seamlessly with positive outcomes directly affecting our community.”
Addressing pivotal decision-making scenarios, the Minister observed that, “the term 'consistency' has gained vital importance.”
“Whether streamlining procedural aspects through the two years of UUCK’s (Omnibus Law on Job Creation) implementation or anticipating the swift entry of essential investments, our focus remains on accommodating stakeholder aspirations, emphasizing rapid investments for job creation, and meeting the challenges of natural resource utilization with proactive measures from the planning stage,” she explained.
Distinguishing the concept of Environmental, Social, and Governance (ESG) from CSR, Minister Nurbaya asserted, “As national and international landscapes evolve, the significance of ESG factors in assessing entity performance has become greater. Introduced in 2019 and gaining popularity in 2023, ESG prioritizes sustainable development, investment, and business based on specific criteria.”
“The Ministry of Finance has outlined ten ESG standards, providing a robust framework for entities to align their activities with sustainable practices, fostering economic growth and environmental stewardship. These standards have become integral in supporting business performance,” Minister Nurbaya elaborated.
Environmental Quality Index improvements
“In 2023, Indonesia's Environmental Quality Index (IKLH) demonstrated positive growth, reaching 72.54, a 0.12-point increase from the previous year,” affirmed Minister Nurbaya.
This upturn in the index, encompassing water, air, land, and sea quality, was due to intensified monitoring across districts and provinces, underscoring the MoEF's unwavering commitment to environmental initiatives.
“Aligned with the strategies outlined in 'The Earth for All - A Survival Guide for Humanity', we've strategically focused on five critical leaps, integrating advancements in AI, robotics, connectivity, and biotechnology for sustained progress,” the Minister stated.
These, she listed, as ‘poverty alleviation, inequality reduction, women's empowerment, fostering a healthy food system for both humans and ecosystems, and transitioning to cleaner and more efficient energy systems.’
“Recognition for our environmental stewardship efforts is exemplified through the Proper program and Corporate Green Leadership initiative, where the environment-related performances of 3,694 businesses were evaluated,” Minister Nurbaya said proudly.
This program and initiative were honored with the Top 5 Outstanding Achievement of Public Service Innovation Award which celebrates innovations like Life Cycle Analyses, Social Innovations, and Social Returns on Investment for their impactful contributions to environmental management.
“In 2023, eco-innovation took center stage with 1,193 recorded initiatives, resulting in impressive savings of Rp 158.53 trillion,” Minister Nurbaya shared.
These initiatives, spanning energy efficiency, emissions reduction, waste management, water efficiency, and biodiversity protection, reflect a firm commitment to sustainable practices and environmental well-being.
Concrete and positive progress
“Efforts to enhance environmental management are making a positive impact on society,” Minister Nurbaya continued.
“In 2023, an impressive Rp 1.56 trillion was dedicated to community empowerment, supporting 20,052 activities aligned with SDGs - a remarkable 33% increase since 2018. Addressing societal needs, companies introduced 168 social innovations focusing on food security, poverty alleviation, and empowerment,” she added.
According to the Minister, Indonesia ‘has achieved a significant 2-3% reduction in the environmental burden. This success is attributed to decreased forest and land fires, minimized degradation, and enhanced environmental parameters, including more effective waste reduction.’
Despite concerns about El-Nino in 2023, Minister Nurbaya confirmed that, “Joint efforts have effectively managed the situation. While there are more recorded hotspots than in 2019 and 2015, the projected burned area is expected to reach 1.1 million hectares by December, far less than in the other two aforementioned years.”
Highlighting other tangible progress made, Minister Nurbaya stated, “We've witnessed the birth of 64,339 individuals of crucial species in various areas, demonstrating positive strides. In Kapuas Hulu which was once devastated by fires, for example, orangutans are making a return, indicative of ongoing forest recovery and growth.”
Climate Action Agenda
“Data shows a significant drop in Indonesia's deforestation, dipping to 104 thousand hectares by 2022, and a marked decrease in forest fires during the same year,” Minister Nurbaya explained.
The Minister spoke about an anticipated continued decline in deforestation for 2023, with greenhouse gas emissions from forest fires as of October standing at 141.8 million tons. Notably, in previous years, emissions decreased by 40.09% in 2022 (814 million tons), 43.8% in 2021 (889 million tons), and 47.3% in 2020 (945 million tons).
“In 2023, despite a projected decrease in deforestation, there has been an observed increase in forest and land fires. However, the impact is minimal as the burned areas are largely composed of savannah which regenerates quickly,” Minister Nurbaya pointed out.
“Burned peat area has decreased from 34% to 16%. While comprehensive data for 2023 is awaited, the national GHG inventory for 2022 recorded emissions at 1,220 million tons of CO2e, distributed across various sectors,” she added.
Accomplishments partially recognized
Minister Nurbaya said, “Our commitment to climate change mitigation, particularly through REDD+ initiatives, has earned significant recognition through our partnership with Norway. In October 2022, Norway's contribution of USD 56 million was a testament to Indonesia's success in curbing forest depletion.”
“Building on this success,” Minister Nurbaya continued, “On December 13, 2023, Norway doubled its support, contributing USD 100 million to acknowledge our achievements in reducing forest degradation in 2017/2018 and 2018/2019.”
However, she said, “these 'results-based contributions (RBCs)' from Norway only match emissions reductions worth 11.2 million tons of CO2 for the first round and around 20 million tons of CO2 for the second and third RBCs.”
“Given that, in real terms, we have actually reduced emissions by as much as 577 million tons of CO2, it is essential to recognize that the REDD+ efforts we have made are still largely unrewarded,” the Minister asserted.
Minister Nurbaya underscored that Indonesia's global collaborations in climate action extend beyond Norway's support.
“We’ve actively engaged in programs like Reducing Emissions from Deforestation and Forest Degradation, supported by the Green Climate Fund (GCF), Forest Carbon Partnership Facilities, and the Bio Carbon Fund, amounting to a substantial value of USD 263.8 million. An additional USD 2.5 million has been dedicated to community-based and social forestry activities,” she detailed.
Economic role and poverty alleviation
“Rural poverty, notably at the forest's edge, presents a major challenge,” Minister Nurbaya revealed, backing this up with various pertinent statistics.
“Efforts to empower communities in managing 6.37 million hectares of forest land have led to the establishment of 10,158 Social Forestry Business Groups (KUPS). The intensive work on Social Forestry has been ongoing since 2015/2016, marking a challenging but meaningful initiative,” she added.
“Studying the effects of these initiatives has been an exhaustive collaborative process,” the Minister continued.
“For instance, in the last 1-2 years, a noteworthy impact has been observed in Aie Dingin Village in Solok regency. The elevation of KUPS groups to gold and platinum categories has resulted in a remarkable improvement in this village’s Village Development Index (IDM) – progressing from a lagging category in 2021 to a developing category in 2022.”
The Minister went on to cite various other examples of the positive impact of KUPS on IDM, including in Air Berik in Central Lombok regency, Nano in Sigi regency, Kuta Gajah in Langkat regency, Gewat in Central Aceh regency, and Pakan Rabaa Tengah in Solok Selatan regency.
“Moreover, data from various regions indicates that elevating KUPS classifications has a positive effect on increasing farmers' Net Trading Price (NTP),” she said, picking out the provinces of Lampung, South Sulawesi, and South Kalimantan in this regard.
Minister Nurbaya lauded both the success of community engagement in state forest management, emphasizing that this extends to areas outside state forests, and the surging amount of timber production between 2014 and 2022 from community forests, as well as non-timber forest product output.
“Economic circularity development also lessens the environmental burden,” the Minister added, mentioning positive progress achieved in the value of waste bank activities and the utilization of hazardous waste.
Minister Nurbaya hailed soaring environmental sector investment and its contribution to GDP from 2014 to 2022, also alluding to skyrocketing environment-related domestic investment in that period, as well as an increase in contributions from the environmental sector under KBLI (Indonesian Standard Industrial Classifications).
Enhanced governance
“Governance is the MoEF's core focus, overseeing 125 million hectares, or 60% of the country's territory, which is vital for environmental sustainability and falls under constitutional mandates,” Minister Nurbaya pointed out.
“2023 has been a pivotal year for streamlining permits and enhancing environmental safeguards. UUCK strengthens corrective measures, ensuring efficient, affordable licensing for citizens' productive endeavors. Simplified environmental approvals and transparent oversight signal positive change,” the Minister continued.
She added, “The MoEF maintains control, adhering to standards and addressing challenges in sub-national development.”
“Effectively managing unauthorized land use in forestry is a top priority, ensuring fairness and solutions for local entities. Governance of palm oil and mining within forests aims for justice and increased state revenue,” Minister Nurbaya explained, stressing that all of this was carried out in 2023 to ensure a smooth transition into the next administration in 2024.
Furthermore, according to the Minister, 'completion of the basic forest area boundary instrument for all state forest areas in 2023 will significantly reduce unauthorized activities and encroachments, with legal enforcement accompanying corrective measures.'
What’s next?
“In 2024, we aim to solidify policies, procedures, and program implementation after almost a decade of work. This is critical for sustainable resource utilization, aligning with constitutional and international obligations,” Minister Nurbaya explained.
“Governance, especially in non-forestry land use and community access, is a focal point. Sustainable forest management principles steer us, with climate action as a concrete indicator of environmental improvement,” the Minister added.
“Existing instruments will be consolidated, providing clarity for all involved in forestry, environmental governance and carbon considerations, within the framework of economic growth, investment, and job creation. The corrective measures taken over the past 10 years will guide future work,” she elaborated.
The Minister concluded her yearly summation with some significant facts and figures concerning the year ahead.
“In 2024, investments are expected to reach Rp 17.91 trillion, creating 307,000 jobs. Processed wood exports target USD 16 billion, supported by 60 million cubic meters of round wood and 52.38 million cubic meters of processed wood from 540 forest industry units. Financial transactions of forest farmer groups, including social forestry initiatives, are projected to be worth Rp 1.8 trillion.”
“In 2024, the MoEF expects Rp 7.49 trillion from the State Budget, with a spending ceiling of up to Rp 7.71 trillion. Key goals include 3-4% GDP and Environment & Forestry export growth to boost Indonesia's economy, improve the investment climate, and achieve a non-oil trade surplus,” she detailed.
“Additionally, there's a target of 5-7% growth in economic activities for community groups, contributing to regional development, poverty alleviation, and enhanced rural development. Meanwhile, a 2-3% reduction in the environmental burden aligns with improving environmental quality and advancing Indonesia's sustainable development narrative,” Minister Nurbaya ended.
RELATED STORIES
