Advancing Indonesia’s journey to a green and inclusive economy

Context

Indonesia is increasingly impacted by the triple planetary crisis – pollution, climate change, and biodiversity loss. These escalating challenges complicate the country’s efforts to escape the middle-income trap by 2045. To secure a resilient future, Indonesia faces an urgent need to transition towards a more inclusive and environmentally responsible economy.

As triple planetary crises continue to disrupt ecosystems and livelihoods, there is growing pressure for efficient coordination, evidence-based planning, and policy-making both nationally and provincially to address these critical issues. Adapting to the new realities of these challenges is essential for Indonesia's long-term economic and social stability.

Objective

The Government of Indonesia is advancing its institutional and regulatory frameworks to effectively guide the transformation towards a green economy nationwide and in the provinces.

Approach

The project focuses on three main outputs:

1. Enhancing analytical capabilities: The project enhances the Ministry of National Development Planning (Bappenas) and other relevant actors' analytical skills for evidence-based planning of the green economy transition. This may include improving economic models, refining data for accurate calculations, and providing training for professionals.
2. Aligning policy formulation: The project works to ensure better coordination of green economy policies between Bappenas, line ministries, and other authorities by fostering collaboration in scenario development. It emphasises early stakeholder involvement and integrates gender-sensitive policy scenarios.
3. Improving planning and monitoring: In selected provinces, the project enhances the capability to plan and monitor green economic transformation by identifying potential challenges, offering recommendations, and supporting the advancement of existing green initiatives.

Last update: September 2024