Capacity Building for Integrated Assessment and Planning for Sustainable Development in
Indonesia: Formulation of Strategic Guidelines for Poverty Reduction with Sustainable
Development Principles (S G P R)
UNEP Initiative on Capacity Building for Integrated Assessment and Planning for Sustainable Development
Mid Term Review Meeting
Geneva, 16-17 February 2005
Indonesia at a glance :
Land area : 1.9 million sq.km (17,000 islands, of which 6,000 are inhabited)
Population : 214 million (2002), 60% live in Jawa-Bali
GNP : US$ 145 billion (2001)Pct Income : US$ 680 (2001)Ave. Growth : 3.8% p.a. (1991-2001)
Contribution of economic sectors to GDP : Agriculture 19%, Industry 43%, Services 38% (2000)Life expectancy : 66 years (2000)Literacy rate : 87% (2000)Share of poor population : 7.4% (2003, US$ 1 per-day)53.4% (US$ 2 per-day) 18.3% (2100 calories per-day)
Poverty Figure in Indonesia*
40.1
33.3
13.711.3
23.4
28.6 26.9
21.6
17.4
15.1
24.2
19.1 18.3
17.9
0
5
10
15
20
25
30
35
40
45
19
76
19
78
19
80
19
81
19
84
19
87
19
90
19
93
19
96
19
98
19
99
20
00
20
01
20
02
Year
Pe
rce
nta
ge
(%
)
Rural
Urban
Rural+Urban
* The Poverty Line is calculated based on food adequacy or food consumption of 2100 calories per person per day
Overview of Past Poverty Reduction Strategies
• Poverty measures: – 17.4% or 37.4 mio (2003) using 2,100 cal/day– USD 1/day or 7.4%– USD 2/day or 53.45%
• relied on borrowed vision of the future (i.e. from the Indonesian Millennium Development Goals) not wholly derived from the results of the analysis phase;
• do no address the trade-offs required to successfully address poverty alleviation given the various sectoral priorities and needs which are not necessarily oriented toward the poor;
• lacked recognition of the environmental and natural-resource dimension to poverty alleviation;
• lacked delegation of authority and division of labor to implement the strategy (i.e. it is not clear which agencies are responsible for implementing the strategy, and also not clear how the wider public can use the document);
• do not clearly delineate how the strategy builds on previous and current poverty reduction strategies.
Current Situation with PRSP (2001-2004)
Economic issues• Don’t consider the impact of International trade on the poor in a
comprehensive manner• Site level sustainable community enterprises are not explicitly promoted,• Macroeconomic policies are not pro-poor and worse, are too pro-businessSosial Issues:• Poverty issue do not seen as a multidimensional matter • Do not explicitly recognize local and traditional communities’ access and
rights to natural resources• Recognize that law enforcement is necessary but do not have a strategy to
enhance itEnvironmental Issues:• Disregard rapid loss of natural resources (deforestation rate 2.4%/yr)• Disregard degradation of environmental quality• Disregard loss of biodiversityParticipation Process: very week although well in paper
General Objectives
• Enhance the capacity of Indonesia to effectively integrate economic, social and environmental considerations into planning processes in order to promote sustainable trade, alleviate poverty and environmental management.
• Strengthening environmental, social and economic institutional cooperation and coordination.
• Facilitating the design of integrated policies, plans and programmes that take into account economic, social and environmental aspects of sustainable development.
• Contributing to the country’s commitment to achieving the goals set out in the WSSD Plan of Implementation regarding trade as a tool for achieving sustainable development, poverty reduction and the use of environmental and integrated assessment as a means of encouraging relevant authorities at all levels to take sustainable development considerations into account in decision-making (WSSD Plan of Implementation paragraph 18).
Expected Outcomes
• Enhanced understanding between the linkages between trade, environment and poverty alleviation.
• Enhanced national institutional and human capacities for undertaking strategic integrated assessment and planning for sustainable development
• Enhanced national coordination among the government institutions involved in the project
• Enhanced capability of policy-makers to design and implement comprehensive policies and measures for sustainable development in central and regional govt
BACKGROUND Documents:
•WORK PLAN
•CONCEPT PAPER: Links between Poverty, Trade and Environment (Case Studies)
•Proceedings
•Strategy
•Action Plan
General Strategy:
FINAL PAPER INPUT FOR PRSP
Tools and ApproachesProblem Analysis: PRSP from initiation (Presidential Decree,
2001), Strategic planning and Operation planning, and proposed monitoring (Expected completed 2004)
Power Relationship Analysis and Inter-Dept Profiles: Understanding the roles and responsibilities and power relationship within sectoral dept and local governments on PRSP
Key Informant Interviews with the PRSP team previous and new lead agencies
Stakeholder Analysis and Workshop: national, regional and experts
Focus Group Discussions: On Environment, Social and Economic plus possible linkages from regional to central govt using available Natural Resource Status and Environmental Atlas
Operational Actions
1. Steering committee: provide overall guidance for the project incl review concept paper, guidance on National Workshop
2. Technical committee: overseer of day to day implementation
3. Writing team: implement assessment agenda, formulate substance and resulting documents, provide input toward PRSP drafting
Steering Committee: CII, Bappenas, KLH, UNDP, Ministries of Forestry, Trade and Industry, Home Affairs, Labor and Transmigration and Foreign Affairs
Technical Committee: CII and Bappenas
Project finance and administration: CII
Meetings coordinator:
CII and Bappenas
Writing Team: CII, Bappenas,
and KLH
Stakeholder Involvement
• CII, Bappenas, KLH, UNDP, Ministries of Forestry, Trade and Industry, Home Affair, Labor and Transmigration and Foreign Affairs
• Environmental Groups: Government, Non-Government, Private Sector, Academics
• Local Government, Local NGOs• Workshops, Group Discussions, Regional Visit• New Initiatives through UNDP
Activities and output
Activities: Writing team periodic meetings; Steering Committee meeting; assessment meetings with environmental stakeholders; attendance at evaluation meetings for the PRSP; National Workshop; workshop with UNEP Team; participation and input into PRSP drafting; Regional Workshop and stock-taken
Output: Background Paper; Input to the PRSP
Output in progress for immediate completion: Revised Background Paper; Draft Concept Paper linking trade, poverty and the environment; regional assessment
A review of relevant past and present work
Overview of Existing Natural Resources & Environment Policies
Identification of Information Network and Its Institutionalized Mechanism
Identification of Relevant Policies and Programs
Developing Criteria and Guidelines for Evaluation
Evaluation of On-going and Executed Policies and Programs
Poverty Reduction Strategy with Sust. Dev.
BACKGROUND PAPER
Policy and Program Review
Policy and Program Formulation
Case Study
Condition, Issues, and Models of
Poverty Reduction
Poverty Reduction Strategy
Poverty Reduction Policy/Program and Monitoring/Evaluati
on System
PRSP 2004-2015Document
Description of the Planning Process
To obtain lesson-learned on the link between poverty, environment and trade
2004 2005
Preliminary ResultsProcess:• PRSP is a moving target: started much in advance of the
SGPR and shifting focus; lack of environmental personnel; lack of engagement of technical sector (e.g. forestry, fishery, mining & energy, etc)
• Understanding of sustainable development principles widely varying among stakeholders; and assessment of previous policies and programs need to first be based on common baseline
• IAP guidelines useful in evaluating the PRSP in a systematic manner, however need to ensure adequate understanding of substance and process to which IAP is applied
Preliminary Results
Substance:• Lack of data on the correlation between ecosystem status,
social conflict and economic development; especially difficult is to argue for ecosystem restoration programs as part of poverty alleviation
• It is increasingly realized that environmental pro-poor strategies need to be integrated with sectoral strategies (i.e. in health, agriculture, housing etc) rather than stand-alone strategies. Trade-offs need to be articulated at the sectoral level, i.e. more resources (money, staff time, extension) for ecosystem restoration and for shifting from extraction-based activities to measure to increase value-added
Policy Review Results
Substance of policy review regarding poverty alleviation in Indonesia:• Reality: environmental depletion and degradation rate are high;
they are partly resulting from previous policies and programs• Given high dependency of the Indonesian poor (rural, agricultural-
based people) on the environment poverty alleviation strategies should not further degrade the environment and should focus on ecosystem restoration
• Ecosystem approach to poverty targetting: coastal and marine ecosystem, agro ecosystem, forest ecosystem
• Trade aspect is very important especially on two fronts: 1) trade liberalization in agricultural products, 2) international demand for natural resources as pressure for unsustainable extraction methods (illegal logging and fishing)
• Positive linkages between trade, poverty alleviation and the environment best demonstrated through their interaction at the site level: case study of Kabupaten Buleleng, Bali
Interaction between different issues
• Interaction between different issues:• macroeconomic policies should not expedite the loss of
natural resources but rather directed at conserving them• incentives must be put to both conserve and/or
rehabilitate natural resources as well as enhance livelihoods
• the poor’s access and rights to natural resources should be part of poverty reduction strategies
• laws related to natural resource exploitation, especially regarding illegal utilization, must be enforced
• international trade can be a force for optimizing income and conserving resources if rights accrue to local communities
Main Strategies for PRSP (2005-2015): Results from SGPR Team Lobbies (# 5)
• Opportunity-creation. The creation of employment or entrepreneurial opportunities for the poor.
• Community empowerment. The enhancement of community institutions to, among others, enable the poor to access information and participate in formal decision-making processes.
• Capacity-building. The enhancement of the ability of the poor to be more productive through investments in health, education, and training.
• Social protection. The creation of social insurance, social support/assistance and social savings mechanisms and program, and the promotion of traditional social safety nets.
Results from Team SGPR : Global Partnership for Poverty Reduction. The strengthened global network to establishing partnership in poverty eradication. The Indonesia PRSP also endeavored to integrate gender, governance, decentralization, and environmental issues into the strategy.
Some substantive priorities PRSP (2005): Results from Stakeholders and Focus Group
• “ Rights-based Approach” Move from Min. of Welfare to Min. of Planning
• poverty is not just a problem of inadequate income, but also about deprivation of human dignity, of an overwhelming sense of the lack of voice, power, and choices. The problem of poverty is characterized by poor health, lack of basic education and skills, insecurity, inadequate access to land and other assets, vulnerability to economic shocks, natural disasters, social conflicts and other risks.
• A pro-poor stance should be promoted and adopted if poverty alleviation strategies are to have any chance of being successful.
Criteria and Selected regional Governments for IAP Workshop:
• Selection Criteria: poverty incidents, geographical balance, indicators of strong links between poverty, environment and trade issues, and a model of collaboration amongst traditional community, NGO, and private sector in creating alternative incomes in sustainable ways
• Traditional cinnamon farmers near Kerinci Seblat National Park. There are 248 lots or 203 hectares in Rantau Kermas village; while Renah Alai village has 66 lots encompassing 95 hectares.
• Vanilla and Coffee Farming in Dairi, North Sumatera and Aceh (Gunung Leuser National Park)
• Ornamental Fishery in Les Village, North Bali
Lesson Learned from the Case Study: Les Village, in North Bali
• The Fish are Back !• rehabilitation of the coral ecosystem and a return of many fish species
previously lost;• better quality fish that is more likely to survive transport and confinement for
longer periods, and with no damage to its skin and color;• less time and effort to collect equal amount of fish than by squirting poison;• the attention of international and local organizations.
– Lack of attention and support by the local government– villagers need a certain institutional support and
cooperation from those around it, i.e. other stakeholders in the live-fish trade.
– Without the larger enabling environment—including regulatory support perhaps in the form of a sustainable harvesting certification system—villagers are less able to fully take advantage of the benefits of international prices to optimize their income.
– The lack of adoption of this local model elsewhere
Lesson Learned from the Case Study: Les Village, in North Bali
Expected Intervention from SGPR team:
-Adoption by local parliament and local govt on the tools and mechanism as demoistrated by local case studies
-Stimulate central government to adopt the tools and mechanism put into PRSP document (Boxes)
-Participatory principle that was carried out should be adopted and replicated by local govt planners
Challenges and Opportunities
• Adoption of flow and mechanism of SGPR for PRSP by Sectoral Depts and Regional Governments
• Keeping SGPR team for safeguarding the PRSP programs in the most very fast changing Govt officials
• Distribution SGPR documents to wider stakeholders