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April 2007

Country Profile: Indonesia

Indonesia Flag Since the fall of the Suharto dictatorship in May 1998, Indonesia has been in transition. The country has introduced far-reaching economic reforms and freedom of the press, reorganised the balance between the central state and the provinces, and paved the way for judicial reform. In 2004, the first free elections took place in which not just the parliament but also a president was elected. Since 20 October 2004, the country has been run by President Susilo Bambang Yudhoyono.

Indonesia is divided into 33 provinces which include two regions with special status (Aceh and Jogyakarta) and the capital city of Jakarta, which is officially a special status province. With the introduction of regional autonomy in 2001, the 357 districts (regencies) have become the key administrative units.

Rapid industrialisation, rigorous clearing of the tropical rainforests and over-extraction of minerals have in some cases led to serious environmental problems in the country. The huge clouds of smoke caused by the slash and burn techniques used to clear its ancient forests drift across into neighbouring countries, causing harm to human health and to the economy.

Indonesian environment policy is set out in the country’s Medium Term Development Plan (RPJM) for the period 2004 to 2009. It covers key climate policy issues such as improved air quality (especially in large cities) by means of environment-compatible transport policy, reduction of substances that harm the ozone layer, and adaptation measures to cope with climate change – these being designed to work alongside development measures.

Indonesia ratified the Kyoto Protocol in December 2004. Its DNA (National Committee for the Clean Development Mechanism, or NCCDM), was founded in 2005. The NCCDM has a well-structured website which among others things contains information on the project approval procedures, the project portfolio and the National Sustainable Development Criteria. Special rules apply to the energy sector and to afforestation and reforestation projects.

The greatest potential for CDM projects is seen in the geothermal sector, use of methane and industrial gases, fuel switch, combined heat and power, heat supply and afforestation/reforestation. Indonesia is the host country for Germany’s first registered CDM project, a solar cooker project.