H.E. Dr Mari Elka Pangestu's Presentation on High Level Seminar Project 2045
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H.E. Dr Mari Elka Pangestu, Former Minister of Trade and Former Minister of Tourism and Creative Economy of the Republic of Indonesia, delivered her presentation during the High Level Seminar Project 2045: The Path to Peaceful and Prosperous Indonesia and Japan 2045 held in Jakarta on 9 December 2018 by the Economic Research Institute for ASEAN and East Asia (ERIA) and UNDP Indonesia, under the funding of the Government of Japan.
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H.E. Dr Mari Elka Pangestu's Presentation on High Level Seminar Project 2045
- 1. Joint Partnership Towards High Quality of Life Achieving SDGs 2030 and beyond Joint Partnership Towards High Quality of Life: SDG 2030 and beyond Mari Pangestu December 9, 2018 High Level Seminar Project 2045: ‘The Path to Peaceful and Prosperous Indonesia and Japan 2045’
- 2. Achieving Sustainable Development (SDG) is not just economic benefit but achieves High Quality of Life and Happiness
- 3. From lofty goals to action and partnership • How Japan and Indonesian partnership achieve sustainable development in both countries: Goal 17: partnership to achieve goals • Highlight several areas of potential partnerships based on needs, complementarities, and capacity – some covered in Report and Panel – Not just bilateral but where Indonesia and Japan can show joint leadership/partnership
- 4. 1. High Quality of Life of People • People (poverty; decent work; quality education; health and well being; industry, innovation and infrastructure; and inequality) – Demographics and flow of people: • People to people: tourism, education, internships, exchanges • Shortage of workers, Japan more open to foreign workers • Japan aging and Indonesia demographic dividend: how aged population will continue to be productive (not a burden), care workers and potential of silver hair tourism
- 5. 1. High Quality of Life of People • People (poverty; decent work; quality education; health and well being; industry, innovation and infrastructure; and inequality) – Trade and investment, technological disruption and changing GVCs, including services – where is Indonesia’s place in the GVC that is complementary to Japan. • Technology is cross cutting • Innovation and creative economy: cooperation in R&D, various creative industries (design, film& music), education and training • Greater uncertainty in trade environment: – Complete IJEPA review, strengthen economic integration (RCEP and other), WTO reforms which will be Japan’s G20 agenda – qithin IJEPA review – industrial cooperation – innovation, industry
- 6. 2. Climate change, sustainable infrastructure • Sustainable infrastructure: is an urgent issue, infrastructure needed for development (top 5 GDP), How to build and same time achieve sustainability, accessibility and affordability (clean and affordable energy access, sanitation and water, sustainable and smart cities, and resilience towards disaster) • Bappenas low carbon development initiative • Japan pre 2011 champion climate change, after Fukushima disaster increased fossil fuel and coal use, recently change of tune. • How to develop quality and sustainable infrastructure built into the projects in country and in undertaking development cooperation? Recent signing with China on joint infrastructure development (open, transparent, sustainable, not lead to debt problems and fiscal sustainability) • Policy drivers, incentives vs disincentives, pressure from investors, financing, shareholders, consumers and employees
- 7. Indonesia Emission Baseline: 2000-2030 (Thousands of Ton CO2e)* 7 (*) Source: BAPPENAS Energy and Transportation Waste Peat decomposition Indonesia is 8th among all countries in the World in total GHG emissions IPPU1 AFOLU2 (no Peat) Peat fire
- 8. Initial Findings: LCDI Leadership Report 8 TotalGDPGrowthRate: WithLowCarbonInterventions (GreenEconomy–GE) Source: NCE-LCDII and BAPPENAS Environment Directorate, based on results from Indonesia Vision 2045 Model
- 9. 9 Initial Findings: IISD Thematic Study Cost comparison for electricity production sources in Indonesia, 2018 Note: Figure ES1 presents a summary of the costs, subsidies and externalities associated with electricity generation. Data is presented for the most recent year available which in most cases is 2017. Where data for 2017 is not available, extrapolation of recent source has been used to establish an estimate.
- 10. 3. Keidanren: Society 5.0, Greater Diversity and more agile • Gender equality: New job creation: women and part time (part of Abe’s womanomics) – how significant? Gender equality (51 to 52% compared to 80 percent pay difference) – but a start • Changing structures of Japanese organizations and companies, opportunities and challenges
Hinweis der Redaktion
- Indonesia will be able to sustain historical GDP growth rates of over 5% over the medium term. However, a continuation of the current growth paradigm will result in a slow down in the rate of progress as the country is affected by negative externalities associated to a high carbon path (Which affect human capital) and are limited by the country’s carrying capacity The Low Carbon Development Scenario yields a growth path that is superior to the baseline even if the latter were not limited by externalities and a resource constraint
- As can see here, the latest 2018 international benchmark prices for wind and solar are now cheaper than coal or gas in Indonesia. Based on just the direct costs. Indonesia is a bit of an outlier in terms of the high costs of generation from renewables, particularly for solar and wind. As these start to reach economies of scale, the deployment costs of these technologies will rapidly come down in Indonesia as well. Once the costs of air pollution to the Indonesian public are considered, coal is no longer cheaper than renewables in Indonesia – with just the costs of mortality, they are approaching the PPA price for renewables, and if we were able to add the costs of morbidity, coal would be more costly. Once the global costs of GHG emissions are also included, coal is by far the most expensive fuel choice