Perencanaan dan kebijakan investasi hijau Indonesia: mendukung
Transcription
Perencanaan dan kebijakan investasi hijau Indonesia: mendukung
Ministry of Finance Republic of Indonesia Integrating Poverty-Environment-Climate in Budgeting (Indonesia case) Adi Nugroho Dwiutomo Deputy Director for State Budget Expenditure DG Budget – Ministry of Finance Poverty and Environmental Initiative (PEI) Asia Pasific Regional Meeting Dhaka, 2 June 2016 Outline Click to edit Master title style A Background PEI Indonesia B The Role of Ministry of Finance in Sustainable Development C Integrating Poverty-Environment-Climate into Budgeting, Approach and Tools D Challenges and the Way Forward A. Background Click to edit PEI Master Indonesiatitle style A B C D • PEI Indonesia operationalized under SDF(Sustainable Development Financing) Project • SDF project document signed in October 2014 • Environmental issues as an entry point as Indonesia’s development challanges • Environmental activities is limited to Climate change and biodiversity • PEI Indonesia collaboration with SIDA and BIOFIN Indonesia’s toward sustainable development Click challenges to edit Master title style Indonesia’s GHG emission is predicted to increase from 2.1 to 3.3 GtCO2e between 2005 and 2030 (Second National Communication, 2010) 3 Indonesia’s Action Plan CC Mitigation Indonesia is vulnerable to changing CC Adaptation climate. Potential economic loss due to climate change and climate disaster in 2100 is predicted 7% from GDP (WB,2010, ADB,2010) Indonesia is Mega-biodiversity country. Biodiversity is national capital asset, but the full potential is undervalued and it is decreasing (MoEF, 2014) Biodiversity The three action plans have not yet translated to budget documents at national and subnational level. No mechanism in place to monitor the budget allocation and tracking Limited fiscal instrument to support actions. Click to edit Master title style B. The Role of Ministry of Finance in Sustainable Development Fiscal Policies Revenue Policies Expenditure Policies Financing Support Domestic Resource mobilization Fiscal incentives and disincentives policies for strategic sectors Budget optimization Budget reallocation to productive spending Targeted spending Direct investment Government facility or risk guarantee Public private partnership SDF Contribution Pathway towards sustainable development Human Development High quality education, linkages between education and industrial needs, vocational education, innovation and productivity enhancement Sustainable Natural Resource Management Downstream Industries, fisheries, agriculture Inclusive Growth Investment Climate Macroeconomic Stability Poverty Alleviation Social protection Financial inclusion Public and private partnership, Connectivity, Logistic, Technology Sustainable growth Prudent fiscal and monetary policy, Incentives mechanism, purchasing power Indonesia Planning and Budgeting System President Platform SDF Contribution 5 Yr Mid-term National Development Planning LM/A Strategic Plan 1 Yr Government Work Plan LM/A Work Plan 1 Yr State Budget Budget Document Presidential Decree on Budget Detail Budget Execution Document 6 Indonesia Planning and Budgeting System Trilateral Meeting Cabinet Meeting Preliminary discussion Process Cabinet Meeting Indicative Ceiling CCM Temporary Ceiling RKA-KL Budget Committee LM/A WP GWP CCM CCM Commission Cabinet Meeting CCM FN Budget Law Assessment Forum Draft Budget Law RKA-KL compilation K/L CCM Budget doc assessment RKA-KL adjustment CCM Presidential Decree Commission CCM Draft State Budget Agreement Definitive Ceiling LM/A DIPA LM/A Climate Change Mitigation 7 Poverty and Climate Change Related Program in Indonesia’s Development Planning Click to edit Master title style Strategy Targets Poverty Comprehensive social protection program Sustainable livelihood development Basic service provision for poor Decrease in poverty rate Decrease in gini ratio Decrease in unemployment rate Climate Change Level of Greenhouse Eco friendly emissions reduction in 5 agriculture activity, priority sectors (forestry, renewable energy agriculture, energy, utilization, domestic transportation, and waste) waste management Number of vulnerable areas Private and people which increase in resilience contribution for GHG of people caused by CC and emission CC fiscal insentives the National Action Plan for Optimizing the CC Adaptation. implementation of implementation RAN API Mid Term Target 2016 Target 7-8 % 0,36 4 - 5% 9-10 % 0,39 5,2 5,5% 26% 19,1% 15 areas 4 areas RESULT AT NATIONAL LEVEL : 2014 – 2015 Increase in Climate Change Responsive Budget Allocation Click to edit Master title style *The calculation includes budget allocation associated with mitigation and adaptation of Climate Change, including on forestry, environment, and renewable energy sectors. Source: Website DG Budget, Ministry of Finance AT SUB NATIONAL LEVEL : Climate Public Expenditure Review Increase in Climate Change Responsive Budget Allocation Click to edit Master title style Jambi Province DI Yogyakarta Province Central Java Province Finding: No system in place to monitor and track the CC expenditure. Climate Expenditure Review was done manually. Sub-National Financial system is different with National. Click to edit Master title style Bangka Belitung - Mitigation Public Expenditure (Billion Rupiah)7.4 7 6.5 Mitigasi 6 5.3 5 Forestry and Peatland 4 Agriculture 3 Waste 2 1 0.9 0.3 0.3 0.1 Total Mitigasi 0.7 0.5 0 2012 2013 2014 (Bangka Belitung, Adaptation Public Expenditure (Billion Rupiah) 88.7 90.0 80.0 Economy Security 65.8 70.0 64.7 Social and livelihood Security 60.0 50.0 40.0 43.6 Ecosystem security 35.7 Special District Security 30.0 21.319.2 20.0 10.0 5.7 1.0 0.5 0.4 10.9 6.7 4.1 1.4 11.7 6.5 6.0 Total Adaptation 2012 2013 Supporting System 2014 Indonesia’s Actions towards Sustainable Development PRO POOR AND GREEN PLANNING BUDGETING PERFORMANCE-BASED BUDGETING BUDGET TAGGING: Tracking climate change-related budget Prioritization of climate activity based on costeffectiveness including poverty and gender benefits. Monitoring effectiveness & efficiency of expenditure. Enhance Coordination NationalSubNational Issuance of fiscal policies, and mechanisms for financing prioritized and effective pro-poor and climate change activities Pro Poor Priorities: • • • Social assistance Basic services Develop social liveihood CC Priorities: • • • • • • Forestry, Peat-land & Marine Resources protection Agriculture and Irrigation system rehabilitation Energy and Industry Public Transport, Urban & Regional Infrastructure Education and Health Disaster Management Click to edit Master title style SDF approach and tools • Climate Public Expenditure and Institutional Review (CPEIR), CPEIR at national level combine with cost benefit analysis MFF Mitigation Fiscal Framework. CPEIR Subnational : Bangka Belitung and NTT • Climate Public Expenditure Review (CPER), CPER Subnational : Jambi, DI Yogyakarta, Central Java • Institutional Context Analysis (ICA), in Bangka Belitung • Gender Poverty Analysis (GPA), in Bangka Belitung • Vulnerability Assessment (VA), in Bangka Belitung • Climate budget tagging at national level : 6 line ministries (Min. Environment and Forestry, Min. Agriculture, Min. Industry, Min.Energy Minreal Resources, Min.Public Work, Min.Transportation) 2014 Budget Tagging Aplication System embeded to State Financial System Click to edit Master title style BUDGET TRACKING REGULATION Ministry of Finance Regulation No. 136/2014 regulates line ministries to tag activities/ output spending related with climate change through the budget system. 2015 Budget Tagging Integrated to Performance Based Budgeting System through ADIK Aplication Click to edit Master title style MDGs Achievement 14 off track I. Goal 1 a. Poverty b. Caloric intake II. Goal 4 a. infant mortality rate b. Children mortality rate III. Goal 5 a. Maternal mortality rate IV. Goal 6 a. HIV and AIDS V. Goal 7 a. CO2 Emission b. Drinking water c. Sanitation in rural area VI. Goal 8 a. Export import ration to GDP 36 on track Mapping to SDG indicator 13 achieved I. II. III. IV. V. VI. VII. VIII. IX. X. Goal 1 (Poverty) Goal 2 (Starving Goal 3 (Health) Goal 3 (Health) Goal 3 (Health) Goal 3 (Health) Goal 7 (Energy) Goal 6 (Water and Sanitation) Goal 6 (Water and Sanitation) Goal 17 (Means of Implementation) Some of indicator has already stated in Mid Term Development Planning Improvement on budget tagging can improve the information related to indicator achievement Click to edit Master title style D. Challenges and The Way Forward The Challenges of Implementation both at National and SubNational level • Inter-ministerial coordination among the key Ministries (MoF, Bappenas, MoHA, MoEF) • Improving capacity and compliance of line ministries • M & E of the implementation of budget tagging • The critical step for performance-based budgeting systems is to improve indicators which reflect long term economic results as an implications of climate change and environmental degradation Click to edit Master title style Ministry of Finance Republic of Indonesia Thank you