Activities for Indonesia

As part of the 2nd Indonesia-Japan Environment Week held in Jakarta, Indonesia, a session titled “Enhancing the Competitiveness of Industries through Visualization of GHG Emissions throughout the Supply Chain” was held.

This session was organized to share the latest trends regarding greenhouse gas (GHG) emissions calculation and reporting systems, as well as the disclosure of climate change-related information in Indonesia and Japan; to identify challenges in ensuring consistency between these systems and reducing the burden on companies; and to discuss practical measures, including the utilization of technologies and platforms developed by the private sector.

This session was organized to share the latest trends regarding greenhouse gas (GHG) emissions calculation and reporting systems, as well as the disclosure of climate change-related information in Indonesia and Japan; to identify challenges in ensuring consistency between these systems and reducing the burden on companies; and to discuss practical measures, including the utilization of technologies and platforms developed by the private sector.

In the keynote speech, it was noted that against the background of strengthening international regulations on transparency (such as IFRS and CBAM), Indonesia is also making progress in establishing a carbon registry system and an emissions trading platform. The speaker also highlighted challenges such as data management capabilities, the difficulty of quantifying Scope 3 emissions, and insufficient verification systems particularly among small and medium-sized enterprises (SMEs). Looking ahead, expectations were raised for the expansion of green finance and the improvement of market competitiveness for low-carbon products through proper system operation and the development of digital infrastructure, as well as for Indonesia’s development as a hub for the low-carbon economy within ASEAN.

During the panel discussion, various stakeholders, including government officials from Japan and Indonesia, World Bank, PT Perusahaan Listrik Negara (Persero), Zeroboard Inc., and SDG Impact Japan Inc., exchanged views on efforts to improve transparency regarding climate change, as well as the “harmonization” of its frameworks. Moreover, explanations of the progress in establishing ameasurement, reporting, and verification (MRV) system in Indonesia, “PaSTI,” an initiative established by MOEJ, and trends in carbon pricing by the World Bank were introduced. Representatives from the Indonesian state-owned power company and Japanese private companies shared insights on the benefits of secure funding associated with decarbonization and information disclosure.
As an example of future initiatives, an official from KLH highlighted the lack of standardized metrics and emission factors across Indonesian government agencies as the most significant challenge. The official emphasized the need to develop a dataset that allows a single report to meet multiple regulatory requirements, as well as the necessity of dialogue with relevant agencies and companies. On the other hand, representatives from participating companies noted that when diverse ESG requirements and domestic frameworks are inconsistent with international standards, it creates a double burden of repeating similar data reporting and calculations, which can lead to a decline in international competitiveness. They emphasized the need to ensure alignment with international standards.

Environmental Week website：
The 2nd INDONESIA-JAPAN ENVIRONMENT WEEK | Japan Platform for Redesign: Sustainable Infrastructure (JPRSI)

Session Information：
The 2nd INDONESIA-JAPAN ENVIRONMENT WEEK: Session 2

On July 9th and 10th of 2019, fifteen representatives composed of Indonesian line ministries including the Ministry of National Development Planning (BAPPENAS) and private organizations participated to a technical training in Tokyo, Japan.

This training was aimed at capacity building for developing integrated reporting system and incentive scheme, which is under consideration in the PaSTI-Indonesia Project, by introducing Measurement, Reporting, and Verification (MRV) system and climate change actions by private companies in Japan.

The Ministry of the Environment, Japan (MOEJ) and the Ministry of National Development Planning, the Republic of Indonesia (BAPPENAS) organized an international workshop on February 26th, 2019 in Jakarta, Indonesia.

This event was aimed at providing a roadmap of the PaSTI-Indonesia project to the participants from the line ministries of Indonesia, academic institutions, media, private sector and related international organizations in line with outcomes from the inter-ministerial discussions, or “Focus Group Discussions (FGDs)”, carried out prior to this workshop.

In the workshop, global actions in transparency under the Paris Agreement were also presented.

Ms. Masako Ogawa, Director for International Strategy on Climate Change, Global Environment Bureau, MOEJ provided her presentation on Japanese experiences in climate change countermeasures including Energy Conservation Act, Act on Promotion of Global Warming Countermeasures, Mandatory Greenhouse Gas Accounting, Reporting and Disclosure Program, and programmes to support private companies’ participation in climate change actions.

Ms. Yamide Dagnet, Senior Associate, World Resources Institute (WRI) shared the global context under the Paris Agreement. She considered it is essential for Indonesia to involve international activities such as PaSTI and engagements of financial sector in order to meet the global requirements.

Science Based Targets (SBT) and CDP as global initiatives led by non-state actors were also introduced. It was emphasized that private companies can obtain opportunities to attract investors and appeal to consumers by disclosing their climate-related information.

In the PaSTI-Indonesia Project, consideration of integrated reporting system and incentive scheme for private sector is highlighted. In order to exchange views on possible ways of streamlining existing reporting platforms and involving the private sector, a series of inter-ministerial discussions called “Focus Group Discussions (FGDs)” was conducted.

Relevant line ministries including the Ministry of National Development Planning (BAPPENAS), the Ministry of Forestry and Environment, the Ministry of Industry, the Ministry of Energy and Mineral Resources, the Financial Services Authority, and relevant private organizations such as Indonesia Business Council for Sustainable Development actively participated in the FGDs.

On September 26th, 2018, the Ministry of the Environment, Japan (MOEJ) and the Ministry of National Development Planning, the Republic of Indonesia (BAPPENAS) have signed the Letter of Intent (LoI). The objective is to develop Indonesia’s capacity for improving monitoring, evaluation and reporting of GHG emission and identifying potential and opportunities of mitigation actions by private sector with focusing on energy usage in industrial sector in Indonesia.