SUSTAINABLE DEVELOPMENT Dr. Fani Cahyandito

SUSTAINABLE DEVELOPMENT IN INDONESIA STRUCTURE INTRODUCTION SUSTAINABLE DEVELOPMENT IN INDONESIA FOUR PILLARS OF SUSTAINABLE DEVELOPMENT PROBLEM OF THE IMPLEMENTATION OF SUSTAINABLE DEVELOPMENT IN INDONESIA

INTRODUCTION Traditional development issues such as economic stagnation, persistent poverty as well as newer challenges such as worsening environmental degradation and accelerating globalisation demand attention. One key approach that has received growing attention is based on the concept of sustainable development or ‘development which lasts’ (WCED, 1987). No universally acceptable practical definition of sustainable development exists as yet.

DEFINITION OF SUSTAINABLE DEVELOPMENT INTRODUCTION DEFINITION OF SUSTAINABLE DEVELOPMENT Dr. Emil Salim, The challenge of sustainable consumption as seen from the South. In Symposium: Sustainable Consumption. Oslo, Norway; 19-20 January 1994. "Sustainable consumption implies that the consumption of current generations as well as future generations improves in quality. Such a concept of consumption requires the optimalisation of consumption subject to maintaining services and quality of resources and the environment over time." Paul Hawken, The Ecology of Commerce “Sustainability is an economic state where the demands placed upon the environment by people and commerce can be met without reducing the capacity of the environment to provide for future generations. It can also be expressed in the simple terms of an economic golden rule for the restorative economy: Leave the world better than you found it, take no more than you need, try not to harm life or the environment, make amends if you do.” International Institute for Sustainable Development “Sustainability is to leave future generations as many opportunities as, if not more than, we have had ourselves."

DEFINITION OF SUSTAINABLE DEVELOPMENT INTRODUCTION DEFINITION OF SUSTAINABLE DEVELOPMENT Renn, O.: Ein regionales Konzept qualitativen Wachstums, Stuttgart 1994, p. 37 Eine nachhaltige, auf Dauer angelegte wirtschaftliche und soziale Entwicklung bedeutet, dass die natürliche Umwelt und der damit verbundene Kapitalstock an natürlichen Ressourcen so weit erhalten werden muss, dass die Lebensqualität zukünftiger Generationen gewährleistet bleibt. Grossmann, W.D.: Nachhaltige Wirtschaftweise und physische Ökonomie. In: Politische Ökonomie, Sonderheft 1. München 1990, p. 55 Statisch: Nur so viel Holz wird aus den Wäldern entnommen, wie zur Erhaltung der Wuchskraft des Bodens als Voraussetzung für das Forstbestehen des Waldes notwendig ist. Dynamisch: Erhaltung der Funktionsfähigkeit und vor allem der Widerstandsfähigkeit des Waldes auch gegenüber neuen und unvorgesehenen Entwicklungen. Food Agriculture Organization (FAO), zitiert in: Vornholz, G.: Zur Konzeption einer ökologisch tragfähigen Entwicklung, Marburg, 1993, p.118 Nachhaltige Entwicklung heißt Management und Bewahrung der Grundlagen natürlicher Ressourcen und die Ausrichtung des technischen und institutionellen Wandels and der dauerhaften Befriedigung menschlicher Bedürfnisse in Gegenwart und Zukunft. Eine solche nachhaltige Entwicklung (in Land, Forst- und Fischereiwirtschaft) erhält die Regenerations-fähigkeit von Boden, Wasser, Pflanzen und Tieren, verhindert Umweltzerstörung, verfügt über geeignete Technik, ist ökonomisch gangbar und sozial verträglich. Rees, W.E.: Planning for sustainable development: a resource book, Vancouver 1988. Zitiert nach Vornholz, G.: Zur Konzeption einer ökologisch tragfähigen Entwicklung, Marburg, 1993, p. 118 Nachhaltige Entwicklung stellt einen positiven sozioökonomischen Wandel dar, der die für Gemeinden und Gesellschaft notwendigen ökologischen und sozialen Systeme nicht untergräbt. Die erfolgreiche Umsetzung erfordert eine integrierte Strategie von Politik, Planung und sozialen Lernprozessen; die politische Umsetzung hängt von der vollständigen Unterstützung durch die Bevölkerung, also durch ihre Regierungen, sozialen Institutionen und privaten Handlungen ab. Busch-Lüty, C.: Nachhaltigkeit als Leitbild des Wirtschafttens. In: Politische Ökologie, Sonderheft 4/1992, p.8 Nachhaltige Entwicklung bedeutet den langfristigen und umfassenden Substanzerhalt der natürlichen Produktionspotenziale und zwar quantitativ und qualitativ. Source: Müller-Christ: Nachhaltiges Ressourcenmanagement, 2001

INTRODUCTION “Sustainable development is defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED 1987) The fulfillment of recent generation needs without sacrificing the future generation needs: The natural resource exploitation in an efficient and wise manner, to maintain the environmental carrying capacity for supporting the development and human quality. Development is executed in well planned, rational, optimal, responsible and it gives a great concern on environmental conservation.

Sustainable development has to fulfill three prerequisites: INTRODUCTION INTRODUCTION Sustainable development has to fulfill three prerequisites: ECONOMIC ENVIRON-MENTAL SOCIAL

INTRODUCTION INTRODUCTION ENVIRONMENTAL SOCIAL ECONOMIC

INTRODUCTION INTRODUCTION The economy is geared mainly towards improving human welfare, primarily through increases in the consumption of goods and services. The environmental domain focuses on protection of the integrity and resilience of ecological systems. The social domain emphasises the enrichment of human relationships and achievement of individual and group aspirations. Recent work has sought to analyse these economic, social, and environmental dimensions in a balanced manner.

INTRODUCTION Sustainable development is also valuable in term of economy, moral and ecology. Moral responsibility, which is a responsibility to the future generation with managing natural resources efficiently. Ecological value: connected with human toleration to other creatures, means that increasing human welfare without endangered other creatures’ life. Thus it will keep the stability and integrity of the ecosystem.

SUSTAINABLE DEV. IN INDONESIA Indonesia is committed to sustainable development. Indonesia launched its National Agenda 21 which provides references to mainstream sustainable development principles into the National Development Planning. In 2000, Indonesia released the Sectoral Agenda 21 covering mining, energy, tourism, human settlements, and forestry.

The Law No. 22/1999 on Regional Governance. SUSTAINABLE DEVELOPMENT IN INDONESIA Some efforts have been made and regulations are being formulated to address the sustainable development, such as: Ratification of many bilateral and multilateral environmental agreements The Law No. 22/1999 on Regional Governance. The on-going process to establish the National Council for Sustainable Development (NCSD).

FOUR PILLARS OF SUSTAINABLE DEVELOPMENT Swaminathan (2002) – sustainable development rests on four pillars which are: PRO-ENVIRONMENT PRO-POOR PRO-WOMEN PRO-LIVELIHOOD OPPORTUNITIES (JOB-LED) Using the four pillars also sets the stage to measure the progress of SD – since each of the pillar can be measured quantitatively.

FOUR PILLARS OF SUSTAINABLE DEVELOPMENT 1. PRO-ENVIRONMENT Pro-environment i.e. the degree by which development activities impact on environment. “The lower degree of negative impacts and higher degree of the positive ones, the more pro-environment development is”

Kebakaran tangki minyak bumi di LNG Badak, Kalimantan Timur (Sumber:Tempo).

FOUR PILLARS OF SUSTAINABLE DEVELOPMENT 2. PRO-POOR Pro-poor can be measured by the Human Development Index (HDI) or by the Human Poverty Index (HPI). The HDI is a measure of achievement of the most basic human capabilities, i.e. life expectancy, educational attainment and income (UNDP, 1999).

“The lower the percentage of HPI, the lesser poverty prevails” FOUR PILLARS OF SUSTAINABLE DEVELOPMENT HPI is a measure of poverty indicating deprivation in four basic dimensions of human life: a long and healthy life  % of people likely to die before the age of 60 knowledge  % of people whose ability to read and write is far from adequate economic provisioning  proportion of the population with disposable incomes of less than 50% of the medium social inclusion  proportion of long term unemployed (12 months of more) “The lower the percentage of HPI, the lesser poverty prevails”

mortality rate dropped FOUR PILLARS OF SUSTAINABLE DEVELOPMENT PRO-POOR: HEALTH Between 1960-1999, infant mortality rate dropped from 159 to 48 per thousand live birth (BPS et al., 2001) Year 1960 1970 1980 1990 2000 2002 Infant mortality rate (per 1000 live births) 128 104 79.0 60.0 35.0 32.0 Source: Globalis Indonesia

Life expectancy increased from 41 years in FOUR PILLARS OF SUSTAINABLE DEVELOPMENT PRO-POOR: HEALTH Life expectancy increased from 41 years in 1960 to 66 years in 1999 (BPS et al., 2001) 2000: 67.96 2001: 68.27 2002: 68.63 2003: 68.94 2004: 69.26 2005: 69.57 Source: CIA World Factbook

PRO-POOR: HEALTH FOUR PILLARS OF SUSTAINABLE DEVELOPMENT Another issue is the increasing cases of health problems, related to environmental pollution such respiratory tract infections due to air pollution in the cities and due to haze produced seasonally by forest and land fires.

SUSTAINABLE DEVELOPMENT FOUR PILLARS OF SUSTAINABLE DEVELOPMENT (Kayu gelondongan selundupan eks MV. Kum Jin Gang yang ada di Basis TNI-AL, Surabaya, Jawa Timur. [Citrawijaya Lim; 20040331].) (Penduduk menanam benih di antara lahan hutan yang tersisa dari kebakaran. [TEMPO/ Junaini KS; 39c/056/89; 20000618])

PRO-POOR: EDUCATION FOUR PILLARS OF SUSTAINABLE DEVELOPMENT Indonesia has made significant progress in advancing education as indicated by increasing adult literacy rate from 39% in 1960 to 88% in 1999 (BPS et al., 2001). The number of illiterate (> 15 years old) in 2003 is 10.2 % (15.4 million). The population above 10 years old who passed junior high school, i.e. from 32.2% in 1999 to 33.6% in 2000. This is an increase of 0.1 – 0.6% compared to 1999 (SUSENAS, 2000).

PRO-POOR: EDUCATION FOUR PILLARS OF SUSTAINABLE DEVELOPMENT 81 86 39 88 10 20 30 40 50 60 70 80 90 100 1990 1995 1999 Source: based on BPS et.al., 2001 1960 Adult Literacy Rate in Indonesia (The proportion of People over the Age of 15 who can Read and Write) 2002: 87.9 (Source: UNDP), 2000-2004: 98

PRO-POOR: EDUCATION FOUR PILLARS OF SUSTAINABLE DEVELOPMENT Despite the achievement, there are several problems in education sector: The dropout rate at primary and secondary levels was 3.4%. 19.3% of all students would not be able to continue their education to a higher level (SUSENAS, 2000). Teaching quality is relatively low.

PRO-POOR: ECONOMIC CONDITION FOUR PILLARS OF SUSTAINABLE DEVELOPMENT PRO-POOR: ECONOMIC CONDITION Per-capita income 1996: US $ 1,153/cap/year – lower middle income (~ Rp. 10.953.500). During the economic crisis 1998: below US$ 750/cap/year – low income (~ Rp. 7.125.000). 2003: US $ 1000/cap/year – lower middle income (~ Rp. 9.500.000). During the crisis, the gap between the rich and the poor widened, due to unemployment, lack of access to adequate food and basic social services, inequities in distribution of wealth and access to resources.

POVERTY FOUR PILLARS OF SUSTAINABLE DEVELOPMENT 24.2% of the Indonesian population or 49.5 million people were living in poverty in 1998; Reduced to about 38.4 million people or 18.2% of the population in 2000. And in 2004 reduced to about 36.1 million or 16.7% of the total population. Problem: increasing unemployment rate. The unemployment following the crisis was 5.5% in 1998 which increased to 9.4% in 2004.

POVERTY FOUR PILLARS OF SUSTAINABLE DEVELOPMENT Indonesia is facing housing shortage in terms of both quantity and quality, particularly for the urban poor. In 2000, about 25% household in Indonesia live in house below the ideal size (WHO) of 10 m2 per person.

SUSTAINABLE DEVELOPMENT FOUR PILLARS OF SUSTAINABLE DEVELOPMENT Position of Human Development Index in 2004 from 175 countries: Indonesia - # 111 Malaysia - # 59 Thailand - # 76 Philippines - # 83 Vietnam - # 112 UNDP says in 2006 #108 among 177 countries.

3. PRO-WOMEN FOUR PILLARS OF SUSTAINABLE DEVELOPMENT Pro-women or pro-gender can be measured by the gender related development index (GDI) and the gender empowerment measure (GEM). GDI is the same as HDI, but adjusted for gender inequality. The closer the GDI value is to HDI, the less gender disparity exists. GEM measures gender inequality in key areas of economic and political participation and decision making (UNDP, 1999).

4. PRO-LIVELIHOOD FOUR PILLARS OF SUSTAINABLE DEVELOPMENT Pro-livelihood opportunities can be shown by the conventional method of the number of jobs created per investment. Experience has shown that only those get measured, get done. The four pillars have the dual role of guiding principle and driving force to get sustainable development beyond rhetoric and to get into the realm of implementation.

PROBLEM IN IMPLEMENTING SUST. DEV. IN INDONESIA Like many other countries, particularly developing countries, Indonesia faces many constraints in the implementation of Agenda 21 and national sustainable development (national and international constraints), such as: The lack of clean, accountable, representative & democratic governance. Inadequate public consultation coupled with emphasis on boosting economic growth has resulted in policies that often do not support sustainable development.

PROBLEM IN IMPLEMENTING SUST. DEV. IN INDONESIA There is an almost general lack of awareness about Agenda 21 and sustainable development among government officials, cooperation even academician. Inadequate political will, institutional capacity and law enforcement Inadequate provision for the involvement of major group Inadequate financial, technological and human resources etc.

INDONESIA Total population: 219,883,000 GDP per capita (Intl $, 2002): 3,390 Life expectancy at birth m/f (years): 65.0/68.0 Healthy life expectancy at birth m/f (years, 2002): 57.4/58.9 Child mortality m/f (per 1000): 45/37 Adult mortality m/f (per 1000): 241/204 Total health expenditure per capita (Intl $, 2002): 110 Total health expenditure as % of GDP (2002): 3.2