Environmental Issues in Indonesia #Environment #Indonesia
When considering some of the most
pressing issues in the world, one is presented with many cases of monetary
profits versus environmental betterment.
Indonesia is a prime example of this, with its promising natural ecosystem
being sacrificed for the bottom line of economic gains. However, as we will explore, this pattern is
not sustainable and is likely to slow-if not reverse-the benefits of increased
profits. By shifting focus towards a
monetary system in harmony with nature, many lives can be altered for the
better.
Indonesia’s economy has been making
significant progress compared to neighboring nations; however, there is ample
room for improvement. Its current credit
rating is a BBB-, but foreign debt is 29 percent of
GDP. In terms of economic progress,
Indonesia is doing well, Gross domestic product increased 6.23 percent in 2012
and has risen by an average of 5.74 percent over the last 10 years (1). These are drastic changes from where the
nation used to be. In 1997-98, the
economy crashed when vast amounts of outflowing capital drastically eroded the
value of their native currency, the rupiah.
It was the hardest nation hit by the Asian financial crisis of ‘97-‘98. Although in 2011, Indonesia regained its
investment-grade credit rating it lost in ’97; as of 2012, approximately
11.7% of the population lived below the poverty line and the official open
unemployment rate was 6.1% (2).
Indonesia’s environment, primarily threatened
by deforestation along with the fossil fuel and tourism industries, has not
been progressing as well as the economy.
The large-scale destruction of peatlands, which trap carbon dioxide, is
a key reason why Indonesia is the world’s third largest polluter, after China
and the United States. As arid
conditions in the soil and deforestation persist, forests and peatlands across
Indonesia are subject to more frequent and intense wildfires. The smog resulting from these fires is a big
problem in western Indonesia, Malaysia and Singapore (2). When analyzing the industries which are most
responsible for this environmental decline, the palm oil industry tops the
list. It single-handedly has cleared 18
million hectares of native forest for palm oil expansion (2).
Palm oil, rampant in processed
foods, can generate a lot of wealth to nations that produce it. However, if the environment isn’t taken into
consideration, there is no telling how far it will be exploited for the
generation of wealth. In a 2011 the
World Growth Foundation released a report against halting the conversion of
forests to palm oil plantations. The
report cited “Restrictions on the
conversion
of forest area will negatively impact economic growth and food security in Indonesia
and directly impact those living in poverty (3). It fails to mention the threat which a
deteriorating environment and planting large swaths of one crop (monocropping)
pose to food security. If for, example,
a pest affecting palm plants were present in the area of a plantation,
virtually the whole plantation would be destroyed. In a
2012 paper published in Biological Reviews
titled “Meeting the demand for crop
production: the challenge of yield decline in crops grown in short rotations”,
a comparison between monocropping and crop rotation are made: “Crop rotation,
the practice of changing what is planted in a particular location on a farm
from year to year, improves soil health and quality, and generally increases
yields; while monocropping has been implicated in declines in crop yield and
loss of nutrients from the soil (4).
If the destruction of Indonesia’s native forests is to be
halted, it must be done from a change in values and laws. Currently, the economic benefits of palm oil
clearly take precedence over conservation efforts. The free reign given to businesses developing
palm oil plantations stems from “cheap labor, low-priced land, a lack of effective
environmental controls, easy availability of finance and support, and a short
growth cycle”; Orangutan Foundation International notes (5). Holding forests as
essential resources prohibited from exploitation would result in a regeneration
of the natural ecosystem and the biodiversity which depends on it. One way to reverse this cycle is to have an
economic incentive for corporations to work with rather than against the
environment. The government, for
example, could lower taxes, or provide a stipend to businesses. As palm oil and paper producers decrease the
amount of land used, the benefits to them would increase. This could lessen the amount of deforestation
without sacrificing profits.
Indonesia’s
potential for renewable energy sources is huge.
The combined benefits of using solar and geothermal energy on a large
scale have been estimated to provide a total of around 29,000 megawatts in some
areas. Unfortunately, current laws
hinder these developments from taking off.
Rida
Mulyana, the director general of new and renewable energy at the Energy and
Mineral Resources Ministry said “Without a legal breakthrough, much of the
geothermal reserves cannot be developed because they contravene the Forestry
Law” (6). Chapter II, Article 8 of
Indonesian Forestry Law, states that the government shall determine specially
designated forest area, listing one category as “research and development” (7). By recognizing the building of renewable
energy systems as a necessary task, less forest area would be cleared for the
palm oil and paper industries, allowing for more wind, solar and geothermal
sources.
One of the problems facing Indonesia is a depletion of
the non-renewable resources it uses extensively. In a review by the National Energy Council
(DEN), the nation currently uses oil to meet 44 percent of its energy needs,
with gas and coal accounting for 23 and 27 percent respectively. Only 6 percent of Indonesia’s energy demands
come from renewable sources. This trend
cannot continue as DEN estimates Indonesia will run out of oil, gas and coal in
10, 30 and 80 years respectively. These
goals are currently being addressed by striving for at least 30 percent of
total energy needs by 2050 (8). Indonesia’s
Ministry for Energy and Mineral
Resources decreased the country’s Geothermal potential from 28.1 to 27 GW. This equates to 12 billion barrels of oil;
nearly double Indonesia’s current oil reserves of 6.4 million barrels. Despite this opportunity, only 1.2 GW (4
percent) of geothermal reserves have been tapped into (8). As domestic reserves of oil, gas and coal
wither, renewable sources like geothermal should be brought to the center of
Indonesia’s energy policy.
Enforcing existing Indonesian law can go a long way to
curb rapid deforestation. A report
released by the World Wildlife Foundation estimates 80% of all activities in
the timber sector to be illegal (9). One
way to curb this disturbing trend is by placing more species of timber on Appendix
III of the Convention on International Trade in Endangered Species
(CITES). This occurred in 2001 when
ramin, a valuable light hardwood species went on Appendix III of CITES with a
zero quota. Indonesia also sought
international support when trying to enforce this (10). Upholding protective laws such as this
requires tightening regulations on businesses, cherishing the inherent value of
biodiversity and reaching out to the international community.
International support can go a long way in boosting
conservation efforts in nations like Indonesia, where the profit motive is too
often placed above environmental concerns.
A key example of this is in 2009, when the US sought to forgive nearly
$30,000,000 in Indonesian debt in exchange for the latter to ramp up
environmental protections. Indonesia
promised to protect Sumatra Island, where endangered species of rhino, tiger,
orangutan and elephant exist. According
to the Wall Street Journal, “The deal
is the largest so-called debt-for-nature swap the US has ever engaged in under
the US Tropical Forest Conservation Act and its first such pact with Indonesia,
which has one of the fastest rates of deforestation in the world, losing an
area of forest the size of Switzerland annually” (11).
There is a debate among Indonesians about whether the
economy or environment should be the top priority. According to a 2009 Pew research poll, 47%
believe the environment should come first while 50% disagree (12). For conservation efforts to persist and
thrive, the public must be adequately informed about the benefits nature
provides. One way to do this is by a
public awareness campaign. The aim would
be to vividly describe how life will be altered if rapid industrialization and
deforestation persist. On Earth Day of
this year in Borneo, Indonesia, Save Our Borneo, a partner of the Rainforest
Rescue Foundation, did just that. “We planted trees, held a painting competition
for preschoolers and primary-school students, and organized a photo exhibition”,
writes Udin, a member of Save Our Borneo.
The students also wrote a letter to the governor, held theatrical
performances and played relative games (13).
Conservation International also started a “Green Radio” broadcast in
Jakarta. Here, pressing environmental
issues are addressed along with the urge for locals to get involved (14). A “Green Teacher Network” is also
underway. A teacher at a state-owned
senior high school in Banten said “We learned how to integrate environmental
issues, particularly mangroves, into school subjects to make our students aware
of the importance of mangrove reserves in dealing with abrasion and rising sea
level” (15). Events like this are
crucial; especially for getting the youth informed and involved about
ecological protection.
As its citizens are informed of the need for ecological
protection, Indonesia will likely undergo a change in values, with less
dependency from logging and palm oil.
Initially, economic growth is likely to slow. The potential for geothermal, wind and solar
has barely been touched and will take time to fully develop. However, a gradual transition from energy
needs based off depleting resources to one rooted in sustainability can be an
economic blessing over time. With the
increasing prices of oil, coal and gas, the government may soon realize that
more foreign subsidies aren’t the answer.
To be in control of domestic energy reserves is crucial for both
environmental and economic stability. In
replace of subsidies for fossil fuels, Indonesia could seek international
support for the funding of renewables. By
already establishing stated goals for alternative energy, Indonesia could be
well on its way towards a secure future.
International trade needs to be systemically reformed if
Indonesia is serious about its environmental impact. Focused primarily on economic growth via
increased imports, issues of sustainability can easily become absent from
debate. A new timber trade agreement
reached between Indonesia and the European Union requires all Indonesian timber
shipped to the EU to be certified that it was legally harvested. However, the agreement, as Human Rights Watch
notes, “does
not address whether harvesting the timber violated local community rights. Nor
does it address corruption in the issuance of timber licenses, which robs
Indonesia of billions of dollars in revenues annually”. HRW’s Deputy Program Director, Joe Saunders
reported ““Indonesia’s certification process needs to
be reformed to ensure that timber isn’t taken from community lands without consent
and adequate compensation” (15). Reforming
the political structure goes hand in hand with this issue. If local communities aren’t invited to a seat
in power, one can expect them to be exploited in the pursuit of expanding
industries. These communities should
democratically propose a system of laws which best befit the needs of
residents. To get industries and the
national government to adhere to these proposals requires policies which
promote democratic participation.
Voting, petitioning and peaceful demonstrations are essential for a policy
of the people to drive national actions.
Indonesia’s environmental crises have roots in various
economic, social and political issues which have been given too much headway
for decision making. In order for
effective and sustained changes to occur, values must shift from continuous
growth at all costs to rational policies with a long term view. This is not likely to occur without
widespread international support. Nations
trading with Indonesia need to respect Indonesian law with regards to the environment. This support, coupled with Indonesia’s
industry regulations and expansion of renewable energy sources, is a sound way
to engage in sustainable development.
Education and media outlets need
to continue to increase awareness of environmental issues. As a result, the society will be more capable
of making informed decisions regarding the ecosystem and encourage active
participation in sustainability efforts.
Country Paper Resources
1. “Indonesian
Dollar Debt Gains as Rupiah Plummets”. Washington Post. October, 7, 2013. http://washpost.bloomberg.com/Story?docId=1376-MU155B0D9L3501-2HJGS6R1QJ53CKL0C1MMFM49JB
3. “The
Economic Benefits of Palm Oil to Indonesia”.
World Growth Foundation. February, 2011. http://worldgrowth.org/site/wp-content/uploads/2012/06/WG_Indonesian_Palm_Oil_Benefits_Report-2_11.pdf
4. “Industrial
Crop Production”. Grace Communications Foundation.
2013. http://www.sustainabletable.org/804/industrial-crop-production
5. “Indonesian
Forest Facts”. Orangutan Foundation International.
2011. http://www.orangutan.org/rainforest/indonesian-forest-facts
6. “Indonesia
needs legal breakthrough to boost renewable energy”. Dawn.com. October, 1, 2013. http://dawn.com/news/1046708/indonesia-needs-legal-breakthrough-to-boost-renewable-energy
7.
Law of the Republic of Indonesia Number 41
of 1999 Regarding Forestry By Mercy Of The One Supreme God. http://theredddesk.org/sites/default/files/uu41_99_en.pdf
8. “Indonesia
told to focus on renewable energy”. The Jakarta Post. July, 13, 2013. http://www.thejakartapost.com/news/2013/07/13/indonesia-told-focus-renewable-energy.html
9.
World Wildlife Foundation. 2006. Failing the forests: Europe's illegal timber
trade. Report. 102 pp.
10.
Background
information on Indonesia, deforestation and illegal logging. Four
Corners. 2002. http://www.abc.net.au/4corners/content/2002/timber_mafia/resources/resources_indonesia.htm
11.
US to Forgive Indonesian Debt in Exchange for
Conservation Plan. Wall Street Journal. July,
1, 2009. http://online.wsj.com/news/articles/SB124633204676171767
12.
“Global Warming Seen as a
Major Problem Around the World Less Concern in the U.S., China and Russia.” Pew Research Global
Attitudes Project. Dec, 2, 2009. http://www.pewglobal.org/2009/12/02/global-warming-seen-as-a-major-problem-around-the-world-less-concern-in-the-us-china-and-russia/
13.
Borneo, Indonesia: Earth Day
campaigns to raise public awareness.
Rainforest Rescue Foundation.
May, 3, 2013. http://www.rainforest-rescue.org/news/5083/borneo-indonesia-earth-day-campaigns-to-raise-public-awareness
14.
“Where we work: Indonesia”. Conservation
International. 2013. http://www.conservation.org/where/asia-pacific/indonesia/pages/projects.aspx
15.
“Indonesia: Network Turns Teachers Into Environmental
Advocates”. Inter Press Service. July, 7, 2011.
http://www.ipsnews.net/2011/07/indonesia-network-turns-teachers-into-environment-advocates/
16.
“EU/Indonesia: Timber Agreement Flawed”. Human
Rights Watch. Nov, 7, 2013. http://www.hrw.org/news/2013/11/07/euindonesia-timber-agreement-flawed
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