BETTER ENVIRONMENTAL GOVERNANCE Improving the Role...

ESSD Week 2005 -Environmental Institutions and Governance

BETTER ENVIRONMENTAL GOVERNANCE

Improving the Role of Local Governments and the Private Sector

in IndonesiaJoe Leitmann and Giovanna Dore

Environment and Social Development UnitEast Asia & the Pacific Region


Outline

• The Indonesian Context

• The Ministry of Environment (KLH) Decentralization Strategy

• Key Programs for Better Environmental Governance – PROPER II– The Bangun Praja Program– The AMDAL Revitalization

Program

• World Bank’s Support


The Indonesian Context• Indonesia is:

– The largest archipelago in the world, with 17,508 islands

– The fourth most populous country in the world, with a population of close to 220 million (2002 census), and 309 different ethnic groups. Two thirds of the population reside on the island of Java

– Heavily dependent on natural resources and the environment for its economic development

– One of the most decentralized countries in the EAP (Laws 22 and 25 1999), where districts manage most of government services, and over 40 % of the sub-national share of public expenditures


The Ministry of Environment (KLH) Decentralization Strategy

Create public demand for cleaner environment by Empowering External Stakeholders

Public Disclosure

NGOs Communities Media Business

Empower NGOs with superior information

Legitimize public perception about env. issues

Promote social responsibility & educational journalism

Establish credibility and strategic alliance

Local Govt.

Recognize and reward high performance local agencies


Key Programs to Strengthen Environmental Governance

• PROPER II• The Bangun Praja Program (BPP)• The AMDAL Revitalization Program

• PROPER II• The Bangun Praja Program (BPP)• The AMDAL Revitalization Program


The PROPER Program- The PROPER Program consists of a five

colors rating system designed to represent the entire spectrum of environmental performance

- PROPER I- Launched in 1995 - Ratings based ONLY on compliance

with water pollution control regulations- Voluntary participation of 187 factories- Came to a halt following the 1997

regional financial and economic crisis

- PROPER II - Launched in 2003, - Rating methodology based on

performance in water air quality, hazardous waste and resources management, EIA requirements, EMS, and community development

- Participation is mandatory, by ministerial decree

- Performance ratings of more than 127 factories have been disclosed in 2004


The PROPER Program (ii)

2%

32%63%

3%

47%47%

t t

4%2%

June 95 March 97

35%40%

51%

Jun-95 Dec-95 Dec-96

154 mg/L

1995 1996

268 mg/L

43% Reduction

154 mg/L

1995 1996

268 mg/L

43% Reduction

BOD

Compliance Level Increased and Environmental Impact Decreased

Ratings Improved Rapidly


PROPER Chronology: Birth-Survival-Revival

1995

1996

1997

1998

1999

Establish PROPER Keep it small,simple, accurate and clean

Maximize Impact Grow, aggressive dissemination and expand

Sustain without disclosure

Do rating, track self monitoring and notify privately

SurviveLow level engagement with industry; ready to re-launch after election

Crisis

2000

2001

2002

2003

Hibernation No effort on PROPER

Mr. Makarim removed from office

Decision to restart PROPER

Effort to reorganize PROPER team started

Mr. Makarimappointed as MoE

Re-launch announced to public

Plan new methodology and start data compilation

2004

Institute New PROPER; strengthen local participation

Announce scaled up PROPER; introduce first national industrial environmental performance report

Strategy Objective


Lessons from PROPER I and II • Scale and Coverage Matter

– Small in number and focused methodology is good for introductory phase; scaling up strategy is essential for the success of the program

• Institutionalization Strategy Should be Comprehensive

− Sustainability requires minister’s endorsement, private sector’s and civil society’s participation, and local governments’ buying in

• Technical Quality Matters− Process of analysis as important as the technical

methodology

• Good Information Gets Used− Internal transparency as crucial as external

transparency, strong demand for performance information


The Bangun Praja Program (BPP)• BPP is an environmental performance rating system

for local governments, builds on the 1996 ADIPURA Program; it is based on: – Computerized management system of qualitative and

quantitative indicators– A public disclosure and public participation strategy

to generate demand for better environmental management

– Feed back mechanisms to mainstream public concerns on environmental quality into the local government planning process, and implement any necessary mitigation actions

– Support for better policy formulation, performance monitoring and benchmarking at the central and local levels

– Partnership approach to ensure that comparative advantage and specific expertise of national/local level agencies, NGOs, CBOs, religious and cultural groups, and universities is coordinated

• Participation in BPP is voluntary, and between 2002 and 2004, the number of participating local governments more than doubled (from 59 to 133)


BPP Principles and IndicatorsBangun Praja Program

Assessment Issues• Institutions

– Quality of Vision and Mission Statement of a City

– Characteristic of Environmental Agency– Quality of Local Legislation

• Management– Quality of Planning– Implementation– Monitoring & Control– Public Infrastructure

• Responsiveness– Organizational readiness for managing

public complaints– Management of Public Complaints

• Environmental Results– Quality of Garbage Management– Water Quality in Rivers– Drinking Water Quality– Stormwater Management– Underground Water Quality – Open Space Management

The Key Principles of Bagun Praja

• Transparency

• Participation

• Accountability

• Equity

• Future Outlook

• Professionalism

• Effectiveness/Efficiency

• Responsiveness

• Control

• Laws and regulations


BPP Implementation Approach

5. Project Implementati

on

1. Performance Assessment

2. Disclosure

3. Project Identification

4. Funding Assessment

• Step 1: Assess performance of cities using BPP methodology

• Step 2: Inform cities and public about gaps in policies, implementation capacity, and investment needs, including eligibility for funding support

• Step 3: Develop capacity and investment projects; apply for support from central funds

• Step 4: Project evaluation and financial terms of agreements

• Step 5: Implement projects in accordance with goals and targets


BPP 2004 Ratings Results


BPP 2004 Ratings Results (ii)


Lessons from BPP• Scale and Coverage Matter

– scaling up strategy is essential to be able to address the true extent of existing urban environmental problems

• Institutionalization Strategy Should be Comprehensive− Sustainability requires administering BPP as a

national program, and improving coordination between local and central governments to work collectively to improve environmental governance

• New Understanding on Awareness Raising and Public Participation − Strong public participation and reliable

disclosure of information helps align policy and investment initiatives along public demands and needs


The AMDAL Revitalization Program SCREENING

SCOPING

IMPACT ANALYSIS(ANDAL)

IMPACTMITIGATION PLANS (RKL)

IMPACTMONITORINGPLANS (RPL)

EXECUTIONOF RKL & RPL

RKL & RPLREPORTING

• AMDAL– Is the Indonesian EIA system– Was established in 1986, and

conceived to be an effective tool for encouraging both public and private sector project sponsors to integrate environmental concerns into their development plans

– Was modified in 1993, to have fewer and more appropriate EIAs, allow BAPEDAL to streamline the EIA process, and strengthen its oversight procedures

• In the context of the ongoing decentralization process:

– EIA review of activities that have broad social/environmental impacts, and/or cover more than one province are tasked to KLH

– Provinces are responsible for AMDAL reviews of activities covering more than one district

– Districts conduct AMDAL reviews of activities to be developed within their boundaries


KLH Program to Improve AMDAL • Improve the existing institutional

and policy framework for AMDAL

• Adapt the AMDAL System to the requirements of a decentralized administrative framework

• Strengthen the partnership with the private sector and civil society

• Support selected local governments to:

– think through their needs in terms of AMDAL reform

– advocate these needs more effectively to national counterparts


Does AMDAL Work for A Better Environmental Governance ?

• There are examples of good practice for AMDAL at national and local level

• KLH policy leadership on AMDAL is recognized at the local level

• Indonesia is ‘no worse’ than many other countries• The system is too rigid and prescriptive, with

tendency towards ‘enforcement’ over ‘best practice’approaches

• There are limited links between AMDALs and national and local development planning

• Maintenance of a uniform AMDAL system, with main aspects prescribed centrally is ‘not an option’

• ‘Least Common Denominator’ effect


World Bank Support to Strengthen Environmental Governance

• ASEM Grant to support KLH’s Sustainable Cities and Bangun Praja Program

• Technical Assistance to KLH’s AMDAL Revitalization Program

• Forest Governance Initiatives

• The Environmental /Natural resources Forum

• Possible Urban Environment Project


Terima kasih

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