Factors behind Indonesia's green economy policies and their implementation under the G20 Presidency of Indonesia 2022

Hart, Arlen Kevino (2023) Factors behind Indonesia's green economy policies and their implementation under the G20 Presidency of Indonesia 2022. Bachelor thesis, Universitas Pelita Harapan.

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Abstract

The rise of climate change impact as well as global warming effects have made the global community agree to utilize the green economy model as a sustainable mode of production. With the agreeable notion being spread, the process of cooperation and institutionalization is made. Among others, Paris Agreement as well as the Sustainable Development Goals are seen as the standard norms and framework for green economy conduct that has been agreed upon through the incorporation of said norms by states, including Indonesia. Bearing in mind, the current situation of the G20 Presidency of Indonesia 2022, the green economy ambition is being highlighted through the sustainable energy transition main agenda. Making Indonesia stood under the highlight of global attention. Therefore, this research is intended to examine the factors behind the green economy policies of Indonesia and their implementation under the G20 Presidency of Indonesia 2022. The theory of Neoliberalism is used in this research, being incorporated with its tenets of institutionalization, the adherence to said institutions through domestic policies, and its implementation. To support the research, sample data are obtained through literature studies of secondary data as well as interviews with government officials that are directly involved with the Indonesian G20 Presidency. This research draws on the two key policies of the Indonesian green economy which are (i) Electric Vehicle Ecosystem Development as well as the (ii) Blended Finance Mechanism by the Indonesian Ministry of National Development Planning. Examining the implementation before the Indonesian G20 Presidency 2022 began, findings indicated that it has been implemented well. Eventually, due to the podium effect experienced by the Indonesian government in the G20 Presidency, international investments regarding the electric vehicle ecosystem, blended finance, and other green economy means are seen more frequently, further accelerating Indonesia’s green economy transition. Moreover, these policies are then implemented more vigorously by the government to further prosper Indonesia’s green economy model both at the governmental level as well as the grassroots level. / Maraknya dampak perubahan iklim serta efek pemanasan global telah membuat masyarakat global sepakat untuk menggunakan model ekonomi hijau sebagai mode produksi berkelanjutan. Dengan disetujuinya ide ekonomi hijau, maka dibuatlah proses kerja sama antar negara dan kelembagaan. Beberapa perjanjian seperti Paris Agreement dan Sustainable Development Goals dipandang sebagai norma standar dan kerangka kerja ekonomi hijau yang telah disepakati oleh banyak negara melalui proses ratifikasi norma-norma tersebut ke kebijakan domestik, termasuk Indonesia. Dengan Presidensi G20 Indonesia 2022 saat ini, ambisi ekonomi hijau ditonjolkan oleh pemerintah Indonesia melalui agenda utama transisi energi berkelanjutan. Membuat Indonesia berdiri di bawah sorot perhatian global. Oleh karena itu, penelitian ini dimaksudkan untuk mengkaji faktor-faktor yang melatarbelakangi kebijakan ekonomi hijau Indonesia dan implementasinya di bawah Presidensi G20 Indonesia 2022. Teori Neoliberalisme yang digunakan dalam penelitian ini, dihubungkan dengan logikanya mengenai kelembagaan internasional, persetujuan negara kepada prinsip-prinsip tersebut, ratifikasi menjadi kebijakan domestik, dan implementasinya. Untuk mendukung riset ini, data sampel diperoleh melalui studi literatur data sekunder serta wawancara dengan pejabat pemerintah yang terkait langsung dengan Presidensi G20 Indonesia. Penelitian ini mengacu pada dua kebijakan utama ekonomi hijau Indonesia yaitu (i) Pengembangan Ekosistem Kendaraan Listrik serta (ii) Mekanisme Blended Finance oleh Kementerian Perencanaan Pembangunan Nasional Indonesia. Mencermati implementasi kebijakan-kebijakan tersebut sebelum Presidensi G20 Indonesia 2022 dimulai, dapat ditemukan bahwa kebijakan-kebijakan tersebut telah dilaksanakan dengan baik. Pada akhirnya, karena efek podium yang dialami oleh pemerintah Indonesia dalam Presidensi G20, investasi internasional mengenai ekosistem kendaraan listrik, mekanisme Blended Finance, dan sarana ekonomi hijau lainnya terlihat lebih sering, sehingga semakin mempercepat transisi ekonomi hijau Indonesia. Selain itu, kebijakan tersebut kemudian diimplementasikan lebih gencar oleh pemerintah untuk lebih menyejahterakan model ekonomi hijau Indonesia baik di tingkat pemerintah maupun di tingkat akar rumput.

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