US-AEP Countries - Indonesia

Environmental Challenges Related to Cleaner Cities and Industrial Growth

Indonesia has achieved substantial economic growth over the last 25 years. However, that progress has not included commensurate achievements in environmental management, urban infrastructure development or sustainable urban services. For example, Indonesia remains one of the last countries in Southeast Asia still using leaded gasoline. As Indonesia’s transportation needs increase, continued use of leaded gasoline exacerbates the country’s air pollution problems. As a result, air quality in large urban centers is a serious health and quality of life issue. In addition, clean piped water is unavailable to 80% of the population and the rate of new connections is not keeping pace with the growing demand. The country is also facing a serious electricity supply shortage in the next few years, and energy-environment impacts will change as Indonesia becomes a net importer of oil in the next five years.

Objectives in Indonesia

Strengthen environmental institutions and organizations to improve the quality of life for Indonesia's citizens.
Alleviate the strain of Indonesia's economic crisis by improving basic urban services, industrial efficiency, and good governance.
Cooperate with partners to focus on basic environmental protection, such as improving air and water quality and solid waste management.
Focus on improving the policy and institutional framework for the delivery of urban environmental services.
Maintain awareness of select trade and investment opportunities that build relationships and offer longer-term opportunities.
Promote sustainable growth in the industrial sector, particularly in the area of energy efficiency.

Country Workplan

List of Projects for FY 2004

1. Environmental Health: Managing Resources and Reducing Pollutants for Better Human Health — Improve environmental health through: a) better clean water supply; b) introducing lead-free gasoline to improve child health by reducing lead exposure; c) encouraging more environmentally friendly small-scale mining practices to reduce health impacts from mercury exposure; d) environmental education.

2. Improved Energy Efficiency — through: a) improve energy governance of the downstream sector and b) improve competitiveness and lower energy costs to mitigate price shocks as subsidies are removed.

Recent Accomplishments

Partners in Indonesia

Country Resources

| | | | | | | |