US-AEP COUNTRY ASSESSMENT:
Indonesia
ACRONYMS
- AMDAL: Indonesian environmental impact
assessment
- BAPEDAL: Environmental Impact
Management Agency
- BAPEDALDA: City- or county-level
BAPEDAL
- BAPPENAS: State Planning Agency
- BOD: Biological oxygen demand
- BKPM: Investment Coordinating Board
- EIA: Environmental impact assessment
- GOI: Government of Indonesia
- ISO: International Organization for
Standardization
- KADIN: Indonesian Chamber of Commerce
- KLH: Ministry of Environment
- MOIT: Ministry of Industry and Trade
- NGO: Nongovernmental organization
- PROPER: Business Performance Rating
- PSL: Environmental study center
- REPELITTA: Government of Indonesia
Five-Year Plan
- US-AEP: United States-Asia
Environmental Partnership
- USEPA: United States Environmental
Protection Agency
1. ECONOMIC PROFILE
Demographic Conditions and
Trends
Living standards in Indonesia have markedly
improved in the last 25 years. In 1967 an estimated 60 percent of its
populationat that time, 115 million peoplelived in absolute poverty; life
expectancy was well below that of developing countries as a whole, whereas
the infant mortality rate was significantly higher. Indonesia also lagged
behind other developing countries in education and had a much higher adult
illiteracy rate than those of its neighbors. Population growth, at 2.4
percent annually, was a major concern.
Today, the poverty rate stands at 15 percent (for
its much larger population of more than 200 million) and, according to the
World Bank,1 Indonesia has had the highest annual average
reduction in poverty during the last two decades of all countries studied.
Infant mortality rates have been cut by more than 70 percent during this
period; average life expectancy has risen by almost 50 percent. The adult
illiteracy rate has fallen by nearly two-thirds.2
Indonesia's population growth has been dramatically
reduced through GOI's vigorous family planning policies and is now at 1.6
percent. The population is not evenly distributed: the island of Java, with
only 7 percent of the country's land area, has nearly 60 percent of the
nation's total population. The portion of Indonesia's population in urban
areas is increasing rapidly from only 15 percent of the total population in
1970 to more than 30 percent today. By the year 2020 half of the entire
population is projected to reside in urban areas.3
Economic Conditions and Trends
According to the World Bank, after a quarter
century of steadily rising incomes, Indonesia has become more diversified,
less dependent on oil, more industrialized, more urbanized, increasingly
driven by private initiative, and more integrated into the global economy.
Its policymakers are committed to deregulation, an outward orientation, and
economic efficiency. Due in large part to liberalization in trade and
financial sectors, Indonesia had an average economic growth of 6.3 percent
between 1986 and 1992. During this period, nontariff protection measures
were largely eliminated and tariffs greatly reduced.
Real growth in gross domestic product in 1994 and
1995 was 7.3 percent and 7.2 percent respectively. Today, nonoil exports
make up about 70 percent of the country's total exports and the nonoil
sector accounts for roughly 85 percent of the country's gross domestic
product. The private sector now accounts for about 62 percent of total fixed
investment.4 Annual per capita income currently stands at about
$900 and is projected to exceed $1,000 by the end of the decade.5
2. ENVIRONMENTAL PROFILE
Industrial and Environmental
Development Background
The industrial sector is the driving force behind
Indonesia's economic growth. Industrial goods made up 82 percent of nonoil
and nongas exports in fiscal 199394. Manufacturing, which contributed only
about 13 percent of gross domestic product in the 1970s and 23 percent in
the 1980s, is expected to contribute one-third in the 1990s and nearly 45
percent in the next decade.
Four Javanese cities (Jakarta, Surabaya, Bandung,
and Semarang) account for 36 percent of Java's and 27 percent of Indonesia's
total output. The leading manufactured exports were textiles, garments,
plywood and wood products, electrical goods, footwear, paper products,
essential oils, processed foods, and edible oils. Concurrent with
establishing itself as a growing exporter of basic manufactured goods,
Indonesia has moved into the export of more advanced products, including
aircraft and aircraft components, electronic goods, and measuring
instruments. Indonesia's development strategy for the Second 25-Year Plan
will rely heavily on the growth of industry to create higher productivity
jobs and nonoil exports.6
World Bank projections indicate that the share of
basic processing industries in industrial sector output will fall from 72
percent today to about 65 percent in 2010 and to 60 percent in 2020,
reflecting the rapid increase in downstream processing and assembly
industries, which are primarily located on Java.7 Since 1970
Indonesia's industrial base has grown more than eight times in size. The
World Bank has projected that by 2010 new investment will account for 85
percent of total industrial capacity.8
Environmental Conditions
Indonesia's industrial expansion has brought with
it largely uncontrolled industrial wastes and pollution leading to severe
environmental degradation. The total pollution load contributed by the
industrial sector has grown exponentially. World Bank estimates indicate
that emissions of SOx, NOx, and total suspended
particulates increased by factors of five between 1975 and 1988. The
Environmental Impact Management Agency's (BAPEDAL's) recent emission
inventories indicate that in Jakarta the industrial sector emitted
approximately 15 percent total suspended particulates, 16 percent NOx,
and 63 percent SOx; in Surabaya, industrial emissions constituted
about 28 percent, 43 percent, and 88 percent respectively.
According to World Bank projections, industrial
water pollution constitutes from 25 to 50 percent of the total pollution
load in certain rivers in Java. Monitoring results vary widely and a
preponderance of evidence indicates that urban sources account for the
majority of loadings to rivers and streams on an aggregated basis; however,
a 1989 survey in Surabaya estimated that industrial effluents accounted for
38 tons per day in the Brantas River, out of a total load of 120 tons per
day. Monitoring in the Jabotabek area indicates that industries account for
84 tons per day of biological oxygen demand (BOD) out of a total of 171 tons
per day.9 Much of the industrial discharges include a high level
of BOD but also an increasing amount of toxic and hazardous waste. The
extent to which industrial discharges are contaminating groundwater is not
known; however, reports of typical industrial effluents, such as phenol,
detergents, and nitrates, found in various groundwater resources in Java,
seem to be increasing in number. As for hazardous wastes, a recent study
estimated that about 2.2 million tons per year are currently being generated
in West Java and metropolitan Jakarta.10
Environmental Trends
Indonesia currently does not have a systematic
approach to compiling, analyzing, and publicizing environmental trends.
BAPEDAL with funding from Japan is currently developing a strategy for state
of the environment reporting. In addition, the U.S. Trade and Development
Agency has recently approved funding for a feasibility study for a National
Integrated Environmental Data Network in Indonesia. In lieu of an existing
system for systematically measuring current conditions and identifying
trends, the World Bank has relied heavily on extrapolating data from U.S.
industry to project industrial pollution trends in Indonesia.11
3. GOVERNMENT12
Key Ministries for Industrial
and Environmental Matters
At the national level, key agencies involved in
industrial environmental matters include the State Ministry for Environment,
BAPEDAL, Ministry of Industry and Trade (MOIT), and the State Planning
Agency (BAPPENAS). These and other agencies that play key roles in areas of
importance to US-AEP are described as follows:
The Ministry of Environment (KLH) does not
have direct implementation responsibilities but is charged with policy
formulation and coordination and oversight of environmental efforts of other
line agencies and ministries. The ministry's view is that it has the main
role in policy formulation, whereas BAPEDAL implements pollution control
programs. KLH's main focus has been on raising environmental awareness in
Indonesia and putting in place a strategy for sustainable growth including
laws and regulations, information systems, and a "support network" of
environmental organizations. KLH has a strategy of "mainstreaming"
environmental matters into GOI's line ministries, but it has not been
successful. Major responsibilities of KLH include:
� Information systems. KLH is charged with
publishing an annual report of data submitted by provincial environment
bureaus; however, major differences exist in coverage, quality, and
consistency among provinces. Information is incomplete but useful for "order
of magnitude" policy decisions.13 KLH has not published a report
since 1994.
� Support network. A part of KLH's mandate
is to develop environmental skills, encourage greater awareness of
environmental issues, and enhance opportunities for wider participation in
the process of environmental management. The ministry has supported
development of university-based environmental study centers (PSLs); in 1994
fifty-four PSLs had been established in universities in each of the
twenty-seven provinces.14 The ministry, however, has recently
discontinued providing direct financial support for PSLs.
BAPEDAL, under the Ministry of Environment, has
responsibility for setting environmental standards, implementing compliance
programs for the central government, monitoring environmental quality, and
overseeing Indonesia's environmental impact assessment (EIA) process, which
in Indonesia is called the AMDAL process. Since BAPEDAL's establishment in
1990, it has seen remarkable growth from a staff of fewer than thirty to
more than 300 and is the only government agency with a political appointee
specifically assigned to "grow" the agency. It is chaired by the minister of
KLH and has deputies for institutional development and capacity expansion,
pollution control, and EIA and technical guidance. Four regional BAPEDALs
are being established to administer BAPEDAL's programs in the regions.
BAPEDAL has virtually no enforcement authority, although the agency is
strengthening its institutional capacity for enforcement (see "Legal
Mandates Program" below); a presidential decree to provide
permitting/enforcement authority is being drafted by GOI.15
Ministry of Industry and Trade. The Ministry
of Industry, which was recently merged with the Ministry of Trade, has
historically played a lead role in administering GOI's import substitution
programs, but, with economic deregulation, this role has diminished
considerably in recent years. The ministry has directorates for each of
Indonesia's major industry subsectors. MOIT has nine Research and
Development institutes that are sector specific as well as thirteen regional
research institutes. MOIT's Research and Development Center on Business
Climate has an environmental unit that chairs the ministry's AMDAL
commission and is examining potential policies with respect to ISO
(International Organization for Standardization) 14000 and ecolabeling as
well as ways to assist industry in implementing pollution prevention
practices. Within the ministry, PUSTAN has the lead role for ISO 9000.
The State Development Planning Agency is
GOI's central economic planning agency. Among its major responsibilities,
BAPPENAS coordinates donor programs and projects and coordinates development
of the government's five-year economic plan (REPELITTA) by line ministries
and monitors their progress in implementing the plan. BAPPENAS also provides
input on budgetary and economic matters to the Ministry of Finance, which is
the lead ministry on fiscal and economic policies.
The Ministry of Public Works has three
directorates: roads, human settlements, and water resources. The ministry
(through the Directorate of Water Resources) is responsible by law for the
quality and quantity of surface water in Indonesia.16
The Investment Coordinating Board (known as
BKPM), prior to the mid-1980s, had an extensive list of promoted industries
and promotional privileges; however, with economic deregulation, the
agency's scope has been substantially narrowed. BKPM still has a fairly
short list of prohibited investments, including three areas of investment
prohibited on environmental grounds.
The Standardization Council of Indonesia is
the lead agency for coordinating standards policy, including accreditation
and certification. The council is responsible for oversight of Indonesia's
National Standardization System, which is a basis and guide for every
standardization activity in the country. The council has plans to strengthen
its technical capabilities this year to address new initiatives, including
ISO 14000.
State Ministry for Coordination of Economic
Affairs (known as EKUIN). Despite its best efforts, KLH has not been
able to establish its planned Policy Analysis Unit and has to rely on
external organizations to carry out policy-related studies.
Government-sponsored and nonprofit research organizations engaged in this
effort include the Center for Policy and Implementation Studies, sponsored
by the State Ministry for Coordination of Economic Affairs.17
The Agency for the Assessment and Application of
Technology (known as BPPT) is GOI's premier agency for technology
innovation and commercialization; however, in spite of its status, the
agency's environmental activities with respect to clean technology are
limited, primarily focused on providing recommendations for end-of-pipe
technologies to small- and medium-sized industries.
The Central Bureau of Statistics produces an
annual report of environment-related statistics, including data on
population trends, health conditions, water supply and sanitation, and other
socioeconomic factors. As in the case of KLH reports, the data are not
easily comparable or useful for monitoring regional or national trends.18
Other Key Institutions for
Industrial and Environmental Matters
Provincial governments are responsible for
environmental management at the regional level. In principle, the authority
vested in the provincial government is wide ranging, including
implementation of development plans, setting environmental standards,
approving location permits and other licenses for new projects, and
monitoring and enforcing compliance. In practice, the provinces are poorly
staffed and trained to meet these responsibilities (with certain possible
exceptions, such as East Java). Within the central government, the Ministry
of Home Affairs is responsible for administering provincial and local
government affairs. City and county-level BAPEDALs (BAPEDALDAs) will be
established, pending authorization now being considered by the Ministry of
Home Affairs.
No single agency at the provincial level has
pollution control as its primary mandate. Rather, provincial agency mandates
and staffs correspond to the central line ministries. For example,
groundwater management responsibility rests with the Ministry of Mines and
Energy, whereas surface water is with Public Works. Local offices of the
Ministry of Public Works monitor ambient water quality, but only
representatives of the Ministry of Industry have authority to enter firms to
take samples; thus, the career paths of technical staffs in the provinces
are not tied to BAPEDAL but rather to the line ministries.19
4. POLICIES AND LAWS
Indonesia does not have a strong framework of civil
and administrative law or a supportive civil court system. Enforcement of
laws depends primarily on prosecution in criminal courts under local police
authorities; thus, alternatives to "traditional" enforcement systems for
environmental management, such as negotiated agreements and incentives based
on business and individual reputations, are currently among the central
government's most important policy tools for fostering clean technology and
environmental management.
Environmental Policies and Laws20
Many government policies in Indonesia are put into
place through a complex and sometimes contradictory array of presidential,
ministerial, and gubernatorial decrees. A summary of major environmental
laws and regulations relevant to industry and environmental infrastructure
is provided in the endnotes.21 The following is a discussion of
major environmental policies and programs affecting industry and urban
infrastructure:
Air pollution. The Blue Sky Program was
launched in July 1992 by BAPEDAL. The program includes both stationary and
mobile sources. For stationary sources, the early phase program focuses on
cement factories, iron and steel, pulp and paper, and coal-fired power
generation. The program targets five of the largest cities: Jakarta, Bandung,
Surabaya, Semarang, and Medan.22
Water pollution. Under the Prokasih (Clean
Rivers) Program, Prokasih Teams in the provinces are coordinated by the vice
governor, with representatives from BKLH, the Development Planning Board
(known as BAPPEDA), PSLs, research laboratories, NGOs, local officials
(including local water utility managers),23 and other relevant
sectoral agencies. From 1989 to 1994, Prokasih activities have dealt with
thirty-one rivers in thirteen provinces; the program now encompasses more
than fifty rivers in seventeen provinces. Each provincial governor is
responsible for program implementation within his or her province. Although
the program is officially classified as "voluntary," in reality, the
governors put great pressure on industries to "volunteer," such as by
threatening to shut them down. The culmination of an agreement is a
memorandum of understanding signed by each industry, the local mayor, and
BAPEDAL.24
Toxic and hazardous waste. Although BAPEDAL
issued hazardous waste standards in late 1994, they have not been vigorously
enforced. BAPEDAL has announced that such hazardous wastes should be stored
on site until treatment facilities are established. One hazardous waste
facility has been put into operation to serve West Java; however, the
facility has only recently reached the break-even point for recovering its
cost.25 GOI plans to support at least two additional facilities
in the near term; long-term plans call for a total of nine facilities when
the level of demand would make them financially feasible.26
Environmental impact assessment. Under the
new AMDAL/EIA process, launched in 1993, all new and existing projects
requiring permits must prepare EIAs, including environmental management
plans (known as RKLs) and monitoring plans (known as RPLs). The process has
also been streamlined and for many projects largely consists of the
environmental management plan and monitoring plan. BAPEDAL functions as the
executive agency for monitoring and evaluating the AMDAL system.
Implementation authority lies with central line agencies and provincial
governments, both of which are expected to establish interagency AMDAL
commissions. Central agency commissions (Komisi Pusat) are chaired by the
secretary general of the relevant agency; provincial commissions (Komisi
Daerah) are chaired by the head of the Development Planning Board. Members
include representatives from the provincial BKLH and local PSLs. Public
participation is typically limited to NGOs selected to participate on the
commissions.27
Clean technology. BAPEDAL has developed a
draft strategy for an Indonesian Cleaner Production Program. Most of the
activities in the strategy involve donor assistance. Representative examples
of activities include cleaner production data base and information centers,
technical assistance for industry, training, demonstration projects, and
policy.28
Environmental audits. The Government of
Indonesia has recently issued a Ministerial Decree on General Guidelines for
implementing environmental audits.29 Three major multinational
corporations that have high-profile environmental concerns have recently
conducted voluntary audits at the request of BAPEDAL: Freeport McMoRan,
Indorayon, and CalTex. Findings from the Freeport audit were released to the
public in April 1996 and received headline coverage in the news media.
Mandate program. The goals of this internal
program of BAPEDAL, funded for two years by the World Bank, are to create
momentum for environmental law, prepare and apply environmental enforcement
procedures, strengthen the capacity of law officials, and increase public
awareness of environmental enforcement.
Clean City Award. The Clean City Award (Adipura)
is annually awarded by the president of Indonesia to the cleanest cities in
the country. In 1993 fifty-eight towns and cities participated; the number
was larger in 1994 and 1995. Mayors are reputed to be competing for these
awards under strong encouragement from their governors, thus providing a
strong incentive for action.30
Industrial Policies and Laws
Industrial investment has been greatly streamlined
under GOI's economic deregulation policies. Basically, foreign direct
investments must be licensed by BKPM. Manufacturing equipment imported to
Indonesia must be reviewed by PT Sucofindo, a government-owned corporation,
to determine that it meets standards established in procurement documents.
Little evidence exists that environmental
considerations have been integrated into GOI's industrial policies. The
industry sector directorates within MOIT are not for the most part engaged
in environmental matters with respect to their client industries.
Furthermore, BKPM has recently taken a step in the opposite direction from
incorporating environmental considerations into its decisionmaking by
unlinking its licensing processing from the AMDAL process. The only area in
which environmental considerations still have a direct bearing on BKPM's
review process is on its list of prohibited investments: three of the eleven
sectors that remain on the list of absolutely prohibited investments were
listed for environmental reasons. In addition, Indonesian pollution control
equipment can be imported duty-free.
Beyond these policies, GOI encourages new
industries, both domestic and foreign owned, to locate in industrial estates
by exempting facilities from the requirement to prepare environmental impact
assessments (AMDAL documents) if they locate in estates that have already
fulfilled the AMDAL requirement.
Public Information Policies and
Laws
GOI does not have laws that mandate government
agencies to provide information to the public. In fact, it is extremely
difficult for the public to access government information on environmental
conditions and industrial environmental performance and participate in
government decisions affecting the environment. Even the AMDAL process,
which provides for participation by NGOs and local representatives affected
by proposed projects, typically has no provision for public review of
proposed environmental assessment documents, except for participation of NGO
representatives in the AMDAL committees.
A major initiative, however, to disclose
information about industrial environmental performance to the general
publicthe Business Performance Rating (PROPER)was launched by BAPEDAL in
June 1995. PROPER is a publicly announced rating system on company
environmental performance and compliance with regulations and is the first
central government program in the world to publish a single index of
environmental performance. The first target group of 230 factories received
ratings in June 1995; names of companies rated as "black" (worst offenders)
and "green" and "gold" (best companies) were released to the public in
December 1995. Early results from these ratings appear to indicate that the
program is having positive results. Rather than protesting their ratings,
companies are coming to BAPEDAL asking what they need to do to improve them.
First-round ratings were based solely on effluent quality. BAPEDAL plans to
expand the coverage of the program to include industry environmental
management practices and compliance with hazardous waste requirements.31
Protection of proprietary information was a major
issue faced by GOI in drafting the guidelines for environmental audits,
discussed above. Although some information has been disclosed to the public
from the three major corporate audits conducted to date, the guidelines
protect companies performing audits from self-incrimination.32
Public information sharing and participation has
been notable with respect to urban environmental issues. The Kampung
Improvement Project has during the past twenty-five years improved services
in 527 cities and towns by providing an integrated package of basic
services, including water supply, sanitation, drainage, and other
infrastructure. The project has included extensive participation by NGOs and
the public in working with kampung committees to plan and monitor
projects.33
Legal and Policy Developments
of Particular Relevance to Industrial and Urban Environmental Management
The original objective of Prokasih was to reduce
the total effluent loadings of participating industries by 50 percent. This
objective has been "ratcheted up" over time; in October 1995 BAPEDAL issued
effluent standards for twenty-four industry subsectors, including
concentration- and load-based standards. Inclusion of
standards for toxic pollutants, although limited in scope, may begin to
place more industry attention on pollution prevention rather than simply
end-of-pipe solutions that have been the predominant pollution abatement
strategies under the Prokasih program.34
BAPEDAL's PROPER system has attracted international
attention as an important new policy approach to industrial pollution
control. Environment Minister Sarwono was recently given a leadership award
by the Zero Emissions Research Initiative of the U.N. University for
implementing PROPER; the World Bank has given strong public support to the
program.35 BAPEDAL plans to expand its criteria for ranking
companies, including compliance with hazardous waste regulations and
environmental management practices.
5. URBAN ENVIRONMENT AND
INFRASTRUCTURE
The government, aided by the international donor
community, has allocated increasing investment in environmental
infrastructure, from $25 billion in the 198993 five-year period to $35.8
billion in the 199498 period. The bulk of this is for urban infrastructure,
including roads, water supply, drainage and flood protection, and
environmental sanitation.36
For sewage and sanitation, GOI has initiated a
planning exercise covering up to twenty-five cities to assess their
sanitation needs. "Least-cost" technical options will need to be defined;
issues of financing and cost recovery and the institutional arrangements for
managing the system within each city will need to be resolved.37
Indonesia's progress in meeting its pressing urban
environmental infrastructure needs is summarized as follows:38
Water Supply
Only 34 percent of Indonesia's urban poor have
household connections to piped water. Water supply is plagued by high
volumes of unaccounted-for water, inefficient metering, and insufficient
pricing.
Wastewater
Wastewater management has traditionally been viewed
as a personal, not governmental, responsibility; hence, Indonesia has one of
the worst service coverage percentages for sewers in the world. In 1994 the
government reported that 2.4 percent of the urban population was served or
was scheduled to be served by sewerage systems.
Solid Waste
Collection and disposal of solid waste is an
increasing challenge in most large cities. An estimated 1520 percent of
urban solid waste is not collected at all; much of what is collected ends up
in uncontrolled dumps; however, the outlook for the future is promising.
Collecting fees is not difficult; tariff rates in major cities are high
enough to support profitable enterprises. The director general of Cipta
Karya is committed to privatization.
Hazardous Waste
GOI has supported three projects for central
treatment, storage, and disposal facilities: Jakarta (currently operating,
but only at 30 percent capacity), Surabaya (in progress), and Kalimantan
(project development stage).
6. PRIVATE SECTOR AND ACADEMIA
Industry
Given the export orientation of Indonesian
industry, it is perhaps surprising that the industry has shown a general
lack of appreciation for ISO 14000. A number of industry associations and
chambers of commerce, however, have recently shown an active interest in
developing ISO 14000; attendance at seminars and workshops has been brisk.39
In addition to clean production programs set up by
a number of government agencies, private sector support is illustrated by
the fact that KADIN (the Indonesian Chamber of Commerce) has agreed to be
the site of the United Nations Industrial Development Organisation's
proposed National Cleaner Production Center, although the actual
establishment of the center is still uncertain. In addition, the American
Chamber of Commerce has a strong environment committee.
Indonesia has an emerging domestic environmental
industry, both in equipment manufacturing and environmental engineering and
consulting. A new environmental industry trade group has been formed, the
Indonesian Environmental Trade Association. Another important group that
provides a forum for environmental professionals in the private sector as
well as government is the Indonesian Association of Environmental and
Sanitary Engineers.40
About 150 companies have been certified for ISO
9000. GOI has placed no direct pressure or provided incentives for firms to
be ISO 9000 certified; at present no discussion has occurred on placing
direct pressure or incorporating standards into regulations. Nevertheless,
ISO 9000 has picked up momentum, as evidenced by the fact that firms have
recently placed ads in newspapers announcing that they have been certified.41
A number of industry associations, chambers of
commerce, and so on have shown active interest in the development of ISO
14000; attendance at seminars and workshops has been brisk. Under the
coordination of the Standardization Council of Indonesia, six working groups
have been formed to shape the best certification procedure for Indonesia,
consisting of government (BAPEDAL and MOIT), NGO, university, and industry (INKINDO)
representatives.42
Academic and Research
Institutions
Several joint clean technology research programs
exist between industry and university/research institutions, for example,
between KADIN and Gajamada University and between industry and government
programs, largely through MOIT's research and development institutes. MOIT's
institutes are under a mandate to become self-supporting and have begun to
privatize their consulting activities to industry with mixed success
(ranging from 20 percent to as high as 70 percent self-sufficiency).
PSLs were originally established with the strong
support of the central government to provide environmental centers of
excellence around the country; however, the PSLs around the country are
currently primarily engaged in EIA activities and do not appear to be
focusing on clean technology/environmental management issues to any major
extent. Furthermore, recent regulations issued by GOI have made host
universities responsible for PSL funding. This has resulted in a major
retrenchment of PSLs in both the scope of their activities and their
capabilities.43
Financial and Insurance
Institutions
As a result of deregulatory measures in the banking
sector in the 1980s, the number of private commercial banks has grown to 144
with 2,773 offices. In addition, the state owns five banks with 981 offices,
each serving specific sectors of the economy. Both state and commercial
banks generally require submission of an EIA (AMDAL document) prior to loan
approval; however, the level of scrutiny varies widely across institutions
depending on their priorities and capacity. For example, Bank Indonesia, the
country's central bank, does not have an explicit policy concerning the EIA
review process. Other banks review the document to varying levels of detail;
at least one private bank requires the loan package specifically to include
financing for pollution controls if called for in the EIA.44
7. ENVIRONMENTAL AWARENESS AND
PUBLIC INVOLVEMENT
General Public Awareness of
Environmental Issues
Coverage of environmental issues has increased
tremendously in recent years; news stories in the press are commonplace. One
NGO that prepares press clippings from all of the provinces reported to the
US-AEP assessment team that they find hundreds of environmental articles
each week. Other anecdotal evidence abounds, for example, a newspaper
targeted to Jakarta's young people (AIKON) is committed to raising
environmental awareness; the Indonesian Forum for the Environment (see
below) has sponsored a number of workshops for journalists.45
Although the Ministry of Environment has stated
that it intends to produce annual state of the environment reports, the
reports are actually published irregularly and do not appear to be widely
recognized by the environmental community. On the other hand, in
metropolitan Jakarta a number of continuous air quality monitors, funded by
Japan, display air quality information to the public on a real-time basis.
Nongovernmental Organizations
Nearly 270 NGOs in Indonesia are engaged in
environmental matters. Some of the largest NGOs include the following46:
The Indonesian Forum for the Environment is
an umbrella organization for hundreds of grassroots environmental NGOs
throughout Indonesia. Founded in 1980, the forum has been actively engaged
in industrial environmental issues, including conducting tests of water
quality and industrial effluents, litigating against industries, as well as
participating in positive industry/NGO dialogue forums. Regarding the
latter, the forum was engaged in dialogue with the pulp and paper industry
and MOIT, which resulted in Indonesia's move away from chlorine processes.
Indonesian Legal Aid Foundation (known as
LB). With chapters in fourteen cities, the foundation is a group of human
rights and environmental lawyers providing legal representation to
communities throughout Indonesia. In June 1995 foundation lawyers persuaded
judges to accept as evidence reports that the foundation obtained from
government agencies showing severe deterioration of the Surabaya River just
downstream from three paper mills. Lawyers with the Indonesian Center for
Environmental Law (see below) and LB Jakarta are bringing a lawsuit against
four paper mills on the Ciujung River in Serang, West Java. The case is
pioneering the use of "class action" legal standing.
E-Law Indonesia was established by the
Indonesian Forum for the Environment and the Indonesian Legal Aid Foundation
in 1991. More than forty environmental advocates from throughout Indonesia
came together at a conference in Palembang in the summer of 1995 to share
ideas and information about the pulp and paper industry, cited in an E-Law
report as "one common enemy of most all Indonesian environmental advocates."
The Indonesian Center for Environmental Law
provides public policy input to the Indonesian government at the central and
regional levels and gives legal assistance to community advocacy groups. The
center is preparing itself to be the most complete data, information, and
documentation center for environmental law in Indonesia.
Friends of the Environment Fund (known as
DML) is a business NGO, with about 150 corporate members. The organization
promotes recycling, including by funding a plastics recycling program in
Jakarta, and publishes a periodical on addressing industrial environmental
issues. Among its programs, the fund provides small grants to environmental
NGOs.
The Institute for Eco-Labeling has recently
been established by a former minister of environment.
8. U.S. GOVERNMENT ACTIVITIES
U.S. Agency for International
Development
Under the U.S. Agency for International Development
mission's Indonesia Clean Industrial Production program, waste reduction
assessments have been conducted in six industry subsectors (pulp and paper,
metal finishing, flex packaging, wet batteries, paints, and furniture
coatings). Under the Association of Southeast Asian Nations's Environmental
Improvement Project, waste audits have been conducted in other sectors,
including iron and steel, and food processing.47
Under the mission's Municipal Finance Project,
started in 1989, the mission has provided extensive assistance to GOI in
decentralizing urban infrastructure financing. The project is developing
municipal financing mechanisms such as bonds and the Regional Development
Account. The Private Participation in Urban Services project is the
mission's principal vehicle for delivery of technical assistance in
developing partnerships and private sector participation in urban
infrastructure development, including assistance in addressing legal policy
reforms needed for successful privatization activities.
U.S. Environmental Protection
Agency (USEPA)
USEPA, in addition to its activities in Indonesia
as a US-AEP partner, is currently providing or considering assistance to
Indonesia in several areas48:
� In conjunction with the U.S. Agency for
International Development's Rapid Assessment Program and by leveraging
significant funding from the World Bank, USEPA has begun an extensive review
of Indonesia's pesticide regulatory program. The second phase of the program
will include expanding the lessons learned from this project to other
interested Southeast Asian countries.
� USEPA is considering an Indonesian request to
place select USEPA officials in priority regional BAPEDALs to support their
development.
US-AEP Activities in Indonesia
US-AEP has supported 226 environmental exchanges,
processed 300 trade leads, and sponsored 55 technology grants through the
National Association of State Development Agencies, in addition to
initiatives through the Council of State Governments. With USEPA, US-AEP has
supported short-term technical assistance and training modules.
9. INTERNATIONAL ORGANIZATIONS
AND BILATERAL ASSISTANCE
GOI is receiving an extensive array of multilateral
and bilateral assistance in clean technology and environmental
infrastructure. Five bilateral and three multilateral projects involve
cleaner industrial production. BAPEDAL is a major recipient of
capacity-building assistance. Representative donor activities include the
following49:
World Bank
BAPEDAL Development and Technical Assistance
Project. The project is providing extensive assistance to BAPEDEL
through five projects designed to build capacity for standards setting,
monitoring, enforcement, permitting, and laboratory capacity.
Industrial Technology Development Project is
directed toward Agency for the Assessment and Application of Technology,
MOIT, and the Indonesian Institute of Science. It is intended to (a)
strengthen Indonesia's system of industrial metrology, standards, testing,
and quality support services, (b) finance provision of
technology-upgrading services to small- and medium-sized enterprises by both
public and private technology suppliers, (c) provide assistance for
reorienting the public research and development labs to support technology
development in the private sector, especially small- and medium-sized
enterprises, and (d) strengthen the capacity to formulate and
coordinate technology and industrial strategies, policies, and programs.50
Indonesian environment and development. The
World Bank in 1994 completed a comprehensive study of environment and
development in Indonesia. The study included an analysis of industrial
pollution intensity that the Bank is still refining.51
Metropolitan Environmental Improvement Project,
Jakarta. This project has provided a wide range of technical, financial,
and institutional assistance to Jakarta in managing its environmental
problems.
Asian Development Bank
The Asian Development Bank's BAPEDAL Regional
Network Project will provide loans and technical assistance to BAPEDAL
for institution building, establishment of regional BAPEDALDAs, and
interagency coordination. The project has made slow progress because much of
the groundwork and the establishment of BAPEDALDAs is being done under the
World Bank assistance project, which has yet to complete the groundwork. The
Asian Development Bank's operational program for environmental
infrastructure is summarized in the endnotes.52
United Nations
BAPEDAL Integrated Marketing Communications
Strategy under the U.N. Environment Programme provides assistance to
BAPEDAL to improve its social marketing strategy as part of its larger
objectives to improve public awareness, attitude, and behavior with respect
to environmental protection.
The United Nations Industrial Development
Organisation has chosen KADIN as the location for a National Cleaner
Production Center; however, the actual establishment of the center is still
uncertain.
Bilateral Assistance
Australia has initiated a five-year project
of technical assistance, technology demonstration, and training support in
clean production in East Java.
Canada is currently designing a project to
provide environmental management assistance to the provinces.
Germany is providing technical assistance to
BAPEDAL, focusing on the textile industry in a watershed close to Bandung.
Japan has provided $125 million for a soft
loan program to finance pollution control equipment and consulting services
for pollution prevention. About fifty-five loans have been made under the
first phase of the program, primarily for pollution control equipment. Japan
and GOI are currently negotiating the second phase of the program, which
will be about $225 million. Japan has also established a pilot wastewater
treatment plant and provides operator training at the Bandung Institute. In
addition, Japan is providing assistance to BAPEDAL to strengthen the
agency's ambient environmental quality monitoring program, including
building laboratory capabilities.
The Netherlands is providing technical
assistance to BAPEDAL in strengthening its monitoring capacity.
10. OPPORTUNITIES FOR A CLEAN
REVOLUTION
Policy Framework
PROPER program. BAPEDAL is planning to
expand the PROPER program from dealing solely with effluent quality to more
general facility environmental management and compliance with hazardous
waste requirements. Because an effective disclosure system may be applicable
throughout the region (e.g., the Philippines government has expressed
interest in the PROPER system), donor support in improving and expanding the
rating system may pay major dividends, both in terms of improving
Indonesia's system and in fostering the concept throughout the region.
AMDAL process and commissions. The AMDAL
process is similar to the EIA process in the United States, which forces
project sponsors to consider and mitigate the environmental and social
consequences of major development projects. In Indonesia, a firm's ability
to obtain investment licenses, commercial loans, and operating licenses is
tied to the AMDAL process. If a simple and effective but quick AMDAL process
could be devised that required consideration of technology choice on the
environment for new investment, it could provide a major opportunity for
improving environmental management.
The "public participation" component of the AMDAL
process is currently limited to participation of selected NGOs to sit on the
national or provincial commissions. A more broadly based institutional
mechanism providing for input to the process from a larger segment of the
public (e.g., public hearings and publication of proposed recommendations
for public comment) would greatly foster engagement of the public in the
decisionmaking process
Economic development. Indonesia is preparing
its next five-year economic plan (REPELITTA VII). Because preparations of
REPELITTAs rely on an extensive consensus-building process across the
government, this planning process may provide a unique opportunity for GOI
to articulate a plan for integrating environmental considerations into
industrial and economic development policies. Long- and short-term donor
assistance to BAPPENAS could be invaluable in mobilizing support for an
integrated industry and environment program.
Level the playing field for cleaner
production/pollution prevention. A systematic bias exists in Indonesia's
environmental policies, favoring end-of-pipe solutions. This bias reflects a
significant lack of information about clean production and may be depriving
firms of more cost-effective options. A policy program to level the playing
field would involve redressing the bias in environmental management and
overcoming a market failure in technology information markets.
Industrial Environmental
Management
ISO 14000. The ISO 14000 movement could be a
useful focus for donor activities to galvanize support of the central
industrial and economic planning ministries for environmental and quality
improvement. At the present time, most of the industry sector directorates
within MOIT are not aggressively engaged in clean technology and only
beginning to appreciate ISO 14000 and its implications for competitiveness.
With deregulation of the economy, however, the ministry is sorting out new
priorities and directions and may well be open to assuming a leadership role
in aggressively promoting and moving ISO 14000 forward in Indonesia. An ISO
14000 program might include (a) information seminars for senior
government officials, (b) high-level visits to one or more of the
first- and second-tier newly industrialized countries to explore their
approaches to ISO 14000, (c) assistance to GOI in searching for the
best "home" for ISO 14000, and (d) a business awareness program and
cost-effective certification program for small- and medium-sized firms.
Within MOIT, ISO 9000 and 14000 are managed by
different organizations without a closely coordinated effort. Advice on how
these two processes may be more closely integrated would be welcomed by
PUSTAN.
Role for MOIT in PROPER program. A real need
exists to provide systematic assistance that could help firms receiving poor
ratings under BAPEDAL's PROPER Prokasih program to upgrade their
environmental practices and business rating. Perhaps MOIT could become the
primary repository of advice for firms with poor ratings seeking to improve
their ratings. This could be an effective way of enticing MOIT to begin
mainstreaming the environment into its programs.
National Pollution Prevention Roundtable.
Indonesia has recently established a pollution prevention organization in
conjunction with the National Pollution Prevention Roundtable in the United
States. This new organization could provide an important forum for
transferring U.S. clean production experience, technology, and practices.
Environmental Infrastructure
Revolving fund. East Java may be the first
province to initiate an environmental permit system, which could include an
effluent charge scheme and a revolving fund for environmental
infrastructure. This program could provide a "model" permit/charge scheme
that could be emulated in other provinces and possibly throughout the
region.
REFERENCES
Afsah, Shakeb, Benoit Laplante, and David Wheeler.
1995. What is PROPER? Reputational Incentives for Pollution Control in
Indonesia. Washington, D.C.: World Bank, Policy Research Department,
Environment and Infrastructure Division (October).
Afsah, Shakeb, Benoit Laplante, and Nabiel Makarim.
1995. Program-Based Pollution Control Management: The Indonesian PROKASIH
Program. Washington, DC: The World Bank, Policy Research Department,
Environment and Infrastructure Division (October).
Asian Development Bank (ADB). N.d. Operational
Program 199597. Environmental Infrastructure.
Badan Pengendalian Damak Lingkungan (BAPEDAL).
1995. BAPEDAL Guidelines for Effluents (October).
Brandon, Carter and Ramesh Ramankutty. 1993.
Toward an Environmental Strategy for Asia . Washington, D.C.: World
Bank.
Bratasida, Liana (BAPEDAL) and Jean Lowry (EMDI
Cleaner Production Adviser). 1995. Indonesian National Cleaner Production
Strategy, Background Information (May).
Butler, John, Elizabeth Marcotte, and Michael Rock.
1996. Policy Initiatives for Clean Production in Indonesia. Report to
the Urban Environmental Management Office of USAID/Indonesia (May 10).
Environmental Business International (EBI). 1996.
Indonesia Environmental Market Summary. Prepared for US-AEP (March).
Environmental Law Alliance Worldwide (E-Law). 1996.
Environmental Law Alliance Worldwide. Home page. (Internet:
http://open.igc.org/elaw).
Gourlay, Peter. 1996. Assessment of
Environmental Infrastructure in Asia. Washington, D.C.: US-AEP (March).
Indonesian Center for Environmental Law (ICEL).
1996. Indonesian Center for Environmental Law. Home page. (Internet:
http://www.open.igc.apc.org/elaw/asia/indon/icel.html).
Indonesian Forum for the Environment. 1996.
Wahana Lingkungan Hidup Indonesia, The Indonesian Forum for Environment.
Home page. (Internet: http://www.sdn.or.id/walhi).
Louis Berger International. 1994. A Review of
Environmental Policy, Regulations, Programs, and Institutions of the ASEAN
Member Countries. Association for Southeast Asian Nations, Environmental
Improvement Project, Jakarta (December).
Tumiwa, Samuel. 1995. "Bilateral,
Multilateral, Private Sector Assistance and GOI Activities in Support of
Cleaner Industrial Production." Second draft. Jakarta: Urban Environmental
Management Office, USAID/ Indonesia (March 30).
United States-Asia Environmental Partnership
(US-AEP). 1995. "The Package," Useful Information for American
Business People about the Environmental Market in Indonesia.
US-AEP Indonesia, Office of Technology Cooperation, Jakarta (September).
. 1996. "US-AEP/USFCS Environmental
Infrastructure Strategy: Indonesia." Washington, D.C. (August).
World Bank. 1992. World Development Report 1992.
New York: Oxford University Press.
. 1994. Indonesia: Environment and Development.
Challenges for the Future. Washington, D.C. (July).
. 1995a. "Country Assistance Strategy of the World
Bank Group for Indonesia." Memorandum of the President of the International
Bank for Reconstruction and Development to the Executive Director, Country
Department III, East Asia and Pacific Region, Washington, D.C. (February
27).
. 1995b. Indonesia-Industrial Technology
Development Project. Staff Appraisal Report. East Asia and Pacific
Regional Office, Washington, D.C. (November 20).
. 1996. Public Opinion, Markets Are New Weapons
in Pollution Fight, Press Release No. 97/S004, Washington, D.C. (August
21).
ENDNOTES
1. World Bank (1992).
2. World Bank (1994, 45).
3. World Bank (1994, 1011).
4. World Bank (1994, 89).
5. Michael Rock, Winrock International,
Arlington, Virginia (August 1996).
6. World Bank (1994, 23).
7. World Bank (1994, 1617).
8. Brandon and Ramankutty (1993, 8).
9. World Bank (1994, 76). Data are
seriously lacking on industrial effluents and water quality; wide
discrepancies have been observed in estimates of the degree to which
industrial sources contribute to Indonesia's water quality problems compared
with the contribution of municipal and other sources. Original source
materials providing estimates of BOD5 (the amount of dissolved
oxygen needed or consumed in five days by biological processes to break down
organic matter in effluent) loadings to rivers show that 1530 percent can be
attributed to industrial sources, compared to 2550 percent cited in this
source. In 1996 BAPEDAL reported that 80 percent of BOD5 was from
household sources (Mary Boomgard, US-AEP environmental infrastructure
representative, Jakarta [September 20, 1996]).
10. Tumiwa (1995, 910).
11. The World Bank has conducted an
extensive analysis of industrial pollution in Indonesia, using its
Industrial Pollution Projection System. The system uses data from facilities
in the United States, derived from the U.S. Environmental Protection Agency
and U.S. Census Bureau data bases (World Bank 1994, 7483).
12. Unless otherwise noted, much of the
information in this section was collected during a visit to Jakarta,
Indonesia, by John Butler, US-AEP/IRG; Elizabeth Marcotte, EP3; and Michael
Rock, Winrock International (April 29May 10, 1996).
13. World Bank (1994, 181).
14. World Bank (1994).
15. Mary Boomgard, US-AEP environmental
infrastructure representative, Jakarta (September 20, 1996).
16. Mary Boomgard, US-AEP environmental
infrastructure representative, Jakarta (September 20, 1996).
17. World Bank (1994).
18. World Bank (1994, 17475).
19. World Bank (1994, 17987);
information collected during a visit to Jakarta, Indonesia, by John Butler,
US-AEP/IRG; Elizabeth Marcotte, EP3; and Michael Rock, Winrock International
(April 29May 10, 1996).
20. Unless otherwise noted, information
in this section was collected during a visit to Jakarta, Indonesia, by John
Butler, US-AEP/IRG; Elizabeth Marcotte, EP3; and Michael Rock, Winrock
International (April 29May 10, 1996).
21. Major laws and regulations affecting
industrial and environmental infrastructure are as follows (much of this
information was drawn from Louis Berger International [1994]):
� Law No. 4 of 1982 (Environmental Management
Act)
Provides for:
1. The right of every person to a good and
healthy living environment
2. "Polluter pays" principle
3. EIA requirements (existing and new
facilities)
4. Authority to establish licensing systems
5. Right of every person to participate in
environmental management process
6. Compensation of victims of environmental
damage.
� EIA (AMDAL process)
EIAs are administered by implementing
ministries. Each ministry has review committees.
Regulation No. 29 of 1986: Implementation of
EIA as authorized under Law No. 4.
Regulation No. 51 of 1993, which replaced
Regulation No. 29, eliminates some of the confusion arising from
procedures in Regulation No. 29, including:
1. Shortening the time requirement for the
AMDAL process
2. Improving the evaluation process,
especially for multisectoral activities
3. Increasing compliance by linking the
issuance of permits to the AMDAL process (World Bank 1994, 3637).
� Water Pollution Control
Act No. 11 of 1974 gives the governor of each
province the authority to:
1. Establish intended uses of waterways and
pollution carrying capacity
2. Establish liquid waste quality standards
and issue permits for liquid waste disposal
3. Enter and inspect pollution sources.
EMA and Act No. 5 of 1984 are the bases for
implementing water pollution control in industry.
Regulation No. 20 of 1990 on Water Pollution
Control governs the control of water pollution in general by licensing
instruments, water quality, and waste quality standard determination.
� Land Use Planning and Siting
Act No. 24 of 1992 (Spatial Planning Act): In
recognition of the need for better planning and coordination of urban
sector investments, GOI in 1992 passed a new law on "spatial planning."
The law provides for identification of environmentally sensitive areas,
where development activities would be restricted, and improved planning
for the location and support of significant "activity centers." The
preparation of "Strategic Structural Plans" provides an opportunity for
municipal governments to protect critical ecosystems and guide the
development of urban sector growth, with a least-cost provision of
supportive infrastructure. Implementing regulations had not yet been put
in place as of July 1994 (World Bank 1994, 139)
� Air Pollution Control
No specific regulations on air pollution have
been promulgated; however, regulations under other programs address air
emissions (e.g., emission standards for hazardous waste incinerators,
odor restrictions, and provincial air quality standards).
� Hazardous Substances and Waste
The Hazardous Substances Ordinance 1949
regulates the import and use of nonwaste hazardous substances.
The Ministry of Industry Decision Number
148/M/Sk/1985 on the security of Hazardous and Toxic Substances in
Industrial Companies states that it is the duty of industry to take
steps to prevent pollution by hazardous and toxic substances:
1. In the planning and establishment phase,
covering the choice of site, processing technology, design, and
equipment
2. In the operation phase, covering storage,
processing, and transporting of hazardous substances.
Government Regulation 19 of 1994 on Hazardous
Waste Management deals with regulation of hazardous and toxic waste,
based on the cradle-to-grave approach. Handlers of hazardous and toxic
substances should have responsibility for "coping with environmental
disaster and pollution," but the regulation does not apply strict
liability principles. An EIA is required for hazardous and toxic waste
treatment activities.
22. World Bank (1994, 6).
23. Local water utility agencies (known
as PDAMs) have been particularly influential in a number of the Prokasih
committees, because they are directly and adversely affected by high
pollution levels in surface waters (Mary Boomgard, US-AEP environmental
infrastructure representative, Jakarta [September 20, 1996]).
24. World Bank (1994).
25. Mary Boomgard, US-AEP environmental
infrastructure representative, Jakarta (September 20, 1996).
26. US-AEP (1996); World Bank (1994,
134).
27. World Bank (1994, 18485).
28. Bratasida and Lowry (1995); Tumiwa
(1995, 2528).
29. Louis Berger International (1994);
Mary Boomgard, US-AEP environmental infrastructure representative, Jakarta
(September 20, 1996).
30. Butler, Marcotte, and Rock (1996).
The Adipura award has been an extremely successful alternative to command
and control policies in Indonesia; many argue it is the most successful. The
incentive for mayors is extremely effective: their reappointment is often
contingent on their cities receiving the awards. In the past, awards were
primarily based on the cosmetic appearance of cities; however, in 1996 many
other factors were heavily weighted; as a result, some cities that had won
the award for six years in a row failed to win again (Mary Boomgard, US-AEP
environmental infrastructure representative, Jakarta [September 20, 1996]).
31. World Bank (1994, 5); information
collected during visit to Jakarta, Indonesia, by John Butler, US-AEP/IRG;
Elizabeth Marcotte, EP3; and Michael Rock, Winrock International (April
29May 10, 1996); Afsah, Laplante, and Makarim (1995, 19).
32. Mary Boomgard, US-AEP environmental
infrastructure representative, Jakarta (September 20, 1996).
33. World Bank (1994, 19495).
34. BAPEDAL (1995) provides the effluent
standards issued in October 1995. It is noteworthy that the standards
generally address "conventional" pollutants (BOD5, TSS, and so
on); for some industries, they also include standards for toxic metals.
35. World Bank (1996).
36. World Bank (1994, 22).
37. World Bank (1994, 122).
38. US-AEP (1996).
39. World Bank (1994).
40. US-AEP (1995); Mary Boomgard, US-AEP
environmental infrastructure representative, Jakarta (September 20, 1996).
41. World Bank (1994, 23); information
collected during visit to Jakarta, Indonesia, by John Butler, US-AEP/IRG;
Elizabeth Marcotte, EP3; and Michael Rock, Winrock International (April
29May 10, 1996).
42. World Bank (1994, 23); information
collected during visit to Jakarta, Indonesia, by John Butler, US-AEP/IRG;
Elizabeth Marcotte, EP3; and Michael Rock, Winrock International (April
29May 10, 1996).
43. Information collected during visit
to Jakarta, Indonesia, by John Butler, US-AEP/IRG; Elizabeth Marcotte, EP3;
and Michael Rock, Winrock International (April 29May 10, 1996); Mary
Boomgard, US-AEP environmental infrastructure representative, Jakarta
(September 20, 1996).
44. Information collected during visit
to Jakarta, Indonesia, by John Butler, US-AEP/IRG; Elizabeth Marcotte, EP3;
and Michael Rock, Winrock International (April 29May 10, 1996).
45. Information collected during visit
to Jakarta, Indonesia, by John Butler, US-AEP/IRG; Elizabeth Marcotte, EP3;
and Michael Rock, Winrock International (April 29May 10, 1996).
46. Information in this section was
collected during visit to Jakarta, Indonesia, by John Butler, US-AEP/IRG;
Elizabeth Marcotte, EP3; and Michael Rock, Winrock International (April
29May 10, 1996); Indonesian Forum for the Environment (1996); Indonesia
Center for Environment Law (1996); Environmental Law Alliance Worldwide
(1996).
47. Information collected during visit
to Jakarta, Indonesia, by John Butler, US-AEP/IRG; Elizabeth Marcotte, EP3;
and Michael Rock, Winrock International (April 29May 10, 1996).
48. Marianne Bailey, Asia Program
Manager, Office of International Activities, U.S. Environmental Protection
Agency (August 22, 1996).
49. Information from this section is
from Tumiwa (1995) unless otherwise noted.
50. World Bank (1995b).
51. World Bank (1994).
52. The Asian Development Bank's
Operational 199597 Program for Environmental Infrastructure includes (Asian
Development Bank [N.d.]):
� 1995 firm loans
Capacity Building Project in the Water
Resources Sector ($27.5 million)
Sumatra Urban Development Sector ($120.0
million). Project will include urban roads, drainage, water supply,
sanitation, solid waste management, and kampung and market
infrastructure improvement.
West Java Urban Development Sector ($70.0
million). Description same as that for Sumatra
� 1996 loan pipeline
Industrial Pollution Control (Cimahi): $40.0
million
� 1995 Technical Assistance Program
National Environmental Sanitation Plans and
Programs: $600.0 million
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