East Kalimantan Towards Green Economy Transformation

Balikpapan, 7/17/14. The Provincial Government of East Kalimantan along with three selected districts (Berau, East Kutai, and Paser) and Giz did

In the workshop discussing the economic development of East Kalimantan so far which tends to drain natural resources, triggers forest destruction, and creating community income inequality. The economic structure of East Kalimantan is currently still depending on an unchangled resource where economic output originating from oil, gas and coal in 2013 reached more than 60% (RPJMD East Kalimantan 2014-2019). The high dependence on an unchangled source whose reserves continue to decline make the average economic growth of East Kalimantan in the last five years only around 3.6% per year with a range of 1.59% to 5.1%. The income inequality of the people of East Kalimantan is also a concern where the Gini coefficient in 2012 reached 0.36, increased from 0.33 in 2011 (BPS East Kalimantan). On the other hand forest damage in East Kalimantan due to economic activity is also concerning where deforestation rates in the period 2006-2011 reached 209,085 ha or nearly 42,000 ha per year.

East Kalimantan requires economic transformation to the green economy. Green economy is a low economy of emissions, utilizing resources efficiently, and encourages the widest possible community participation as the main actor in Economic Activities (UNEP). Through good economic planning, East Kalimantan can transform economic structures in a more sustainable direction with quality economic growth that prosper the community and reduce income inequality. This is in line with the vision of the development of the Province of East Kalimantan as stipulated in the 2014-2019 RPJMD:

"Realizing the equivalent and equitable East Kalimantan -based on agro -industry and environmentally friendly energy".

To realize the vision of the development of East Kalimantan, East Kalimantan Province established development cooperation with the German government through a green economic program called GE-Lama-I (Green Economy and Locally Appropriate Mitigation Action in Indonesia) for almost four years until the end of the year 2017. In its implementation this collaboration program will focus on capacity building in three elected districts, through the support of the Provincial Government, to develop climate mitigation activities in the land sector as a realization of the mainstreaming of the green economy to districts/cities in East Kalimantan. In full this program aims:

"At the end of the program in 2017, three selected districts supported by the province have developed mitigation activities (name/old) land -based sector as a realization of the mainstreaming of the green economy into development planning that is monitored and evaluated in an integrated manner."
This collaboration program will produce at least two mitigation activities developed. What is meant by "developed" is innovative efforts to eliminate constraints, and create supporters and incentives for economic actors to have strong motivation to carry out these mitigation activities as a business activity. Thus the financing of mitigation activities as far as possible by economic actors or financial institutions through the process of economic transactions. So that the impact of the mitigation activity can be measured in terms of social, economic and climate benefits, this program will also build a green economy plan (which includes baseline emissions and targets of its decline) and the monitoring system.

Implementing Development Partners in the Ge-Lama-I Program are Giz and ICRAF. Giz, previously named GTZ, has been working with East Kalimantan since the 1970s through various development themes including agriculture, rural development, environment, forestry and good governance. ICRAF, the International Wanatani Research Institute, has developed Wanatani Land and Economic Analysis tools that have been recognized by the Indonesian government and will be very helpful in providing suggestions to realize the vision of East Kalimantan's economic transformation.

In order to equalize the objectives and framework of the results of this development cooperation, the Provincial Government of East Kalimantan along with three elected districts (Berau, East Kutai, and Paser) and Giz held a joint planning workshop on July 17-18, 2014 in Balikpapan. In addition to the core parties in the collaboration, the workshop was also attended by other East Kalimantan development partners namely the climate change regional council, the Global Green Growth Institute (GGGI) and The Nature Conservancy (TNC) and non-governmental organizations that actively work at one Of the three selected districts, the Indonesian Padi Foundation. Overall, the workshop was attended by 50 participants.

In addition to the program objectives, this meeting also found a work plan and a joint results framework during the 2014-2017 cooperation period. In addition, this meeting also agreed on the design of the Memorandum of Understanding (Memorandum of Understanding) and the planned signing process between the Provincial Government of East Kalimantan, Berau Regency, East Kutai Regency, Paser Regency, and Giz. The mutual agreement will be signed by each regional head and the leader of the GE-Lama-I Program.

The joint agreement will be followed up with the Memorandum of Agreement that will be signed by the vocal point of each party. The cooperation agreement will contain detailed matters about the objectives, outcomes and division of responsibilities-the draft is discussed at this workshop-as well as agreement on the distribution of resource burdens on each party. Unlike a joint agreement that is only a maximum age of one year, the cooperation agreement will apply until the GE-Lama Cooperation Program ends at the end of 2017. (Source: Economic Affairs of East Kalimantan Province and Published by Bappeda Public Relations of East Kalimantan Province/Sukandar, S .Sos).