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Ministry of Environment Indonesia

INDONESIAN THEMATIC RESEARCH ON UTILIZATION OF ECONOMIC INSTRUMENTS: Case Study on Pulp and Paper Industry. Ministry of Environment Indonesia. Objectives. To support the development of cost effective solutions to achieve the sustainable use of natural and environmental resources

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Ministry of Environment Indonesia

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  1. INDONESIAN THEMATIC RESEARCH ON UTILIZATION OF ECONOMIC INSTRUMENTS: Case Study on Pulp and Paper Industry Ministry of Environment Indonesia

  2. Objectives • To support the development of cost effective solutions to achieve the sustainable use of natural and environmental resources • To institute a multi-stakeholder process in identifying and implementing economic instruments. • To stimulate decision-makers to take a proactive role in formulating country and sector specific’ economic instruments • To enhance coordination among institutions in the use of economic instruments

  3. Why Industry sector? • Industrial development significantly contributes to the national income • The need to solve environmental pollutions and degradations caused by the industrial activities. • Utilization of economic instruments to encourage the sustainability of natural resources and to control the pollution

  4. Why Pulp and Paper industry? • related to other activities such as forestry management & policies, air & water pollution control, and the use of energy efficiency • an interrelation from upstream to downstream industry

  5. What’s Scope of the Study? to identify, analysis, and Select appropriate economic instruments to encourage the sustainable use of natural resources and to Internalize environmental Impact of pulp and paper industry resulting from trade liberalization and increasing export growth

  6. Review Pulp and Paper in trade liberalization Identify Process of Production Methodology Assess Impacts on the Environment Analysis Policy Instruments Identify Policy Recommendations

  7. How’s Pulp & Paper Industry in Indonesia? Review Pulp and Paper in trade liberalization

  8. Statistics of Paper & Paperboard 1995-2000 (Million tones) Source: Indonesian Pulp & Paper Industry Directory 2001

  9. Performance of Pulp & Paper Industries 1997 - 2000 Source: Indonesian Pulp & Paper Industry Association (2001)

  10. Export Growth of Pulp and Paper (1996-2000) Source: Indonesian Pulp & Paper Association, 2001

  11. Review Pulp and Paper in trade liberalization Identify Process of Production How to make pulp and paper?

  12. Review Pulp and Paper in trade liberalization Identify Process of Production Assess Impacts on the Environment Any Impacts on the Environment?

  13. Preliminary Assessment of the Environmental Impact

  14. Review Pulp and Paper in trade liberalization Identify Process of Production Assess Impacts on the Environment Analysis Policy Instruments How about the policy instruments?

  15. Matrix Economic Instruments Analysis

  16. Matrix Economic Instruments Analysis

  17. Matrix Economic Instruments Analysis

  18. Matrix Economic Instruments Analysis

  19. Matrix Economic Instruments Analysis

  20. Identify Process of Production Review Pulp and Paper in trade liberalization Assess Impacts on the Environment Analysis Policy Instruments Identify Policy Recommendations What instrument for what purpose?

  21. Identification Potential Recommendation of Economic Instruments Note: X = suitable applied XX= most suitable applied

  22. each of EIs has a specific best practice  each of EIs has its nature to cope with the potential environmental impacts • to choose the most appropriate of EIs requires further study, to assess: • Effectiveness • Economic Efficiency • Equity Principle • The Administrative Cost-Effectiveness Principle • Institutional Concordance

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