___________________________________________________________________________ 2008/MRCWG/006 Agenda Item: 1 Economy Report - Indonesia Purpose: Information Submitted by: Indonesia 21st Marine Resource Conservation Working Group Meeting Piura, Peru 14–18 April 2008 ECONOMY REPORT BY INDONESIA The marine environment contributes substantially to the economic viability of APEC economies through trade in fisheries and aquaculture products, other marine commodities and tourism. These are dependent on active conservation of marine resources and the marine environment, degradation of which has significant socioeconomic costs. While enhancing trade and investment in marine products, APEC economies will aim to protect the marine environment and to ensure continuing socioeconomic benefit. Related to the above reason, Indonesia has put in place several appropriate programmes and activities to develop, manage, protect and conserve marine, coasts and small islands environment and also conduct a protection for diversity, species and their inhabit environment. In implementing its programs and activities for supporting the efforts, Indonesia refers to the Key action items that are in line with the Bali Plan of Action. 1. Understanding Oceans, Seas and Coasts In order to get a clear and comprehensive understanding of oceans, seas and coasts, Indonesia has been conducted several research programs and activities to assess its potential resources and manage them appropriately namely: Establishing South East Asia Center for Observation Research and Monitoring programs and facility in Bali at 2002, as part of Indonesian commitment to strengthen regional research and data sharing partnership for Pacific and Indian Ocean observation. Through this program, Indonesia involve in developing the Ocean Model and Information System for APEC Region (OMISAR). In order to implement the Global Ocean Observing System (GOOS), Indonesia has conducted research on the impact of global climate change using Argo Float data to know the dynamic of sea water mass in Indonesia EEZ waters and to establish an ocean dynamic model for global climate forecast and to understand the phenomena such as El Nino and climate change. This research shows the role of Indonesian waters related to global climate change. Moreover, Indonesia established INA-GOOS which the purpose is to have comprehensive and sustainable observation system of marine-climate phenomena, and natural and human-induced related disasters through setting up of a monitoring system and its forecasting schemes in the open seas of EEZ and its coasts, semi-enclosed seas, straits, and bays of the Indonesian seas. INA-GOOS is designed to address the need for timely and good quality long-term information as a basis for reliable decision making and will enhance delivery of benefits to society in the following areas: understanding, assessing, predicting, mitigating, and adapting to climate variability and change. As a respond to the government and stakeholder needs on oceanographic research programs for nation building and as commitment to International level, IOC-National Working Group was periodically discussed ocean issues, threats challenges and recommendation for ocean research. Indonesia has also been involved in IOC International meeting to share ocean research result and information. Conducting research on Indonesian potency on deep sea mineral and ISBA workshop to introduce potency of seabed living and non-living resources and learn the organization, procedure of licensing and availability of data base. 2. Managing the Marine Environment Sustainably a. Ecosystem Based Management In recent years, the Government of Indonesia has started to play a leadership role in conserving the marine biological resources through several programs and activities, including: Page 1 of 5 MPAs. The Indonesian Government announced intentions (i) to double the extent of MPAs across Indonesia by 2010 (increasing their coverage from about 6.7 million ha to 10 million ha.), and (ii) to establish 20 million ha of MPAs by 2020. Since these commitments were made, some tangible steps have been taken toward their fulfillment. For example, in 2005 the Berau Islands MPA (totaling 1.2 million ha) was declared – becoming the single largest MPA supported by local government in all of Indonesia. Fisheries policy. In 2005, DKP Minister Freddy Numberi announced an intention to incorporate ecosystem-based management approach into Indonesia’s fisheries management strategy to ensure the long-term sustainability of the fisheries. Multilateral processes. The Indonesian Government has engaged in a number of multilateral government processes around fisheries management and conservation objectives, covering parts of the Coral Triangle, such as (i) Tri-national Commission for the Sulu and Sulawesi Seas (Indonesia, Malaysia, Philippines); and (ii) Tri-national Commission for the Bismarck / Solomon Seas (Indonesia, PNG, Solomons). b. Coral Triangle Initiative (CTI) Scientists have identified a Coral Triangle region within the Indo-Pacific-its boundaries defined by marine areas containing 500 or more species of coral. This triangular-shaped region covers all or parts of six countries: Indonesia (Central and Eastern), East Timor, the Philippines, Malaysia (Sabah), Papua New Guinea and the Solomon Islands. Unfortunately, this marine life – and the many goods and services it provides - - are at risk, threatened by a range of factors, such as: overfishing, unsustainable fishing methods, and land-based sources of pollution. To respond to this urgent problem, in March 2006, the President of the Republic of Indonesia (Susilo Bambang Yudhoyono) issued a formal letter to the COP-8 meeting under the Biodiversity Convention, highlighting the critical importance of the Coral Triangle. To translate his COP-8 message into concrete action, in August 2007, President Yudhoyono of Indonesia wrote to seven other leaders proposing a new Coral Triangle Initiative (CTI), designed to stimulate actions to safeguard the region’s extraordinary marine and coastal biological resources. In early September 2007, CTI received attention by governments at the APEC Summit in Sydney, Australia. The 21 heads of state formally endorsed the CTI I their APEC Leaders Declaration. In addition, the CTI was briefly discussed in bilateral meetings between President Yudhoyono and President Bush, Prime Minister Howard of Australia, and Prime Minister Somare of PNG. The initiative has been discussed also at the BIMP-EAGA and ASEAN Summits on November 2007. As a next step, building on the APEC and other results, Minister Freddy Numberi has just sent out a set of letters to ministers in these seven countries, inviting their governments to a first formal CTI Senior Official meeting in Bali in December 2007 which could focus on three general objectives: (i) reaching a common understanding of the value of the marine and coastal biological resources of the CT, and threats to these resource - - with a special focus on shared interests; (ii) reaching agreement on a set of principles that could guide the future development of a CT; and (iii) reaching agreement on a framework for a “CTI Plan of Action” that could be developed during 2008 and adopted at the appropriate political level, and ultimately with partners in the private sector and civil society (where appropriate). Page 2 of 5 These developments lay a foundation for next steps: moving from the conceptual stage to discussions of more specific commitments, actions, coordination and funding needed to advance a Coral Triangle Initiative, building on existing efforts. To help progress such discussions, a first formal CTI planning meeting is held 6-7 December 2007 in Bali, during the first week of the UN climate change negotiations. The Indonesian CTI secretariat and national working group has been established since September 2007. SOM in Bali and Indonesian National workshop are the events organized by that task force. 3. Enabling Sustainable Development of Coastal Communities a. Coastal Community Empowerment There has been developed several programs and activities in order to utilize coastal communities and small fishermen, fish aquaculture farmers and other communities related in marine and fisheries sectors, as follows: Coastal Communities Economic Empowerment (PEMP), this program was focused on capital assistance for the coastal communities in order to create coastal community welfare with their capabilities, compatibilities and productivities. Solar Package Dealer for Fishermen (SPDN), establishment is once of several programs for helping fishermen in obtaining fuel easily with market price. Gender Empowerment Program, Fishermen Regeneration and participation of Islamic School (Pondok Pesantren) and community institution in coastal community empowerment. To assist communities in isolated small islands through the development of small scale infrastructure, such as Landing Craft Tank (LCT), healthy vessel, solar home system (SHS), communication facilities and others. Coral Triangle Initiative. With its rich supply of fish and other marine life, the Coral Triangle supports the livelihood and food security of some 126 million people living in Indonesia and other parts of the region, who depend on seafood as their major source of protein. Beyond the region, tens of millions of consumers worldwide (e.g., Japan, Europe, the United States, Asia Pacific) rely on fish that are either caught or living out part of their life cycle within the Coral Triangle. In the species case of tuna, for example, the Sulu and Sulawesi Seas within the Coral Triangle serve as the major spawning and nursery grounds for three species of commercial tuna fish stocks harvested across the Western Pacific – the single largest tuna fishery in the world. Moreover, large-scale fishing operations, processing, and trade of commercial fisheries linked to the Coral Triangle contribute significantly to the generation of jobs and economic growth in a large number of countries, such as European countries, the United States, Australia, Japan and Thailand. b. Enabling Integrated Management We also promote of Integrated Coastal and Ocean Management (ICOM) through Implementation of Marine and Coastal Resource Management Project (MCRMP) in 15 Provinces and 42 Districts that has been developed since 2001. Outcome of this project is strengthening capacity-building, particularly in local government on marine and coastal management. Objective of this project is, to develop of sustainable marine and coastal resources management and environmental improvement in decentralization framework. c. Hazard Mitigation In order to minimize the impact of natural disaster on the coastal areas in Indonesia, especially Tsunami, and earthquake, Indonesia improve national coordination and capabilities Page 3 of 5 to predict, warning system, mitigate, and manage the event of coastal disasters. The national, provincial and district level coordination board are established for disaster management. Indonesia is now continuing to formulate the national policies and programs to mitigate the adverse impact of coastal disaster. In this context we have several programs that support the mitigation of coastal disaster, as follows: Implementation of Integrated Coastal and Ocean Management (ICOM). Implementation of the instrument makes a balance between the natural resources, human utilization, and disaster mitigation. Publishing National Guidelines for Natural Disaster Mitigation in Coasts and Small Islands. Formulating and proposing the new law in coastal Area management (RUU-PWP). Continuing to develop artificial coral reef and transplantation activities, and mangrove rehabilitation as a natural barrier from tsunami attack. Enhancing education and public awareness for coastal community Spatial Landuse planning and implementation of Building code Develop of traditional wisdom related to early warning system tsunami Coral Triangle Initiative. Intact coral reefs and mangrove systems across the Coral Triangle also play an important role in protecting coastal communities from damage by tropical storms and tsunamis. This coastal protection function can help to save lives and reduce what can be massive reconstruction costs often associated with such natural disasters, such as the costs of rebuilding in Aceh Province following the 2005 tsunami. d. Post Natural disaster Rehabilitation and Planning Conducting several workshops and training (Training of Trainers) in central, province and district levels in order to develop and improve the better preparedness to deal with disasters. Encouraging the availability of disaster plans and public awareness campaigns. Trying available technologies in risk assessment and disaster forecasting to ensure that people are informed about their disaster threats and prepared to respond appropriately. Developing and strengthening of cooperation and coordination among countries and more Institutions in nationally and internationally level in order to encourage overall preparedness and reduce disaster losses over the long term. Indonesia April 2008 Page 4 of 5