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The View
Opinion
Nicholas Stern

Why Indonesia is right to seek a low-carbon future for the sake of its economy, and people

  • The government is blazing a trail for other emerging economies with its recognition of the adverse health, financial and environmental impact of high carbon emissions, and its new plan charting a course towards sustainability

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Indonesian President Joko Widodo inspects a peatland clearing that was engulfed by fire in southern Kalimantan in September 2015. Such fires, often started to clear forest for plantations, are the cause of seasonal haze in the region, a recurring problem for Indonesia and its neighbouring countries. To meet its new targets on carbon emission reduction, Indonesia must fully enforce forest protection laws. Photo: AFP

Change is the defining characteristic of our time. Some change is tangible and measurable, like technological advances, shifting employment and labour patterns, and the impacts of climate change. Other change, like shifting social and power structures, less so.

Geopolitics is also changing. Some developed countries that once took responsibilities and shaped the agenda have been turned inwards by retroactive forces. While others, particularly emerging economies, are writing new development stories for themselves, setting examples and drawing the world’s interest as they go.

Indonesia stands firmly among these new leaders. Now the world’s 16th-largest economy, Indonesia has made remarkable progress over the past two decades: per capita income has doubled while extreme poverty has halved to less than 10 per cent. Much of this progress has been driven by an average GDP growth rate of 5.3 per cent per year between 2000 and 2018. It has grown along with giants China and India, helping to reduce the income gap with the developed world.
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But Indonesia’s economic success has come at significant cost to the environment and public health. Largely built on fossil fuels and unsustainable land use practices, Indonesia’s high-carbon-growth path has led to a 54 per cent increase in greenhouse gas emissions since 2000, making it the fourth-largest greenhouse gas emitter in the world. And, shockingly, in 2010 almost 60 per cent of Jakarta’s population suffered from air-pollution-related diseases, adding up to a total cost of US$54 billion.

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