Role of the Land-Based Private Sector in Low-Emission Development: An Indonesian Case

Abstract

The land-based private sector is a critical player in reducing emissions in Indonesia. While the Indonesian Government has undertaken various national efforts to reduce the rate of deforestation and land degradation, the involvement of land-based private sectors are still minimal. Using content and thematic analysis, this study explores why land-based private sector is not leading to low carbon development in Indonesia. More specifically, this study aims to: (1) analyse two key policies critically shaping the land-based private sector’s involvement in low emission development in Indonesia; (2) identify the land-based sector’s practices to engage in the development of low carbon policies in the East Kalimantan Province in Indonesia; and (3) conduct a participants’ perceptions analysis to identify the critical factors influencing their involvement in low emissions development. The results show that even though the Government has adopted several mandatory regulations to support the land-based private sector’s participation in emission reduction activities, to date, only a handful of businesses are actively involved in emission reduction efforts. The key barrier identified is the lack of incentives for the businesses to implement low emission programs/activities. This study offers four specific policy recommendations that could support land-based private sector involvement in low emission development in Indonesia. These include (1) establishment of an independent monitoring agency; (2) incentives for ecologically sustainable companies that meet predetermined standard criteria; (3) strict and fair sanctions as disincentives for companies that ignore regulations, and (4) building capacity of the land-based private sector to adopt and develop innovative low emission practices.