Indonesia

A Catalyst for Green Financing in Indonesia

A Catalyst for Green Financing in Indonesia

It is an unfortunate but fact of life that Indonesia often deals with the impacts of natural disasters. It was sadly evident again this week when I arrived in Jakarta to the unfolding disaster caused by the earthquake in Lombok, West Nusa Tenggara. M…

by · Friday, 3 August 2018 · China, Fiji, Indonesia, Singapore

Indonesia works to reduce poverty rate

Jakarta (VNA) – The poverty rate in Indonesia declined to 9.8 percent, or nearly 26 million people, of the total population in March 2018 from 10.64 …

by · Tuesday, 17 July 2018 · Indonesia, Vietnam

Poverty in Indonesia Drops to its Lowest Level in 20 Years

Poverty in Indonesia Drops to its Lowest Level in 20 Years … In the first quarter of 2018 the poverty rate in the Asian country reached unprecedented …

by · Monday, 16 July 2018 · Indonesia, Turkey

Prosperity-Independence Village, Indonesia’s poverty reduction model

Jakarta (VNA) – The Indonesian government has announced that it will, through the Ministry of Social Affairs, push efforts to eradicate poverty along its …

by · Sunday, 15 July 2018 · Indonesia, Vietnam
Percontohan di Indonesia menarik minat wirausahawan untuk membawa teknologi memasak yang sehat dan hemat energi ke rumah tangga

Percontohan di Indonesia menarik minat wirausahawan untuk membawa teknologi memasak yang sehat dan hemat energi ke rumah tangga


Bapak Kris mengelola pabrik penghasil pelet yang terletak di dekat kota Boyolali, Jawa Tengah. Sejak pabrik dibentuk, ia telah berpikir untuk merambah pasar domestik — meskipun sampai saat ini pelet produksinya diutamakan untuk ekspor — dikarenakan mulai redanya antusiasme pasar global. Ketika Bapak Kris mendapat informasi bahwa Program Inisiatif Tungku Sehat Hemat Energi (TSHE) / Clean Stove Initiative (CSI) Indonesia telah meluncurkan program percontohan Pembiayaan Berbasis Hasil (PBH), ia pun ikut mendaftar dan berpartisipasi dalam program tersebut.

Ia menggabungkan wawasannya tentang pasar pelet lokal dengan insentif yang diberikan program percontohan untuk mengembangkan jaringan distribusi dan menguji TSHE berbasis pelet buatannya. Setiap tungku yang dijual dilengkapi 1 kilo pelet kayu yang perusahaannya berikan secara cuma-cuma. Dengan pengalamannya bergabung dalam program percontohan PBH, Pak Kris melihat adanya potensi pasar tungku masak yang bersih dan efisien. Ia berencana terus menjual TSHE dengan harapan suatu saat dapat mendirikan pabrik pelet miliknya sendiri. 

Bapak Kris bukanlah satu-satunya pemilik bisnis yang ikut terlibat dalam program ini. Percontohan PBH telah membantu 10 perusahaan untuk memulai atau mengembangkan bisnis tungku mereka di daerah-daerah baru. Alhasil, sekitar 10,000 TSHE dalam enam tipe berbeda telah terjual, baik berbasis kayu maupun pelet; dan hal tersebut memberikan dampak positif pada daerah-darah percontohan di Jawa Tengah, Yogyakarta, dan Nusa Tenggara Timur, yang sebelumnya tidak pernah mengenal atau dapat mengakses TSHE.

Mengapa harus PBH dan bagaimana cara kerjanya?
TSHE Indonesia yang merupakan program kolaborasi pemerintah Indonesia dan World Bank, meluncurkan percontohan PBH tahun 2014. Tujuannya adalah untuk menguji mekanisme berbasis pasar untuk mengundang investasi dari swasta dan memberikan insentif terhadap inovasi berkinerja baik. Mekanisme PBH berbeda dari pendekatan pemerintah yang selama ini menggunakan alur pengadaan-lalu-distribusi yang mana hasil akhirnya tidak selalu berhasil dikarenakan tingginya kemungkinan mismatch antara suplai dan permintaan. Hal ini terutama penting bagi sektor TSHE karena kebutuhan memasak berbeda-beda tergantung daerah, dan tidak ada solusi umum.

Mekanisme PBH memberikan insentif pendanaan untuk hasil yang terbukti dan teruji secara independen, bukan pada proyek yang masih dalam tahap pengusulan. Mekanisme ini memindahkan resiko investasi dan kinerja ke sektor swasta. Ditambah lagi memberikan kelonggaran bagi sektor swasta untuk lebih inovatif dalam merancang, memproduksi dan menjual TSHE. Konsep kerangka kerja percontohan PBH mengikutsertakan tiga aspek – definisi TSHE, insentif berbasis hasil, serta sistem monitoring and verification (M&V) – yang didukung oleh pilar penguatan institusi/capacity building tiap-tiap pemain pasar dan kampanye untuk meningkatkan kesadaran agar dapat menstimulasi permintaan dari rumah-rumah. Dalam kasus percontohan di Indonesia, agar memenuhi syarat menjadi penerima insentif dengan jumlah tertentu, tungku yang bersangkutan harus diuji kinerja teknisnya perihal efisiensi, emisi (polutan udara dan karbon dioksida), keamanan, serta ketahanannya. Insentif ini kemudian dibayarkan melalui tiga fase, dan dalam tiap fase, butuh verifikasi akan stok, penjualan, maupun penggunaan tungku di rumah tangga. 

Seperti apa pencapaiannya?
Semenjak percontohan ini dilaksanakan antara 2014-2016, total 10 badan usaha swasta (penyuplai tungku) telah berpartisipasi, termasuk delapan yang baru saja memulai bisnis di bidang TSHE dan lima yang dipimpin wanita. Sekitar 100.000 dolar Amerika telah diberikan untuk membiayai perusahaan-perusahaan tersebut sebagai penghargaan finansial berdasarkan verifikasi akan stok, penjualan, maupun penggunaan berkelanjutan TSHE di rumah tangga. Beberapa inovasi utama termasuk:

  • Merintis metode uji tungku kontekstual yang mempertimbangkan cara memasak setempat. Biasa dikenal sebagai Uji Pemanasan Air / Water Heating Test (WHT) Tungku Sehat Hemat Energi (CSI-WHT), metode pengujian terbaru ini mempertimbangkan variabel penting yang sangat bergantung pada konteks lokal (cth. kelembaban bahan bakar, prosedur pelaksanaan, dan jenis wadah memasak). Dengan mengembangkan metode uji teknis yang kontekstual dan holistik ini, hasil angka yang didapat tidak hanya menunjukkan informasi perihal efisiensi bahan bakar dan emisi; melainkan juga memprediksi kinerja alat di rumah tangga.
  • Merangsang desain tungku lokal dan terobosan teknologi. Di antara 15 tipe tungku yang dinilai layak untuk masuk ke percontohan, 7 tipe dirancang dan diproduksi secara lokal. Tungku-tungku yang dinilai layak ini dapat mengurangi polutan udara (PM 2.5) sebesar 90% dan menghemat 50% bahan bakar dibandingkan tungku tradisional. Secara keseluruhan, tungku pelet lebih efisien dan bersih, bukti bahwa bahan bakar proses kinerjanya lebih unggul.
  • Memberdayakan inovasi akar rumput melalui business models. Pengalaman dan ukuran bisnis yang beraneka ragam memungkinkan mereka yang berpartisipasi dalam percontohan untuk menciptakan business modelnya sendiri, yang umumnya tergantung pada apakah mereka dapat menegosiasikan metode pembayaran untuk pengadaan tungku dari produsen dan pada pembeli tungku, serta tingkat resiko yang dapat mereka tolerir. Inovasi yang ada termasuk memperluas jangkauan kredit ke konsumen melalui cicilan, bermitra dengan institusi microfinance untuk menawarkan kredit, menawarkan diskon bundling untuk tungku/bahan bakar, serta bekerjasama dengan koperasi sebagai distributor bahan bakar (pelet)

 

Percontohan di Indonesia ini menunjukkan bahwa insentif PBH yang berbasis pasar dapat menarik minat sektor swasta dan merangsang terobosan di daerah setempat. Nilai inti dari percontohan merupakaan penyediaan kerangka kerja yang dapat mempersatukan semua elemen penting untuk mengembangkan sektor tungku sehat hemat energi – kebijakan, institusi, teknologi, standar/pengujian, sokongan sektor swasta, stimulasi permintaan, dan menjembatani jurang kemampuan membeli – serta memberikan sinyal jelas ke sektor swasta perihal kinerja dan hasil yang diharapkan. Mengatur langkah intervensi agar bersatu menuju target dan hasil yang berbasis kinerja telah menghindari upaya sepotong-sepotong yang merupakan ciri khas program tungku sehat hemat energi di masa lalu.

Pelajaran dari proses desain dan implementasi percontohan PBH di Indonesia dapat berguna bagi negara lain yang sedang menimbang untuk menggunakan mekanisme ini dalam mengembangkan pasar tungku sehat hemat energi mereka sendiri. Informasi tambahan dan pelajaran lainnya dapat dilihat di laporan terbaru berjudul Incentivizing a Sustainable Clean Cooking Market: Lessons from a Results-Based Financing Pilot in Indonesia.

Ayo ikut juga bergabung dalam diskusi di Community of Practice.
 


Video

 

by · Thursday, 12 July 2018 · Indonesia, Iran
Indonesia pilot attracts entrepreneurs’ appetite to bring clean cooking technologies to households

Indonesia pilot attracts entrepreneurs’ appetite to bring clean cooking technologies to households

Bapak Kris manages a pellet production factory, located just outside Boyolali City in Central Java. Since its founding, he has started considering the domestic market- despite the fact that the produced pellets have mainly been for export- as the global markets have begun to cool down. When Bapak Kris learned that the Indonesia Clean Stove Initiative (CSI) had launched its Results-Based Financing (RBF) pilot in the Province, he registered and participated in the pilot. 

He combined his knowledge of the local pellet market with the pilot program incentives to expand his distribution network and test new pellet-based clean stoves. With each stove sold, the company provided the consumer 1 kg of wood pellets free of charge. With the experience of participating in the RBF pilot, Pak Kris sees the potential of the clean cooking market. He plans to continue selling clean stoves and hopes to set up his own pellet factory. 

Bapak Kris is not the only business owner to get involved. The RBF pilot has enabled 10 companies to either start or expand their clean stove business in a new geographic area. As a result, about 10,000 clean stoves of six distinct types, using wood or pellets, have been sold, benefiting households in the pilot areas in Central Java, Yogyakarta, and East Nusa Tenggara (NTT) who otherwise would not have been aware of or had access to clean stoves. 

Why the RBF pilot and how did it work?
The Indonesia CSI, a collaboration between the Government of Indonesia and the World Bank, launched the RBF pilot in 2014. It aimed to test a market-based mechanism to attract private investments and incentivize performance-based innovations. The RBF mechanism is different from the traditional government procure-and-distribute approach which often has mixed results due to likely mismatch of supply and demand. This is particularly important for the clean stove sector as cooking needs vary across regions and there is no one-size-fits-all solution.
 

The RBF mechanism disburses incentive payments against demonstrated, independently verified outputs or outcomes instead of payments for project inputs. This mechanism shifts investment and performance risks to the private sector. It also provides flexibility for the private sector to be innovative in the designing, producing, and selling of clean stoves. The overall conceptual framework for the RBF pilot design included three building blocks—defined clean stoves, results-based incentives, and a monitoring and verification (M&V) system—supported by the pillars of institutional strengthening/capacity building of key market players and awareness-raising campaigns to stimulate household demand. In the case of the Indonesia Pilot, to be qualified for a certain level of incentive, stoves needed to be tested based technical performance in terms of efficiency, emissions (air pollutants and carbon dioxide), safety, and durability. This incentive was then paid in three tranches, where each is connected to the verified results of stove stock, sales, or household continued usage.

What was achieved?
Over the pilot’s two-year implementation period of 2014-2016, a total of 10 diverse private business entities (stove suppliers)—including eight that were new to the clean stove business and five women-led businesses—participated in the pilot. About US$100,000 RBF funding was disbursed to these business entities as financial rewards based on verified stock, sales, and household continued usage of eligible clean stoves. The key innovations include:

  • Pioneered contextual stove testing method incorporating local cooking practice. Known as the Indonesia Clean Stove Initiative-Water Heating Test (CSI-WHT), this new testing method incorporated key variables that highly depended on local context (e.g., fuel moisture content, operating procedures, and types of cooking vessels). By developing a holistic, contextual technical test, outcome metrics could not only provide pertinent information regarding fuel efficiency and emissions; they could also reasonably predict in-home performance.
  • Stimulated local stove design and technology innovation. Among 15 stove types that are tested to be eligible for the pilot, 7 are locally designed and produced. The eligible clean stoves can reduce air pollutant (PM2.5) emissions by 90% and save fuels by 50% compared to the baseline traditional stoves. Overall, pellet stoves were more efficient and cleaner, confirming that processed fuels have better performance.
  • Promoted grassroots innovation in business models. Diverse business experiences and sizes enabled the pilot participating entities to create their own business models, which were often dictated by whether they could negotiate terms of payment for stove procurement from the producers, terms of payment they expected from stove buyers, and the level of risk they were willing to accept. Innovations included extending manufacturer credit to consumers through installment payments, partnering with microfinance institutions to offer consumer credit, offering bundling discounts for stoves/fuels, and partnering with cooperatives as fuel (pellet) distributors.

 

The Indonesia pilot demonstrates that market-based RBF incentives can indeed attract the private sector and stimulate local innovation. The pilot’s core value is the provision of a unifying framework for all key elements to develop the clean stove sector—policy, institution, technology, standards/testing, private-sector support, demand stimulation, and closing of the affordability gap—and sent clear signals to the private sector regarding expected performance and results. Aligning all the necessary interventions toward performance-based targets and results avoided fragmented interventions which characterized past stoves programs.

Lessons from the design and implementation of the Indonesia RBF pilot can be of interest to other countries considering applying this mechanism to promote the development of their clean stoves markets. More information and lessons learned from the RBF pilot can be found in the newly published report: Incentivizing a Sustainable Clean Cooking Market: Lessons from a Results-Based Financing Pilot in Indonesia.

Also, join the conversation in our Community of Practice.
 


Video

 

by · Wednesday, 11 July 2018 · Indonesia
Why care about unpaid care work in East Asia?

Why care about unpaid care work in East Asia?

A woman pushes a stroller in Mongolia.

An increasing body of evidence shows that women’s domestic roles in the household limit or orient their participation in the labor market in East Asia. Descriptive evidence from household surveys in Indone…

by · Wednesday, 20 June 2018 · Indonesia, Mongolia, Oman, Philippines, Vietnam
Why care about unpaid care work in East Asia?

Why care about unpaid care work in East Asia?

A woman pushes a stroller in Mongolia.

An increasing body of evidence shows that women’s domestic roles in the household limit or orient their participation in the labor market in East Asia. Descriptive evidence from household surveys in Indone…

by · Wednesday, 20 June 2018 · Indonesia, Mongolia, Oman, Philippines, Vietnam
5 điều cần làm để chấm dứt ô nhiễm nhựa

5 điều cần làm để chấm dứt ô nhiễm nhựa

Also available in English

Que hút bằng nhựa là một trong những chất thải bằng nhựa hàng đầu trong các đại dương, và chúng không thể tái chế được. © Kanittha Boon/Shutterstock
 

Các báo đưa nhiều tin buồn. Một con cá voi hoa tiêu đực b…

by · Monday, 11 June 2018 · Indonesia
Membuka Jalan untuk Ekonomi Digital yang Berkembang di Indonesia

Membuka Jalan untuk Ekonomi Digital yang Berkembang di Indonesia

Di seluruh sektor ekonomi digital di Indonesia, baik perusahaan teknologi raksasa maupun yang lebih kecil mengeluhkan sulitnya menemukan bakat digital. Obert Hoseanto dari Microsoft Indonesia menjelaskan: “Sulit sekali mendapatkan karyawan. Kami mene…

by · Thursday, 17 May 2018 · Indonesia, Malaysia, Thailand