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Indonesia

A Catalyst for Green Financing in Indonesia

Philippe H. Le Houérou's picture



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. My condolences go out to the families and friends of those who lost their lives.

While scientists are reluctant to say a specific natural disaster is caused by climate change, they say a changing climate is resulting in more extreme events around the world. That’s why at International Finance Corporation (IFC), the largest global organization working with the private sector in emerging markets, finding new avenues for climate financing is a key priority.

Green bonds offer a pathway. The world is witnessing a rapid growth in green bonds, dramatically increasing the flow of capital to green projects and bringing new financiers into the climate smart investment space.

Five actions for disability-inclusive disaster risk management

Margaret Arnold's picture
Photo Credit: Guilhem Alandry doculab Malteser International / Flickr CC

While disasters threaten the well-being of people from all walks of life, few are as disproportionately affected as the over one billion people around the world who live with disabilities. Following the 2011 Tohoku earthquake and tsunami in Japan, for example, the fatality rate for persons with disabilities was up to four times higher than that of the general population.
 
Persons with disabilities are especially vulnerable when disaster strikes not only due to aspects of their disabilities, but also because they are more likely, on average, to experience adverse socioeconomic outcomes than persons without disabilities, including higher poverty rates. Disasters and poorly planned disaster response and recovery efforts can exacerbate these disparities, leaving persons with disabilities struggling to cope even more both during and after the emergency.
 
In advance of the Global Disability Summit, and drawing on a recent report titled “Disability Inclusion in Disaster Risk Management” from the Global Facility for Disaster Reduction and the Recovery (GFDRR) and the World Bank, here are five actions that development institutions, governments, and other key stakeholders can take to ensure that persons with disabilities are not left behind in the aftermath of a disaster. 

How can Indonesia achieve a more sustainable transport system?

Tomás Herrero Diez's picture
Photo: UN Women/Flickr
Indonesia, a vast archipelago of more than 17,500 islands, is the fourth most populous country in the world, with 261 million inhabitants, and the largest economy in Southeast Asia, with a nominal Gross Domestic Product of $933 billion.

Central government spending on transport increased by threefold between 2010-2016. This has enabled the country to extend its transport network capacity and improve access to some of the most remote areas across the archipelago.

The country has a road network of about 538,000 km, of which about 47,000 km are national roads, and 1,000 km are expressways. Heavy congestion and low traffic speeds translate into excessively long journey times. In fact, traveling a mere 100 km can take 2.5 to 4 hours. The country relies heavily on waterborne transport and has about 1,500 ports, with most facilities approaching their capacity limits, especially in Eastern Indonesia. Connectivity between ports and land infrastructure is limited or non-existent. The rail network is limited (6,500 km across the islands of Java and Sumatra) and poorly maintained. The country’s 39 international and 191 domestic airports mainly provide passenger services, and many are also reaching their capacity limits.

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

Yabei zhang's picture



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. 

Technology works for getting poor people’s problems fixed – we just have to get it right

Kristalina Georgieva's picture
© Sarah Farhat/World Bank

One of the encouraging signs that I pick up whenever I travel is the difference that technology is making to the lives of millions of marginalized people. In most cases it’s happening on a small, non-flashy scale in hundreds of different ways, quietly improving the opportunities that that have been denied to remote communities, women and young people for getting a foot on the ladder.

And because it is discreet and under the radar I dare as an optimist to suggest that we are at the beginning of something big – a slow tsunami of success. Let me give you some reasons why I believe this.

What are business aspirations worth in developing countries?

Bilal Zia's picture

Small-scale entrepreneurship is widespread in developing countries, yet very few of these entrepreneurs are successful in growing their businesses beyond initial levels. Many constraints play a role, including financial, technical, and informational barriers. Yet, even when these barriers are lifted in experimental studies, we do not see the type of growth one would expect if these constraints were truly binding. In addition, many of the interventions studied, especially those targeting managerial and informational barriers, often suffer from low program take-up.

Initial findings from the implementation of the 'Practical Guide for Measuring Retail Payment Costs'

Holti Banka's picture

MoMo Tap in Côte d'Ivoire
In November 2016, we published the “Practical Guide for Measuring Retail Payment Costs”, an innovative methodology that can be customized to country needs and circumstances, without losing the international comparative dimension.

The guide enables countries to measure the costs associated with retail payment instruments, based on survey data, for the payment end users, payment service/infrastructure providers, and the total economy. The guide also enables countries to derive projected savings in shifting from the more costly to the less costly payment instruments.
 

Paving the Way for a Thriving Digital Economy in Indonesia

Petra Wiyakti Bodrogini's picture



Across the digital economy in Indonesia, both IT giants and smaller companies have the same complain: digital talents are hard to find. Obert Hoseanto, an Engagement Manager from Microsoft Indonesia, said the company recently contracted only five people for an internship program, out of a pool of hundreds of applicants.

But those applying for jobs are also struggling, with many realizing the difficulties of meeting the needs of their employers. Natali Ardianto is learning the ropes at tiket.com, a thriving start-up, “by doing”, he said. “Only 30% of the curriculum of my education was useful for the company I joined,” he explained.

A recent workshop held by the Coordinating Ministry of Economic Affairs and supported by the World Bank strived to develop a better understanding of this skills gap, by bringing in insights from the private sector, education experts, and global practitioners.

Communicating volcanic risk: lava, eruptions and uncertainty

Jon Mikel Walton's picture
Volcán de Fuego in Guatemala, one of Central America’s most active volcanos, spews ash and lava flows in January 2018, just 70 kilometers west of Guatemala City. Image credit: NASA
Volcán de Fuego in Guatemala, one of Central America’s most active volcanos, spews ash and lava flows in January 2018, just 70 kilometers west of Guatemala City. Image credit: NASA

We live in an age of compounding uncertainty. The unpredictable impacts of climate change and the rapid urbanization of societies is increasing the complexity, difficulty, and necessity of making sound decisions when faced with numerous options. This uncertainty is acute with respect to natural disasters – for example, predicting hurricane intensity or locating the next big earthquake remain challenging tasks despite advances in science and monitoring tools.
 
The challenge of anticipating and communicating the risk of volcanic eruptions to communities requires complex decision-making. Ecuador’s Cotopaxi Volcano and Indonesia’s Mount Agung are recent examples where the warning signs were present (small earthquakes, increasing gas emissions, and more), yet an eruption came much later than expected. Volcanic eruptions are therefore a double-edged sword that often creates a decision-making dilemma. While signs of volcanic activity can provide adequate time for preparation and evacuation, the very same signs can also create conditions of extreme uncertainty, which can be exacerbated by piecemeal communication around eruption events.
 
So, what have we learned from recent experiences on the challenges of communicating volcanic risk? 


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