Setting the Standard: How Indonesia’s Climate Efforts Can Inspire Developing Countries

Indonesia occupies a strategic position in global efforts to mitigate climate change, supported by its abundant natural resources, such as tropical forests, rich marine biodiversity, and coastal ecosystems rich in blue carbon. The newly elected Prabowo-Gibran administration, set to be inaugurated in October 2024 and lead until 2029, through its Economic Team led by Burhanuddin Abdullah, has demonstrated a strong commitment to achieving carbon emission reduction targets aligned with the green economy pillar in the 8 Asta Cita Missions. One concrete step being planned is the establishment of the Climate Change Control and Carbon Trade Management Agency (BP3I-TNK), which will manage and oversee sustainable climate change control efforts. This agency will also utilize blockchain technology to ensure transparency and accountability in carbon trading while establishing national carbon sovereignty.

This commitment aligns with Indonesia’s international targets under the framework of the Conference of the Parties (COP) for Climate Change. According to Indonesia’s Enhanced Nationally Determined Contribution (NDC), the country is committed to reducing greenhouse gas emissions by 29% independently and up to 41% with international support by 2030. Significant financial challenges remain despite Indonesia’s vast potential in carbon trading, particularly with its abundant natural resources. It is estimated that Rp. 5,000 trillion will be needed to achieve the emission reduction target by 2030, and Rp—15,000 trillion to reach Net Zero Emission by 2060 or sooner. However, with the implementation of advanced technologies like AI and blockchain, and effective coordination through BP3I-TNK, Indonesia not only has the opportunity to meet its NDC commitments but also has the potential to become a model for other developing countries in their ambitious and sustainable global climate change mitigation efforts.

Indonesia: Guardian of Global Biodiversity

Indonesia is one of the most biodiverse countries in the world, with approximately 120 million hectares of tropical forests covering 10% of the world’s total tropical forest area. These forests not only function as the lungs of the Earth by absorbing carbon dioxide from the atmosphere, but they also play a crucial role in maintaining global climate balance. Additionally, Indonesia is home to around 17% of the world’s total coral reefs, making it one of the countries with the highest marine biodiversity. Indonesia also contains nearly 25% of the world’s mangrove forests, which serve as natural barriers against climate change, protect coastlines from erosion, and provide essential habitats for various marine species. Collectively, this natural wealth positions Indonesia as a key player in global climate change mitigation efforts.

These data highlight the importance of Indonesia’s role in maintaining global environmental balance. Preserving Indonesia’s forests, coral reefs, and mangroves is essential to safeguarding biodiversity, reducing the impacts of climate change, and protecting the environment as a whole. With such significant ecological wealth, Indonesia stands at the forefront of global efforts to combat climate change. However, maximizing this potential requires innovative approaches that combine the right technologies and policies.

AI: Optimizing Emission Management and Reduction

AI holds significant potential to enhance the effectiveness of emission reduction efforts across various sectors in Indonesia. Here are some ways AI can be implemented:

1. Real-Time Emission Monitoring and Analysis: AI can monitor and analyze emission data from industries, transportation, and the forestry sector in real-time. This enables the identification of major emission sources, prediction of future emission trends, and optimization of emission reduction strategies.
2. Energy Use Optimization: Through smart grid systems and intelligent energy management, AI can optimize energy distribution and usage. This results in reduced energy consumption and, consequently, lower carbon emissions.
3. Climate Change Impact Prediction: AI-based predictive models can help the government forecast climate change impacts across various sectors, enabling the development of more precise adaptation policies and more effective carbon emission mitigation.
4. Sustainable Forest Management: AI can be used to monitor land changes, deforestation, and forest degradation through satellite image analysis. This technology allows early detection of illegal activities that contribute to carbon emissions, such as illegal logging.

Blockchain: Ensuring Transparency and Accountability in Carbon Management

In addition to AI, blockchain technology plays a crucial role in ensuring transparency and accountability in carbon management in Indonesia. Here is how blockchain can support the vision of the Carbon Management Agency:

1. Carbon Emission and Credit Tracking: Blockchain can record and track carbon emissions from various sources transparently and securely. Data recorded on the blockchain is immutable, ensuring the integrity of information crucial for emission reporting.
2. Smart Contracts for Compliance: Blockchain-based smart contracts can automate regulations and policies related to emissions. For instance, companies failing to meet emission targets can be automatically fined, while those that successfully reduce emissions can receive incentives.
3. Blockchain-Based Funding Mechanisms: Blockchain can be used to implement transparent funding mechanisms for emission reduction projects. Investors and donors can monitor the use of funds and the impact of their investments, increasing trust and interest in green projects.
4. Efficient International and National Collaboration: Blockchain facilitates collaboration between governments, international organizations, and the private sector in emission reduction efforts. This platform enables efficient data and resource exchange, as well as tracking commitments and achievements on a global scale.

Challenges in Implementation in Indonesia

The Prabowo-Gibran administration will face significant challenges in implementing AI and blockchain to support the vision of the Carbon Management Agency:

1. Technological Infrastructure Limitations: One of the main challenges is the technological infrastructure gap in various regions of Indonesia. A strong internet network and reliable digital infrastructure are needed to support the use of AI and blockchain, but this is not yet evenly distributed across the country.
2. Lack of Skilled Human Resources: Implementing advanced technologies such as AI and blockchain requires a workforce with high technical skills. The limited availability of skilled human resources could be a serious obstacle.
3. Regulatory and Policy Challenges: Developing regulations that support the adoption of AI and blockchain in the public and private sectors requires time and good cross-sector coordination. Unsynchronized or unsupportive regulations can hinder innovation.
4. Transparency and Corruption Issues: Although blockchain offers solutions for transparency, challenges related to corruption and fund misuse remain significant issues. A strong commitment from all stakeholders is necessary to truly implement transparency and accountability principles.
5. Resistance to Change: Resistance to change, particularly among bureaucrats and traditional companies, can be a barrier. Educating and involving all stakeholders is crucial to ensuring they understand the benefits of this technology and are willing to adapt.

Why Success in Indonesia Will Have a Significant Global Impact

If Indonesia successfully implements AI and blockchain effectively in carbon management, the impact will extend far beyond its borders. This success will provide strong evidence that advanced technologies can be adapted and applied in the context of developing countries, which often face challenges in infrastructure and limited resources.

1. Model for Developing Countries: This success will serve as a model for other developing countries, demonstrating that ambitious emission reduction targets can be achieved with innovative approaches, even amid limited resources.
2. Encouraging Global Cooperation: Indonesia’s success will also encourage more international cooperation in combating climate change, with Indonesia serving as an example of how developing countries can lead in green innovation.
3. Influence on Global Policy: With this success, Indonesia can influence global policies related to climate change mitigation, becoming a strong advocate for the use of technology in global efforts to achieve net zero carbon emissions.

Indonesia’s success in adopting AI and blockchain to support carbon management and achieve its NDC targets will have a significant impact, not only for Indonesia itself but also for the global community, particularly developing countries seeking effective solutions to climate change challenges. Indonesia has the potential to become a global leader in the green transition, and if successful, its impact will be felt worldwide.