Regions and Countries

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p. 8 of 33 BACK | NEXT I. Current Development Trends and Issues A. Political Setting B. Economic Growth C. Poverty D. Governance and Institutional Capacity E. Private Sector F. Gender Assessment G. Environment H. Regional Cooperation I. Development Constraints II. The Government's Development Strategy III. ADB's Development Experience IV. ADB's Strategy V. ADB's Assistance Program VI. Risks and Performance Monitoring and Evaluation

Country Strategy and Program 2006-2009 (Draft for Consultation): Indonesia : I. Current Development Trends and Issues

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G. Environment

28. The environmental legal framework has evolved over the past two decades and, in general, is well developed and tends to meet international standards.¹⁹ However, some of the laws and regulations still need to be adapted to the decentralized policy setting, under which the responsibility for natural resources management rests with the district governments. Despite the fact that there is a comprehensive legal framework, technical guidelines need to be further elaborated, and, in particular, the enforcement of environmental laws and regulations to be significantly improved.

29. Controlled and uncontrolled deforestation and other unsustainable forestry management practices have led to environmental degradation and a major loss of forestry resources. Underlying factors for this have been unclear responsibilities of different levels of government tenure and access issues related to the rights of the communities and the role of private enterprises, and weak legal enforcement. Deforestation has also been taking place in protected areas, a major threat to preserving biodiversity. Similarly, coastal resources of the country have been under increasing pressure in recent years. The contribution of the coastal and marine related activities to the national economy, from renewable and non-renewable extraction, is estimated to be 20 to 25% of GDP, but around 70% of the coral reefs are currently facing a medium to high risk of degradation. These problems are accelerated owing to lack of alternative livelihood opportunities in the communities that depend on these depleting marine, coastal, and forestry resources.

30. The critical challenges facing the coastal and fisheries sector arise from an open access system, lack of an integrated framework for coastal resources protection, relatively low levels of public awareness, and widespread poverty in coastal communities. In addition efficient water resources management continues to be hampered by (i) institutional weaknesses with respect to river basin management; (ii) weak water pollution control measures; (iii) lack of a framework for water allocation and pricing; and (iv) issues related to the maintenance and operations of water infrastructure including water supply and irrigation facilities and schemes. Several regions are facing risks of floods and low water quality.

31. Intensified economic activities, industrialization, and increasing population have exacerbated environmental pollution, particularly in urban and peri-urban areas. Soil, water, and air quality are deteriorating. Several air pollutants in the nation’s largest cities exceed ambient air quality standards. Industrial waste estimated at 0.25 million tons in 1990, has reached over 1.2 million in 2001. Approximately 80% of this waste is hazardous, contaminated by heavy metals and other chemicals. Apart from inadequate enforcement of environmental laws and regulations, there has been an inadequate level of investment in urban sewerage and waste treatment, and in promoting good practices at all levels, including environment management systems and clean production technologies.

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