The political economy of environmental policy in Indonesia

In Indonesia, there is widespread awareness of climate change and environmental problems, at least in academia, policy-making, civil society organizations, and NGOs. However, the ways climate change and the environment affect poverty are not so well understood. Indonesia, like many other countries, is preoccupied with achieving economic growth in a business-as-usual manner. The government emphasizes social protection rather than reducing vulnerabilities and improving livelihoods of the poor through a green economy. In this essay, we review the current discussion on the economics of environmental protection in Indonesia, especially with regards to climate change, and propose ways to fill in certain gaps between discourse and policy. We also discuss the poverty situation of Indonesia and highlight its relationship with the environment. Finally, we discuss the policy possibility of using the environment-climate connection as a way to accelerate poverty reduction. In particular, we argue that policies that take into account climate change and its effect on poverty should be applied at three different levels: micro, macro (national), and global (international).