Sustainable Urban Transport Indonesia NAMA (Indonesia)


General Information of the NAMA

GENERAL INFORMATION
Country Indonesia
National implementing entity (NAMA owner) Ministry of Transport, Ministry of National Development Planning (BAPPENAS)
Development stage Implementation
International partners Deutsche Gesellschaft für Internationale Zussamenarbeit (GIZ)
Total costs USD 400 – 800 million
Duration 2015-2019
SCOPE OF THE NAMA
Type of NAMA Supported (with unilateral elements)
Type of action Policy or programme
Scope of action National, Sub-national
Type of approach Shift-Improve
Transport mode Bus, Rail, Car, Motorcycle, Walking, Cycling

In 2009, the Government of Indonesia committed to a 26% greenhouse gas reduction by 2020 from ‘business as usual’ baseline levels, and to 41% with international support. Transport is the third largest source of energy-related CO2 emissions in Indonesia (23%; equivalent to 68 MtCO2-eq in 2005). Due to strong urbanisation and motorisation trends, transport has become a significant challenge for cities in Indonesia. Its car-oriented development is exacerbating air pollution, creating massive congestion and decreasing the quality of life. However, most cities have lack capacity, policy guidance and access to sufficient financial resources to develop sustainable urban transport systems.

SUTRI NAMA as registered with the UNFCCC aims to tackle this challenge by transforming urban transport in Indonesia with a mix of capacity-building and investment measures provided through a national sustainable urban transport programme.

The pilot phase of SUTRI NAMA will be implemented with support from the NAMA Facility provided through GIZ as the delivery organisation. GIZ will transfer the support to the Indonesian Government with instruments of technical and financial assistance, for which 14 million Euros are foreseen.

The Sustainable Urban Transport Programme (SUTRI NAMA) addresses urban transport with specific focus on passenger transport. The following measures and technologies of urban transport are foreseen:

  • Public transport system improvements (system reform, network, management, operation)
  • Investment in energy efficient vehicles (buses)
  • Investment in infrastructure (e.g. bus stops, pedestrian infrastructure, parking meters)
  • Integrated planning, parking management, informal bus-system / private vehicle regulation

Mitigation potential

MITIGATION IMPACT
Expected mitigation impact 18.6 – 72.9 MtCO2 between 2020 and 2030

The mitigation potential of the NAMA consists of the direct and indirect mitigation impacts.

The direct mitigation impact is defined as the impact of improved transport systems in the pilot cities for a timeframe of 5 years. These projects will also serve as a model for reforming the urban transport systems. The direct emission reductions delivered by these demonstration projects shall amount to up to 0.7-1.8 MtCO2 per year in 2030 through reduced fuel consumption per inhabitant in five pilot cities.

The indirect mitigation impact comes from a later upscaling and replication of the good practice beyond the pilot cities of NAMA SUTRI for a timeframe of 10-20 years.

During the NAMA development, a “high impact” and a “low impact” scenario have been conducted. The “high impact” scenario includes a shift of passengers towards public transport and an improvement of the transport situation, the “low impact” scenario includes only a shift of passengers. The data given in the box represents the margins between both scenarios.

Financing

COSTS
Total costs USD 400-800 million
Funder German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB), Department of Energy and Climate Change of Her Majesty’s Government of the United Kingdom of Great Britain and Northern Ireland (DECC)
Costs for preparation
Costs for implementation

Various international, national and sub-national stakeholders are involved in the financing of the NAMA. For the first Phase of the NAMA, the NAMA facility will invest up to EUR 1 million as a grant for 4-6 physical measures in pilot cities based on the proposals by local governments. For the second Phase, up to EUR 7 million will be contributed by the NAMA facility, and EUR 17 million will be contributed by the Ministry of Transport. The investment will be used for of a loan scheme to attract private investment as well as for investing directly into infrastructure (BRT corridors, intersection design, etc.). By these measures, a high leverage potential of the investment can be achieved.

The NAMA Support Project will increase the contribution of Indonesian cities to mitigate climate change. This requires additional domestic and international financial resources for Sustainable Urban Transport,. Directly mobilised financial resources:

  • Technical Support Unit (TSU): The Indonesian Government offers to provide qualified staff from the Ministry of Transportation and to partly cover the TSU’s running costs. The NAMA Facility provides funds for GIZ staff and TSU’s running costs.
  • Sustainable Urban Transport Fund (SUT Fund): The SUT Fund will stimulate a shift to sustainable urban transport investments. Resources from the NAMA Support Project will be leveraged by matching funds. Indonesia commits to contribute at least EUR 2 for each EUR 1 received from the NAMA Facility and potential additional international grants and soft loans.

Cities usually contribute 10% from local budgets to their investment projects. Currently, only 13% of the state budget for the Transportation Sector is spent on infrastructure development, whereas 61% are spent on Fuel Subsidies. However, in 2013 the fuel subsidies have been decreased by 18% from 2012 to 2013. It is expected that a considerable share of these savings (EUR 2.8 billion) will be available for urban transport infrastructure.

Today, local budgets and national funds are used for traditional road based infrastructure projects. However, these funds are open to fund Sustainable Urban Transport measures, if cities properly apply for it. The NAMA Support Project strengthens cities’ capacities and ambition in this direction. Examples of funds that can be tapped are listed in the following:

  • Allocation Fund and Adjustment Fund (EUR 260 million in 2012)
  • Ministry of Transport budget for public transport (EUR 100 million in 2012)

MRV

Concept: 

The MRV concept will build up on an existing monitoring system for transport in cities which focuses on public transport and non-motorised transport. It will be coordinated by the Ministry of Transport and carried out by local governments in cooperation with local universities. This monitoring framework will be the basis for the MRV framework of NAMA SUTRI. In addition to the existing indicators, the MRV framework of NAMA SUTRI will also cover indicators on the overall transport situation, travel behaviour and co-benefits of the local population. This is relevant for local decision makers and helps to evaluate the impact of certain measures. A monitoring framework is currently under development. Since the GHG mitigation related activities are all coordinated by the same department in the Ministry of Transport it will be ensured that both concepts are in line.

Indicators:

National level

Transport data:

  • Activity  data (Transport performance of vehicle categories by vehicle size, age and fuel type, vehicle load rates)
  • Specific fuel consumption (Emission factors by vehicle type, vehicle characteristic data)

Progress indicators

  • Allocation of funding
  • Pipeline of projects (Numbre of “high quality” projects seeking for support)
  • Access to finance for Sustainable Urban Transport measures
  • Support structures

Also, the MRV approach includes the measurement of co-benefits by the following indicators:

  • Allocation of public road space for different transport modes
  • Household spending on transportation
  • Accessibility and quality of public transport
  • Air quality at main transport corridors

Co-benefits

Ecological:

  • Improved local air quality

Societal:

  • Improved road safety
  • Enhanced physical activity
  • Health benefits
  • Improved quality of life
  • Poverty reduction

Economic:

  • Economic benefits from improved public health
  • Access to regional markets, workplaces and businesses

Contact and resources

Contact: 

Mr. Markus D. Delfs
Program Director Transport & Urban Development
Menera BCA, 46th Floor
Jl. M. H. Tharmin No. 1
Jakarta 10310, Indonesia
M: +62-811-8252-363
F: +62-21-2358 7110
E: markus.delfs@giz.de

Resources: