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149 Pages·2016·2.571 MB·English
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OECD Green Growth Studies O E C Green Growth in Bandung, Indonesia D G r e e Contents n OECD Green Growth Studies G Chapter 1. The economic and environmental performance of Bandung ro w Chapter 2. Bandung’s emerging green growth opportunities th Green Growth in Bandung, S Chapter 3. The smart city vision and green growth in Bandung tu d Chapter 4. Governance for green growth in Bandung ie Indonesia s G r e e n G r o w t h in B a n d u n g , In d o n Consult this publication on line at http://dx.doi.org/10.1787/9789264264113-en. e s This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. ia Visit www.oecd-ilibrary.org for more information. ISBn 978-92-64-26213-3 9HSTCQE*cgcbdd+ 04 2016 11 1 P OECD Green Growth Studies Green Growth in Bandung, Indonesia This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Please cite this publication as: OECD (2016), Green Growth in Bandung, Indonesia, OECD Green Growth Studies, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264264113-en ISBN 978-92-64-26213-3 (print) ISBN 978-92-64-26411-3 (PDF) Series: OECD Green Growth Studies ISSN 2222-9515 (print) ISSN 2222-9523 (online) The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. Corrigenda to OECD publications may be found on line at: www.oecd.org/about/publishing/corrigenda.htm. © OECD 2016 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgement of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. 3 FOREWORD – Foreword This report presents the results of a study on urban green growth in the Bandung Metropolitan Area, Indonesia, and is the third case study in the OECD project on Urban Green Growth in Dynamic Asia. It analyses the economic and environmental performance of Bandung, assesses its policies and governance practices that can promote green growth, and provides recommendations to enhance its green growth potential. The report identifies certain urban challenges holding back the economic and environmental performance of the city, including traffic congestion, air pollution, limited access to piped water, underground water depletion, inefficient municipal waste management, increasing greenhouse gas (GHG) emissions and exposure to disaster risk, such as flooding and seismic activity. The report identifies both internal and external opportunities the city might consider to overcome these challenges and increase its economic growth in the long term. The Urban Green Growth in Dynamic Asia project explores how to promote green growth in cities in Asia, examining policies and governance practices that encourage greening and competitiveness in a rapidly expanding economy. The project contributes both to the OECD Green Growth Strategy and to the OECD Strategy on Development, as well as to ongoing discussions on the role of cities in tackling the urgent challenges of climate change. Five case studies have been conducted, in Bangkok (Thailand), Hai Phong (Viet Nam), Bandung, Iskandar Malaysia (Malaysia) and Cebu (Philippines). They were chosen on the basis of criteria such as population size, speed of growth, economic structure, and the centrality of the city in the national and regional economy. The results of the case studies will culminate in a synthesis report on Urban Green Growth in Dynamic Asia. The project is part of the OECD Green Cities Programme, launched in 2010, which has conducted four metropolitan case studies (Paris, Chicago, Stockholm and Kitakyushu), two national case studies (China and Korea) and produced a synthesis report, Green Growth in Cities (2013). The analysis is based on a “focused comparison” strategy of case study research. This entails asking the same questions in the different case study cities, to discern similarities and draw general lessons. Although the analysis focuses on Asian cities, the lessons for promoting green growth are relevant for other OECD member countries and cities. The report was prepared by the Directorate for Public Governance and Territorial Development. The directorate’s mission is to help governments at all levels design and implement strategic, evidence-based and innovative policies to strengthen public governance, respond effectively to diverse and disruptive economic, social and environmental challenges, and to deliver on governments’ commitments to citizens. The publication benefited from guidance by the OECD Regional Development Policy Committee and its Working Party on Urban Policy, as well as the support of the local GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016 4 – FOREWORD team co-ordinated by the City of Bandung. It draws on data provided by the local team and the OECD Metropolitan Database. The analytical approach draws on Urban Green Growth in Dynamic Asia: A Conceptual Framework (2014). The expertise and experience of OECD member countries provided relevant international benchmarks and policy examples. GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016 5 ACKNOWLEDGEMENTS – Acknowledgements This publication was prepared by Tadashi Matsumoto (Project Manager, Urban Green Growth/Knowledge Sharing), Loïc Daudey (Consultant, Green Growth/Knowledge Sharing in Southeast Asia) and Martin Abbott (Consultant, Green Growth in Southeast Asia) under the direction of Joaquim Oliveira Martins (Head of the Regional Development Policy Division). It benefited from comments and input from numerous colleagues: Karen Maguire, William Tompson, Olaf Merk, and Kwame Boye Frimpong. Ulrike Chaplar, Pilar Philip and Victoria Elliott prepared the manuscript for publication. Our thanks go to the local team that provided support throughout the study, including the preparation of the background report and organisation of the OECD study missions to Bandung. The OECD Secretariat would like to thank in particular: M. Ridwan Kamil (Mayor of Bandung), Kamalia Purbani (Head of Local Development Planning Board), Hery Antasari (Secretary, Local Development Planning Board), Anton Sunarwibowo (Head of Spatial and Infrastructure Planning Division), Ayu Sukenjah (Head of Division for Environment Rehabilitation), Nunun Yanuati (Head of Infrastructure Planning Sub Division) Lisa Surya (Highway and Irrigation Agency), Tamni Lasmini (Head, Spatial Planning Division), Enjang Mulyana (Secretary, Transport Agency), Yunita Caroline (Informatics and Communication Department), Sofyan Pranaja(Environment Management Agency), Endar Desri Kumala Dewi (Local Development Planning Board), Sulistiyo Feti Dahlia (Health Agency), Aswin Sulaeman (Asset and Finance Management Agency), Evrilina (Settlement and Spatial Agency). We also thank the members of the Indonesian government who participated in the OECD study missions and provided comments on the report including Adi Cahyadi, Bara Ampera, Mahpud Sujai (Fiscal Policy Agency, Ministry of Finance), Zaenal Arifin (Ministry of National Development Planning). In addition, Siti Fatimah (Bandung Institute of Governance Studies), Ilham Cendekia Srimarga (Senior Researcher, Sinergantara) and Suhono H. Supangkat (Institut Teknologi Bandung) provided valuable comments. Representatives from relevant organisations, including the Agence Française de Développement (AFD), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Global Initiative Disaster Risk Management (GIDRM), the Asian Development Bank (ADB), United Cities and Local Governments Asia Pacific (UCLG-ASPAC), Asosiasi Pemerintah Kota Seluruh Indonesia (APEKSI), the C40 Cities Climate Leadership Group, Japan International Co-operation Agency (JICA), the United States Agency for International Development (USAID), Cities Alliance and the United Nations Human Settlements Programme (UN-Habitat) also provided helpful insights. The publication has benefited from input from the Knowledge-Sharing Platform on Urban Green Growth in Dynamic Asia and the participants of the Bandung Knowledge- Sharing Workshop on Urban Green Growth in Dynamic Asia (6-7 May 2015). The GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016 6 – FOREWORD workshop was supported by the OECD Knowledge-Sharing Alliance. Akira Ogihara, the case study’s international peer reviewer from Kawasaki, Japan, joined the OECD study mission to Bandung (May 2015) and provided invaluable reports. Richard Carlos Worden (international environmental consultant) provided inputs on urban resilience and disaster risk management. Wahyu Mulyana (Urban and Regional Development Institute) provided support on local data collection and policy assessment. The OECD Secretariat would gratefully like to acknowledge the financial support of the City of Bandung, the government of Japan, AFD and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016 7 TABLE OF CONTENTS – Table of contents Foreword......................................................................................................................................... 3 Acknowledgements ........................................................................................................................ 5 Acronyms and abbreviations ...................................................................................................... 11 Executive summary ...................................................................................................................... 13 Chapter 1 The economic and environmental performance of Bandung ................................. 15 1.1. Demographic characteristics of the Bandung Metropolitan Area ....................................... 17 1.2. The BMA’s socioeconomic structure .................................................................................. 20 1.3. Environmental trends and challenges for green growth ...................................................... 28 1.4. Bandung’s institutional landscape ....................................................................................... 36 Notes .......................................................................................................................................... 37 Bibliography ............................................................................................................................... 39 Chapter 2 Bandung’s emerging green growth opportunities ................................................. 45 2.1. Developing BMA-wide land use and public transport strategies ........................................ 46 2.2. Accelerating investment in water and solid waste as essential urban services ................... 57 2.3. Investing in renewable energy and increasing energy efficiency ........................................ 68 2.4. Promoting green buildings and combatting urban slums .................................................... 71 Notes .......................................................................................................................................... 75 Bibliography ............................................................................................................................... 76 Chapter 3 The smart city vision and green growth in Bandung ............................................. 81 3.1. Tailoring Bandung’s smart city vision to green growth objectives ..................................... 83 3.2. Enhancing data and knowledge on green growth in Bandung through ICT ....................... 88 3.3. Enhancing the performance of green growth-related infrastructure .................................... 91 3.4. Making Bandung resilient to natural disaster through smart city tools ............................... 95 3.5. Making the smart city inclusive ........................................................................................ 100 Notes ........................................................................................................................................ 104 Bibliography ............................................................................................................................. 105 Chapter 4 Governance for green growth in Bandung ............................................................ 109 4.1. Enhancing co-ordination for green growth between government bodies .......................... 111 4.2. Financing green growth in Bandung ................................................................................. 120 4.3. International co-operation for green growth in Bandung .................................................. 129 4.4. Engaging and collaborating with local stakeholders ......................................................... 133 Notes ........................................................................................................................................ 141 Bibliography ............................................................................................................................. 143 GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016 8 – TABLE OF CONTENTS Tables Table 1.1. The Bandung Metropolitan Area ........................................................................... 18 Table 1.2. Changing land-use patterns in Bandung City ........................................................ 29 Table 1.3. Bandung Regency water source ............................................................................. 34 Table 1.4. Water consumption in the BMA (MLD)................................................................ 34 Table 1.5. BMA sanitation profile (2014) ............................................................................... 35 Table 1.6. Municipal solid waste management in the BMA ................................................... 35 Table 2.1. Indonesia’s national ambient air quality standards and WHO guidelines ............. 55 Table 2.2. Bandung City Medium-Term Plan 2014-18 .......................................................... 63 Table 2.3. Energy savings target in the Master Plan of National Energy Conservation ......... 71 Table 3.1. Main smart city initiatives for green growth in the world and Bandung to date ............ 87 Table 3.2. Types of data collected by smart devices ............................................................... 89 Table 4.1. Major plans and policy guidelines at the national level and in Bandung ............. 113 Table 4.2. Attribution of tax revenues to subsectors of general government as percentage of total tax revenue ............................................................................................. 122 Table 4.3. Urban green growth projects in Bandung involving international partners ......... 132 Table 4.4. Data on green growth not available in Bandung .................................................. 137 Figures Figure 1.1. The Bandung Metropolitan Area ....................................................................... 17 Figure 1.2. Population of Indonesia’s major metropolitan areas .......................................... 19 Figure 1.3. Age structures in selected Asian cities ............................................................... 19 Figure 1.4. Average annual GRP growth, 2002-12 (PPP) .................................................... 21 Figure 1.5. Per capita GRP (2000 constant prices) 2002-12 (PPP) ...................................... 21 Figure 1.6. Number of people employed by industry ........................................................... 23 Figure 1.7. The BMA economy by sector, 2012 .................................................................. 24 Figure 1.8. Comparative metropolitan economic structures ................................................ 24 Figure 1.9. Highest achieved education level ....................................................................... 25 Figure 1.10. Percentage of the population living below the poverty line ............................... 27 Figure 1.11. Gini co-efficient in selected cities ...................................................................... 27 Figure 1.12. Unemployment rates, 2004-14 ........................................................................... 28 Figure 1.13. Total number of motor vehicles ......................................................................... 30 Figure 1.14. Annual average ambient PM levels ................................................................. 31 10 Figure 1.15. Greenhouse gas emissions by sector in Bandung City, 2013 ............................. 31 Figure 1.16. Power generation in Indonesia by source, 2013 ................................................ 32 Figure 2.1. The Bandung Metropolitan Area and its expanding urban environment ........... 48 Figure 2.2. Composition of landfilled waste ........................................................................ 67 Figure 4.1. Evolution of the budget of the City of Bandung (2010-16) ............................. 121 Figure 4.2. Budget per inhabitant in the cities of Bandung and Bangkok .......................... 121 Figure 4.3. Revenue of the City of Bandung by source ..................................................... 122 Figure 4.4. Foreign direct investment, net inflows (% of GDP) ........................................ 125 Figure 4.5. Distribution of green financing by project in Indonesia .................................. 126 Figure 4.6. Number of PPP infrastructure projects in Indonesia, by province ................... 128 Figure 4.7. Total official development finance committed to selected ASEAN countries (USD billion ) .................................................................................. 129 Figure 4.8. Number of official development activities and funding for urban and rural areas in Indonesia for environmental purposes (including Rio Conventions) (2002-14) ......................................................................................................... 131 GREEN GROWTH IN BANDUNG, INDONESIA © OECD 2016

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