Green Growth in Bandung, Indonesia

149 Pages·2016·2.571 MB·English

by  Organization for Economic Cooperation & Development

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Chapter 1. The economic and environmental performance of Bandung ro
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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
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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)
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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
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– 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
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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
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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
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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
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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