Program

Expected outcomes, outputs and activities

The Global Eco-Industrial Parks Programme – Indonesia: Country level intervention will deliver the expected results via two outcomes as presented here below:

Outcome 1: EIP incentivized and mainstreamed in relevant policy and regulations

The objective of this outcome  is to increase the role of EIPs in relevant policies at the national level, aligned with the National Circular Economy Strategy (5R i.e., Reduce, Reuse, Recycle, Recovery dan Repair). With the support of SECO and UNIDO, important developments have taken place recently in Indonesia with regards to policy development in support of RECP. These important achievements now need to be leveraged by the development of policy and regulations supporting EIPs. It is expected that the integration of EIP approaches in relevant local policies and regulations will improve the competitiveness of IPs in Indonesia.

Output 1.1: Mapping of existing capacity of institutions and service providers on eco-industrial parks development

An in-depth analysis of the existing capacity of institutions and service providers and evaluation of the gaps must be undertaken to secure proper customization of all envisioned interventions to local interest and commitment, needs and windows of adaptation. According to the GEIPP project document, macro assessments will be conducted during the first year of GEIPP, and on an annual basis.

  • Activity 1.1.1 Stakeholder mapping: A stakeholder mapping analysis will be undertaken. The results of the stakeholder mapping exercise will be used for the set-up of the project steering committee (PSC) and to fine-tune some of the activities described below (e.g. capacity-building, review and support in amendment/modification of policies and regulations).
  • Activity 1.1.2 Gap analysis: After identification and characterization of key stakeholders, a gap analysis will examine the gaps in terms of capacity and resources needed to successfully implement the project at national scale. This includes a detailed analysis of the opportunities to improve the effectiveness and outreach of the ICPC (see section C.2) to provide EIP related services. The main results of this activity will be shared with Component 2 of the GEIPP (Global Knowledge Development). The results will be also used to better focus the activities in Output 1.2.
  • Activity 1.1.3 Policy analysis and update of stakeholder mapping: The core focus of this activity will be a policy and regulatory analysis. Additionally, stakeholder mapping and policy analysis will be updated on an annual basis, because stakeholders and political guidelines can change over time. Regional stakeholders will also be analyzed. Following recommendations of MoI, policies and regulations related to both IPs and (productive) SEZs will be assessed. This should allow harmonizing and adapting these different policies to foster the development of an Indonesian strategy on EIPs.

Output 1.2: Strengthened national institutions relevant to EIP policy development and implementation

According to the needs identified in the in-depth analysis, training materials will be developed and used to enhance technical skills and to coach policymakers to improve existing policies and strategies, as well as their implementation. The relevant national institutions that must be strengthened include (not all-inclusive): experts from relevant ministries, national service providers (with particular focus on the ICPC) and experts from national chambers of commerce and industrial association.

  • Activity 1.2.1 Facilitation of inter-ministerial dialogue to support the implementation of the international IP framework: This objective of this activity is to provide detailed guidelines for engaging stakeholders, and establishing a national EIP roadmap to create a favorable environment for the development of EIPs at national level. This includes the establishment of appropriate governance structure and coordinating agencies. Items such as financing opportunities and potential fiscal initiatives to support EIP approaches should also be addressed during this activity. This activity will follow the guidelines provided by A Practitioner’s Handbook for Eco-Industrial Parks, written in 2018 by UNIDO, GIZ, WBG and the Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea. To this end, a study tour for relevant Indonesian government representatives to visit IPs applying EIP strategies and meet with key stakeholders is also envisaged. At the end of the project, a final dissemination workshop will be organized to showcase EIP success stories, present the results of the project, and disseminate promotional material. The objective of this workshop is to ensure the sustainability of the EIP concept and foster the continuation of an EIP approach in Indonesia after the completion of the GEIPP.
  • Activity 1.2.2 EIP related legislation review, gap analysis and recommendations: This work will be done primarily as supporting evidence for the work of the EIP expert group. The main instruments for such analysis and recommendations will be the organization of at least two multistakeholder national roundtables, and specific workshops on relevant topics hindered by the current legislation.
  • Activity 1.2.3 Amendment/modification of policies and regulations: This activity will build on other activities and outputs. For instance, the lessons learned in the pilot industrial parks (output 2.2) will be very important to adequately design policies and regulations (or amendments to policies and regulations) to promote and support EIP strategies. Such policies consist of, for instance, the creation of taxes on polluting industries or resources, as well as economic incentives for industries and industrial parks engaging in industrial symbiosis development. International examples such as the Korean policies supporting EIP development will be used as models. Although it is recognized that changes or development of new policy and regulation for EIPs can require a long time, and there is no guarantee that these can be achieved within the project timeframe, the project will at least kick-start discussions and setup the internal mechanisms that will lead to the desired changes.
  • Activity 1.2.4 Policy information dissemination and capacity-building: The project will develop policy briefs to disseminate policy-related information which stem from the previous activities and from the project findings and achievements targeting national and provincial authorities, park managers, and tenant companies. A project communication strategy will be formulated and implemented, in line with the communication guidelines developed at the global level in order to share information on the project progress, case studies and successful stories with all stakeholders.

Outcome 2: EIP opportunities identified and implementation started, with environmental (e.g.resource productivity) economic and social benefits achieved by enterprises confirmed

The implementation of EIP opportunities by enterprises and industrial parks will be supported by EIP services providers (e.g. national and international consulting companies, ICPC, research institutions), and will lead to the reduction of the environmental footprint and operational and compliance costs of businesses, and an increase in their resource productivity. The GEIPP will  ocus on brownfield industrial parks only, in order to (i) secure realistic and tangible results  ithin the available time, financial and organizational resources available and (ii) comply with UNIDO environmental and social safeguard policy.

Based on the report “Selecting industrial parks for Global Eco-Industrial Parks Programme in Indonesia”, developed during the preparatory phase as well as on recommendations from the Government of Indonesia, a “model” industrial park has been selected in Indonesia: MM2100 Industrial Park in Java. This park scores high against the International EIP framework, and further potential for improvement is expected with limited financial resources from the project. As a result of interventions under GEIPP, this park should become exemplary and inspiring for others in the country and could be visited during organized tours. In this park, the project will focus on (i) the provision of specialized advisory services, and (ii) the development of synergies within and outside the parks.

Based on the application of the EIP selection tool during the preparatory phase, Batamindo Industrial Park in Batam showed positive features for inclusion in the GEIPP and good potential for performance increase, including through mainstreaming Industry 4.0 solutions. Capacity-building and technical cooperation efforts will be provided to both parks.

In addition, interested industrial park representatives – among those visited during the initial scoping phase – will be invited to attend capacity-building activities in order to increase knowledge and further raise awareness on EIP among all industrial parks in Indonesia.

Particular attention will be given to involving SMEs (with less than 250 employees) into project activities and in developing their technical capacity. The activities under this outcome will target park management entities, resident companies (sometimes SMEs) and service providers to the resident companies (usually SMEs).