East Kalimantan Environmentally Sustainable Development Strategy

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This resource development pathway has also led to sizeable CO2 emissions, with 250
MtCO2 expected to be emitted in 2010 alone, making East Kalimantan the third largest
emitter among Indonesia provinces. Sectors accounting for just one-tenth of the province’s
GDP are responsible for 68 percent of all emissions; agriculture, forestry, and palm oil plantations
create the majority of East Kalimantan’s emissions via deforestation, forest degradation, fires, and
the draining of carbon-rich peatlands. East Kalimantan stores (or sequesters) a remarkable 4.2
billion tons of carbon (15.4 billion tons of CO2 equivalent) in its forest and peatlands; thus changes
in the use of these lands risks creating emissions far in excess of the sectors typically thought of as
high emitters, such as manufacturing, and oil and gas production and refining.
Emissions will continue to grow under the business-as-usual scenario, reaching an
estimated 303 MtCO2 in 2020 and 331 MtCO2 in 2030, a 32 percent increase in total. It is
true that as the economy develops and moves to higher value added sectors, its carbon intensity
(CO2 output for a given amount of GDP) will decrease. But it is absolute emissions that affect
climate change and these will rise as the palm oil, agriculture, forestry, and coal mining sectors
increase their use of forested land. New power generation and increased transportation will be
significant in terms of emissions growth, but still small when compared to the total emissions.
Addressing this development trajectory is complicated by the fact that East Kalimantan’s
14 districts have significantly different economic and emissions profiles, with three
districts accounting for 55 percent of all provincial CO2 emissions. Kutai Kertanegara,
Kutai Barat and Nunukan make up 55 percent of the provincial emissions, largely due to the
draining of and fires on the approximately 800,000 ha of peatlands in these districts as well as the
combined 60,000 ha of annual deforestation there. The cities of Tarakan, Bontang, Samarinda,
and Balikpapan emit less than 10 percent of total emissions, but their economies are quite
different with Bontang and Balikpapan as major oil and gas centers, and Samarinda and Tarakan
dominated by the service sector (including public administration for Samarinda, the capital).
Five sectors are critical for GDP and CO 2 e emissions: Agriculture, palm
oil, forestry, coal, and oil & gas
Percentage
Palm oil/
Estate crops
Agriculture
Forestry
DRAFT
100% =
Coal & Mining
Oil & Gas
103 Trillion IDR
1
4
5
20
46
251 Million Ton CO2e
27
21
20
1.26 Million Workers
2
12
18
6
6
7
3
Exhibit 3
Construction
Manufacturing
Services/Others
2
GDP
2008
19
3
14
8
8
1 2
CO 2
e emissions
2010
45
Employment
2008
SOURCE: BPS Kaltim; Team analysis