The Environmental Economic Instrument (IELH) for Low GHG Emissions Regional Development Planning

The Environmental Economic Instrument (IELH) is an effort to control and preserve the environment and to support the commitment of low GHG emissions development. To introduce the concept, context and implementation mechanism of IELH, the Ministry of Environment and Forestry (MoEF), supported by GGGI, held an IELH Seminar on August 24-25, 2021, by online.


The seminar was officially opened by the Secretary to the Director General of Planology, Forestry and Environmental Management of the Indonesian Ministry of Environment & Forestry, Dr. Hanif Faisol Nurofiq, S.Hut., M.P. In his speech, he stated that the Environmental Economic Instruments (IELH) is a set of economic policies to encourage the government, local governments, and everyone to preserve environmental functions.


On the first day, the seminar featured the topic of “IELH and Green Development Planning”. The theme of the second day was “Promoting IELH Implementation”. Presenting the content were resource persons from relevant directorates of MoEF, the Central Statistics Agency, the Fiscal Policy Agency and the Directorate General of State Assets of the Ministry of Finance, the Directorate of Regional Revenue of the Ministry of Home Affairs, as well as the North Kalimantan Regional Development Agency, and FMU Balikpapan who presented examples of the IELH implementation.


The two-day seminar was attended by more than 200 participants who represented provincial agencies, including Production/Protected Forest Management Units (FMUs) from six provinces: East Kalimantan, North Kalimantan, Central Kalimantan, South Kalimantan, Papua, and West Papua, as well as participants from universities/colleges and various development partners. After attending this seminar, participants’ knowledge about the concept, context and implementation mechanism of IELH has increased. Going forward, the seminar participants will be able to incorporate their IELH knowledge to the regional planning of low GHG emission.


GGGI Indonesia, in support to MoEF within the framework of the Green Growth Program Phase 3 – Sustainable Landscapes, provides technical support for developing baseline study for assessing the use of economic instruments and incentive schemes for FMUs in East Kalimantan, facilitating stakeholder meetings, as well as supporting IELH-related knowledge capacity development and knowledge transfer.