Readiness for Green Budgeting

Implementation of Green Budgeting will be adopted by governments at various levels, ranging from central, provincial, to city and district levels. At the provincial, city, and district levels, in particular, green budgeting becomes very important because they will interact more closely with economic actors such as the private sector and society.

To see whether provincial and district governments are ready to implement green budgeting, LPEM conducted a baseline survey. The survey was based on seven readiness indicators, which you can see in the graph above.

  • The first indicator, basic knowledge, measures respondents’ understanding of basic concepts of climate change and climate change mitigation.
  • The second indicator, green budgeting knowledge, measures the level of respondents’ understanding of specific concepts regarding green budgeting and funding for pro-green programs.
  • Internal capacity indicator measures the commitment of the institution represented by respondents to implement the green budgeting process.
  • Internal commitment indicator measures the technical capacity (including but not limited to HR capacity) of the SKPD represented by respondents to implement green budgeting.
  • Inter-agency coordination indicator measures the level of coordination/cooperation among agencies at various levels relevant to the green budgeting process.
  • External commitment indicator measures the level of support from external parties to SKPD in implementing green budgeting (Including but not limited to DPR, NGOs, and society)

The survey was conducted in four selected provinces, namely Jambi, NTB, NTT, and West Sulawesi. From each province, several districts were also selected for the survey. The survey targets were Bappeda (Regional Development Planning Agency) and SKPD (Regional Government Work Units), while the respondents were generally Head or Subhead of the units.

Results of the Provincial Government Survey

The survey results on Provincial Governments indicate that all Provincial Governments are relatively not ready to implement green budgeting, except for NTB. Each province scored moderately on four to five indicators.

Of the seven indicators, the basic knowledge indicator is the one that received low scores in three out of four provinces. This indicates that Provincial Governments, especially in Jambi, NTT, and West Sulawesi, need to further understand the basic concepts of climate change and its mitigation.

Meanwhile, the regulatory framework indicator is the one that received the highest scores in three out of four provinces. This indicates that regulations related to climate change and green budgeting are considered to already exist by the respondents.

Survey Results in Districts of Jambi

The survey results in four districts in Jambi indicate that the readiness of District Governments to implement green budgeting is still below the readiness of Provincial Governments. The indicators that received the lowest scores are internal capacity, internal commitment, basic knowledge, and green budgeting knowledge.

Survey Results in Districts of West Nusa Tenggara (NTB)

The survey results in three districts in NTB vary, although they lean towards being unprepared. The three districts have three to four indicators that received low scores. The remaining indicators, in North Lombok and East Lombok, only received moderate scores.

The most extreme results were obtained from the survey in Central Lombok. This district has four indicators with low scores and three indicators with high scores.

Survey Results in Districts of East Nusa Tenggara (NTT)

The four surveyed districts in NTT have diverse results. Three out of the four districts, namely East Sumba, Central Sumba, and Southwest Sumba, are considered relatively ready to implement green budgeting. This is evidenced by the survey results, where none of the seven indicators received low scores. In fact, one to two indicators received high scores in each district. These two indicators are Understanding and External Commitment as well as Regulatory Framework.

West Sumba district is the only district not ready to implement green budgeting, with three out of the seven readiness indicators showing low scores. Similar to districts from other provinces, the indicators that received low scores are Basic Knowledge, Internal Commitment, and Internal Capacity.

Survey Results in Districts of West Sulawesi (Sulbar)

The survey results in two districts in West Sulawesi, namely Mamuju and Mamasa, indicate that both are not yet ready to implement green budgeting. Similar to districts in other provinces, the indicators that received low scores are indicators related to basic knowledge and knowledge of green budgeting, as well as internal commitment and internal capacity.

Looking at the results from all districts, the indicators consistently receiving low scores are general knowledge, knowledge of green budgeting, internal commitment, and internal capacity.

This illustrates that most personnel in SKPD lack basic skills related to climate change management issues, such as estimating GHG emissions from social activities. Most SKPDs also do not mention climate change issues in their strategic planning documents, which could be a barrier if there are future activities or programs related to climate change that need to be implemented. To enhance the readiness of government SKPDs, both at the provincial and district levels, in implementing green budgeting, several things need to be taught, including:

  • raising awareness among SKPD personnel about the environmental impact produced by sectors supervised by SKPD;
  • methods SKPDs can take to mitigate GHG emissions in sectors under their supervision;
  • the ability to explore innovative funding methods to implement pro-green programs, considering the limited fiscal capacity at the local level.

To support the implementation of Green Budgeting at the local government level in Indonesia, LPEM FEB UI, through funding provided by MCAI (Millennium Challenge Account Indonesia), is developing a set of indicators called the “Green Budgeting Indicator.” The Green Budgeting Indicator (GBI) is designed to be an evaluation tool for stakeholders at both the central and local levels to assess the performance of green budgeting carried out by local governments. The GBI consists of three indicators: efficiency, effectiveness, and significance. Each of these indicators has its own measurement goals. To access the GBI calculation simulation, please download the GBI Dashboard at the following link: [GBI Dashboard](link).

Explanation Video