Greening the Maritime Sector in Eastern Indonesia

Project Summary:

As an archipelago nation with over 17,000 islands, Indonesia relies heavily on sea transport to foster domestic social and economic development and international trade. However, while developing this network, limited attention has been paid to the environmental protection, the disaster and climate change mitigation and resilience, the adoption of energy-efficiency technologies, the implementation of adequate general waste disposal facilities, and the sector decarbonization. Consequently, the Indonesian port system and the vessels being served by it have been identified as a major energy consumer, waste generator, and greenhouse (GHG) emissions contributor. Eastern Indonesia has a particularly high dependency on port infrastructure because of its geography of population on many islands and the remote locations of those islands. In particular, COVID-19 has posed a threat to the continuity of critical sea transport supply chains and maintaining availability and stable prices for basic consumer goods across the archipelago. Against this backdrop, the objective of this project is to promote inclusive green growth in the maritime sector in Indonesia, which can facilitate economic growth, job creation, and post-pandemic recovery. It will identify opportunities and provide practical recommendations for greening the maritime sector (including port infrastructure, related industrial and logistics facilities, vessels, and fishery practices), while enhancing connectivity, and pandemic preparedness and readiness.  

List of Activities:

• Greening the maritime transport sector in Indonesia to promote an environmentally- and climate-sound development, with practical recommendations for implementation in Eastern Indonesia 

• Greening the fisheries sector, with practical recommendations for implementation in Indonesia 

• Strengthening maritime connectivity of underserved islands to address logistic constraints and encourage an inclusive sustainable economic growth in Eastern Indonesia 

• Conducting knowledge exchange actions, including webinars, workshops, other trainings and/or study tours to learn and disseminate international best practices, including from Korea

Outcomes:

Output 1:

• Green growth consideration in roadmap/strategy preparation to transition to low-/zero-carbon maritime transport in Indonesia 
• Green growth action taken for port infrastructure and related logistics and industrial facilities development in Eastern Indonesia
• Green growth action taken for vessels procurement in Eastern Indonesia 

Output 2:

• Green growth action taken for fishery port infrastructure and related facilities enhancement 

Output 3:

• Inclusive green growth consideration in optimizing the shipping industry in Eastern Indonesia, including the provinces of Maluku and NTT
• Green growth action taken to promote inclusive economic development and job creation
• Green growth consideration in strengthening pandemic preparedness and readiness of shipping services and port operations in Eastern Indonesia 

Output 4:

• Use of knowledge/strengthen capacity with a focus on international best practices, including the Korean ones, across Indonesia, with a focus on greening maritime sector; integrated ports development/ management; and addressing disruption to port operations and fisheries value chains in a pandemic situation 

Outcomes:  

The outcomes of this project will contribute to “build right” new maritime infrastructure and “manage better” existing maritime infrastructure and scarce natural resources by considering green growth principles, while spurring inclusive and environmentally sustainable growth. It will also feed into the policy dialogue at the national level to promote sustainable, environmentally sound and resilient development and decarbonization of the maritime sector. Furthermore, it will inform preparation of the two proposed World Bank-funded projects – Eastern Indonesia Port-Led Development project (EIPDP) and Oceans for Prosperity Program – to consider the inclusion of disaster and climate change mitigation and resilience and green growth principles into their design.  

Collaboration with K-Partners and Others:

• Korean Maritime Institute (KMI)
• Korea Ministry of Oceans and Fisheries (Cooperative & Supporting Center for Overseas Port Development). The contribution of both institutions will revolve around conducting knowledge exchange actions to disseminate green growth Korean best practices and technical expertise with a focus on the maritime sector. This partnership will facilitate the identification of enhanced technologies and solutions to apply innovative approaches on the maritime sector at project/program level.