About the Author
Dr. Hendra Susanto is a Board Member of the Audit Board of the Republic of Indonesia (BPK). Prior to this, he was an auditor in BPK for 20 years. He holds a Bachelor Degree in Civil Engineering (Sriwijaya University), a Master of Engineering in Integrated Urban Infrastructure (Delft University of Technology, Netherlands), a Master of Business Law (Gadjah Mada University), and a Ph.D in Accounting (Padjajaran University). He is also a Certified Fraud Auditor and a Certified State Finance Auditor. Investigative and forensic audits are among his specializations.
About the Author
Mr. Novy Gregory Antonius Pelenkahu is the Director General of Audit I in BPK. Having been an auditor since 1989, he has held various positions at BPK and has contributed significantly to several audits receiving public attention. He holds an MBA from the George Washington University, USA.
About the Author
Dr. Eko Yulianto is a Principal Expert Auditor, who joined BPK in1995. He holds a Bachelor Degree in Accounting (Gadjah Mada University), a Master’s Degree in IT, Management and Organizational Change (Lancaster, UK), and a Ph.D in Accounting (Gadjah Mada University).
About the Author
Dr. Iman Sufrian is a Senior Auditor in BPK, since 1996. He holds a Bachelor Degree in Economics with a major in Management (University of Indonesia), a Master’s Degree in International Finance (Leeds University Business School, UK), and a Doctoral Degree in Economics (University of Indonesia).
Introduction
Sustainable Development Goals (SDGs) are a global action plan agreed upon by world leaders, including Indonesia, to end poverty, reduce inequality, and protect the environment. The SDGs comprise of 17 Goals and 169 targets to be achieved by 2030. The SDGs aim to achieve sustainable improvement of community economic welfare. These development targets also aim to maintain the sustainability of community social life. Furthermore, these development goals aim to maintain a quality environment and development that ensures equity and governance implementation to improve the quality of life across generations.
Sustainable urban transportation is one of the sustainable development goals. Sustainable urban transportation is reflective of a transportation system that seeks to reduce carbon emissions from the transportation sector, reduce congestion, and improve transportation security to better the environment and the social and economic life of the community.
The government is a central actor that develops reliable strategies and measures to achieve this target of sustainable urban transport. In order to realize sustainable transportation, the government optimizes the development of transportation facilities to strengthen connectivity, stimulate economic integration, increase social equality, and improve relations between urban and rural areas.
The Ministry of Transportation is one of the stakeholders that regulates the transportation sector within Indonesia. The Ministry of Transportation has a particular role in transportation to achieve government targets related to sustainable urban transport. In achieving the target of these objectives, the Ministry of Transportation has a role in reducing the transportation GHG sector (greenhouse gas).
One particular unit within the Ministry of Transportation that provides guidance related to environmental policy is that of the Center for Sustainable Transportation Management (Pusat Pengelolaan Transportasi Berkelanjutan/PPTB). This unit is under the Secretariat General of the Ministry of Transportation. The PPTB was formed on 2 December 2015, through PM 189 of 2015. The main tasks and functions of the PPTB in the Strategic Plan of the Secretariat General of the Ministry of Transportation for 2020-2024 are implementing environmental policy management, system improvement, and innovation of sustainable transportation services.
In carrying out these tasks, the PPTB organizes plans and programs, monitoring and evaluation, formulating, and reporting on policy management in the environmental governance sector of the transportation sector, governance of transportation facilities, and infrastructure service systems. As a result, the PPTB can recommend solutions, innovations in the governance of sustainable transportation facilities, and infrastructure service systems that accommodate community needs for good quality transportation from the aspects of safety, security, service, and support government policies in increasing the use of urban mass public transportation.
Audit Problem
The problem of climate change has become one of the most prominent public policy problems faced by stakeholders. Climate change is already impacting ecosystems and people in all parts of the world's continents and oceans. Climate change can pose significant risks to human health, global food security, and economic development.
Actions taken to reduce emissions are critical and urgent to avoid the dangers of climate change. Significantly reducing greenhouse gas emissions is essential to limiting the impact of climate change. In Indonesia, emissions from the transportation sector account for almost 30% of total CO2 emissions, where the highest emissions come mainly from land transportation, which contributes to 88% of total emissions in the sector (IEA, 2015). Therefore, efforts to reduce emissions in the transportation sector will contribute to efforts to mitigate the effects of climate change in Indonesia.
The Indonesian government is committed to reducing greenhouse gas emissions through various policy initiatives, including those targeted towards the transportation sector. Therefore, performance audits that aim to evaluate the effectiveness of the Ministry of Transportation, in particular, the PPTB efforts to reduce greenhouse gas emissions, can also contribute to reducing greenhouse gas emissions through the identification of audit recommendations that will improve the performance of PPTB programs to ensure the government achieves its goal to reduce greenhouse gas emissions.
Audit Motivation, Audit Objective, and Audit Scope
Indonesia’s Supreme Audit Institution (BPK RI) conducted this particular performance audit to support the achievement of the SDGs, , especially Goal 11: Sustainable Cities and Communities and particularly in relation to Goal 11.2 on sustainable transportation. In addition, this particular audit also supports Goal 3.9 on reducing air pollution, especially air pollution from the transportation sector.
The objective of this performance audit was to evaluate the effectiveness of the efforts made by the Ministry of Transportation, in this case, the PPTB, in reducing greenhouse gas emissions in the transportation sector; on the aspects of regulation, planning, implementation, and monitoring and evaluation.
Audit Criteria
The development of the criteria framework used to assess the effectiveness of the Government’s efforts in achieving sustainable urban transportation in this audit was outlined in a matrix model called the Audit Design Matrix. The matrix identified one main criterion and five sub-criteria, as follows:
Ministry of Transportation, in this case, the PPTB, has contributed effectively to reducing greenhouse gas emissions in the transportation sector:
- The Ministry of Transportation has established regulations related to reducing greenhouse gas emissions in the transportation sector;
- The Ministry of Transportation has set a target for reducing greenhouse gas emissions in the transportation sector;
- The Ministry of Transportation has established an agency responsible for reducing greenhouse gas emissions from the transportation sector;
- The Ministry of Transportation has prepared an action plan/road map related to the reduction of greenhouse gas emissions in the transportation sector; and
- The Ministry of Transportation has monitored and evaluated the achievement of the target for reducing greenhouse gas emissions in the transportation sector in Greater Jakarta.
The source criteria formulated in this audit were statutory provisions/regulations and good management practices (good practice).
Audit Result and Recommendations
The Indonesian Government is committed to reducing greenhouse gas emissions. The Government of Indonesia has issued Presidential Regulation No. 61 of 2011 concerning the National Action Plan to reduce greenhouse gas emissions. Furthermore, the Indonesian Government strengthened its commitment to reducing greenhouse gases by ratifying the Paris Agreement and adopting it in the Indonesian legal system.
With the ratification of the Paris Agreement, the Indonesian Government set a target of reducing greenhouse gas emissions by 29% without international assistance and 41% with international assistance by 2030. This target is in line with the goals of the SDGs.
The Indonesian government has also set a road map for achieving greenhouse gas reductions for the 2020-2024 period through Presidential Regulation no. 18 of 2020 concerning the 2020-2024 Mid-Term National Development Plan. Reducing greenhouse gas emissions is one of the government's national priority goals.
In the transportation sector, the Minister of Transportation has also established the PPTB work unit, responsible for setting and managing environmental policies, system improvements, and innovations to achieve a sustainable transportation system where reducing greenhouse gas emissions in the transportation sector is one of the targets to be achieved. This work unit, comprising officers at the level of echelon 2.
With regards to the target for reducing greenhouse gas emissions in the transportation sector, the Minister of Transportation has also issued a Decree of the Minister of Transportation No. KP 201 of 2013 concerning the National Action Plan for the reduction of greenhouse gases in the transportation sector for the period 2010-2020. This is a derivative regulation of the Presidential Regulation no. 61 of 2011. In this decree, the Minister of Transportation has determined programs/activities in the transportation sector to reduce greenhouse gas emissions for the 2010-2020 period.
However, for the earlier period of 2020-2024, the Minister of Transportation has not yet identified those programs/activities that will reduce greenhouse gas emissions in the transportation sector, nor indicated the magnitude of the contribution to greenhouse gas reduction from programs/activities in the 2020-2024 period.
This problem contributes to the risk of not achieving the plan to reduce greenhouse gas emissions in the transportation sector and will not support achievement of the SDG agenda and NDC targets set for the transportation sector.
In addition, the absence of a road map for achieving the target of reducing greenhouse gas emissions in the transportation sector for the period of 2020 – 2024 also contributes to the ineffectiveness of monitoring and evaluation activities for these programs/activities in order to be able to assess their contribution to those targets.
For this problem, BPK recommended the Minister of Transportation to:
- Prepare a road map for the National Action Plan for Reducing Greenhouse Gas Emissions in the Transportation Sector starting for 2021 to 2024;
- Prepare Standard Operating Procedures related to the formulation of the calculation of targets and achievements, and the conduct of planning, monitoring, and evaluation of GHG emission reduction activities in the transportation sector; and
- Carry out regular and measurable monitoring and evaluation activities.
Conclusion
The Indonesian government has demonstrated a commitment to reducing greenhouse gas emissions. The government has made regulations that contain targets for reducing greenhouse gases, including for the transportation sector. However, the government, in this case, the Ministry of Transportation, in particular the PPTB, needs to continue to strive for continuous improvement, among others, by setting a roadmap for efforts to reduce greenhouse gas emissions in the transportation sector. This includes the identification of programs and activities, as well as indicators for the contribution to the reduction of greenhouse gas emissions from each identified program and activity. In addition, the Ministry needs to monitor and evaluate the program's implementation.
References
BPK Performance Audit Report No.163/HP/XIV/12/2021 December 31, 2021, on Government Effectiveness in Implementing Sustainable Transportation at the Ministry of Transportation and Other Agencies.
Medium Term Government Plan 2015-2019.
Law No. 32 of 2009 concerning Environmental Protection and Management.
Government Regulation No. 41 of 1999 concerning Air Pollution Control.
Presidential Regulation No. 61 of 2011 concerning the National Action Plan for Reducing Greenhouse Gas Emissions.
Presidential Regulation No. 59 of 2017 concerning the Implementation of the Achievement of the Sustainable Development Goals.
Presidential Regulation No. 22 of 2017 concerning the General National Energy Plan;.
Decree of Minister of Transportation No. 117 of 2017 concerning the Third Amendment to the Decree of the Minister of Transportation No. 189 of 2015 concerning Organization and Work Procedures of the Ministry of Transportation.
Decree of the Minister No. 67 of 2021 concerning the Organization and Work Procedure of the Ministry of Transportation.
Minister of Transportation Regulation No. 80 of 2020 concerning the Strategic Plan of the Ministry of Transportation for 2020-2024.
Decree of the Minister of Transportation No. KP 201 of 2013 concerning the Determination of the National Action Plan for Reducing Greenhouse Gas Emissions in the Transportation Sector and the Transportation Sector GHG Inventory from 2010 to 2020.