CHAPTER 3 . Strategic Planning for Sustainable Development in Coastal Zone Regions
57
describe the environment-economic linkages in a potentially conflict-ridden situation.
3. A formal, structured framework such as the one offered by NRA facilitates consistent analysis which, in turn, provides a concrete basis for productive dialogue among
line Ministries about alternative, multi-sectoral development strategies and the associated policy trade-offs.
3.3
Using Natural Resource Accounts in Strategic Planning for
Sustainable Development in Indonesia
A study undertaken by the author and her colleagues over several years for Indonesia's Planning Ministry provides a concrete example of the use of NRA for strategic
analYSIS at the national and sectoral levels (for more detail, see Duchin et al. 1993;
Lange 1997). NRA were constructed and incorporated as the environmental module
in an ecological-economic model in order to calculate the demand on the natural resource base of Indonesia's Second Long Term Development Plan (1994-2018). In particular, the analysis sought to anticipate emerging conflicts between economic development and sustainable resource management and to identify the kinds of technological changes that might make it possible to achieve Indonesia's development objectives
within the constraints posed by the natural resource base.
Indonesia's long-term development strategy is based on increased industrialization
and a transition hway from dependence on oil with a strong emphasis on sustainable
management of resources in order to avoid the degradation of the resource base which
occurred during the rapid economic growth of the past 25 years. Over the next 25 years,
economic growth will intensify competition for land. Some of the most fertile rice land
is being converted for residential, industrial and commercial use, especially land near
urban areas. Forests and coastal wetlands are being converted to agriculture production. While Indonesia has abundant water resources, there are large seasonal variations
in water availability and it is already in short supply in some areas. Water pollution
and air pollution have become a major threat both to human health and welfare and to
industrial productivity ~ urban areas. Increasing urbanization of the population and
the continued concentration of industry in urban areas over the next 25 years make
dealing with these problems a priority.
Conflict over resource use and the deterioration of the environment may force Indonesia to make some difficult decisions concerning trade-offs between economic
growth and the possible exhaustion or serious degradation of its natural resources.
However, through the use of more efficient and cleaner technologies, Indonesia may
be able to achieve substantial economic growth without sacrificing its natural capital.
The major issues which were addressed with the ecological-economic model include:
• Feasibility of continued food self sufficiency;
• The compatibility of sustainable management of natural forests and the large-scale
expansion of the pulp and paper industry;
• Availability of an adequate amount and quality of water for agriculture, industry and
households;
• Management of air pollution.
57
describe the environment-economic linkages in a potentially conflict-ridden situation.
3. A formal, structured framework such as the one offered by NRA facilitates consistent analysis which, in turn, provides a concrete basis for productive dialogue among
line Ministries about alternative, multi-sectoral development strategies and the associated policy trade-offs.
3.3
Using Natural Resource Accounts in Strategic Planning for
Sustainable Development in Indonesia
A study undertaken by the author and her colleagues over several years for Indonesia's Planning Ministry provides a concrete example of the use of NRA for strategic
analYSIS at the national and sectoral levels (for more detail, see Duchin et al. 1993;
Lange 1997). NRA were constructed and incorporated as the environmental module
in an ecological-economic model in order to calculate the demand on the natural resource base of Indonesia's Second Long Term Development Plan (1994-2018). In particular, the analysis sought to anticipate emerging conflicts between economic development and sustainable resource management and to identify the kinds of technological changes that might make it possible to achieve Indonesia's development objectives
within the constraints posed by the natural resource base.
Indonesia's long-term development strategy is based on increased industrialization
and a transition hway from dependence on oil with a strong emphasis on sustainable
management of resources in order to avoid the degradation of the resource base which
occurred during the rapid economic growth of the past 25 years. Over the next 25 years,
economic growth will intensify competition for land. Some of the most fertile rice land
is being converted for residential, industrial and commercial use, especially land near
urban areas. Forests and coastal wetlands are being converted to agriculture production. While Indonesia has abundant water resources, there are large seasonal variations
in water availability and it is already in short supply in some areas. Water pollution
and air pollution have become a major threat both to human health and welfare and to
industrial productivity ~ urban areas. Increasing urbanization of the population and
the continued concentration of industry in urban areas over the next 25 years make
dealing with these problems a priority.
Conflict over resource use and the deterioration of the environment may force Indonesia to make some difficult decisions concerning trade-offs between economic
growth and the possible exhaustion or serious degradation of its natural resources.
However, through the use of more efficient and cleaner technologies, Indonesia may
be able to achieve substantial economic growth without sacrificing its natural capital.
The major issues which were addressed with the ecological-economic model include:
• Feasibility of continued food self sufficiency;
• The compatibility of sustainable management of natural forests and the large-scale
expansion of the pulp and paper industry;
• Availability of an adequate amount and quality of water for agriculture, industry and
households;
• Management of air pollution.