(Indonesian Festival 2016)

Ottawa - Montreal, 25th May 2016

Indonesian Trade, Tourism and Investment

Forum

General Profile of North Sumatera The Economy of North Sumatra: Natural based

economy Business by Sector in North Sumatera Lake Toba Ecosystem Recent Environmental Issues North Sumatra Sustainable Development Plan North Sumatra support on Achieving National

Target Reducing Green House Gas Emission North Sumatera Mitigation Action Plan 2010-2020 Next agenda

Population : 12,985,075 Population growth : 1,32 % Area : 71,680 km2 (3,7 % of Indonesia) GDP : Rp, 6,45 Trillion Percapita Income : Rp 49,7 million Export : US$ 10,39 million Import : US$ 5,16 million Economic growth : 6,22 % (2012) Temperature : 18° - 32°C Average rain fall : 1700 – 2400 mm/y

Catchment of water resources o 72 Watershed, o 99 Large rivers, o 783 Rivers and o 659 Small rivers,

Lake Toba (volcanic lake) 110,260 Ha, o Samosir Island in the middle

of the lake (see the picture) o Huge tourist resort potential

Forest area 2,589,686,7 ha • Conservation forest, • 2 National Parks, • Preserve forest • Limited production forest • Mangrove and wet land

Food crops mainly rice ◦ Rice Area: 829,976 ha ◦ Rice Production 3,875,561 ton

Other Food crops: Corn, Soybean, Peanuts, Cassava, Sweet Potatoes. ◦ No. Food Crops h’holds 1,262,421 ◦ Vegetables and fruits

Fisheries ◦ Fresh water fisheries (lake, ponds and rivers) ◦ western coast and eastern coast area (fish production 358,664 ton / year; 20%

of the production potential )

Animal husbandry mainly chicken, caws and goats

Agric. sector, 2,610,673

Non Agr. Labour sector,

2,943,950

Comparation between Agriculture and non Agriculture labour

Plantations (smallholders, public estate, private/ national and foreign companies) • Mainly oil palm (1,067,814 ha ) • rubber (565,845 ha) . • Other commercial crops are cacao and coffee, etc

Industries ◦ 1800 industries mainly agro processing Industries such as CPO, Oleo

Chemical, Crumb Rubber, Cacao, fish ◦ Type of industry : mainly Agro processing industry, manufacture ◦ Manufacturing Aluminium industries, Small scale garment, shoes,

home base industries, etc.

Ecotourism Industries o Lake Toba and Samosir Island o Karo Highland and Dairi high lands,

Sidamanik (tea plantation) o Waterfall Sipiso-Piso o Forest resort Tangkahan o Orang Utan Rehabilitation Forest at

Bahorok Langkat o Serdang Bedagai and Nias beach

The Economy of North Sumatra:… continue

Number of companies

713

201

87

53

35

91

Industry

Plantation

Ranch

Mining

Forestry

Hotel/Restaurant

Number of large: ±1,180 Unit large companies, out of 1,800 unit in total

Width : 110.260 Ha Height : ± 900 m dpl Rainfall : 1.700 – 2.400

mm/year Sub DAS on DTA :19Sub DAS

Include 9 (nine) regencies: ◦ Karo regency ◦ Dairi regency ◦ Simalungun regency ◦ Toba Samosir regency ◦ Humbang Hasundutan

regency ◦ Samosir regency ◦ North Tapanuli regency ◦ Asahan regency ◦ Tanjung Balai city

Lake Toba Ecosystem

Water Catchment area of Lake Toba and Asahan River watershed

• The gift of God Almighty to the people of Indonesia,

• The largest volcanic lake in Asia,

• One of the invaluable wealth of North Sumatra, Indonesia and the World,

• Has the value of ecological, socio-cultural, economic and human life,

• An integral ecological ecosystem surrounding the areas.

1. As the source of drinking water 82% of the communities around Lake Toba using lake water as raw water source of drinking water

The Potential of Lake Toba

2. As Hydro Power Station: Asahan hydropower has 450 MW

Capacity Lae Renun hydropower has 82 MW

Capacity 3. As the Industrial Water Source: PT. Aquafarm Nusantara, an aquaculture

industry in Lake Toba with Floating Keramba locations in (1) Sirungkungan, (2) Pangambatan, Toba Samosir regency (3) Tomok (4) Silima Lombu (Samosir regency and (5) Panahatan District. Simalungun

Asahan hydropower, which uses the water

of Lake Toba as the turbines, where the electricity generated is used by PT. Inalum for aluminium smelting

PT. Toba Pulp Lestari that uses water as

the water of Lake Toba River production through Asahan

4. As tourism destination such as: Parapat, Tomok, Tuk-tuk Siadong,

Tongging, Sipisopiso waterfall, Tao Silalahi, Muara-Pulau Sibandang, Haranggaol, Tao Sidihoni, Tele, Hot Spring Pangururan, etc.

5. As agriculture area such as: Mango,

Union and rice.

6. As a means of Lake transportation

7. Geopark.

General Description of Lake Toba Region Issues As a region that has great potential, it has been exploited . Exploitation which oriented in short term and less of pay attention for environmental preservation and sustainable of region carrying capacity finally raised various issues. Generally, Lake Toba region issues explained as follows: 1. Depending on Governor Regulation of North Sumatera Province No. 1 year

2009 about quality standard of Lake Toba water then it defined as Class I (Government Regulation No. 82 Year 2001) to be destined as drinking water.

2. Based on monitoring by Environmental Protection Agency of North Sumatera Province year 2005 - 2008, shown that Lake Toba water has been polluted in medium category, whereas this lake is used by 88% of people who lived around - Lake Toba as drinking water without further processing. In other words, many people near Lake Toba consumed water which not good for drinking.

3. As impact of polluted lake, occurred blooming of hydrophytes such as Eichhornia crassipes etc. It was generated oxygen depletion, obstruct access to the lake, increase evaporation, and decrease the aesthetic value.

4. Lack of oxygen in the water bodies caused decreasing of fish population, reduction of fish population so lowering the fisherman income.

5. Tourism function has not maximal yet.

Development an integrated lake management Economic empowerment of community Lake Toba Ecological Research Center Ecotourism Development of Integrated domestic and hotel

waste water. Theme Park integrated with hotels Planting trees on degraded land Recovery of lake water quality by reducing

pollution load entering the lake Toba Solid waste management around lake toba Tourisme management Development of Manggo quantity (Holticultura

dan agriculture)

Food security problems of land conversion from rice field to plantation (oil Palm)

Economically rapid growth of industry is better, on the other hand, it cause bigger environmental problems Solid waste, water pollution and air pollution

Deforestation and degradation • Illegal logging at conservation area at Leuser and Batang Gadis national

Park • Encroachment due to lack of forest boundary and poor people living

near the conservation forest. Climate change ◦ Six sector of economy contribute to release GHG emission ◦ Adaptation relate to vulnerability of poor people and threat to climate

change

No Increase in Production

Decrease in Harvested Area

Drought / Flood

Climate Change and Variability

Land Conversion/

Farmer Adaptation

Pricing of Rice Cost of

Production

Fertilizer Price

Demand for Palm Oil

Lack of Development and

Maintenance of Irrigation System

Problems of Food Security

Decrease in

Harvesting Frequency

Import of Rice

Competition for Water Use and

Land Use

Low Rice Farmer’s TOT

Population Growth

Decreasing Capacity of

Water

Deforestation

North Sumatra Sustainable Development Plan

• Policy to secure rice production – Various agriculture development programs such as intensifications,

improve cropping pattern, implementation of spatial planning etc.

• Policy on conservation of Lake Toba Ecosystem - Sustainable Development

• Policy on hazardous waste management, solid waste management and river management

• Policy on Climate Change – Adaptation to climate extreme by implementation of governor

instruction No. 1 88.54/ 05/INTT/2O12 – Mitigation Action by implementation of reducing emission from six

economic sectors Governor Decree No. 36 Year 2012

Adaptation Focus Activities Infrastructure

rehabilitation, such as: JIDES, JITUT, JUT,

Optimization of land use, and

Embung.

Technology, such as: SLI, SLPTT,

SLPHT, Integrated Grow Calender , and Eight Farmer

Effort

Infrastructure, such as: Ombrometer Observatorium,

House of Compost & APPO, Pumping, and Seeds Support

Coordination, such as: Extention services

empowerment, Coordination meeting/

Socialization, and Coodination Station

(Posko) in Kabupaten/ Kota and at Kecamatan

Institutional Strengthening: 1. Governance : Extention services strengthening Governmental agencies strengthening

2. Society : Farmer communities Public communities

INPUT: Human Resources Funding Mechanization Farming App.Technology

OUTPUT: Increasing Cropping Index (IP),

Planting and harvesting area, Rice Production, and Food/ Rice Self-

sufficiency

OUTCOME: Increasing the Food Security and

Farmer’s Welfare

IMPACT: Increasing the farmer’s capability in

Adaptation and Farmer’s prosperity

Improving the system: Extension Service Information system Integration with the other empowerment

program

Framework of Adaptation Action Program 2012-2020

51% 37%

4% 3% 4% 1%

Pertanian Kehutanan

Energi Transportasi

Industri Pengelolaan Limbah

North Sumatra Target of GHG Reduction by 2020

No. Sector Current Emission

2010

Baseline BAU 2020

Mitigation GRK 2020

Expected GHG emission reduction

tCO2eq tCO2eq tCO2eq % 1. Agriculture* 6.655.334 8.462.261 6.399.925 1,8 2. Forestry and

Peat** 160.798.466 292.711.722 69.469.272 19,6

3. Energy 8.383.000 21.175.000 15.816.000 4,5 4. Transportation 5.879.000 10.800.000 4.450.000 1,3

5. Industry 7.659.902 16.266.210 10.900.000 3,1 6. Waste

Management 2.028.826 5.066.724 1.183.932 0,3

Total Emission of NS 191.404.528 354.481.917 108.219.129 30,5

GOVERNOR'S DECREE OF NORTH SUMATRA

NUMBER 36 YEAR 2012

ABOUT

NORTH SUMATRA ACTION PLAN OF REDUCING GHG EMISSION 2010-2020

North Sumatera Mitigation Action Plan 2-10-2020

Water Quality Management And waste water treatment in

North Sumatera

• Development of water treatment of the processing industries • Solid waste management in 33 regency / cities are still practicing open

dumping system – contribution to GHG emission- 6 regions sanitary landfill being offer for collaboration with foreign investor

• Recycle product (glass, plastic and metals) • Regulate industries move to Industrial Parks (KIM) or Sei Manke -

special economic zones (KEK) .

Policy on Environmental Management and Development Plan

Improving Natural Resource Management and Development • Mining sector ( lead, gold and aluminum ) • Alternative and renewable energy development

• Micro hydro and mini hydro for remote communities • Large hydro power Asahan 3 and 4 • Biomass energy (shell and empty fruit bunch of oil Palm) • Methane Gas from waste water treatment plant -CPO

• Geothermal Development

Public hygiene and health Reuse ,Recovery and Recycle Energy generation Sustainable development Aesthetics

Most of North Sumatra community living at villages are being still served nation electricity (PLN)

In spite of this issue, potentially North Sumatra having renewable energy resources, namely potential rivers with highest level debit, biomass energy, domestic waste (palm oil industries, domestic waste and poultry) and solar energy.

Renewable energy is one of any solutions to solve the problems

About 1963 units of Industries producing hazardous waste or 70 % of them using charcoal energy.

Produced fly ash, bottom ash and used oil which are categorized as Hazardous waste

The potential producing charcoal fly ash for making brick is about 2400 ton/month.

Used oil is about 3000 ton/year The special treatment technology must be implemented to

manage hazardous waste or to reuse. No single hazardous waste processing Factories in North

Sumatra. Recently, they must be transported to Cilensi in West Java -

costly and burden for companies

Transfer of Technology : Electrical development from solar power, water and biomass

Development of human resources capacity by transfering of technology related with renewable energy development, hazardous waste management and other transfer of knowledge

Construction of factory to use fly ash, bottom ash and also waste oil

• Integrated lakeToba management and Tourism management

• Economic Development of community around Lake Toba

• Toba Ecological Research Center • Integrated domestic waste and hotel waste water

treatment. • Reforestation on degraded land • Reducing pollution load entering the lake Toba and

main rivers • Solid waste management around lake toba

• 33 Districts and City in North Sumatra need clean water management.

• Unfortunately, Most of clean water facilities are out of date using old technology.

• Consequently, the water quality is still below national standard of clean water.

• One of the best clean water is situated in Medan. • One example of Clean Water Treatment located

at Tirtanadi, Medan.

Water Management (PDAM TIRTANADI) Tirtanadi has 6 units Water Treatment Plant (WTP), and has added a few units in the wellbore. Source of raw water used are surface water (rivers and lakes) and a few groundwater (wells inside). • WTP Sibolangit

Has a capacity of 644 l / sec. This is the first IPA owned by Tirtanadi built in 1907 by the Dutch Government.

• WTP Sunggal Water Treatment Plant is the first to complete treatment systems that treat water Belawan River. Built in 1969 with a production capacity of 1800 l / sec.

• WTP Deli Tua Built in 1989 with a production capacity of 1450 l / sec. Raw water used is taken from the River Deli. WTP Belumai (PT Tirta Lyonaise Medan) Raw water taken from the River Belumai. Water treathment complete installation was built by PT Tirta Lyonase Medan with BOT system (built, operate and transfer) production capacity of 500 l / sec. WTP Limau Manis Operated since 2006 with a production capacity of 500 l / sec. IPA is built through MMUDP III project funded by ADB. WTP Silver Overlay Operated since 2005 with a production capacity of 200 l / sec. IPA is built by using the concept of turn key.

Source of Raw water for Medan city

No River Capacity

1. Seruai River 1.000 ltr/sec

2. Belawan River 500 ltr/sec

3. Deli River (down stream)

200 ltr/sec

4. Ular River 2.000 ltr/sec

5. Lau Bura River 400 ltr/sec

6. Binge River 2.000 ltr/sec

7. Wampu River 3.000 ltr/sec

8. Belumai River 500 l/sec

9. Si Mei-Mei Dam 3.000 l/sec

1. Integration of all action plans into vision and mission for 5 years period 2014-2018 Including: governor instruction No. 1 88.54/ 05/INTT/2O12 about securing rice

production to encounter an extreme climate condition Governor Decree No. 36 / 2012 on NS Action Plan for GHG emission

Reduction 2010-2020 Regional Meeting on Development plan (Musrenbang) Governor Decree on Implementation of MDGS

2. Governor Vision and Mission and development plan (RPJMD) will be endorse to regional house of representative as a background of promulgation of Provincial regulation (PERDA) on implementation of RPJMD.

3. Socialization programs and activities for officers at the Province, District, Sub-District and Villages and Farmer Groups

4. Implementation and Monitoring and evaluation to ensure continual improvement of Development