Indonesia · Environment and Development

The Government of Indonesia has achieved remarkable success over the past twenty-five years in stimulating rapid economic growth and reducing widespread poverty. The pace and pattern of development, however, has given rise to increasing concern about the sustainable use of natural resources and the social and economic costs of urban and industrial pollution. This report explores these issues and their implications for Indonesia ' s development strategy for the next twenty-five years. The main conclusions are: a) that growth and development over the medium term will depend increasingly on Indonesia ' s key natural resources and ecosystems, and the care and efficiency with which they are managed; b) that the growing volume of urban and industrial pollution poses a serious threat both to the improvements in health and human welfare that are central to the long-term goals of development and to the prospects for continued rapid growth; and c) that, as a result of increasing competition for scarce natural resources and growing levels of pollution, environment-related issues of equity and burdensharing will become increasingly important in the years ahead. The highest priority issues are: water supply and sanitation, solid waste management and vehicle emissions in Indonesia ' s main urban centers, industrial pollution control - primarily on Java, and the management of forest concessions in the outer islands. The recommended action plan emphasizes: improving the management of natural resources; and controlling urban and industrial pollution.