New Normal and Time to “Build Back Better”

SHARON UNTUK KOMPAS

A woman poses at the 2018 Social Development Goals Summit at the National Museum in Jakarta on Saturday (20/10/2018). The event was titled "Our City: Live/Work/Play" and sought to advance the United Nations’ 2030 Sustainable Development Goals.

The Covid-19 pandemic is the right time to implement the “Build Back Better” strategy in Indonesia.

Entering the new normal, Indonesia needs development recovery through the implementation of the “Build Back Better” concept. However, implementing this concept to recover the economy and social life as well as ensuring environmental preservation will not be easy.

Indonesia has chosen the option of living a new normal and adapting to the persistent virus while carrying on with social and economic life that was disrupted by the large-scale social restrictions.

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This option is not enough to continue development projects as it is only a short-term solution. Indonesia also needs a medium-term and long-term comprehensive set of policies to resolve challenges and fulfill development plans.

In a webinar titled “Economic & Social Recovery Post-Covid-19 through Low-Carbon Development”, the National Development Planning Agency (Bappenas) cited the need for a new normal with a “Build Back Better” concept. The concept enables us to meet the challenge of maintaining low-carbon development post-covid-19 and to sustain the momentum of sustainable development goals 2030.

According to the agency, the “Build Back Better” concept is adopted from post-disaster recovery efforts and aims to avoid the emergence of pre-existing vulnerabilities and turn the recovery process into social, economic and environmental transformation toward society’s betterment.

The United Nations offered 10 main rebuilding concepts as part of the post-disaster recovery efforts.

The Build Back Better concept is nothing new. It was first introduced in the post-tsunami recovery in the Indian Ocean region in 2006. The United Nations offered 10 main rebuilding concepts as part of the post-disaster recovery efforts. Among these concepts were that recovery must prioritize justice and equality, the government must improve preparedness for future disasters and recovery must make people feel safer by reducing risks and building resilience.

KOMPAS/RIZA FATHONI

Traders at ITC Kuningan, South Jakarta wearing face shields, on Monday (15/6/2020). The first day the mall was opened in Jakarta, the mall manager prepared the Covid-19 prevention protocol and traders who resumed activities with a new normal order.

Bappenas said most post-disaster recovery efforts in the past were “business as usual”. Post-disaster reconstruction focused merely on physical repairs and quick wins that often led to more vulnerabilities. The agency cited Wisner (2004) that vulnerabilities emerged as a result of lacking capacity to prevent, adapt and recover from the impacts of disasters.

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The Build Back Better concept was then implemented in rebuilding Aceh after the 2004 tsunami. More recently, this concept was also put to use in the recovery process following the tsunami and liquefaction in Palu and Donggala. Bappenas and the Japan International Cooperation Agency (JICA) promoted the concept of “Build Back Better, Safer and Sustainable for Resilient Indonesia” in their “Master Plan for the Rehabilitation and Reconstruction of the Affected Regions in Central Sulawesi”.

Low-carbon development

In the post-Covid-19 world, the government is pushing for low-carbon development in its Build Back Better concept. Budget allocation and use priorities are implemented in the recovery period.

Among these priorities are accelerating the transition to an inclusive, fair and resilient low-carbon economy; increasing clean energy use mix; and investing in natural climate change mitigations. Furthermore, the government also encourages clean and healthy mobility as well as transformation of low-carbon buildings and infrastructure. Lastly is supporting the transition of industries toward implementing low-carbon development.

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Low-carbon development has positive social and economic effects for the long run. Quoting from WRI-Indonesia’s web page, firm climate actions will lead to US$26 trillion of global economic benefits until 2030 compared to when no changes are made. This economic benefit includes 65 million new low-carbon jobs in 2030, equal to the entire workforce in the UK and Egypt.

What about Indonesia? Also referring to the WRI-Indonesia page, Bappenas has identified low-carbon development paths that go beyond the country’s current climate commitment. It is estimated that this will create an average gross domestic product (GDP) of more than 6 percent per year until 2045.

HUMAS PEMDA BANYUWANGI

The Banyuwangi Covid-19 Handling Task Force Team conducted a review at Taman Blambangan Food Court, Banyuwangi, Sunday (21/6/2020). Because it was considered violating the health protocol, the food court was closed again after being allowed to open last week.

In 2045, benefits will include 15 million additional job opportunities that are more environmentally friendly and with higher salaries. This will accelerate poverty reduction and provide other benefits for gender and regional equality.

Bappenas cites an example of implementing the “Building Back Better” concept, namely the mangrove rehabilitation efforts in a former tin mine that was turned into an ecotourism destination. The rehabilitation has provided economic, environmental and social benefits in the local area.

Economic recovery

Comprehensive low-carbon development is a longstanding fight. After the Covid-19 pandemic, all economic policies must be focused on pandemic mitigation and the acceleration of economic growth after the social restriction period.

In its publication titled “Covid-19 Effects on Development and Government Response in the Framework of Sustainable Development”, Bappenas cites the government’s 2021 work plan, namely to accelerate economic recovery and social reformation.

Third is on social protection system while fourth is a reform of the disaster resilience system.

The government will focus on four things, the first of which is industrial, tourism and investment recovery, which includes the strengthening of food security. The next focus is a reform of the national healthcare system. Third is on social protection system while fourth is a reform of the disaster resilience system.

The state budget in 2021 is focused on economic recovery post-Covid-19. This means that there are concerns that the budget for climate change mitigation will be slashed or even erased. The budget for forest fire mitigation at the Environment and Forestry Ministry, for instance, has been slashed by almost 40 percent (Kompas, 10/6/2020).

This is despite climate change mitigation efforts being important for Indonesia. Climate change is closely linked to national resilience for Indonesia, while also ensuring adequate livelihood and a healthy environment for the people.

Nevertheless, there is an allocation of Rp 695.2 trillion (US$48.04 billion) for National Economic Recovery that can be used for environmentally friendly investment support. An allocation of Rp 18.4 trillion can be used for ministries/agencies’ job intensive support for climate change adaptation (Kompas, 10/6/2020).

This is just the start of challenges in terms of policies that cannot be blamed in the name of economic recovery. Other challenges exist in transportation, energy, waste management and forestry.

Challenges

A “Build Back Better” concept in transportation is the development of public transportation that can create jobs and reduce emissions. However, in the new normal, the use of public transportation will decrease.

This is based on the Health Ministry’s regulation that encourages people to prioritize using their private vehicles over public transportation. According to Covid-19 Demographic Social Survey (Statistics Indonesia, 2020), 83 percent of Indonesians are avoiding public transportation, including ride-hailing services, during the pandemic.

Bappenas has a strategy to respond to the issue in its operational management and new system that use an Intelligent Transport System and implement strict health protocols.

Nevertheless, no matter how good this concept looks on paper, it will not be easy to implement during the pandemic. Distrust in public transportation, deemed as virus spreaders, can be answered with the staggering of working hours at offices and companies to prevent long queues and crowds on public transportation.

Related to the use of private vehicles, the “Build Back Better” concept also presents a challenge in energy use. Fossil-based energy use is expected to spike due to widespread use of private vehicles and post-Covid-19 economic recovery to chase growth targets.

Energy used in low-carbon development is new and renewable energy that can reduce greenhouse gas emissions and its efficiency can provide high economic benefits compared to the use of fossil-based energy.

Next is “Building Back Better” in waste management. According to Bappenas, waste management is integrated from the upstream to the downstream toward a circular economy. This is done through optimizing waste-sorting from the source, supported by a better waste collection system. It is also supported by the reinforcement of regional government institutions and its fiscal capacity in waste management.

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However, once again, there are extra challenges in the ideal waste management concept during the pandemic, as plastic waste consumption increases in volume compared to before.

As people stay at home longer, online shopping is on the rise. This leads to more widespread use of plastic wrapping. Worries of catching the virus through such wrapping leads to plastic waste being discarded without pre-processing.

This still excludes the surge in medical waste, including that produced by households, such as used masks and tissues with droplets, with its own set of problems.

Moreover, there has been a significant increase in the use of soap and detergent during the pandemic, as people routinely wash their hands with soap and running water.

Health authorities are also promoting the immediate washing of clothes after going out. In the webinar titled “Healthy, Resilient and Sustainable Cities in the New Normal”, Bogor Agricultural University (IPB) academic Etty Riani said the increased use of soap, detergent and water during the pandemic would reduce water quality and quantity.

The “Build Back Better” concept through low-carbon development is expected to rebuild Indonesia sustainably for the long run after the pandemic. However, implementing such ideal concepts will not be easy during this transitional period. (KOMPAS R&D)