The Use of Green Economy Indicators in the Indonesia Green Economy Model (I-GEM)
Transitions towards a ‘Green Economy’ are being sought actively by many nations, and Indonesia is a leader among them. “I-GEM” (Indonesia Green Economy Model) is a flexible and easy-to-learn System Dynamic Model being piloted in a few Indonesian provinces, as part of a capacity building programme supported by the United Nations Development Programme (UNDP) in collaboration with United Nations Environment Programme (UNEP), to evaluate trade-offs and test the sustainability dimensions of policy interventions in provincial economies. Kalimantan Tengah is its first pilot application. I-GEM is being tailored to incorporate an additional set of three ‘Green Economy’ outcome indicators which will be standardized across provinces. These outcome indicators address rural poverty alleviation, job creation and sustainability in economic growth, respectively by measuring the ‘GDP of the rural poor’, measuring decent and green jobs and green accounting at the province level. This paper outlines the rationale for our indicator selection, provides some early illustration of their methodology and benefits, and opens rational discourse on policy and investment choices for a wealthy future for Indonesia.