Historical Perspective and Progress as of 18 November 2014

OZONE LAYER PROTECTION PROGRAMME

IN INDONESIA
By Anton SRI PROBIYANTONO
BRIEF

1992
2004-2010
1985 Indonesia 1993-2003
1987 Indonesia
Vienna ratified Indonesia 2009-2010 2012- present
1970s Montreal implemented
Convention Vienna implemented
Protocol on National Assessment HCFC
Scientists for the Convention, a Country
Substances Phase-out on the Phase-out
discovered Protection of Montreal Programme
that Deplete Plan (NPP) consumption Management
ODS the Ozone Protocol in
the Ozone to comply of HCFC Plan (HPMP)
Layer (MP) & compliance
Layer signed control
adopted London with MP
milestones
Amendment

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STATUS OF RATIFICATION
Indonesia ratified Montreal Protocol and its amendments as given the table below:

Agreement Date of Ratification

Signature Vienna Convention -
Signature Montreal Protocol 21.07.1988
Vienna Convention 26.06.1992
Montreal Protocol 26.06.1992
London Amendment 26.06.1992
Copenhagen Amendment 10.12.1998
Montreal Amendment 26.01.2006
Beijing Amendment 26.01.2006

http://ozone.unep.org/new_site/en/treaty_ratification_status.php

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INTRODUCTION
• In the 1970s, scientists discovered certain man-made compounds contributed to the depletion of
the Ozone Layer. These are the Ozone Depleting Substances (ODS) that have both Ozone
Depletion Potential (ODP) and Global Warming Potential (GWP). These can be found in such
every-day household items as refrigerators, Styrofoam cups, spray deodorants and cushions.
• In 1984, international attention was drawn to the urgent need of appropriate measures when it
was confirmed that the Ozone Layer over Antarctica was disappearing.
• In 1985, the global community then adopted the Vienna Convention for the Protection of the
Ozone Layer.
• Then, in 1987, they signed the Montreal Protocol on Substances that Deplete the Ozone Layer.
• To follow up on the global commitment, on 26 June 1992, Indonesia ratified the Vienna
Convention, the Montreal Protocol and London Amendment.

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ACTIVITIES OF THE MONTREAL PROTOCOL
• In 1993-2003, Indonesia implemented a Country Programme to address the needs of institutional
measures, regulatory framework, incentive and disincentive measures, awareness and
information dissemination, investment and technical assistance and monitoring in compliance with
the Montreal Protocol.
• In 2004-2010, Indonesia implemented National Phase-out Plan (NPP) to eliminate the remaining
consumption of ODS through a multi-year performance-based agreement to comply with the
control milestones.

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ACHIEVEMENTS
1. Relevant government agencies (Ministries of Environment, Health, Trade, Industry, Agriculture,
etc) released various regulations in compliance with the Environmental Law 23/1997 and the
Montreal Protocol to control and prohibit the import/use of certain ODS in cosmetics, agriculture,
households, shipping, etc.
2. As of 2008, Indonesia has already banned the import of Chlorofluorocarbons (CFCs).
3. As of 2010, Indonesia is successfully in compliance with the Montreal Protocol control schedule
for CFCs, Carbon Tetrachloride (CTC) and Halons.
4. As of 2012 until today, Indonesia has been implementing various activities to phase-out the
consumption of Hydrochlorofluorocarbons (HCFCs) in coordination with Multilateral Fund (MLF)
Secretariat, Implementing Agencies (UNDP, World Bank, UNIDO and UNEP), the Government of
Australia, private sector and experts.

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LESSONS LEARNED
1. In 1993-2003, the programme was implemented using a top-down approach considering the
relatively low level of capacity and awareness existing in the ODS consuming industry sectors, on
the Montreal Protocol obligations of the country. For instance, projects followed a direct/agency
execution mechanism, with technical requirements for industry conversions determined by
international experts and implementation of enterprise-level projects was overseen by
implementing agency officials and experts. As a consequence, many enterprises did not take full
ownership of the ODS phase-out.
2. Learning from previous experience, the Multilateral Fund adopted sector/national phase-out
approaches, through multi-year performance-based plans with annual targets and penalties for
non-compliance. During2004-2010, the sector phase-out plans for various ODS consuming
sectors were implemented in Indonesia. There was a much larger involvement of government and
industry stakeholders in implementation. This contributed to building knowledge and capacity at
the country-level for implementing complex, performance-based and technical programmes,
including decentralized enforcement and monitoring responsibilities for local governments.

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NEXT STEPS
1. Considering the lessons learned during implementation of the Montreal Protocol during 1993-
2003 and 2004-2010, the Deputy Minister for Natural Resources Conservation Enhancement and
Environmental Degradation Control, the Ministry of Environment (MOE), through a decree
no.01/Dep.III/KLH/04/2009, established 4 (four) Technical Working Groups (TWGs) comprising of
designated members of private sector (manufacturing industries and servicing companies),
relevant government agencies, academicians and other stakeholders, to advise the government
on the strategy to be adopted for compliance with the accelerated phase-out schedule for HCFCs.
2. MOE designated UNDP to be the lead agency for the HPMP in Indonesia focusing on
Refrigeration, Air Conditioning (RAC) and Firefighting (FF) sectors. World Bank (WB) and UNIDO
were designated as the cooperating agencies. WB focuses on Polyurethanes Foams sector while
UNIDO focuses on solvents sector and one group project in the Foams sector. MOE also
cooperates bilaterally with the Government of Australia to assist on technical aspect of refrigerant
management.
3. Facilitated by UNDP, GOI was working together with WB, UNIDO, with over 137 manufacturing
companies and over 2,000 servicing workshops to collect data, analyze it and prepare the
Indonesia HPMP Stage-I proposal.

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NEXT STEPS
4. Industries were fully involved in the process together with government officials and experts.
5. As a result, GOI was able to submit a HPMP Stage-I proposal that accommodated the integrated
needs of Indonesia for compliance with the 2013 and 2015 control targets for HCFCs.
6. Indonesia’s HPMP Stage-I was approved by the Executive Committee of the Multilateral Fund in
its 64 meeting in July 2011 (ExCom Decision 64/42), noting with appreciation the exemplary
policy and other initiatives in the proposal
7. According to the agreed HCFC consumption targets, Indonesia will need to freeze its HCFC
consumption at the level of 403.92 ODP tonnes by 01 January 2013, reduce it to 363.53 ODP
tonnes from 01 January 2015 and to further reduce it to 323.14 ODP tonnes by 01 January 2018.

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CONCLUSION
• ODS consuming industrial sectors are the heart of the Ozone Protection (Montreal Protocol)
Programme. These industries produce, store, consume, distribute and release the ODS through
their manufactured and/or serviced products. Their active engagement in the decision-making
processes is critical to freeze, reduce and eliminate ODS, with the assistance of designated
Implementing Agencies for Indonesia (UNDP, WB and UNIDO) and relevant government agencies
(Ministry of Environment, Ministry of Trade, Ministry of Health, Ministry of Finance/Directorate
General of Customs and Excise, Ministry of Energy and Mineral Resources, local governments),
experts and other relevant stakeholders. This would facilitate the enactment of forward-looking
regulations that would ensure compliance with the HPMP targets and also maximize climate
benefits.
• Industries’ active engagement in the process of the programme preparation and implementation
has been able to trigger higher interest of private sectors in promoting the importance of the
Ozone Layer Protection and Climate Change mitigation. The industries are encouraged to
propose their own data and targets to accelerate the progress. The road map to control the target
is clearer. It will not only give impact locally but also globally.
• The partnership is expected to strengthen the efforts of Indonesia in compliance with the Montreal
Protocol.

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Existing Programme

HYDROCHLOROFLUOROCARBONS (HCFC)
PHASE-OUT MANAGEMENT PLAN (HPMP)
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INDONESIA
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GENERAL INFORMATION
Project Title: HCFC Phase-out Management Plan (HPMP) for Compliance with
the 2013 and 2015 Control Targets for Annex-C, Group-I
Substances (HCFCs) in Indonesia
Objective: To reduce 80.4 ODP tonnes in the national HCFC consumption by
2018. In addition, the project will result in net CO2 equivalent direct
emission reduction of about 1.5 million tonnes annually from 2015.
UNDP Award ID/ Project ID: 00065312/ 00081873
Implementing Partner: Ministry of Environment
(Assistant Deputy for Atmospheric Function Preservation and
Climate Change Mitigation)
Start Date: 01 June 2012
End Date: 31 December 2018
Project Appraisal Committee 27 March 2012
(PAC) Meeting:

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GENERAL INFORMATION
Donor: Multilateral Fund (MLF)
MLF Project Numbers: IDS/PHA/64/TAS/192
IDS/PHA/64/INV/193
IDS/PHA/64/INV/195
UNDP Award ID/ Project ID: 00065312/ 00081873
Period of Implementation: 2012-2018 (Stage-I)
Start Date: 01 June 2012
End Date: 31 December 2018
Prodoc signatures: 28 August 2012
by Ministry of Environment, Ministry of Finance and UNDP
Total Resources: Managed UNDP for Indonesia: US$ 8,901,102
Managed by WB for Indonesia: US$ 2,714,187
Managed by UNIDO for Indonesia: US$ 777,395
Total: US$ 12,392,684

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BACKGROUND
• Indonesia acceded to the Vienna Convention and ratified the Montreal Protocol on Substances
that Deplete the Ozone Layer in June 1992. As of January 2006, Indonesia has ratified all the
amendments to the Montreal Protocol.
• Indonesia is classified as a party operating under Paragraph-1, Article-5 of the Montreal Protocol
(MP) qualified to receive technical and financial assistance.
• Indonesia has prohibited imports of Chlorofluorocarbons (CFCs), Halons and Carbon
Tetrachloride (CTCs) as of 1 January 2008.
• Indonesia’s HCFC Phase-out Management Plan (HPMP Stage-I) comprises of a combination of
interventions such as: technology transfer investments, policies and regulations, technical
assistance, training, awareness and communications and management, coordination and
monitoring in various HCFC consuming sectors.

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WHAT ARE HCFCS?
• The most popular one that we know is “Freon” (produced by DuPont).
• HCFCs are used in Refrigeration (Ref), Air Conditioner (AC), Foams, Fire Fighting and solvents.
• Predominant HCFCs are HCFC-22 (RAC sectors).
• HCFCs are classified as controlled substances under Annex-C, Group-I of MP and subject to the
adjusted control schedule for Article-5 countries.
• Indonesia has to freeze the consumption of HCFC at baseline levels from 2013 and reduce 10%
from baseline levels as of 2015.

15
MONTREAL PROTOCOL DECISIONS

Recognizing the environmental benefits (ODP & GWP reductions), the XIX Meeting of Parties to
the Montreal Protocol (Sep.2007: XIX/6) accelerated the HCFC phase-out schedule as follows:

Step Activity Time

1st Control Freeze of production & consumption at Baseline As of 01 Jan 2013
Level
2nd Control Reduction of 10% (from Baseline Level) As of 01 Jan 2015
Subsequent Reduction of 35% 2020
Control Reduction of 67.5% 2025
Reduction of 97.5% 2030
Complete phase-out As of 01 Jan 2040

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CONSUMPTION OF HCFC (2007-2009)

2007 2008 2009

Substance Metric ODP Metric ODP Metric ODP

Tonnes Tonnes Tonnes Tonnes Tonnes Tonnes

HCFC-141b 1,008 110.8 874 127.7 1,186 130.5

HCFC-22 3,094 170.2 3,668 201.8 4,327 237.9
HCFC-123 288 5.8 92 1.8 318 6.4
HCFC-225 - - 1 0 1 -
Total 4,390 286.8 4,635 331.3 5,832 374.8

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PROJECTED HCFC CONSUMPTION
410.00
STAGE-I (2012-2015) TARGETS
400.00
Projected from the consumption of R/AC, FF,
390.00

380.00

370.00
Foams & Solvents

360.00

350.00

340.00
PROJECTED HCFC MAX CONSUMPTION MAX CONSUMPTION
BASELINE 2009-2010 LEVEL FROM 01 JAN LEVEL AS OF 01 JAN
2013 - DEC 2014 2015

Note: there will be Stage-II (2015-2020) & subsequent targets established later.
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STRATEGIC APPROACH
Approach Activities
Partnership Joint programme among Implementing Agencies (UNDP, WB,
UNIDO & UNEP), government agencies and private sector
(industries and associations)
Implementing/ Bilateral Agencies: 1. UNDP (Lead Agency)
2. Australia (Bilateral Cooperating Agencies)
3. World Bank (Cooperating Agency)
4. UNIDO (Cooperating Agency)
National Coordinating Agency: Ministry of Environment
Components: 1. Investment
2. Non Investment (policies, regulations, capacity
development, etc.)
Prioritization: 1. Focus of Stage-I: Manufacturing (2012-2015)
2. Focus of Stage-II: Servicing (2015-2020)

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ROAD MAP
Milestones 2012 2013 2014 2015 2016 2017 2018

HCFC CONSUMPTION LIMIT (ODP Tonnes) N/A 403.92 403.92 363.53 363.53 363.53 323.14

TECHNOLOGY CONVERSIONS
• Finalization of implementation plan X

• Enterprise level agreements X

• Enterprise level conversions X X

• Commissioning X X X

PROJECT MANAGEMENT
• Finalization of implementation plan X
• Regulations development X X
• Enforcement X X X X X X X
• Monitoring & coordination X X X X X X X
• Awareness & capacity-building X X X X X X X
• Stakeholder consultations X X X X X X X
• Performance verification X X X X X

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COMPANY CATEGORY
HPMP Stage-I
• Group-1 Enterprises (Refrigeration and Air Conditioner Manufacturing Companies)
• Group-2 Enterprises (Refrigeration and Air Conditioner Assembling Companies)
• Group-3 Enterprises (Refrigeration and Air Conditioner Installing Companies)

HPMP Stage-II
• HCFC-22 phase-out: servicing sector
• HCFC-123 phase-out in Fire Fighting applications

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 HPMP PROJECT ORGANIZATION STRUCTURE

PROJECT BOARD
Senior Beneficiary Executive
Assistant Deputy for Atmospheric Function
Ministry of Environment, Ministry of Industry, Senior Supplier
Preservation and Climate Change Mitigation,
Ministry of Trade, Customs, Statistics, Industry UNDP
Deputy Minister for Environmental
(private sector)
Degradation Control and Climate Change

Project Assurance
UNDP National Project Manager

Project Support
1. Project Assistance
2. Project Clerk

Air Conditioning Team Refrigeration Team Technical Coordinator

PROGRESS AS OF 18 NOVEMBER 2014
Investment
• 7 RAC manufacturing companies (group-1) signed Memorandum of Agreement (MoA) to change their
technology of production in Le Meridien Hotel, Jakarta on 20 March 2013. Later on, 1 AC manufacturing
company signed MoA on 18 June 2013.
• 9 refrigeration assembling companies (group-2) are willing to proceed with HPMP
• 8 refrigeration installing companies (group-3) will receive Incremental Capital Cost (IOC)
• Other companies on RAC will change their technology to use non HCFC

Regulatory Framework:
• As of 1 January 2015, HCFC will be banned for refrigeration and air conditioner production process,
blowing agent in domestic refrigeration, freezer thermoware, refrigerated trucks and integral skins, and
imported goods that contain such substance. Accordingly, there are a number of decrees that have
issued by relevant government agencies, i.e.:
• Decree of Minister of Trade Number 55/M-DAG/PER/9/2014 concerning the Terms and Conditions of
Imported Cooling System Based Goods
• Decree of Minister of Industry Number 41/M-IND/PER/5/2014 concerning the Prohibition of
Hydrochlorofluorocarbon (HCFC) in Industrial Sector

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PROGRESS AS OF 18 NOVEMBER 2014
Regulatory Framework:
• National quotas are updated regularly (such as the issuance of letters by relevant Deputy Minister
Number B-12012/Dep.III/LH/12/2011 concerning National Quota for 2012 and B-
12581/Dep.III/LH/PPLH/12/2012 concerning National Quota for 31 HCFC Importers).
Introduction of New Technology
• The National Ozone Unit (NOU) invited manufacturing companies, especially the grant recipients,
to new technology conference in Bangkok, Thailand (July 2013).
• NOU also facilitated the promotion of new technology in several workshops in Jakarta, Indonesia.
Due Diligence on the Recipient Sites
• A Team consisting of officials of Ministry of Environment, UNDP and experts visited companies
interested in the project.
The Establishment of an Association
• Relevant industries agreed to establish Asosiasi Manajemen Refrigeran Indonesia (AMRI) or
Indonesia Refrigerant Management Association on 4 September 2013 in Jakarta.

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MILESTONES OF GROUP-1
1. Implementation work plan comprising of the following:
• Overall activity schedule; Specifications of product models to be re-designed; Plant re-layout
drawings as applicable.
2. Plant and process modifications comprising of:
• Issuance of purchase orders/ contracts for major equipment and/or modifications thereof.
3. Installation comprising of:
• Installation of new/ retrofitted equipment; Completion of local civil, electrical and mechanical
works; Installation of safety systems as applicable.
4. Trials and commissioning comprising of:
• Product prototypes; Product testing; Trial production; Personnel training for operation,
maintenance and safety.
5. Completion and phase-out of HCFCs:
• Exhaustion of HCFC stocks; Disposal of redundant baseline equipment as applicable;
Product external certification as applicable.
Note: the milestones are stated in Memorandum of Agreement (MoA0 betweeen Ministry of Environment and companies

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