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Abstract. West Papua is one of the Indonesian remaining forest frontiers expected to
contribute greatly to countries’ climate commitments. Although fast economic growth in West
Papua may results in high emission to the environment, especially in the energy sector. This
study aimed to simulate the Gross Regional Domestic Product (GRDP) linked to Emission
variables and integrate climate-smart development. The dynamic system model will integrate
the influencing factors such as GRDP, capital, investment, and emission in West Papua. The
modeling stage comprises of concept drafting, modeling, model simulation, and validation
process. Powersim 10 is used to run the model. A causal loop diagram of the initial model
scenario is formed of one variable is positive (reinforcing). Modeling results has been declared
valid by the AME value of 4,96%. The implementation of NDC 41% in the economic sector
will cut GRDP to approximately a half than business as usual GRDP. Based on the initial
scenario, the model simulations indicate that the CO2 emission along the simulation period is
defined to the year 2030, about 14,397,034,50 tonCO 2/year on average. After the structural
intervention is conducted, the CO2 emission decrease up to 25,6%, reducing emission
according to NDC, 41% will correct the economy.
1. Introduction
Years before pandemic COVID19, Indonesia has experienced stable macroeconomic growth since the
last decade. This has succeeded in catapulting the nation as one of the largest economies in Southeast
Asia. As of 2011, Indonesia is proclaimed as the 10th biggest country in terms of nominal GDP (PPP
based) resulted in the improved credit rating to investment by Fitch and Moodys [1]. The country has
experienced steady economic growth at 5% during the last year first quarter. Indonesia’s economic
outlook showed a positive sign with the median GDP growth of 5.1% between mid-2015-2019, which
is remarkable compared to the global economic downturn during the same period.
Despite the favorable financial markers and steady growth, Indonesia still battles with poverty and
unemployment, lacking infrastructure, corruption, and unequal asset distribution among locales.
Despite being a forest-rich province, poverty in West Papua is rampant, although the trend shows
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Published under licence by IOP Publishing Ltd 1
The 1st Journal of Environmental Science and Sustainable Development Symposium IOP Publishing
IOP Conf. Series: Earth and Environmental Science 716 (2021) 012015 doi:10.1088/1755-1315/716/1/012015
some improvement. West Papua Province continued to experience growth in 2010. At constant prices
[2], the Gross Regional Domestic Product reached Rp 41,362 billion and reached Rp 60,454 billion in
2018. However, such growth does not reflect the improvement of community welfare, as shown in
BPS 2016 data that around one-fourth of the population still live in a destitute condition earning a
meager 31 USD/month [3]. Development may open up more job opportunities, but West Papua will
face stiff competition from migrant workers from other islands without the experience or skills needed
to seize such opportunities. Likewise, with an investment that goes to the province, namely for
plantations, indigenous Papuans will be hard to compete with immigrants or non-indigenous Papuans
to work on plantation agriculture [4].
If the focus on development is shifted from business-as-usual to a sustainable management plan,
West Papua can better advance the target asset under the NDC pledge to ensure social prosperity on
the ground. The current investment model in West Papua is still predominant by the high emissions
intensity industries such as the cement industry, road infrastructure, oil, and gas extraction. One key
characteristic of such investment is the high energy demand, one of the highest emitter, contributing
significantly to economic growth -mining and excavation, transportation, and business process [5].
Consequently, it creates brown development with a high-emitting operational tool to generate the
economy. The current scenario of experiencing such circumstances will more likely create an adverse
effect of environmental damage in the long run.
A low carbon energy model in Indonesia has been developing by Sadli. Sadli [6] uses oil and gas
consumption variable to construct a dynamic system model in energy, and use a larger scale of data of
a nation, Indonesia. There is no research about the low carbon energy model in West Papua, especially
using energy GRDP and emission as a variable. This paper aims to build a low-carbon economy model
in the energy sector to understand further, predict, and optimize the level of greenhouse gas emissions
in West Papua Province based on the economic threshold and rationality of sustainable development.
Under this paper, two key questions to address are 1) How big is the potential emission reduction
under the low carbon energy scenario compare to the business as a usual scenario? and 2) what are the
identified key indicators to support for low carbon economy in West Papua? The modeling results will
be used as the basis for the formulation of the West Papua Province NDC policy and its
implementation and the basis for the West Papua Province Low Carbon Development policy.
2. Method
2.1.1. Concept design. Designing the concept is crucial to provide the groundwork for the expected
BAU scenario and its intervention. It includes identifying the key variables to generate a low carbon
economy model, including economy-related indicators (of GDRP, investment rate, and capital) and
environment-related indicators (of historical emissions and emission targets at the national and
provincial levels). Support from increased investment results in generating more capital, eventually
producing more regional income (Figure 1). The scenario performs a reinforcing loop in the causal
loop diagram, which creates a win-win solution for complementing each element.
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The 1st Journal of Environmental Science and Sustainable Development Symposium IOP Publishing
IOP Conf. Series: Earth and Environmental Science 716 (2021) 012015 doi:10.1088/1755-1315/716/1/012015
2.1.2. Modeling stage. The interaction among elements is elaborated further into the Stock Flow
Diagram (SFD) to process the model’s behavior. SFD elaborates detailed information on the
correlation betweeen the determined elements over time and provides flexibility to run the model to
gain results between the BAU and intervention scenario.
2.1.3. Simulation model. The computation simulation, a solution to the problem, is expressed in a
mathematical model, using the relationship between existing variables by testing the valid data.
Mathematically, the model generally takes the form f (x) = y, where x = the set of information hidden
in the model, in the form of quantities whose values must be determined to solve real problems.
Simple and complex mathematical models are used to answer the concrete problems faced. Due to
many of these variables, a simulation is needed to perform computerization or software calculation
indirectly.
2.1.4. Validation of simulation results. The mathematical model is required for the verification process
to identify any potential error that emerges after running the modeling scenario from SFD. The
validation process is carried out to ensure the model behavior output is accurate and in line with
expectations and realities in the field. The authors employ AME (Absolute Mean Error) to validate the
process. The formula is as the following:
Where A is the actual value, and S is the value of simulation. We set 30% as the AME limit value,
which considerably strong enough to support the valid model [7].
2.2. Data
Data is gained by incorporating relevant social and economic indicators, mainly from the National
Bureau of Statistics (BPS) and the Bank of Indonesia Report. The selected indicators were determined
through expert elicitation to map the key elements involved under the low carbon development
scenario. Powersim 10 is used to design CLD and SFD and run the model.
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The 1st Journal of Environmental Science and Sustainable Development Symposium IOP Publishing
IOP Conf. Series: Earth and Environmental Science 716 (2021) 012015 doi:10.1088/1755-1315/716/1/012015
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The 1st Journal of Environmental Science and Sustainable Development Symposium IOP Publishing
IOP Conf. Series: Earth and Environmental Science 716 (2021) 012015 doi:10.1088/1755-1315/716/1/012015
Table 1 below shows the preliminary value of simulation and estimation methods.
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The 1st Journal of Environmental Science and Sustainable Development Symposium IOP Publishing
IOP Conf. Series: Earth and Environmental Science 716 (2021) 012015 doi:10.1088/1755-1315/716/1/012015
The validation results in GDP show that the AME value is 4,96%. This value indicates that the
AME value is >0.3, which means that the model is valid.
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The 1st Journal of Environmental Science and Sustainable Development Symposium IOP Publishing
IOP Conf. Series: Earth and Environmental Science 716 (2021) 012015 doi:10.1088/1755-1315/716/1/012015
60.000
50.000
Energy GRDP (Milyard)
40.000
30.000
20.000
10.000
0
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Year
Figure 3. West Papua energy GDP Business As Usual (Simulated used Powersim 10).
16.000.000
14.000.000
12.000.000
Emission (TonCO2e)
10.000.000
8.000.000
6.000.000
4.000.000
2.000.000
0
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Year
Figure 4. West Papua energy emission Business As Usual (Simulated used Powersim 10).
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The 1st Journal of Environmental Science and Sustainable Development Symposium IOP Publishing
IOP Conf. Series: Earth and Environmental Science 716 (2021) 012015 doi:10.1088/1755-1315/716/1/012015
60.000
50.000
Energy GRDP (Milyard)
40.000
30.000
0
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Year
Figure 5. West Papua energy GDP NDC 41% intervention (Simulated used Powersim 10).
The implementation of NDC 41% resulting in a slow increase of GRDP (Line gray) compared with
NDC 29%, and BAU scenario. West Papua province GRDP increases from about 23,392 billion in
2010 to above 47,990.12 billion in 2030, or almost double from baseline GRDP. In comparison to the
BAU scenario, this figure is half of the estimate.
West Papua possesses 17 priority sectors that support Papua Barat’s economy. Implementation of
NDC is likely to impact GRDP negatively; therefore, there is an urgency to find other sectors to
balance the GRDP if NDC commitments 29% scenario is established. Like eco-tourism and
agroforestry, the potential sector seems to offer promises to compensate for the potential economic
loss. Another sector is the services industry, such as financial and telecommunication hubs, to support
economic development.
16.000.000
14.000.000
Emission (TonCO2e)
12.000.000
10.000.000
8.000.000
6.000.000 Energy Emission BAU
4.000.000 Energy Emission Intervension 29%
Energy Emission Intervension 41%
2.000.000 Emission Target (NDC 41%)
0
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Year
Figure 6. West Papua energy emission NDC 41% intervention (Simulated used Powersim 10).
Furthermore, Figure 6 represents the West Papua emission with intervention NDC 29%. The
intervention scenario will slow emission increases down but remains below the 2030 emissions target.
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The 1st Journal of Environmental Science and Sustainable Development Symposium IOP Publishing
IOP Conf. Series: Earth and Environmental Science 716 (2021) 012015 doi:10.1088/1755-1315/716/1/012015
The implementation of NDC 29% will reduce emissions to a half amount CO2e than business as usual
scenario, or about 230 GtonCO2e in 2030.
We estimated CO2 emission projection using two factors: (1) the change of energy demand and (2)
carbon emission. The 2006 IPCC recommended method is then employed to provide information on
CO2 emissions for different energy types corrected value [20][21]. Conversion for power generation
and heating from coal and LPG allocation from primary energy is referred to as carbon emissions [22].
The West Papua Government plans to use a wind power plant which did not produce emission into the
environment. Besides that, energy from the wave is very abundant in Papua Barat. One of the many
solutions to reduce emissions in the energy sector is to convert energy sources or mixing two sources
of the energy power plant so that the emission will be reduced.
4. Conclusion
The study observed the base case scenario for CO2 emissions during simulation up to 2030 reach up
about 14,397,034,50 tonCO2/year on average. If the NDC 29% intervention implemented on ground,
CO2 emission could level down to 10,713,852,63 tonCO2/year or 25,6%. Further research is needed
by including cross-sectoral variables, e.g., environmental and social, to establish a whole picture of the
province’s low carbon economy police in West Papua.
Acknowledgements
We want to thank the Tracking and Strengthening Climate Action (TASCA) project funded by the
International Climate Initiative (IKI) for providing financial and technical support during the
development of this proceeding.
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